McDonald’s and Starbucks are both widely listed quick service tenants in net lease. McDonald’s is rated BBB+/Baa1 and Starbucks BBB+/Baa1 (S&P / Moody’s long-term debt ratings), and our ratings database places both against the investment grade threshold: McDonald’s is investment grade and Starbucks is investment grade. Yet across the active listings we track, the live median McDonald’s asking cap rate is 4.00% and the live median Starbucks asking cap rate is 5.75%, a gap of 175 basis points; the table below shows when each set of listings was last observed. Agency ratings do not by themselves measure lease risk: the ratings apply to each company’s debt, and they stand behind a lease only when that company is the tenant or guarantor named in it. Lease structure, term and store strategy are visible differences between the two sets of listings. The framework in our investment grade guide explains why a rating is only the starting point.
Quick verdict: In the listings we track, McDonald’s (BBB+/Baa1) asks a live median cap rate of 4.00%, mostly on ground leases where the buyer owns the land, often with 20-year original terms where a term is stated. Starbucks (BBB+/Baa1) asks a live median of 5.75%, often on 10-year leases where the buyer may own the building as well as the land, while the company closes coffeehouses that do not meet its performance expectations. McDonald’s can suit buyers who want long term and land; Starbucks can suit buyers who want more current income (compare the live medians) from a rated company and who will underwrite the store and the building. In either case, confirm the tenant entity and any guaranty in the executed lease.
McDonald’s vs Starbucks: Side-by-Side Comparison
| Metric | McDonald’s | Starbucks |
|---|---|---|
| S&P / Moody’s Rating | BBB+/Baa1 | BBB+/Baa1 |
| US Stores | 13,706 restaurants, about 95% franchised (year-end 2025) | 10,047 company-operated (Sept. 28, 2025), plus licensed stores |
| Median asking cap rate (live) | 4.00% | 5.75% |
| Listings with a cap rate in our data (live) | 43 | 118 |
| Listings last observed (live) | October 9, 2026 | October 12, 2026 |
| Average remaining lease term (live) | 16.2 years (22 listings state it) | 8.7 years (60 listings state it) |
| Original lease term in listings that state one (Oct. 8, 2026) | 20 years in 14 of 21 | 10 years in 40 of 64 |
| Marked as ground lease in listings (Oct. 8, 2026) | 43 of 44 (1 not a ground lease) | 5 of 123 (82 not ground leases, 36 not stated) |
| Most Common Rent Schedule in Listings | 10% every 5 years (schedules vary) | 10% every 5 years (schedules vary) |
| Median asking price (live) | $3.05M | $2.84M |
| Median building size (live) | 3,859 sq ft | 2,262 sq ft |
| Tenant and Guarantor | Property-specific: a McDonald’s corporate entity or a franchisee may be the tenant; confirm the tenant and any guaranty in the executed lease | Property-specific: confirm in the executed lease which entity is the tenant and whether Starbucks Corporation guarantees it; licensed stores are operated by the licensee |
Ratings update from our ratings database. McDonald’s 2025 Form 10-K describes its S&P and Moody’s ratings as ratings on its long-term debt, and Starbucks’ May 6, 2025 pricing term sheet shows its ratings for senior unsecured notes. Ratings checked October 8, 2026 (McDonald’s); Ratings checked October 8, 2026 (Starbucks). Store counts from each company’s latest Form 10-K. Median asking cap rates, cap rate counts, average remaining terms, prices, building sizes and last-observed dates are live values from the active listings InvestmentGrade.com tracks; a few cap rates are calculated from a listing’s stated price and income rather than stated in the listing. Original lease terms, ground lease flags and rent schedules are counts or most common values in the same listings as of October 8, 2026, and many listings do not state them. An original lease term is not the term remaining. Asking cap rates are not closing cap rates. Confirm the tenant entity, any guaranty, remaining term, renewal options and rent schedule in each lease.
