Chick-fil-A remains one of the most sought-after net lease tenants, and its 2025 activity reinforces that position. The company is actively expanding in both domestic and international markets, with plans to open up to seven new restaurants in Massachusetts this year and as many as eight more by 2027. Internationally, Chick-fil-A is entering the U.K. market with five new locations in cities like Belfast, Liverpool, and London. Domestically, it continues to test new formats, including a drive-thru-only model launching in Houston by late 2025. On the other hand, only one temporary closure was reported—a Cape Coral, Florida location shut down for remodeling in April. While Chick-fil-A reported a 5.4% growth in U.S. system sales in 2024, this marked its slowest growth in nearly two decades, suggesting a more mature phase in its domestic performance curve.
For NNN investors, Chick-fil-A continues to offer outstanding credit quality and brand strength, but a more measured outlook is warranted as its explosive U.S. growth begins to level off. Its willingness to innovate with formats like drive-thru-only stores could open up new site opportunities in tighter urban markets or areas with limited parking. Investors should target newer builds or repositioned sites with long-term leases, especially in suburban or urban infill markets. Even with slower sales growth, Chick-fil-A’s operational efficiency, high unit volumes, and minimal closures support its reputation as a premier NNN tenant with strong lease performance and staying power.