Carl’s Jr. NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
5.2%
This Year Cap
6.0%
Cap Change
0.8%
Last Year Rating
BBB
This Year Rating
BBB
Rating Change
No change
Carl’s Jr. – NNN Cap Rate Trend
Cap Rate Trends
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Tenant | Year | Cap Rate |
|---|---|---|---|---|---|---|---|
| 5779 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,020 | 6.5 |
| 5780 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,021 | 6.3 |
| 5781 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,022 | 6.0 |
| 5782 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,023 | 6.3 |
| 5783 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,024 | 6.6 |
| 5784 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,025 | 6.6 |
| Tenant | Year | Cap Rate |
Credit (what net-lease buyers care about)
Credit Snapshot
Carl’s Jr.
Carl’s Jr. Net Lease: Secure, Essential Investment
Carl’s Jr. is a nationally recognized quick-service restaurant brand and a well-known net lease restaurant tenant. This guide reviews cap rates, lease structures, tenant considerations, and key due diligence factors for buyers and sellers evaluating Carl’s Jr. investment properties.
For 1031 exchange buyers, Carl’s Jr. ground lease properties are important to compare against fee simple Carl’s Jr. assets, as lease structure can materially impact pricing, financing flexibility, depreciation benefits, and long-term resale value.
Investors often target Carl’s Jr. assets for:
- Established National Restaurant Brand
- High-Traffic Retail Corridor Locations
- Long-Term NNN or Ground Lease Structures
- Attractive 1031 Exchange Compatibility
Carl’s Jr. ground lease properties require close evaluation of rent escalations, remaining lease term, renewal options, and underlying land value compared to fee simple ownership opportunities.
Carl’s Jr. Ground Lease Properties for 1031 Exchange Buyers
Carl’s Jr. ground lease properties often trade differently than fee simple Carl’s Jr. restaurant assets. Buyers should carefully evaluate lease structure, remaining primary term, extension options, landlord responsibilities, rent growth schedules, and reversionary land value to understand long-term investment risk and return potential.
Carl’s Jr. – Credit Trend (S&P vs Moody’s)
Tenant_Rating_Trend
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | TenantKey | Tenant | Year | Moody | SP | Moody_Grade | SP_Grade | Moody_GradeRank | SP_GradeRank |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2022 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 2 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2023 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 3 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2024 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 4 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2025 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 5 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 99centsonlystoresllc | 99 Cents Only Stores, LLC | 2022 | Caa2 | CCC+ | Substantial Risk | Substantial Risk | 2 | 2 |
| TenantKey | Tenant | Year | Moody | SP | Moody_Grade | SP_Grade | Moody_GradeRank | SP_GradeRank |
Carl’s Jr. Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
Carl’s Jr. Investor Snapshot (Quick Facts)
Origins & Growth (Past)
• Founded in 1941 in California
• Expanded nationwide through franchising and acquisitions
• Built strong quick-service restaurant presence
• High-visibility urban and suburban locations
• Adapted to drive-thru and digital ordering trends
• Established national fast-food brand recognition
Where Carl’s Jr. Stands Today
• Extensive U.S. quick-service restaurant footprint
• Recognized national burger restaurant brand
• Strong drive-thru and daily customer traffic
• Primarily franchise-operated restaurant locations
• Expanding digital ordering and delivery platforms
• Focus on operational efficiency and cost control
Where Carl’s Jr. Stands Today
• Digital Expansion
• Mobile Growth
• Delivery Growth
• Brand Engagement
• Store Optimization
• Operational Efficiency
• Consumer Demand
Why investors buy Carl’s Jr. NNN Properties or Carl’s Jr. ground Lease Properties?
