Pizza Hut Tenant Overview


  • Absolute NNN leases
  • High visibility
  • Corner of signalized intersections


  • Competitive industry
  • Franchisee operators

Earnings Highlights

Earnings Summary
  • Worldwide system sales grew 13%, excluding foreign currency translation, and Pizza Hut at 7%
  • GAAP operating profit grew 4% and core operating profit grew 12%.

Tenant Description

Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes such as pasta, wings, and breadsticks.

A Pizza Hut property is an attractive investment because the triple net leases offer investors an asset with no landlord responsibilities. The leases are typically 10-15 years with rental increases during the primary term, providing a hedge against inflation. A Pizza Hut usually operates in a 1,150-2,900 square foot free-standing building that can easily be adapted to other QSR tenants in the event Pizza Hut were to vacate.

Frank and Dan Carney founded Pizza Hut in 1958 in Wichita, Kansas. The brothers borrowed $600 from their Mother to start the company, using second-hand equipment and modest furnishings. Now headquartered in Plano, Texas, Pizza Hut is the #1 pizza restaurant chain in the world in both sales and number of restaurants. It has 19,000 locations in 130 countries and counting. Pizza Hut is owned by Yum! Brands. Other concepts under Yum! Brands include KFC and Taco Bell.

There are many different restaurant formats Pizza Hut has to offer: the original family-style dine-in locations; store front delivery and carry-out locations; and hybrid locations that offer carry-out, delivery, and dine-in options.

Pizza Hut is continuously reinventing ways to deliver pizza to its customers all around the world. It has become the first to offer pizza delivery ordering on the internet, the first to send pizza to space, and the first national chain to reach out to its customers through Facebook.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $1,066,299
NOI $62,651
$/Square Foot $368 - $927
Building SF 1,150 - 2,900
Lot Size 0.5 - 1.0 Acres
Lease Term 10 - 15 Years
Escalations Varies
Stock Symbol YUM
Credit Rating
Moody's Ba2
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Port Clinton, OH 5.75%
Hickory, NC 6.00%
Warren, PA 6.39%
Deland, FL 6.90%