Texas Roadhouse

• Publicly Traded
• Corporate Backed Lease
• Long Lease Term over 9 Years Remaining plus 3 – 5 Year Options
• Limited Responsibilities with a Hands-Off, Absolute NNN Ground Lease
• Hedge Against Inflation – Fixed 10% Increases during the primary term and options

• Corporate Credit Tenant – Texas Roadhouse (Ticker: TXRH) is currently valued at a $6.72 Billion Dollar Market Cap and is publicly traded on the Nasdaq
• Over the trailing twelve months, TXRH generated $2.55 Billion in sales and $210M of EBITDA and generated $386M of operating cash flow, finally exceeding Pre-Covid Cash Flow Figures
• System-wide average unit volumes were $5,555,000 (2019)
• 2.28% Rent to Sales Ratio (using the System-Wide AUV’s)

• Priced Below Replacement Cost for Land and Building
• “It cost the company $6.1 million to build a Texas Roadhouse in 2020, up from $5.5 million in 2019” – Kent Taylor, CEO & Founder
• Asking Price of $2,530,000 equates to less than half the cost of a new Texas Roadhouse. Even in 2015 $’s, this suggests that Texas
• Roadhouse has invested $3-4M into the development and buildout. Such a large investment demonstrates tenants’ confidence & commitment to the location, minimizing the chance of vacancy
• Below Market Rent – $17/SF is below market for a premium restaurant use, for comparison, Sleep Number signed up at $44/SF for endcap strip space
• Premium Retail Corridor positioning – Located in the center of the action, at the entrance for customers to access Major Retail Anchors
• Situated with Premium Frontage/Visibility along S Meadow St, the main arterial thoroughfare that cuts through town
• High Trafficked with ADT ranging from 25-35k VPD