service. success. perfected. - greysteel on chilis.pdf · chili’s grill & bar is a leading...
TRANSCRIPT
Chili’s Grill & Bar is a leading chain of casual dining restaurants
widely popular for its Tex-mex menus. Established in Dallas, Texas
in 1975 by Larry Lavine, Chili’s began as a neighborhood-style
restaurant serving homemade food in a casual atmosphere. A
winner of numerous culinary and best eatery awards, Chili’s menu
features signature items such as baby back ribs, burgers, fajitas,
and bottomless chips and salsa. The restaurant is commonly
recognized for its low prices and specials as well as its quick
To-Go menu.
Chili’s grew quickly and is now in over 31 countries worldwide
and employs over 100,000 people. Since 1983, Chili’s has been
a wholly-owned subsidiary of Brinker International (NYSE: EAT),
a casual dining restaurant management firm that also owns
Maggiano’s Little Italy, a global Italian restaurant chain.
Chili’s company sales increased to $2.75 billion in fiscal 2016,
a 10.1% increase from $2.5 billion in fiscal 2015. The increase
was primarily driven by increased restaurant capacity. Chili’s
company-owned restaurant capacity increased 12.8% compared
to the prior year due to the acquisition of 103 Chili’s restaurants
from a franchisee, and 8 new restaurant openings. The company’s
average annual store sales grew to $3.0 million in fiscal year 2016.
Chili’s global reach allows the firm to operate 1,660 restaurants
throughout the United States and 31 countries. Chili’s primarily
leases their real estate, the majority being ground leases. The
typical Chili’s lease provides for an initial term of up to 20 years on
a pure triple net basis and often a corporate guarantee.
Spotlight on Chili’s | Net Leased December 2016
© 2016 Greysteel Company LLC. All rights reserved.
Source: Brinker International, Inc. 2016 Form 10-K; www.brinker.com
Service. Success. Perfected.
© 2016 Greysteel Company LLC. All rights reserved.
The report below features a sampling of properties recently sold or on market in California, Georgia, Illinois, Louisiana, and Texas. Please note the different locations and adjust comparisons accordingly. Also note that sales comparables provide a snapshot of recent transactions and are not a perfect predictor of future market movement and behavior.
Spotlight on Chili’s | Sales Comparables December 2016
Note: Some of the Chili’s photos in this market report are representative.
ON MARKETMcHenry, IL
ON MARKETSan Jose, CA
ON MARKETLeesville, LA
ON MARKETRosemont, IL
Sale Date On Market
Sale Price $2,702,000
CAP Rate 5.25%
RBA 6,368
Price/SF $424.31
Lease Type Ground Lease
Term Remaining 5 Years
Sale Date On Market
Sale Price $4,110,000
CAP Rate 6.35%
RBA 6,500
Price/SF $632.31
Lease Type NNN (Franchisee)
Term Remaining 11 Years
Sale Date On Market
Sale Price $1,181,820
CAP Rate 5.50%
RBA 4,500
Price/SF $262.63
Lease Type Ground Lease
Term Remaining 10 Years
Sale Date On Market
Sale Price $6,157,000
CAP Rate 6.20%
RBA 6,500
Price/SF $947.23
Lease Type NNN (Franchisee)
Term Remaining 11 Years
CLOSEDKerrville, TX
CLOSEDSavannah, GA
Sale Date September 2016
Sale Price $3,203,000
CAP Rate 5.75%
RBA 6,892
Price/SF $464.74
Lease Type NNN
Term Remaining 9 Years
Sale Date October 2015
Sale Price $2,130,000
CAP Rate 5.00%
RBA 4,206
Price/SF $506.42
Lease Type Ground Lease
Term Remaining 8.5 Years
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