Hardee’s Tenant Overview
Updated: November 13, 2023
Pros
- NNN lease eliminates landlord responsibilities
- Located in high traffic suburban locations
- Store configuration adaptable to a variety of alternative uses
Cons
- Private company
- Must look closely at performance of franchisor across all locations
Tenant Description
Hardee's has built a position as one of America's premier burger brands, with more than 1,800 quick-service restaurants operating in 30 US states and internationally.
Hardee's typically operates under a 20-year net lease, mostly NNN leases with rental bumps every five (5) years. The average Hardee's freestanding locations range from 2,500 - 3,500 SF situated on 0.60 - 1.50 of land. The prototypical store model offers a drive-thru window and the configuration is adaptable to a variety of alternative uses.
Founded in 1960 by Wilber Hardee and acquired by CKE Restaurants Holdings, Inc. in 1997, Hardee’s® restaurants are located throughout the Southeastern and Midwestern United States. CKE Restaurants Holdings, Inc. (“CKE”) is a privately held company based in Franklin, Tennessee. CKE, through its wholly owned subsidiaries, owns and operates Carl’s Jr.® and Hardee’s®, two regional brands.
Average Cap Rate
6.13%
Trailing 12-month average
Average Property & Lease
| Average Sale Price |
$1,751,224 |
| NOI |
$103,749 |
| $/Square Foot |
$500 - $700 |
| Building SF |
2,500 - 3,500 |
| Lot Size |
0.6 - 1.5 Acres |
| Lease Term |
15 - 20 Years |
| Escalations |
5 - 10% Every 5 Years |
| Stock Symbol |
N/A |
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
| Johnson City, TN |
5.85% |
| Waynesville, IL |
6.45% |
| Fountain Inn, SC |
6.90% |
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