Hardee’s Tenant Overview
Updated: February 3, 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. With both a US and international footprint, Carl’s Jr. Restaurants LLC and Hardee’s Restaurants LLC have over 3,800 franchised or company-operated restaurants in 44 states and 43 foreign countries and U.S. territories.
Average Cap Rate
5.00%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price |
$1,700,000 |
NOI |
$107,224 |
$/Square Foot |
$498 - $697 |
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 last 12 mos, short and long-term
Recent Sales Comps
Athens, GA |
5.15% |
Dayton, OH |
5.24% |
Springfield, IL |
5.45% |
North Vernon, IN |
6.16% |
Featured Tenant Profiles
Sector: QSR
Avg. Cap Rate: 5.42%
Sector: Pharmacy
Avg. Cap Rate: 4.80%
Sector: Medical
Avg. Cap Rate: 5.00%