27 Unit Wendy's Franchise Portfolio in Mid-Atlantic

Danville, VA (Danville City County)

27 Unit Wendy's Franchise Portfolio in Mid-Atlantic
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Asking Price: $35,000,000

Established: 1998

27 Unit Wendy's Franchise Portfolio in Mid-Atlantic

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Asset Sale Description

Rare Opportunity to gain access to Dominant, Premier QSR Franchise

Alpha Real Estate Advisors (“Alpha”) has been retained as the exclusive representative of Seller offering the rare opportunity to acquire a portfolio of 27 Wendy’s Franchise locations (Operating Business Only) across North Carolina and Virginia. The Seller currently owns the franchise rights to 27 Wendy’s franchise business’s, (made up of 26 currently in operation, 1of which is a Relocation Build-to-Suit in development in progress and 1 new greenfield Build-to-Suit location also in development both with an estimated delivery date in Q1 2022).

On-Pace for 7.50% Revenue Growth in 2021, (excluding 2 New Build Stores or 10.08% inclusive of the new build projections.)
Anticipated further 140-150bps operator AUV growth from the addition of the 2 new construction build to suit stores opening end of 2021/ early 2022 – (Assuming average weekly revenue projections per corporates Wendy’s guidance of $34k/week.).
Additional 300BPS increase to revenue AUV’s from continued customer adoption of breakfast.

RARE OPPORTUNITY TO GAIN ACCESS TO DOMINANT, PREMIER QSR
FRANCHISE
Stabilized Portfolio of Operations with seasoned in-place Management team
provides an attractive “plug and play” opportunity ripe for Private Equity
Investors interested in penetrating an exclusive franchise brand with a critical
mass of stores.

STRONG MOMENTUM WITH ROOM FOR FURTHER AUV GROWTH
Revenue is up over 7.50% registering AUV’s just under $1.5M providing
capacity for significant further AUV expansion.
Virtuous Cycle – High Volume Stores generate higher margins, resulting in an
exponential expansion to the bottom line.

VALUE-ADD PURSUITS & FUTURE GROWTH CATALYSTS
Return of Dine-In: The vast majority of stores have been limited to drive thru
only, due to the Covid-19 Pandemic, potentially providing future upside to
Buyer capturing revenue growth with the return of dine-in customers.
? Wendy’s CEO Todd Penegor stated that, [System-wide] Wendy’s restaurants
with dining rooms open are getting 10% of their sales through those areas.
That’s “a long ways away from where we were pre-COVID at about one-third
of our mix being through the dining room,”
Breakfast: Currently makes up 7% of sales mix and Wendy’s anticipates
breakfast to account for 10% by the end of 2022.
Digital Sales: 8% of Revenue in US -> Driven by growth in delivery and mobile
orders
Q1 2021 US Systemwide Same Store Sales advanced by 13.5% YOY driven triple
D’s -> “Digital, Delivery and Drive-Thru” Performance.

PRIME ROLL-UP STRATEGY CANDIDATE- RARE FRAGMENTED GEOGRAPHIC
REGION
Rare opportunity to execute a roll-up strategy that typically does not exist with an established, mature brand like Wendy’s but the surrounding states of VA, NC, WV, TN, MD, OH, KY, SC, DE, GA, & PA appear to be significantly more
fragmented than the rest of the country
160 Total Operators in the above states, of which there are 138 Franchise
Operators controlling 30 Units or less out of an estimated
Average of 5.67 Units/Operator -> significantly less than the system-wide
average of 22 sites/Operator

To Sign the NDA, Contact Devin Fleming at:
https://alphare.com/property/27-unit-wendys-portfolio/

Detailed Information

Location:
Danville, VA
Reason for Selling:
Retirement
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Asset Sale Listed By:
Devin Fleming

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