A&W

A&W Restaurants, Inc. is a chain of fast-food restaurants distinguished by its draft root beer and root beer floats. Its origins date back to 1919 when Roy W. Allen opened a walk-up root beer stand in Lodi, California. Evolving into franchise in 1926, today the company has franchise locations throughout much of the world, serving a typical fast-food menu of hamburgers, French fries, and hot dogs. A number of outlets serve as drive-in restaurants that have carhops.

Previously owned by Yum! Brands, the chain was sold in December 2011 to a consortium of A&W franchisees, through A Great American Brand, LLC. A&W restaurants in Canada have been part of a separate and unaffiliated chain since 1972.

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S&P Rating: N/R

S&P Outlook: Stable

Moody Rating: Ba3

Moody Outlook: Under Review (Possible Downgrade)

Typical Lease Characteristics

Lease Term: 10-20 Years Years

Lease Type: NNN(absolute Net)

Lease Increases: 1.5% to 2% Annually

Lease Extensions: 2-3 (5) Year Options

Lease Guarantor: Corporate and Franchisee

Tenant Overview

Beginning to franchise in 1925, today it has franchise locations throughout the world, serving a typical fast-food menu of hamburgers and French fries, as well as hot dogs. A&W Restaurants is notable for being the first successful food franchise company. There are over 1,000 locations serving millions of customers each day. Given it’s long history of operation and brand appeal, A&W makes for a sound investment, taking into careful consideration the strength of the Franchisee

Positives:

  • Public Company, Credit Rated
  • Nationwide presence with high brand recognition
  • Extensive History to Brand

Negatives:

  • Private Company
  • Competitive Industry Sector
  • Typically Franchised Locations

Market Snapshots:

On Market Ranges:

# of Properties in set: 1

Price: $900,000 - $900,000Average: $900,000

PPSF: $494 - $494Average: $494

Year Built: 1958 - 1958Average: 1958

CAP Rate Range: N/AV - N/AVAverage: N/AV

Size range: 1,821 sq ft - 1,821 sq ft Average: 1,821 sq ft

Last 12 Month Range:

# of Properties in set: 1

Price: $899,993 - $899,993Average: $899,993

PPSF: $494 - $494Average: $494

Year Built: 1958 - 1958Average: 1958

CAP Rate Range: N/AV - N/AVAverage: N/AV

Size range: 1,821 sq ft - 1,821 sq ft Average: 1,821 sq ft

A&W Company Profile

Headquarters Information

Lexington, Kentucky

Founded in 1923

Company type: Private

Industry: Dining

# of Employees: 35,160

S&P Rating: N/R

S&P Outlook: Stable

S&P Rating: Ba3

Moody Outlook: Under Review (Possible Downgrade)

No stock information is available for this tenant.
No news available for this tenant.

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