Credit: Ratings and Business Models
McDonald’s is rated BBB+ by S&P and Baa1 by Moody’s; its 2025 Form 10-K describes these as ratings on its long-term debt. Starbucks is rated BBB+ and Baa1; its May 2025 pricing term sheet presents its ratings for senior unsecured notes. Our ratings database classifies McDonald’s as investment grade and Starbucks as investment grade (the threshold is BBB-/Baa3). These ratings stand behind a lease only when the rated company is the tenant or guarantor named in it.
The business models differ. About 95% of McDonald’s restaurants are franchised, and $16.5 billion of its $26.9 billion in 2025 revenue came from franchised restaurants (rent and royalties); it also owned about 56% of the land and 80% of the buildings for restaurants in its consolidated markets at the end of 2025. Starbucks’ Form 10-K describes its stores as company-operated or licensed (licensed stores operate inside other businesses), so its results rise and fall with sales and costs at the stores it operates. Both are tracked on our credit tenant ratings index.
Cap Rates: How the Two Sets of Listings Differ
Live asking cap rates for McDonald’s, Starbucks 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 two sets of listings differ in what the buyer owns and for how long, which may account for part of the gap; the listing data do not isolate any one cause:
- Term. Among listings that state an original lease term, 14 of 21 McDonald’s listings show 20 years and 40 of 64 Starbucks listings show 10 years, as of October 8, 2026. These are original terms, not years remaining; the table shows the live average remaining term, and any renewal options depend on each lease.
- Structure. As of October 8, 2026, 43 of the 44 McDonald’s listings we track are marked as ground leases (1 is not), where the tenant generally owns and maintains the building. Only 5 of the 123 Starbucks listings are marked as ground leases (82 are not and 36 do not say), so a Starbucks buyer often owns the building, and some leases leave roof or structure with the landlord. Listing labels are not lease evidence; confirm the structure in the lease and title documents.
- Store strategy. Starbucks closed 620 and opened 509 US company-operated stores in fiscal 2025, and on September 22, 2026 approved about 250 more North American closures. McDonald’s added 149 net US restaurants in 2025.
Within each tenant, asking cap rates vary from listing to listing; compare a property with listings of similar remaining term, building age and location. Underwriting detail: McDonald’s credit rating and NNN cap rate and Starbucks credit rating and NNN cap rate.
Lease Structure: Ground Lease vs Building Lease
New McDonald’s listings we track are often 20-year ground leases, with rent increases on a schedule (10% every five years appears in more listings than any other schedule, but 5%, 7.5%, 12% and annual increases also appear) and renewal options at the tenant’s election. On a ground lease the tenant owns its building and generally pays taxes, insurance and maintenance. Some listings are marketed as leased to or guaranteed by a McDonald’s corporate entity, while some McDonald’s properties are leased to franchisees, which carry the franchisee’s credit. A listing label is not lease evidence: confirm the tenant and any guaranty in the executed lease.
Starbucks listings that state an original term often show 10 years, with renewal options, and 10% increases every five years appear in more listings than any other schedule, though 7.5% steps and annual increases also appear. Starbucks runs its company-operated stores itself, but that does not establish which legal entity signed a given lease or whether Starbucks Corporation guarantees it; confirm both in the executed lease and any guaranty. When the buyer owns the building, check which party is responsible for the roof, structure and parking lot.
Store Strategy and Residual Risk
Both chains are reshaping their store bases, in different directions. McDonald’s opened 2,276 restaurants and closed 396 worldwide in 2025 and plans about 2,600 openings in 2026; most growth is outside the US, and over 95% of its roughly 13,700 US restaurants have a drive-thru. Starbucks is closing underperforming coffeehouses and has returned to US comparable sales growth (up 7.9% in its fiscal third quarter of 2026).
Residual value depends on the site in both cases, and current formats are not immune to obsolescence. Drive-through capacity and stacking, access from the main traffic direction, lot size, building configuration and the cost of re-tenanting all matter. A dark McDonald’s pad on a strong corner can draw other quick service or retail users, but re-leasing depends on access, zoning, demand and downtime. A Starbucks drive-through building is small and can suit other coffee, quick service or medical users, but the owner carries the building, taxes and insurance through any vacancy and may need to spend on conversion.
