This page compares net lease properties operated as Chick-fil-A and McDonald’s restaurants. S&P and Moody’s rate McDonald’s Corporation’s long-term debt BBB+/Baa1 (Form 10-K for fiscal 2025), and in most cases its franchisees operate in restaurant facilities that McDonald’s owns or leases (same filing). Chick-fil-A, Inc. describes itself as family-owned and privately held (company website), and we found no public issuer rating for it from S&P, Moody’s or Fitch in our check on October 8, 2026. Below we compare what each structure can pay a landlord and what to verify in each lease.
In the listings InvestmentGrade.com tracks, properties for both brands are often marketed as ground leases, and some McDonald’s listing titles describe a corporate guarantee. Those are listing representations, not verified lease terms: for either brand, review the executed lease and any guaranty to confirm the named tenant, the guarantor and the guaranty’s scope. The differences covered below are rating disclosure, escalation terms, tenant and guaranty verification, and resale considerations. For how the rating scale itself frames these credits, from AAA through the BBB-/Baa3 cutoff, see our investment grade guide.
Chick-fil-A vs McDonald’s: Head-to-Head NNN Metrics
| Metric | Chick-fil-A | McDonald’s |
|---|---|---|
| S&P / Moody’s Rating | no verified rating (no public issuer rating found in our October 8, 2026 check) | BBB+/Baa1 (long-term debt, Form 10-K for fiscal 2025) |
| Ownership | Family-owned and privately held (company website) | Public (NYSE: MCD) |
| Reported restaurant footprint | More than 3,000 restaurants in 48 states, Washington, D.C., Puerto Rico and Canada (company website, checked October 8, 2026) | 13,706 U.S. restaurants at year-end 2025; 45,356 worldwide (Form 10-K) |
| Median asking cap rate | See the live table below | See the live table below |
| Original base lease term | Varies; listings we track include 15-year and 20-year ground leases; confirm the original and remaining term in the lease | For leases where McDonald’s is lessee, it reports terms of generally 20 years where market conditions allow, in many cases with renewal options that are generally at its discretion (Form 10-K); confirm the original and remaining term in the lease |
| Escalations | Vary; 10% every five years is one advertised schedule, some listings advertise 7.5% or 8% steps, and many do not show the schedule; confirm in the lease | Vary by market: McDonald’s cites fixed-rent, inflation-index and fair-value adjustments, timed generally from annually to every five years (Form 10-K); confirm in the lease |
| Common listed structure | Often marketed as an absolute NNN ground lease; confirm in the lease | Often marketed as an absolute NNN ground lease; confirm in the lease |
| Tenant / guarantee | Listing descriptions may present Chick-fil-A, Inc. as tenant or guarantor; verify the named tenant and any separate guaranty in the executed lease | Some listings are marketed as corporate-backed; the tenant may be a McDonald’s entity or a franchisee; verify the named tenant and any separate guaranty in the executed lease |
| Annual Unit Growth | Opens a limited number of restaurants each year (company website) | US restaurants rose from 13,557 to 13,706 in 2025 (Form 10-K) |
Listing descriptions cited in this table are from the listings InvestmentGrade.com tracks, as of October 8, 2026, and are seller marketing, not verified lease terms; median asking cap rates in the live table below update as listings change. McDonald’s figures are from its Form 10-K for fiscal 2025; Chick-fil-A figures are from its company website, checked October 8, 2026. McDonald’s rating source: S&P Global Ratings BBB+, as of February 24, 2026; Moody’s Baa1, as of February 24, 2026. Ratings checked October 8, 2026. Leases with a franchisee tenant or guarantor can price differently than leases backed by a corporate entity.
Credit Comparison: Rated Public Debt vs a Private Company
McDonald’s Corporation’s long-term debt is rated BBB+/Baa1 by S&P and Moody’s. The company reported 45,356 restaurants in more than 100 countries at year-end 2025, 13,706 of them in the U.S., and said it owned about 56% of the land and 80% of the buildings for restaurants in its consolidated markets (Form 10-K). For a landlord, the structural question is who signs the lease. McDonald’s says it is the lessee in a significant real estate portfolio, primarily through ground leases, and that franchisee minimum rent payments parallel its underlying leases and escalations on leased properties (Form 10-K). Where a McDonald’s entity is the named lessee, that lessee remains responsible for rent under the lease, subject to the lease terms and its own default risk, whether or not the franchisee operating the restaurant performs. Confirm whether the lessee is McDonald’s Corporation or a subsidiary, and whether the parent guarantees the lease. Where that credit sits against other rated tenants is tracked in our credit tenant ratings index.
