The Franchisee, Stonewall Road Restaurant Group LLC (SRRG), operates 11 Wendy’s restaurants in Texas and Oklahoma. Centered around the DallasFort Worth MSA, SRRG had LTM Pro Forma Sales of ~$13,325,000 and LTM Pro Forma SLEBITDA of ~$1,540,000. Wendy’s is the third largest hamburger fast food chain with over 6,700 locations worldwide. Global system wide sales in
2020 is expected to reach $11.5B.
Wendy’s Restaurant signed a new 20 year lease in 2015, demonstrating commitment by a premier quick service restaurant operator to this location, which is situated alongside I-20. The nearest major intersection of the I-20 and Lamar Street experiences over 17,000 vehicles per day.
The lease to Wendy’s Restaurant features attractive annual rent escalations growing the initial yield an investor would expect to receive over time. Additionally, store sales have grown year over year by approximately 3%.
The property operates under an absolute triple net lease structure, with Wendy’s responsible for all operating expenses, taxes, and insurance. This lease features zero landlord responsibilities, reflective of the most passive net lease investment type.
The subject property is located in Sweetwater, TX, and is easily accessible to the 84 highway and the I-20 in Nolan County, TX. The community is the largest population center in its county, and offers award-winning schools as well as a variety of business opportunities, all in a family-centered atmosphere.