Curating Best-in-Class Portfolio slide image

Curating Best-in-Class Portfolio

Quick-Service Restaurants (6.0% of ABR) 4% KFC ORIGINAL RECIPE 8444 MEAL MADE HARD WAY CHICKEN WAFFLES HOT WINGS ARE BACK NOW HIRING RESILIENT BUSINESS MODEL: REALTY INCOME QSRs are less dependent on "dine-in" traffic as their revenue model is based on an "off-premise" and drive-thru (historically 65%+ of sales) offerings. STRONG VALUE PROPOSITION: In a recessionary environment, consumers tend to be more value-centric and QSR operators benefit from a “trade down" effect from casual dining consumers. FUNGIBILITY OF REAL ESTATE: Positive re-leasing results on QSR assets due to convenience of real estate location and modest space footprint. INDUSTRY SAME-STORE SALES TRENDS: STRONG RECOVERY TO ABOVE PRE-PANDEMIC LEVELS Growth Over the Same Month Year-on-Year(1) 19% 10% 7% 7% 6% 6% 5% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 63 83 (1) Source: Restaurant Brand International and Yum Brands average same store sales over the period per company filings.
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