Pros (what buyers like)
- Recognized National Brand
Well-known quick-service restaurant brand with long operating history - High-Traffic Locations
Typically positioned on major retail corridors and signalized intersections - Drive-Thru Demand
Drive-thru focused model supports consistent daily customer traffic - Attractive Lease Structures
Long-term NNN or ground leases appeal to passive and 1031 exchange buyers - Franchise & Corporate Presence
Large operating footprint across multiple U.S. markets
Cons (what can bite you)
- Lease Structure Variability
Some assets may be NN or modified NNN with landlord responsibilities - Franchisee Credit Risk
Lease strength may depend on individual franchise operator performance - Flat or Limited Rent Growth
Certain leases contain minimal contractual rent escalations - Re-Tenanting Challenges
Restaurant-specific layouts may limit alternative tenant reuse - Quick-Service Competition
Performance can be affected by changing consumer preferences and market competition
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for a Carl’s Jr. Net Lease
• 10–20+ years term remaining (or strong renewal option structure) • Absolute NNN or favorable ground lease structure • Prime corner or high-traffic retail corridor location • Drive-thru access with strong visibility and ingress/egress • Corporate or strong franchise operator backing • Rent aligned with market fundamentals and long-term resale demand
02
⚠ Yellow Flags (Price Accordingly)
• NN lease structure with landlord responsible for roof, structure, or parking areas • Flat rent with limited or no contractual rent escalations • Older or oversized restaurant format that may be harder to re-tenant • Secondary location with weak visibility, access, or traffic counts • Franchise operator with weaker financial strength or limited operating history • Sales performance risk from changing consumer preferences and restaurant competition
Find out more
Carl’s Jr. Background & History
Carl’s Jr. is a nationally recognized quick-service restaurant brand best known for its hamburger-focused menu, drive-thru convenience, and broad presence across major retail corridors in the United States. What began as a small hamburger stand in California evolved into a large restaurant system operating through both franchise and corporate restaurant locations.
Over time, the company expanded nationwide through franchising and brand development, establishing a strong footprint in suburban, urban, and highway-oriented trade areas. Today, customers rely on Carl’s Jr. locations for quick-service dining, drive-thru convenience, takeout, and digital ordering options.
As consumer preferences have shifted toward convenience, speed, and digital access, the company has adapted through mobile ordering platforms, third-party delivery integration, drive-thru optimization, and operational efficiencies designed to support high daily transaction volumes.
Why Carl’s Jr. Matters to NNN Investors
Carl’s Jr. operates a widely recognized quick-service restaurant platform with locations positioned along major retail corridors, signalized intersections, and high-traffic commercial areas. The business model is centered on convenience-oriented dining, repeat customer visits, and strong drive-thru traffic patterns.
Many Carl’s Jr. locations occupy prime corner real estate with excellent visibility, dedicated parking, and easy ingress and egress, which can help support long-term real estate value and tenant functionality. In addition, the brand continues to invest in digital ordering, delivery infrastructure, and operational improvements designed to enhance customer convenience and restaurant performance.
This focus on convenience-driven retail helps explain why Carl’s Jr. remains relevant within the quick-service restaurant sector as consumer dining habits continue to evolve. Management and franchise operators continue adapting to changing customer preferences, labor efficiency initiatives, and off-premise dining trends.
What Buyers and Sellers Should Evaluate
For investors evaluating Carl’s Jr. NNN properties, a Carl’s Jr. net lease, or a Carl’s Jr. ground lease, the investment thesis is typically centered on real estate quality, lease structure, operator strength, and long-term site usability. As a result, buyers often place significant emphasis on franchisee financial strength, drive-thru performance, and location fundamentals in addition to brand recognition.
Common searches include Carl’s Jr. real estate, Carl’s Jr. cap rate, Carl’s Jr. lease term, Carl’s Jr. franchise operator, and Carl’s Jr. ground lease. Ultimately, Carl’s Jr. net lease value is driven by site-specific factors, lease economics, operator credit quality, and how the property performs within its surrounding trade area.
As quick-service dining trends continue to evolve, the strongest Carl’s Jr. locations tend to be those positioned within dense population centers, commuter corridors, and high-traffic retail intersections. Buyers and sellers should evaluate each property individually, including visibility, access, traffic counts, nearby competition, demographics, drive-thru efficiency, and lease language that defines landlord responsibilities.
In addition, investors should consider long-term cash-flow durability, franchise operator performance, lease rollover exposure, capital expenditure risk, and how the asset may perform across different hold periods and exit strategies.
our team of experts are here for you
Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.
Whether you are comparing Carl’s Jr. ground lease properties or fee simple Carl’s Jr. assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.