Over $6m sale of Hungry Jack’s shows high demand for premium fast-food investments

16 April 2024

An interstate investor has snapped up a high-performing Hungry Jack’s asset at Kallangur in a competitive auction for $6,100,000, demonstrating strong investor interest in premium assets.

Transacted by Colliers Queensland agents Hunter Higgins and Sam Polichronis on behalf of a valued private client the Hungry Jack’s is located at 1381-1385 Anzac Avenue, Kallangur.

Colliers Queensland National Director Investment Services Hunter Higgins said it was a competitive auction with many bidders trying to secure the high-performing asset.

“As one of the largest free standing Hungry Jack’s in Queensland that is consistently exceeding turnover rent figures and has options till 2042, this offered a fantastic investment opportunity,” Hunter Higgins said.

“Offering a rare opportunity to invest in a proven and established freestanding, drive-through Hungry Jack’s which still benefits from strong and consistent annual turnover rent, laid the perfect conditions for a competitive auction.

“The site is located on a prominent 60 metre frontage to bustling Anzac Avenue with over 140,000 vehicles passing weekly and servicing a catchment of over 87,000 residences within a 4.5km radius.

“Purpose build in 2012 for Hungry Jack’s, prominently positioned on a 2,952 sqm site in the large commercial hub of Kallangur, the asset is neighbouring national covenants such as 7-Eleven, Ampol, Chem-pro Chemist, ALDI, Supercheap Auto, and much more.”

Colliers Queensland Executive Investment Services Sam Polichronis said the fast-food sector had garnered the attention of investors due to its steady expansion and profitability over the years, rendering it a dependable and stable business choice.

“Despite ongoing interest in smaller chains and independent operators, many investors still prefer to invest in established brands such as Hungry Jack’s,” Sam Polichronis said.

“Private investors, self-managed super funds, interstate investors, and those institutional-grade investors looking for secure investments have been actively driving the demand for these sorts of assets in recent years.

“Essential service sectors play a crucial role in daily life and are more resilient to economic conditions, making them a less risky investment with a reliable income source and capital growth potential, making them a popular choice among investors.

Hungry Jack’s are one of Australia’s largest fast-food operators with over 440 restaurants nationwide and have operated at Kallangur since 2012. Nationally Hungry Jack’s has just reached a record breaking $2 billion in sales for 2023. Their outstanding national reach and beloved burger range serves more than 1.7m Aussies each week and serve up more than 125m Australians every year.