Looking to buy a McDonald's NNN property? 44 are observed for sale across 22 states, median asking cap rate 4.00%. View McDonald's NNN properties for sale, cap rate bands and the 1031 buyer guide.
McDonald’s Corporation’s long-term debt is rated BBB+ by S&P and Baa1 by Moody’s, two notches above the BBB-/Baa3 investment grade threshold at each agency. Across the McDonald’s listings InvestmentGrade.com tracks, the median asking cap rate is 4.00%. As of October 8, 2026, 43 of the 44 McDonald’s listings we track are ground leases.
| Metric | Figure | Source |
|---|---|---|
| S&P Rating / Outlook | BBB+ | Tenant ratings database |
| Moody’s Rating / Outlook | Baa1 | Tenant ratings database |
| Investment Grade Status | Investment Grade | InvestmentGrade.com classification |
| Median asking cap rate | 4.00% | Listings InvestmentGrade.com tracks, latest observation October 9, 2026 |
| Median asking price | $3.05M (middle half $2.48M to $3.48M) | Listings InvestmentGrade.com tracks, latest observation October 9, 2026 |
| Structure in Listings | Ground lease (43 of 44 listings) | Listings InvestmentGrade.com tracks, as of October 8, 2026 |
| Lease Term (2025 Form 10-K) | Generally 20 years, with renewal options typically at McDonald’s discretion | McDonald’s 2025 Form 10-K |
| Restaurants | 45,356 worldwide (13,706 US), about 95% franchised | 2025 Form 10-K (year-end 2025) |
| Total Revenue | $26.9 billion (2025) | 2025 Form 10-K |
| Debt | $40.0 billion (Dec. 31, 2025) | 2025 Form 10-K |
Cap rates and prices are asking figures from active McDonald’s listings tracked by InvestmentGrade.com; asking cap rates are not closing cap rates. Company figures from McDonald’s Form 10-K for 2025. Ratings update automatically from our ratings database.
InvestmentGrade.com verdict: McDonald’s Corporation’s long-term debt is rated investment grade by S&P and Moody’s. The median asking cap rate across the McDonald’s listings we track is 4.00%, so compare it with current Treasury and McDonald’s bond yields before buying. The two checks that matter most: confirm which McDonald’s entity signs the lease (or whether a franchisee does), and compare the price with local land values. See the McDonald’s bonds vs. NNN comparison →
Corporate Snapshot
McDonald’s franchises and operates restaurants in more than 100 countries. Of its 45,356 restaurants at year-end 2025, about 95% were franchised (95% in the US), and 13,706 were in the United States, according to its 2025 Form 10-K. Total revenue was $26.9 billion in 2025, of which $16.5 billion came from franchised restaurants (rent and royalties paid by franchisees) and $9.7 billion from company-operated restaurant sales. The company returned about $7.1 billion to shareholders through dividends and buybacks in 2025.
As of December 31, 2025, McDonald’s owned about 56% of the land and about 80% of the buildings for restaurants in its consolidated markets, and it leases the rest, primarily through ground leases (where McDonald’s leases the land and generally owns the building) and improved leases (land and building). That leasing activity is what puts McDonald’s net lease properties in investors’ hands.
Credit Rating and Investment Grade Analysis
McDonald’s Corporation’s long-term debt is rated BBB+ by S&P and Baa1 by Moody’s. Both ratings sit two notches above the BBB-/Baa3 line where investment grade begins. The company carries meaningful leverage by design: debt totaled $40.0 billion at the end of 2025, and years of share repurchases have left shareholders’ equity negative (total debt was 105% of total capitalization). Offsetting that, most of its revenue comes from franchise rent and royalties, which depend on restaurant sales but not on restaurant-level labor and food costs.
The most important diligence point is the tenant entity. The tenant on an investor-owned McDonald’s lease may be McDonald’s Corporation, a McDonald’s subsidiary or a franchisee. The rated company is McDonald’s Corporation, so confirm which entity signs the lease and whether McDonald’s Corporation guarantees it. Some properties are leased directly to a franchisee, and those leases carry the franchisee’s credit, not McDonald’s. Request the full lease and any guaranty before signing a purchase contract.
Net Lease Structure
According to its 2025 Form 10-K, McDonald’s lease terms for most restaurants, where market conditions allow, are generally 20 years, and in many cases provide for rent escalations and renewal options, with renewal options typically at the company’s discretion. Escalation terms vary by market and include fixed rent increases, increases tied to an inflation index, and fair market value adjustments, with timing that generally ranges from annually to every five years.
Investors mainly see two structures:
- Ground lease. The investor owns the land; the tenant, which may be McDonald’s or a franchisee, generally owns the building; confirm in the lease who is responsible for the building, taxes, insurance and maintenance. As of October 8, 2026, 43 of the 44 McDonald’s listings we track are ground leases. Many ground leases in the listings we track step rent up 10% every five years, but schedules vary, so confirm the rent table in the lease.
