One-glance verdict
Undervalued
$33.00 our estimate vs market $22.20
Wall Street consensus: $28.11 (-14.8% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
Four Corners Property Trust, Inc.
FCPT · NYQ · Real Estate · REIT - Retail
Current price
$22.20
52-week range
$21.86 - $26.86
Market cap
$2.44B
Balance sheet
Stretched
3.16x Stretched
Net debt $1.22B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.2% last year.
- Reward Returns 7.6% on equity, ahead of 66% of its peers.
- Risk Net debt grew 23.0% over 3 years.
- Risk Operating margin compressed from 56.4% to 55.1% over 3 years.
What this company does
Four Corners Property Trust, Inc.
Four Corners Property Trust is a real estate investment trust (a company that owns buildings and acts as a landlord) that rents out its properties to well-known restaurant and retail chains. The company makes money by collecting these rent payments, which are very predictable because its tenants are usually responsible for paying most of the property's day-to-day costs like taxes and maintenance. This business model allows Four Corners to collect a steady rent check with fewer surprise expenses.
How the company got here
Four Corners Property Trust, often called FCPT, was created in 2015 when Darden Restaurants, the company that owns Olive Garden and LongHorn Steakhouse, decided to separate its real estate from its restaurant operations. FCPT was formed to own the physical buildings and land of hundreds of Darden's restaurants. This move allowed FCPT to become an independent, publicly traded company focused on being a landlord to restaurant and retail businesses. Since becoming its own company, FCPT has been working to add properties beyond the original Darden restaurants to grow and diversify its portfolio.
What it actually does
Four Corners Property Trust is a special type of company called a real estate investment trust, or REIT (a company that owns and often operates income-producing real estate). It doesn't sell you food or products directly; instead, it owns the buildings where well-known restaurants and retail stores operate. FCPT then leases these properties to the companies that run the businesses inside. A key part of their model is using 'triple-net leases,' which means the tenant (the restaurant or store) is responsible for paying for most of the building's expenses, like property taxes, insurance, and maintenance. This creates a steady and predictable stream of rental income for FCPT.
Real Estate Operations
This is the main part of FCPT's business, where it generates the vast majority of its revenue. The company owns over a thousand properties across the United States and leases them to various restaurant and retail brands. The tenants, which include well-known names in casual dining, fast food, and increasingly, other service-based retail like auto services and medical clinics, pay FCPT rent to use these locations. This segment is the core of FCPT's strategy to provide consistent cash dividends (a portion of a company's profits paid out to its shareholders) to its investors.
Restaurant Operations
As a smaller part of its business, FCPT directly operates a handful of LongHorn Steakhouse restaurants in the San Antonio, Texas area. This came about as part of the original separation from Darden Restaurants. In this segment, the company earns money from the sales of food and beverages at these specific restaurant locations, operating them under a franchise agreement (a contract that allows a business to use a well-known brand's name and operating system) with Darden. This is a very small piece of the overall company compared to its real estate leasing business.
What management is betting on now
Management's current focus is on growing and diversifying its portfolio of properties to reduce its reliance on its original Darden restaurant locations. They are actively acquiring new properties, including those in different retail sectors like automotive services, convenience stores, and medical retail, to broaden their tenant base. A major goal is to acquire properties that are critical to the tenant's business, ensuring a stable and long-term rental income. By doing this, FCPT aims to increase its overall value and continue paying consistent dividends to its shareholders.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$78.42M
Net income
$29.96M
Diluted EPS
0.27
Operating cash flow
$50.66M
Free cash flow
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Sources
Revenue
$78.17M
Net income
$30.33M
Diluted EPS
0.28
Operating cash flow
$47.16M
Free cash flow
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Sources
Revenue
$75.67M
Net income
$29.44M
Diluted EPS
0.27
Operating cash flow
$48.03M
Free cash flow
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Sources
Revenue
$74.15M
Net income
$28.84M
Diluted EPS
0.28
Operating cash flow
$48.93M
Free cash flow
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Sources
Revenue
$72.84M
Net income
$27.92M
Diluted EPS
0.28
Operating cash flow
$43.76M
Free cash flow
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Sources
Revenue
$71.48M
Net income
$26.16M
Diluted EPS
0.26
Operating cash flow
$51.56M
Free cash flow
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Revenue
$68.34M
Net income
$26.18M
Diluted EPS
0.27
Operating cash flow
$33.41M
Free cash flow
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Sources
Revenue
$66.79M
Net income
$25.58M
Diluted EPS
0.27
Operating cash flow
$43.39M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $33.00 vs current price $22.20
Wall Street consensus is the average analyst price target: $28.11 (-14.8% lower than our fair-value estimate).
Our most-likely fair value is $33.00 a share — about 48.7% above today's price of $22.20, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $1.2B. Interest coverage 3.2x.
Net debt
$1.22B
Interest coverage
3.16x
Four Corners Property Trust, Inc.'s profit covers its interest bill about 3.2 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
FCPT
BASELINE
Four Corners Property Trust, Inc.
Total debt $1.26B Interest coverage 3.16x This is the baseline the peer rows are being compared against.
Total debt $3.85B Interest coverage 2.58x -18% vs FCPT Carries about 1.2x less debt cushion than FCPT.
Total debt $2.92B Interest coverage 3.32x +5% vs FCPT Has roughly the same debt cushion as FCPT.
Total debt $5.00B Interest coverage 2.79x -12% vs FCPT Has roughly the same debt cushion as FCPT.
Total debt $2.69B Interest coverage 2.42x -24% vs FCPT Carries about 1.3x less debt cushion than FCPT.
Total debt $1.40B Interest coverage 1.17x -63% vs FCPT Carries about 2.7x less debt cushion than FCPT.
What you should know
The case for and against FCPT
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.2% last year.
-
Returns 7.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 23.0% over 3 years.
-
Operating margin compressed from 56.4% to 55.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.18x
Forward P/E
19.33x
P/B
1.50x
P/S
7.95x
EV/EBITDA
15.57x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
85.6%
Operating margin
55.1%
Net margin
38.7%
ROE
7.6%
ROA
3.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
0.25x
Quick ratio
0.24x
Total debt
$1.26B
Total cash
$40.09M
Growth
How the business has been compounding
Revenue TTM
$306.40M
Revenue 5Y CAGR
10.2%
EPS TTM
1.10
EPS 5Y CAGR
-3.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$194.79M
Free CF TTM
$192.28M
FCF margin
62.8%
Dividend
Shareholder payout
Yield
6.8%
Payout ratio
132.2%
Last ex-div date
2026-09-30