Question-and-Answer Session
Operator
(Operator instructions). Our first question comes from the line of Jeff Donnelly with Wells Fargo.
Jeff Donnelly - Wells Fargo
Your restaurant exposure, relative to some other folks out there, is fairly high, and it's sort of above where it's been historically for you folks and clearly that industry has been under some degree of pressure. What's your thinking on the future about your exposure there as it relates to may be a buy/sell decision? The basis of this is really because unemployment is high, savings rates are up. It doesn't feel like there's a quick turn at hand for restaurant profitability.
Tom Lewis
Yes, at the end of '07, we had bought a fair amount of restaurants and at that time when we got over 20, said this is getting uncomfortable relative to size, and we're bringing it down. I don't think we've bought anything really in quite a long time in restaurants, and we've kind of put that on the list of not something we're considering. So, it's definitely our desire to bring it down and those numbers have been coming down now for a number of quarters.
Relative to selling some properties, as we have been selling, a good number of those have been restaurants and so that's what's bringing down the percentage of the revenue in the portfolio. It's interesting also, Jeff, to look at it in restaurants, which is about 20%, 5% is Buffets, which coming out of their reorganization and with the adjustment of rents, we have pretty good cash flows on and kind of took a hit there, and that leaves us with about 15%. Out of that 15%, about half is fast food restaurants, and the fast food restaurant end has held up very well, as a matter of fact, has had some very good sales with people have been migrating down the price chart into restaurants and going for lower prices, they benefited.
So if you take that out, that leaves us about 7% to 8% of casual dining. When we go through those, there has been a couple other little hits in there. So while there may be a little exposure, it's not up at 20% of the portfolio. I think it's down now to about 4% or 5% of the portfolio, where we look at it and say, ?Okay, this is going to be a soft business, consumer's probably not coming back hard, and it is likely that spending will be moderated in the casual dining segment.? I think it's really down to about 4% or 5%, 6% that we keep an eye on now in restaurant.
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