Circle K and Wawa are both convenience store tenants in net lease, and they sit on opposite sides of the credit question. Circle K is a banner of Alimentation Couche-Tard (TSX: ATD), a publicly traded company rated BBB+/Baa1. Wawa is privately held and has no public credit rating.
In the listings we track, Wawa properties ask a median cap rate of 5.00% and Circle K properties 5.12%; asking cap rates are not closed-sale cap rates. Differences can reflect things a rating does not measure, such as the brand, store sales, lease length, ground lease structure and the real estate, which vary by property. This comparison covers the credit, the live cap rates, the lease and the real estate, and what to confirm on each property.
Head-to-Head
| Circle K | Wawa | |
|---|---|---|
| S&P / Moody’s | BBB+/Baa1 | no verified rating |
| Investment grade status | Parent Rated Investment Grade (Alimentation Couche-Tard Inc.); confirm the lease guarantor | Not Yet Verified |
| Ownership | Alimentation Couche-Tard Inc. (TSX: ATD), Laval, Quebec | Wawa, Inc., privately held |
| Store network (company figures) | 7,260 U.S. stores and about 17,200 worldwide in 27 countries and territories, including licensed stores (Couche-Tard, as of July 19, 2026) | Over 1,110 stores in 10 states and Washington, D.C. (Wawa 2025 fact sheet) |
| States with listings we track | 16 | 13 |
| Parent revenue | US$76.5 billion, fiscal year ended April 26, 2026 | Not publicly reported |
| Lease obligor | Confirm the named tenant and any guarantor on each lease; the parent’s rating applies only if the parent signs or guarantees it | Confirm the named tenant and any guarantor on each lease |
| Median asking cap rate (listings we track) | 5.12% (36 listings) | 5.00% (53 listings) |
Couche-Tard revenue is from its fiscal 2026 results release of June 22, 2026; its store counts are from its Where We Operate page (as of July 19, 2026; counts include corporate, dealer-operated and affiliated stores, and the worldwide total includes stores under licensing agreements). The Wawa store count is from Wawa’s 2025 fact sheet; Wawa does not file financial statements with the SEC. Listing counts include listings without a stated cap rate; median cap rates use only listings that state one. Ratings update from our ratings database. Cap rates are live asking cap rates on listings InvestmentGrade.com tracks; asking cap rates are not closed-sale cap rates.
Credit Ratings
Couche-Tard is rated BBB+/Baa1 in our database, which classifies it as investment grade. That rating belongs to the parent. A Circle K lease may name a U.S. operating subsidiary or another entity as tenant, with or without a guarantee, so confirm the named tenant and guarantor on each property before relying on the parent’s rating. See why parent company credit and lease obligor risk are separate questions.
Couche-Tard has the financial capacity of a large public company: US$76.5 billion of revenue in fiscal 2026 and about 17,200 stores worldwide as of July 19, 2026, including licensed stores. It withdrew its proposal to acquire Seven & i Holdings, the owner of 7-Eleven, in July 2025.
Wawa has no rating from S&P, Moody’s or Fitch and does not publish financial statements with the SEC. Unrated is not the same as below investment grade, but buyers cannot verify leverage or cash flow from public filings, and mandates restricted to rated investment grade tenants generally exclude Wawa. Buyers rely on the lease guarantor, the site and the brand’s operating record, and should ask what financial information the tenant or seller can provide.
Ratings come from our tenant ratings database. For how the scale works, see the investment grade guide.
Cap Rates
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Wawa | n/a / n/a | 5.00% | 4.65% to 5.15% | 53 | −24 bps |
| Circle K (rated entity: Alimentation Couche-Tard Inc.) | BBB+ / Baa1 | 5.12% | 5.00% to 5.50% | 36 | −13 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.
We track 37 active Circle K listings in 16 states and 53 Wawa listings in 13 states; median cap rates use only listings that state a cap rate. Current listings do not show how often either tenant’s properties trade or resell. Lease structure, remaining term and lot size vary by property, and pricing also varies with location and whether a rated entity signs or guarantees the lease.
