Dairy Queen

Lowest
Cap Rate

4.75%

Lowest cap rate over past 24 months

Average
Cap Rate

5.24%

12 mo avg with 5+ yr lease term

Overview

As one of the most well-known quick service restaurant chains around the globe, Dairy Queen (now DQ® for short) has retail operations spanning approximately six thousand locations across the U.S.A. They have further secured real estate in various regional markets. Each store is wholly franchisee owned and operated. For net leasing investors, DQ continues to be a highly desirable opportunity whenever available.

Average Property & Lease

Average Sale Price	$2,000,000 - $3,000,000
Average NOI	$100,000 - $150,000
Building SF	2,750
Lease Term	20 Years
Escalations	10% Every 5 Years
Stock Symbol	CAPITALCOM:US500

CREDIT RATING

S&P	AA
Moody's	Aa2

TENANT DESCRIPTION

Known as the American Dairy Queen Corp., Dairy Queen is a subsidiary of Berkshire Hathaway, Inc. and is a considered to be part of the fabric of twentieth century American culture. John F. MCullough and Bradley MCullough, a father and son team had decided to open their first store with Sherb Noble in 1940. Based out of Joliet, Illinois, their unique formula for soft serve ice cream became very popular near the end of World War II.

Prior to 1941, only ten Dairy Queens were in operation and the concept of franchising was not an everyday term. The number of stores approached 1,500 by 1950, and then nearly doubled again by 1955. Known as the DQ® system for short, today there are over six thousand locations across the U.S., and is considered one of the biggest quick service restaurants chains internationally.

PROS

NNN leasing available
Company guaranty NNN leases
Locations situated near complementary health services

CONS

If tenant relocates, leasing again may prove costly
Landlord accountability with NN leasing terms

COMPANY QUICK STATS

Founded	1940
Headquarters	Bloomington, Minnesota
Number of Locations	6,800
Revenue	$3.64 B
Company Website	https://www.dairyqueen.com
Key Principal	Troy Bader