Cheddar’s Scratch Kitchen

Lowest
Cap Rate

5.25%

Lowest cap rate over past 24 months

Average
Cap Rate

5.85%

12 mo avg with 5+ yr lease term

Overview

Typical Cheddar’s locations range from 7,000 to 9,000 square feet on 1.5 to 2.0-acre pads, often situated in suburban retail corridors or near major highways. Lease structures are generally 15 to 20 years in length with absolute NNN terms, 10% rent bumps every 5 years, and corporate guarantees by Darden Restaurants, Inc. Properties often include full-service dining layouts, ample parking, and high visibility.

Average Property & Lease

Average Sale Price	$4,000,000 – $6,000,000
Average NOI	$230,000 – $350,000
Building SF	7,000
Lease Term	15 Years
Escalations	10% Every 5 Years
Stock Symbol	NYSE: DRI

CREDIT RATING

S&P	BBB
Moody's	Baa2

TENANT DESCRIPTION

Cheddar’s Scratch Kitchen was founded in 1979 in Arlington, Texas, with a mission to serve made-from-scratch meals at affordable prices. Its menu features comfort food staples like chicken tenders, ribs, burgers, and homemade sides in a family-friendly setting. Cheddar’s gained national traction for its value-driven approach and from-scratch philosophy, which helped fuel its growth across suburban America. In 2017, it was acquired by Darden Restaurants, the parent company of Olive Garden and LongHorn Steakhouse.

Founded	1979
Headquarters	Orlando, FL, U.S.
Number of Locations	180
Revenue	$870 M
Company Website	https://www.cheddars.com
Key Principal	Rick Cardenas