Cracker Barrel Tenant Overview
Updated: February 7, 2023
Pros
- Rental increase throughout primary term of the lease
- Absolute NNN leases
- Strong real estate fundamentals
- Corporate guarantee
Cons
- No credit ratings
- Low comparable data
Earnings Highlights
Earnings Summary
- The Company reported fourth quarter total revenue of $830.4 million. Compared to the prior year Q4, total revenue increased 5.9%.
- GAAP net income was $33.4 million, or 4.0% of total revenue. EBITDA1 was $62.4 million, or 7.5% of total revenue.
Tenant Description
Cracker Barrel is one of the most popular casual dining restaurants and is a high demand net lease investment due to the successful concept.
It is uncommon to find a Cracker Barrel in the net lease market, because they do not franchise any of their restaurants. This creates unique factors surrounding these assets. The competition to purchase a Cracker Barrel is stiff for the few locations that come on to the market. All Cracker Barrel locations are corporate guaranteed, creating a higher demand and lower cap rates for these assets. Most Cracker Barrel net leases properties offer an investor long-term security and no management responsibilities. Their leases generally have rent increases with 5 year options.
Cracker Barrel Old Country Store opened back in 1969 in Lebanon, Tennessee and now has over 660 locations in 45 states. The restaurants serve up home-style country food. Cracker Barrel is a highly differentiated concept that's difficult to list in a particular casual dining category since they have the unique retail store that separates them from most other casual dining restaurants.
Average Cap Rate
4.57%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price |
$4,451,025 |
NOI |
$194,947 |
$/Square Foot |
$371 - $495 |
Building SF |
9,000 - 12,000 |
Lot Size |
1.6 - 3 Acres |
Lease Term |
10 Years |
Escalations |
10% Every 5 Years |
Stock Symbol |
CBRL |
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Victorville, CA |
4.47% |
Kingwood, TX |
5.00% |
Spring Hill, FL |
5.25% |
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