Compare any offering with listings for the same tenant and lease structure, not with a sector average. Asking cap rates are not closed-sale cap rates.
Lease Structure and Real Estate
Lease terms and rent increases vary by property. A listing may state the original lease term or the remaining term, and marketed rent increases in the listings we track include fixed increases every five years, increases only at option periods and, for some Circle K listings, annual increases. Read the rent schedule rather than assuming one. Confirm the initial term and remaining term, renewal options, the tenant entity, any guarantee, and who is responsible for the roof, structure, parking lot and fuel system.
Building and lot sizes vary by property, so confirm them in the offering materials and survey. Fuel sites often have underground storage tanks, so review the environmental reports, tank records and the lease’s environmental provisions. For a ground lease, check what happens to the building at lease end.
Bonds vs. Real Estate
Couche-Tard has issued senior unsecured notes, so its credit can be owned through the bond market as well as through a lease it signs or guarantees. As general information, a net lease property can add depreciation deductions on improvements the investor owns (IRC Section 167(a); land is not depreciable under Treas. Reg. 1.167(a)-2), 1031 exchange eligibility for real property held for business or investment use and exchanged for like-kind real property (IRC Section 1031(a)(1); identification and timing rules apply), and ownership of the real estate, along with real estate risks a bondholder does not take. We have not identified publicly traded Wawa bonds. The 10-year Treasury is 5.24% and the ICE BofA US Corporate Index (investment grade) yields 5.99% as of October 1, 2026. See the bond-to-NNN spread table.
Which Fits Your Mandate
- Circle K can suit buyers who need a rated investment grade parent, provided the lease is signed or guaranteed by a rated Couche-Tard entity.
- Wawa can suit buyers who are comfortable with an unrated private tenant and who underwrite the lease term, the site and the brand’s operating record property by property.
See the Circle K and Wawa tenant pages, Wawa vs. Sheetz and 7-Eleven vs. Circle K.
Comparing Convenience Store Net Lease Properties?
We can compare specific Circle K and Wawa offerings against current listings and recent sales, review the lease and guarantee, and check the environmental reports. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission. Investment Grade Capital, a service of Investment Grade LLC, can match you with lenders.
Request a buyer consultation or email team@investmentgrade.com.
Frequently Asked Questions
Is Circle K investment grade?
Circle K’s parent, Alimentation Couche-Tard, is rated BBB+/Baa1 in our database, which classifies it as investment grade. Whether that rated parent stands behind a specific lease depends on the executed lease and guarantee, so confirm the named tenant and guarantor on each property.
Is Wawa investment grade?
Wawa has no investment grade rating because it has no public credit rating from S&P, Moody’s or Fitch; it is privately held. Unrated is not the same as below investment grade. Without a rating, buyers underwrite the lease, any guarantor, the store and the real estate.
How do Wawa and Circle K asking cap rates compare?
The live table on this page shows current median asking cap rates for both from the listings we track; asking cap rates are not closed-sale cap rates. Lease structure, remaining term, lot size, store sales and location vary by property, so compare a specific offering with listings for the same tenant, structure and remaining term.
Do Circle K and Wawa leases have annual rent increases?
It varies by lease. Listings we track for both tenants include increases every five years or at option periods, and some Circle K listings show annual increases. Actual schedules vary by tenant, property and lease, so read the rent schedule in the lease.
Which is better for a 1031 exchange?
It depends on the exchange amount and what you need. Circle K’s parent is rated, but confirm whether a rated entity signs or guarantees the lease; Wawa is unrated. Lease term, site quality and asking cap rate vary by property, so compare the specific properties, leases and prices against your exchange timeline.
Sources: Alimentation Couche-Tard fiscal 2026 fourth quarter results release (June 22, 2026) and Where We Operate page (corporate.couche-tard.com, store counts as of July 19, 2026); Wawa 2025 fact sheet; live listing and ratings data from InvestmentGrade.com’s databases.
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