- Land and building (improved lease). The investor owns both. The lease may leave some building responsibilities with the landlord, so check the repair and replacement provisions.
On a ground lease, the investor’s return comes from land rent and, eventually, the land itself. If the tenant leaves at the end of the term, the building may revert to the landlord or be removed, depending on the lease.
Cap Rates and Pricing
Live asking cap rates for 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 |
| Taco Bell (rated entity: Yum! Brands, Inc.) | BB+ / Ba2 | 5.50% | 5.00% to 5.85% | 54 | +26 bps |
| Starbucks | BBB+ / Baa1 | 5.75% | 5.35% to 6.19% | 118 | +51 bps |
| Wendy's | B+ / n/a | 5.95% | 5.50% to 6.50% | 83 | +71 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 9, 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.
Among the 22 listings that state a remaining lease term, the average remaining term is 16.2 years.
Compare the asking cap rate with the current 10-year Treasury yield and with yields on McDonald’s own bonds before buying. A long lease at a low cap rate can lose more value when interest rates rise, and when the cap rate is below the loan rate, borrowing lowers the cash yield on equity.
In a 1031 exchange, replacement property must be identified within 45 days after the relinquished property is transferred and received within 180 days, or by the due date (with extensions) of the tax return for that year if earlier (IRC § 1031(a)(3)), so identifying backup properties early can help. This is general information, not tax advice.
Buying a McDonald’s ground lease? We represent buyers of McDonald’s and other NNN properties, from sourcing through closing. On the majority of transactions, there is no separate fee to the buyer because the listing broker pays the cooperating commission. Tell us your criteria and timeline →
Property Profile
Across the McDonald’s listings we track, the median building size is 3,859 square feet, and as of October 8, 2026 the median lot size was 1.2 acres. As of the same date, 28 of the 41 listings that state a year built were built in 2015 or later, and 3 were built before 1995. More than 95% of McDonald’s roughly 13,700 US restaurants have a drive-through, and the company says the vast majority of new US openings will include one; it also cites adding drive-through lanes as a growth opportunity.
| Feature | Listings We Track |
|---|---|
| Building size (median) | 3,859 sq ft |
| Lot size (median) | 1.2 acres (October 8, 2026) |
| Year built | 28 of 41 listings that state a year built were built 2015 or later (October 8, 2026) |
| Structure | Ground lease in 43 of 44 listings (October 8, 2026) |
Building size is a live median from the listings InvestmentGrade.com tracks; the other figures are as of October 8, 2026. Individual sites vary widely.
Growth and Strategy
McDonald’s opened 2,276 restaurants and closed 396 in 2025, according to its 10-K, and plans to open about 2,600 restaurants worldwide in 2026, which it expects to produce slightly more than 4.5% net unit growth. In June 2026 it introduced a new strategy, McDonald’s > NEXT, building on Accelerating the Arches, and it now targets 50,000 restaurants in 2028, according to its second-quarter 2026 10-Q. In the US, the restaurant count grew from 13,557 to 13,706 during 2025, so most unit growth is international.
In September 2026, McDonald’s set targets of 1.5 percentage points of market share gains in both the chicken and beverage categories by 2030, according to an investor update furnished on Form 8-K on September 23, 2026.
Investment Strengths and Risks
Strengths
- Investment grade parent. BBB+/Baa1 (S&P / Moody’s), with most revenue from franchise rent and royalties.
- Minimal landlord duties on ground leases. The tenant generally owns and maintains the building.
- Long terms with scheduled increases. Leases are generally 20 years, often with rent steps and renewal options.
Risks
- Low current yield. The median asking cap rate in the listings we track is 4.00%; compare it with current Treasury and McDonald’s bond yields, since more of the return may depend on rent growth and land value.
- Interest rate sensitivity. Long, low-yielding leases can lose more value when rates rise.
- Tenant entity. Franchisee leases and subsidiary tenants without a parent guaranty are different credits; confirm in the lease.
- No depreciation on land. Land is not depreciable (Treas. Reg. § 1.167(a)-2), so a land-only ground lease provides no building depreciation to offset rental income. This is general information, not tax advice.
