Four Corners Property Faces Investor Skepticism Following Insider Sale

A notable insider transaction and a major bank’s revised outlook have cast a shadow over Four Corners Property Trust (FCPT), a real estate investment trust specializing in restaurant properties. These developments have prompted investors to question the company’s near-term growth trajectory.

Analyst Downgrade Precedes Insider Move

The growing concerns were first signaled by Wells Fargo on September 11. The financial institution downgraded its rating on the REIT from “Overweight” to “Equal Weight,” indicating a more neutral stance. Concurrently, the bank’s analysts reduced their price target for the stock from $29.00 to $27.00. This reassessment was primarily driven by mounting doubts about the company’s capacity to secure sufficient investment volume to fuel its future expansion, a vital component for success in the real estate sector.

Chief Accounting Officer Sells Shares

Adding to the negative sentiment, Niccole Stewart, the Chief Accounting Officer of Four Corners Property, executed a significant sale on September 16. She disposed of 3,950 shares at a weighted average price of $25.302, a transaction valued at approximately $100,000. Such insider sales are closely monitored by the market as potential indicators of executive confidence. The timing was particularly noteworthy as the sale occurred with the stock trading very near its 52-week low of $25.00.

Should investors sell immediately? Or is it worth buying Four Corners Property?

Expansion Efforts Continue Amid Uncertainty

Despite the apparent internal and external skepticism, Four Corners Property has continued its strategy of aggressive acquisition. In August 2025, the company publicly announced a series of strategic purchases involving sale-leaseback agreements, a structure where the tenant is responsible for taxes, insurance, and maintenance. The acquisitions included:
* A Patient First Urgent Care property for $6.6 million
* A Bojangles restaurant location for $2.2 million
* Four Burger King properties for a combined $8.1 million
* A Mavis Tire facility for $2.6 million

Dividend Commitment Provides Some Solace

For income-focused shareholders, one element remains steady: the dividend. The company has declared a cash distribution of $0.3550 per share for the third quarter of 2025, scheduled for payment on October 15. Based on a recent share price around $25.45, this payout translates to an annualized dividend yield of roughly 5.6%. This consistent return underscores management’s ongoing commitment to shareholder returns even as other financial metrics face pressure.

The stock’s performance has been challenging, currently hovering just above its one-year low and showing a year-to-date decline of nearly 4%. The central question for the market is whether this represents a temporary setback or the early stages of a more prolonged period of difficulty for the restaurant-focused REIT.