Lowest cap rate over past 24 months
12 mo avg with 5+ yr lease term
Popeyes was formed in Arabi, Louisiana, a suburb of New Orleans, Louisiana in St. Bernard Parish. It first opened its doors on June 12, 1972, as "Chicken on the Run". Owner Al Copeland (1944–2008) wanted to compete with Kentucky Fried Chicken, but his restaurant failed after several months. Copeland reopened the restaurant four days later as Popeyes Mighty Good Chicken. By 1975, the company had been renamed as Popeyes Famous Fried Chicken. Copeland started franchising his restaurant in 1976, beginning in Louisiana. The chain expanded to Canada in 1984, and opened its 500th restaurant in 1985. B. P. Newman of Laredo, Texas, acquired several franchises in Texas and surrounding states. Two hundred additional locations were added during a period of slower expansion.
By 1990, Copeland Enterprises was in default on $391 million in debts it had taken on in its 1989 purchase of Church's, a rival fast food chain also focusing in fried chicken, and by April 1991, the company filed for bankruptcy protection. In October 1992, the court approved a plan by a group of Copeland's creditors that resulted in the creation of America's Favorite Chicken Company, Inc. (AFC) to serve as the new parent company for Popeyes and Church's. AFC went public in 2001 with initial public offering (IPO) of $142,818,479. On December 29, 2004, AFC sold Church's to Arcapita (formerly Crescent Capital Investments) retaining Popeyes.
|Average Sale Price||$8,000,000 - $2,500,000|
|Average NOI||$450,000 - $125,000|
|Lease Term||25 Years|
|Escalations||25% Every 10 Years|
Alvin C. Copeland claimed he named the stores after the fictional detective Jimmy “Popeye” Doyle (portrayed by Gene Hackman) in the 1971 film The French Connection, which came out a year before the chain was founded, and not the comic strip character Popeye the Sailor. The company’s early brand became deeply tied to the cartoon star with its sponsorship of the Popeye & Pals children’s show in New Orleans, and the character appeared on items from packaging to racing boats. The name is spelled “Popeyes”, without the apostrophe commonly used by other restaurant chains such as McDonald’s and Hardee’s. Copeland claimed facetiously that he was “too poor” to afford an apostrophe
|Number of Locations||268,029|
|Key Principal||Al Copeland|