Sonic

Interested in selling your Sonic NNN property or Sonic ground lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Sonic NNN property for sale or Sonic ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Sonic NNN property or the inclusion of a Sonic ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Sonic properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of January 2023, Sonic Corporation has over 3,600 drive-in locations in 46 U.S. states. These locations serve as drive-ins and drive-thrus, providing a unique dining experience.

Revenue and income

In 2022, Sonic Corporation‘s total revenue reached $4.5 billion, with a net income of $300 million.

Future plans

Sonic Corporation aims to strengthen its presence in existing markets and explore new expansion opportunities. The company plans to open over 500 recent drive-in locations in 2023. Additionally, Sonic is committed to enhancing customer experience through technological innovations, such as advanced ordering systems and digital payment options.

Corporate vs. franchise

Approximately 90% of Sonic drive-ins are franchised, allowing entrepreneurs to become part of the Sonic brand. Franchisees typically invest $1.2 million to $3.5 million, including the franchise fee, equipment, and other startup costs. The remaining 10% of Sonic drive-ins are corporate-owned.

Additional information Sonic Properties

Sonic Corporation was established in 1953 in Shawnee, Oklahoma.
The company is known for its unique drive-in concept and iconic carhops.
Sonic Corporation is a significant player in the fast-food industry, specializing in made-to-order burgers, hot dogs, and hand-mixed shakes.
Sonic Corporation is a subsidiary of Inspire Brands, a global multi-brand restaurant company.

Sonic History

Sonic traces its roots back to 1953 when Troy N. Smith opened a root beer stand outside his steakhouse in Shawnee, Oklahoma. Initially known as “Top Hat Drive-In,” the store’s name changed to Sonic in 1959 to reflect its quick service, inspired by the “speed of sound.” The concept of carhop service and made-to-order fast food gained popularity, leading to rapid expansion across the United States in the 1960s and 1970s. Innovative menu items like the Chili Cheese Coney, Tots, and Cherry Limeades became synonymous with the brand. In 1973, Sonic adopted the franchise model, propelling its national presence. The company expanded further in the following decades, entering markets like Mexico and Guam. In 2020, Sonic Corp. merged with Inspire Brands, forming a larger restaurant holding company. Sonic continues to adapt to changing consumer preferences, introducing new initiatives such as mobile ordering, touchless drive-thru technologies, and expanded vegetarian options.

Why Invest in Ground Lease and NNN Lease of Sonic?

Investing in Sonic‘s ground lease and triple net (NNN) lease properties offer compelling reasons:

1) Sonic NNN Property Investment: Stable income

With a strong brand and market presence, Sonic provides reliable income streams. Ground and NNN leases offer predictable cash flows over the long term.

2) Sonic NNN Property Investment: Established tenant

Sonic‘s successful and recognizable brand reduces the risk of vacancy or lease default, ensuring a stable tenant for the property.

3) Sonic NNN Property Investment: Low management responsibility

In-ground and NNN leases, the tenant manages property maintenance and expenses, minimizing the landlord’s management obligations.

4) Sonic NNN Property Investment: Favorable lease terms

Long lease terms with built-in rent escalations provide predictable income and potential rental growth.

5) Sonic NNN Property Investment: Real estate value

Sonic‘s strategic locations in high-traffic areas can increase property value, offering potential capital appreciation.

Pros and Cons of Sonic Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.

Cons:

1. Lease renewal risk when the term expires.
2. Dependency on Sonic‘s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.

Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.