Chick-fil-A Tenant Overview

Tenant Description

Chick-fil-A, Inc. is the largest quick-service chicken restaurant chain in the United States, based on domestic annual sales. Supported by a strong brand and award-winning restaurant design and architecture, the family-owned, privately-held company is strategically expanding and uniquely positioned for continued future growth.

Chick-fil-A is notorious for having strong franchised restaurant operators, proven by the fact that Chick-fil-A maintains a franchisee turnover rate of less than 5% per year. The company only accepts about 0.4% of the applicants who apply every year. For net lease investors, it is reassuring to know that Chick-fil-A NNN leases have a corporate guarantee by Chick-fil-A, Inc.

Chick-fil-A is an exceptional investment opportunity for net lease investors, thanks to its unparalleled brand reputation, consistent profitability, and strong consumer loyalty. As one of the top-performing quick-service restaurants in the United States, Chick-fil-A generates some of the highest average sales per unit in the industry, driven by its focus on quality, customer service, and efficient operations. Its long-term triple-net (NNN) leases typically require minimal landlord involvement, offering investors stable, passive income with attractive rent escalations over time. Chick-fil-A locations are strategically situated in high-traffic areas, often near major retail hubs, ensuring strong foot traffic and visibility. Additionally, the company’s conservative approach to expansion and commitment to operational excellence further solidify its financial stability, making it a sought-after tenant in the net lease market. For investors seeking a low-risk, high-return asset backed by a recession-resistant tenant, Chick-fil-A stands out as a prime choice.

Ever since Truett Cathy invented the chicken sandwich in 1964, the name Chick-Fil-A has become as synonymous with Atlanta as Coca-Cola. The chicken sandwich recipe has remained relatively unchanged: a hand-breaded chicken breast stuffed in a soft buttered bun and garnished with a couple of pickle chips. Cathy sold it for less than a buck at his Dwarf House in Hapeville, a place so small it had only 10 stools and four tables. The first Chick-fil-A restaurant arrived in 1967, and today the fast-chicken giant boasts more than 2,700 locations in 47 states and Washington, DC.