Hardee’s Net Lease Market: Why 2026 May Be a Strategic Window for Sellers

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Corporate-guaranteed Hardee’s net lease properties are still trading--but the market appears to be entering a more selective phase. According to the recent comps in our report, recent corporate Hardee’s sales have closed between 6.10% and 7.30% cap rates, averaging approximately 6.82%, while current listings average closer to 6.48%. That spread suggests sellers are still pricing ahead of where buyers are ultimately executing.

The strongest pricing continues to favor higher-quality assets. Renovated Hardee’s locations are trading roughly 100 basis points tighter than non-renovated stores, with renovated properties averaging approximately 6.35% versus 7.36% for non-renovated locations. In today’s market, building condition, remaining lease term, and trade area strength matter more than the corporate guarantee alone.

Hardee's has been struggling as a brand--Their domestic footprint has contracted from 1,810 locations in 2019 to 1,571 in 2025, including 109 net closures in 2024. Average unit volume recovered to $1.20 million in 2025, but remains below the brand’s 2021 peak and behind major burger competitors cited in the report.

Franchisee distress adds another layer of risk. Summit Restaurant Holdings, ARC Burger, and Paradigm Investment Group represent significant operator-level disruption across hundreds of locations. The pending Paradigm litigation, with a federal jury trial scheduled for March 30, 2027, may become a major market-moving event for Hardee’s owners and net lease investors. If CKE wins, a major 70+ unit franchisee goes bankrupt. If they lose, they face allegations of acting in bad faith, using heavy-handed tactics, and attempting to seize stores. Paradigm claims that Hardee's is a "distressed brand", and that alone getting into the press will be hard on CKE.

Conclusion:
For owners of newer, renovated, corporate-guaranteed Hardee’s assets with strong locations and meaningful lease term, 2026 may represent the most strategic window to sell before broader buyer underwriting fully adjusts to the brand’s operating and legal headwinds.

Stephen Long, Senior Investment Analyst

Jonathan Aceves, Vice President, CCIM, MBA