Steak ‘n Shake Tenant Overview

Net Lease Advisor Tenant Steak n Shake


  • NNN lease eliminates landlord responsibilities
  • Low sale prices
  • 20 year lease terms


  • Non-investment grade by both S&P and Moody's
  • Must look closely at performance of franchisor across all locations

Tenant Description

Steak ‘n Shake is a QSR known for their steakburgers and milk shakes. It was founded in 1934 by Gus Belt who converted a gas station and chicken restaurant in Normal, Illinois, into a hamburger stand. In 2008, the company was bought by Biglari Holdings.

Steak ‘n Shake properties are located in appealing high traffic areas. Most Steak ‘n Shakes have the ability to be easily converted to another QSR if the tenant were to vacate the location. These factors help the building and land retain a high value; however, the company has struggled in recent years and its stock price has suffered. Over the last six quarters, same store sales for Steak 'n Shake have consistently declined 5%. Additionally, both Moody's and S&P credit raters have recently downgraded the company's credit rating, indicating the risk associated with the investment.

Years of declining sales and the hit from Covid-19 has forced Steak 'n Shake to close 73 franchises since the end of 2018. Highly visible and well located Steak 'n Shake real estate is trading at deep discount, and there may be bargains out there for willing investors.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $1,542,000
NOI $113,526
$/Square Foot $437
Building SF 3,528
Lot Size 0.8 - 1.8 Acres
Lease Term 20 Years
Escalations 10% Every 5 Years
Stock Symbol BH
Credit Rating
Moody's Ca
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Normal, IL 8.10%
Elgin, IL 10.30%
Brandon, FL 7.30%