Chick-fil-A, Inc. describes itself as family-owned and privately held (company website). An SEC EDGAR company search on October 8, 2026 returned no filer under the Chick-fil-A name, and we found no public issuer rating for Chick-fil-A, Inc. from S&P, Moody’s or Fitch in our check that day; other rating types, such as private ratings, are outside that check. The company says it opens a limited number of restaurants each year and that the real estate team at Chick-fil-A, Inc. selects all new locations (company website). Listing descriptions may present Chick-fil-A, Inc. as the tenant or guarantor; treat that as a seller representation until the executed lease and any guaranty confirm the named entity and the guaranty’s scope. Without a public rating, buyers can weigh the company’s operating history, any financial information the seller or tenant provides, the lease documents and the real estate itself.
Verify the tenant and guarantor on every deal, for either brand. A lease backed by a corporate entity and a lease signed only by a franchisee or other operator are not comparable investments, even when the building looks identical. For Chick-fil-A and McDonald’s alike, confirm the named tenant, any guarantor, the guaranty’s scope and the executed lease on every transaction; the brand on the building does not identify the legal tenant.
Cap Rate Analysis: Live Asking Cap Rates
Live asking cap rates for Chick-fil-A, McDonald’s and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| McDonald's | BBB+ / Baa1 | 4.00% | 3.75% to 4.15% | 43 | −124 bps |
| Chick-fil-A | n/a / n/a | 4.22% | 4.00% to 4.50% | 45 | −102 bps |
| Chipotle | n/a / n/a | 5.00% | 4.75% to 5.25% | 89 | −24 bps |
| Starbucks | BBB+ / Baa1 | 5.75% | 5.35% to 6.19% | 118 | +51 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.
The table shows live median asking cap rates from the listings InvestmentGrade.com tracks. Asking cap rates are seller pricing, not closed-sale cap rates, and individual properties vary with remaining term, rent, location and lease structure.
Escalation schedules vary. In the listings we track, 10% every five years is one advertised schedule for both brands, some Chick-fil-A listings advertise 7.5% or 8% steps, and many listings do not show the schedule. McDonald’s says escalation terms on leases where it is lessee vary by market, including fixed-rent escalations, inflation-index escalations and fair-value market adjustments, timed generally from annually to every five years (Form 10-K). Base terms vary too: McDonald’s reports lease terms of generally 20 years where market conditions allow, and Chick-fil-A listings we track include 15-year and 20-year ground leases. Read each lease for the actual term and schedule.
Lease and Real Estate Structure
Listings for both brands are often marketed as absolute NNN ground leases. In a ground lease the investor owns the land, the tenant generally owns and maintains its building, and the landlord’s obligations are limited to what the lease assigns to it; confirm each point in the lease. Renewal options vary by lease and are generally exercisable at the tenant’s discretion. As arithmetic only, a 20-year base term with four 5-year options would permit up to 40 years if the tenant exercised every option; options are not guaranteed rent. Parcel size and configuration vary by site, so review the survey and site plan when judging reuse potential.
Residual risk depends on the site. Whether a QSR pad with drive-thru infrastructure can be re-let to another user depends on access, zoning, building configuration, conversion cost, local demand and the downtime before a new tenant pays rent. McDonald’s says that at the end of a 20-year franchise arrangement it maintains control of the underlying real estate and building (Form 10-K), and Chick-fil-A says its real estate team selects all new locations (company website). McDonald’s reported 13,706 U.S. restaurants at year-end 2025 (Form 10-K); Chick-fil-A reports more than 3,000 restaurants across 48 states, Washington, D.C., Puerto Rico and Canada (company website). Restaurant counts do not measure how easily a specific property resells.
Growth and Supply
McDonald’s U.S. system grew from 13,557 to 13,706 restaurants in 2025, and the company plans to open about 2,600 restaurants globally in 2026 (Form 10-K). Chick-fil-A says it opens a limited number of restaurants each year (company website). Acquisition pricing, and any portfolio discount, depends on the actual seller and transaction.
