Jack in the Box is a fast food hamburger chain located in 21 states across the country and heavily concentrated in California and Texas. Favorable lease terms and strong site selection criteria make Jack in the Box properties attractive to net lease investors. Their typical leases are long triple net leases with built-in rent increases. The nature of a triple net lease relieves the investor of any landlord responsibilities while the rent increase hedge against inflation. Jack in the Box restaurants are typically located in high visibility, desirable locations that allow for allow for superior access and convenience for their customers; valuable and necessary traits for any retail tenant, (not just a QSR). Based out of San Diego, CA they operate over 2,200 Jack in the Box restaurants in 21 US states and Guam (90% of which are franchises); leaving ample opportunity for expansion into new markets. They were the first major hamburger chain to develop and nationally expand the concept of drive-thru restaurants. Drive-thru traffic accounts for about 85% of Jack in the Box sales. In 2003 Jack in the Box Inc. acquired Qdoba, a fast casual Mexican restaurant, to supplement their core growth, and subsequently sold it in 2018 to Apollo Global Management.
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