Net Lease Profile: Dunkin' Donuts
Dunkin’ Donuts is an attractive net lease asset for many investors. They are usually well located in shopping centers, mini-malls etc and easily accessed by their customers. Since Dunkin’ Donuts deals with perishable items they are not in the same danger many brick & mortal retailers are in from online commerce. The brand has also done very well in increasing the popularity of the other items they offer such as breakfast sandwiches and coffee. In-fact Brand Keys has given them the #1 Ranking in customer loyalty in the coffee category since 2007 (they were also named #1 in Donuts and #2 in breakfast sandwiches). Dunkin’ Donuts also usually includes rental increases in their leases making them a popular choice for net lease investors.
- Corporate Guaranty
- Lease usually includes increases
- NNN Lease; minimal landlord responsibilities
- Shorter lease terms
- Non-investment grade credit
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