Bond-to-NNN Pivot: Public Debt vs Lease Exposure
McDonald’s had about $40.0 billion of debt obligations at December 31, 2025 (Form 10-K). Investors can buy McDonald’s Corporation debt directly, while a ground lease carries McDonald’s credit only where a McDonald’s entity is the named lessee or guarantor. McDonald’s S&P long-term debt rating of BBB+ maps to the ICE BofA BBB US Corporate Index, which yields 6.19% as of October 1, 2026. The median asking cap rate in the McDonald’s listings we track, 4.00%, is a spread of −219 bps to that index; the index is an average yield for the rating category, not a quote on McDonald’s own bonds. For taxable long-hold investors, the real estate can still compare well because of contractual rent escalations where the lease provides them, residual land value, and the possibility of deferring gain through a like-kind exchange: under IRC 1031(a)(1), no gain or loss is recognized when real property held for productive use in a trade or business or for investment is exchanged solely for like-kind real property to be held the same way, subject to the 45-day identification and 180-day receipt deadlines in IRC 1031(a)(3) (the receipt deadline ends earlier if the tax return due date, with extensions, comes first) and the section’s other requirements. On a ground lease the investor owns only the land, which cannot be depreciated (Treas. Reg. 1.167(a)-2), so tax results differ from owning a fee-simple building and depend on the investor’s structure and circumstances. This is general information, not tax advice. The full math is in our McDonald’s Bonds vs NNN analysis.
We did not identify a publicly offered Chick-fil-A, Inc. bond in the sources checked for this comparison (an SEC EDGAR company search and the company’s website, October 8, 2026). Whether any Chick-fil-A debt is available, and whether a given investor is eligible to buy it, should be verified separately with a securities professional. A ground lease carries Chick-fil-A credit only to the extent a Chick-fil-A entity is the named tenant or guarantor in that lease.
Verdict: Which NNN Investment Wins?
McDonald’s offers more public credit disclosure: SEC filings and S&P and Moody’s long-term debt ratings of BBB+/Baa1 that you can monitor. Chick-fil-A, Inc. is family-owned and privately held, with no public issuer rating from S&P, Moody’s or Fitch found in our October 8, 2026 check. The brand does not settle the question for a specific property: compare each property’s documented tenant and guarantor, the guaranty’s scope, remaining lease term, rent schedule, price and site before choosing.
Chick-fil-A vs McDonald’s NNN: Frequently Asked Questions
Is Chick-fil-A or McDonald’s a better NNN credit?
McDonald’s offers more public credit disclosure, including S&P and Moody’s long-term debt ratings of BBB+/Baa1 (Form 10-K). Chick-fil-A, Inc. is family-owned and privately held, and we found no public issuer rating for it from S&P, Moody’s or Fitch in our October 8, 2026 check. For either brand, the credit behind a specific lease depends on the named tenant and any guarantor in the executed lease, so verify both before comparing properties.
What are Chick-fil-A and McDonald’s asking cap rates in 2026?
Current median asking cap rates for both brands, from the listings InvestmentGrade.com tracks, are shown in the live table on this page. Asking cap rates are not closed-sale cap rates, and individual properties vary with remaining term, rent, location and lease structure.
How should buyers evaluate Chick-fil-A without a public issuer rating?
Without a rating agency report, buyers can weigh what the company discloses about its operations (it says it opens a limited number of restaurants each year and that its real estate team selects all new locations), any financial information the seller or tenant provides, the executed lease and any guaranty, and the real estate itself. Listing descriptions may present Chick-fil-A, Inc. as tenant or guarantor; confirm the named entity and the guaranty’s scope in the lease documents. These are underwriting considerations, not an explanation of how the market prices Chick-fil-A properties.
How do the escalation structures compare?
Schedules vary. In the listings we track, 10% every five years is one advertised schedule for both brands, some Chick-fil-A listings advertise 7.5% or 8% steps, and many listings do not show the schedule. McDonald’s says escalation terms on leases where it is lessee vary by market and generally range from annually to every five years (Form 10-K). As arithmetic only: if rent rose 10% at the start of years 6, 11 and 16 of a 20-year hold, the final rent would be about 33% above the starting rent. Confirm the schedule in each lease, including the option periods.
Can I buy Chick-fil-A bonds instead of the real estate?
A publicly offered Chick-fil-A, Inc. bond was not identified in this review (an SEC EDGAR company search and the company’s website, October 8, 2026); check current availability and eligibility with a securities professional. A ground lease carries Chick-fil-A credit only where a Chick-fil-A entity is the named tenant or guarantor. McDonald’s Corporation, by contrast, reported about $40.0 billion of debt obligations at December 31, 2025 (Form 10-K). Comparing a McDonald’s property with McDonald’s bonds depends on the property’s asking cap rate, the bond’s price and yield, and the investor’s tax position; land under a ground lease is not depreciable (Treas. Reg. 1.167(a)-2), so tax results depend on structure and circumstances.
Chasing a trophy QSR ground lease? We verify guarantor structure, benchmark the cap rate against live comps, and model the escalation math side by side before you commit 1031 funds. Request a buyer consultation before you go hard on any Chick-fil-A or McDonald’s deal.