Comparable Quick Service Restaurant Cap Rates
Asking cap rates for quick service tenants reflect more than credit ratings: brand, sales per restaurant, ground lease share and remaining lease term can also affect pricing. The table below shows live medians from the listings we track.
| Tenant | S&P (rated entity) | Status | Median Asking Cap | Listings |
|---|---|---|---|---|
| McDonald’s | BBB+ | investment grade | 4.00% | 44 |
| Chick-fil-A | no verified rating | not yet verified | 4.22% | 45 |
| Chipotle | no verified rating | not yet verified | 5.00% | 89 |
| Taco Bell | BB+ (Yum! Brands) | not investment grade | 5.50% | 54 |
| Starbucks | BBB+ | investment grade | 5.75% | 124 |
| Wendy’s | B+ | not investment grade | 5.95% | 83 |
| Popeyes | BB+ (Restaurant Brands Intl.) | not investment grade | 6.00% | 75 |
| Burger King | BB+ (Restaurant Brands Intl.) | not investment grade | 6.25% | 71 |
Live median asking cap rates and listing counts from the listings InvestmentGrade.com tracks (McDonald’s listings last observed October 9, 2026); asking cap rates are not closing cap rates. Ratings update from our ratings database. Ratings for Taco Bell, Popeyes and Burger King are those of the parent company; individual leases are often signed by franchisees, so confirm the tenant and any guarantor in the lease.
Frequently Asked Questions
What is the current McDonald’s NNN cap rate?
Current median asking cap rates for McDonald’s and comparable tenants are shown in the live table on this page. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.
Is McDonald’s an investment grade tenant?
Yes. McDonald’s Corporation’s long-term debt is rated BBB+ by S&P and Baa1 by Moody’s, two notches above the BBB-/Baa3 investment grade threshold. That rating applies to a lease only when McDonald’s Corporation is the tenant or guarantor, so confirm the tenant entity in the lease.
What is a McDonald’s ground lease?
In a McDonald’s ground lease, the investor owns the land and the tenant (McDonald’s Corporation, a McDonald’s subsidiary or a franchisee) leases it and generally owns the building; the lease sets who is responsible for the building, taxes, insurance and maintenance. The investor collects land rent. Because the investor owns no building, there is no building depreciation.
How long are McDonald’s leases, and how does rent increase?
McDonald’s 10-K says its restaurant leases are generally 20 years and, in many cases, include rent escalations and renewal options, with renewal options typically at the company’s discretion. Escalations vary: fixed increases, inflation-indexed increases, and fair market value adjustments, with timing that generally ranges from annually to every five years. Many ground leases in the listings we track step up 10% every five years; confirm the schedule in the lease.
What does a McDonald’s NNN property cost?
Asking prices in the listings we track cluster between about $2.48M and $3.48M, with a median near $3.05M, depending on market, rent, remaining term and structure.
Can I buy a McDonald’s property in a 1031 exchange?
Yes. A McDonald’s property held for investment can qualify as replacement real property if the exchange requirements are met, including identifying the replacement property within 45 days and receiving it within 180 days, or by the due date (with extensions) of your tax return if earlier (IRC § 1031(a)(3)). This is general information, not tax advice. See our 1031 exchange guide.
How do I buy a McDonald’s NNN property through InvestmentGrade.com?
We represent buyers of McDonald’s and other NNN properties. On the majority of transactions, there is no separate fee to the buyer because the listing broker pays the cooperating commission. Email team@investmentgrade.com or call 312.433.9300.
Depreciation note: Land is not depreciable (Treas. Reg. § 1.167(a)-2). On a land-only McDonald’s ground lease the buyer owns no building, so building depreciation, cost segregation and bonus depreciation do not apply to the purchase. Bonus depreciation under IRC § 168(k) applies only to qualified property, such as property with a recovery period of 20 years or less, that meets the acquisition and placed-in-service requirements, and equipment inside a restaurant often belongs to the operator rather than the landlord. This is general information, not tax advice; confirm what you are buying and its tax basis with a tax professional.
McDonald’s Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market McDonald’s properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
Compare McDonald’s against current NNN cap rates
Before underwriting a McDonald’s net lease, benchmark the asking cap rate against the broader 2026 NNN cap rates by tenant credit quality so the spread reflects both McDonald’s credit risk and lease structure.
McDonald's NNN Properties Observed For Sale
44 active McDonald's net lease listings observed across public listing sources, most recently Oct 9, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Marlborough, MA | $2,700,000 | 4.00% | 3,830 | 20.0 yrs | View listing |
| Vernon, CT | $3,029,100 | 4.00% | 3,528 | 3.0 yrs | View listing |
| Bloomfield, CT | $4,085,000 | 4.30% | 4,149 | 8.0 yrs | View listing |
| North Salt Lake, UT | $3,200,000 | n/a | 4,515 | n/a | View listing |
| Medford, OR | $1,369,000 | 4.20% | 4,590 | n/a | View listing |
| Baltimore, MD | $3,701,176 | 4.25% | 4,150 | 5.0 yrs | View listing |
| Fort Washington, MD | $3,000,000 | 4.00% | 4,400 | n/a | View listing |
| Las Vegas, NV | $2,369,000 | 3.50% | 3,207 | 8.6 yrs | View listing |
Search all 44 observed McDonald's listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
