Jack in the Box Tenant Overview



Pros

  • NNN leases eliminate landlord responsibilities
  • Increases in primary term
  • Store configuration adaptable to a variety of reuses

Cons

  • Not rated by Moody’s or S&P
  • Franchisee Operators

Earnings Highlights

Earnings Summary
  • Jack in the Box same-store sales of +4.0% in Q4 2022, +0.9% for FY 2022
  • Jack in the Box to open 25-30 restaurants, expects positive net unit growth in FY 2023
  • Jack in the Box expects positive net unit growth in 2023, led by 25-30 gross openings

Tenant Description

Jack in the Box is a quick service hamburger chain located in 21 states across the country, concentrated in California and Texas.

A Jack in the Box property is an attractive net lease investment due to the favorable terms for the owner as well as the location of the properties. Jack in the Box will sign long triple net leases with built-in rent increases. The nature of a triple net lease relieves the investor of any landlord responsibilities while the rent increase creates a nice hedge against inflation. Jack in the Box restaurants are typically located in desirable locations that allow for high visibility and convenience for customers. These traits are valuable and necessary for any retail tenant, not just a QSR.

Jack in the Box Inc. is based in San Diego, CA and operates and franchises over 2,100 Jack in the Box restaurants in 21 US states and Guam. This leaves ample opportunity for expansion into new markets. Jack in the Box was the first major hamburger chain to develop and expand the concept of drive-thru restaurants. Today, the drive-thru accounts for about 85% of Jack in the Box sales.

Jack in the Box franchises over 90% of all locations.


Average Cap Rate
4.91%
Trailing 12-month average
Average Property & Lease
Average Sale Price $2,707,997
NOI $129,846
$/Square Foot $1,083
Building SF 2,500
Lot Size 0.75 Acres
Lease Term 20 Years
Escalations 5 - 10% every 5 years
Stock Symbol JACK
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
4.22
2022
4.91%
2023
Rates reflect year-over-year comparison
Recent Sales Comps
Auburn, WA 5.25%
Glendale, AZ 4.50%
Waco, TX 5.00%