Panera Bread Tenant Overview


Net Lease Advisor Tenant Panera Bread

Pros

  • Rental increase throughout primary term of the lease
  • Absolute NNN leases
  • High visibility location with premier retails

Cons

  • No credit ratings
  • Corporate guarantee

Tenant Description

Panera Bread is a chain of fast, casual restaurant and has become an increasingly popular net lease investment property due to their high consumer demand of healthy food choices.

Panera Bread net lease properties provide a long-term NNN investment with no property management responsibilities. The average restaurant size is approximately 4,500 square feet on a 1.0-1.5 acre land, often on a pad site. The lease term is usually 15 years with one or two options to extend the lease. Many leases include rental increases between 5%-10% in base term and option periods.

The Panera Bread legacy began in 1981 as Au Bon Pain Co., Inc. The company was renamed Panera Bread and company's stock has grown exponentially, before being acquired by JAB Holdings.

Panera Bread Cafes are located in well located near major shopping centers, university and college campuses, and business centers. They feature high-quality food in a warm, inviting, and comfortable environment with handcrafted artisan bread that is baked every day. The menu also features soups, salads, and sandwiches along with seasonal new dishes.

Average Cap Rate
4.90%
Trailing 12-month average
Average Property & Lease
Average Sale Price $3,784,267
NOI $183,657
$/Square Foot $757 - $946
Building SF 4,000 - 5,000
Lot Size 1.0 - 1.5 Acres
Lease Term 15 Years
Escalations Varies
Stock Symbol N/A
Credit Rating
S&P BBB+
Moody's Baa1
Average Cap Rate Trend
4.63%
2022
4.90%
2023
Rates reflect year-over-year comparison
Recent Sales Comps
Jacksonville, Fl 4.30%
Queen Creek, AZ 4.80%
Edison, NJ 5.26%