Bond Yields vs NNN Cap Rates
Both companies issue investment grade bonds, which makes the comparison measurable. In August 2025, McDonald’s priced 5.000% notes due 2036 to yield 5.059%; with the 10-year Treasury at 5.24% on October 1, 2026 (FRED), we estimate those notes would have yielded roughly 6.0% on that date at the unchanged 72 basis point spread. A McDonald’s ground lease at the live 4.00% median asks less than that estimate, which is not a market quote. What the ground lease offers instead is scheduled rent growth, ownership of the land and 1031 exchange eligibility. Land is not depreciable (Treas. Reg. 1.167(a)-2), so a land-only ground lease has no depreciation deduction to offset the rent. For a taxable buyer who pays the same rate on rent and on bond interest, current after-tax income per dollar invested is therefore lower on the ground lease than on the estimated bond yield, while total return also depends on rent increases and the land’s value at sale. This is general information, not tax advice.
Starbucks NNN, at a live median asking cap rate of 5.75%, is a spread of −44 bps to the ICE BofA BBB US Corporate Index effective yield of 6.19% on October 1, 2026 (FRED series BAMLC0A4CBBBEY). That index is a broad benchmark for Starbucks’ S&P rating category, not a quote on a Starbucks bond. When the buyer owns the building, depreciation can put the property ahead of a bond after tax, depending on the buyer’s tax situation. Full comparisons: McDonald’s bonds vs NNN and Starbucks bonds vs NNN.
Which Tenant Fits Which Buyer?
Consider McDonald’s if you want a long ground lease with minimal landlord duties and land ownership, and you accept a low going-in yield, interest rate sensitivity and no depreciation on a land-only ground lease. Confirm the tenant entity and compare the price with local land values.
Consider Starbucks if you want more current income from a rated company and are comfortable underwriting a shorter lease term, the building, and the store’s performance in light of the company’s closures. Confirm that Starbucks Corporation is the tenant or guarantor before relying on its rating. A longer remaining term puts the renewal decision further out.
Evaluating a McDonald’s or Starbucks acquisition? We compare offerings against current listings, review lease structure and tenant entity, and help line up financing. On the majority of transactions, there is no separate fee to the buyer because the listing broker pays the cooperating commission. Request a buyer consultation.
Frequently Asked Questions
Is McDonald’s or Starbucks a better NNN investment?
It depends on what the buyer needs. McDonald’s is rated BBB+/Baa1 and Starbucks BBB+/Baa1 by S&P and Moody’s. In the listings we track, McDonald’s listings are mostly ground leases where the buyer owns the land, while Starbucks listings are often not ground leases, so the buyer may own the building as well as the land; the live tables on this page show each tenant’s current median asking cap rate and listing count. McDonald’s can offer term and land; Starbucks can offer more current income with more building and renewal risk. Confirm the tenant entity and any guaranty in each lease.
What are the credit ratings of McDonald’s and Starbucks?
McDonald’s is rated BBB+ by S&P and Baa1 by Moody’s, which its 2025 Form 10-K describes as ratings on its long-term debt. Starbucks is rated BBB+ and Baa1. Our ratings database classifies McDonald’s as investment grade and Starbucks as investment grade (the threshold is BBB-/Baa3). The date the ratings were last checked is shown under the comparison table on this page.
What cap rates do McDonald’s and Starbucks NNN properties ask?
The live tables on this page show each tenant’s current median asking cap rate, the middle half and the number of listings with a cap rate, from the active listings InvestmentGrade.com tracks, along with the date the listings were last observed. Asking cap rates are not closing cap rates.
How do McDonald’s ground lease cap rates compare with McDonald’s bond yields?
We estimate McDonald’s 5.000% notes due 2036 would have yielded roughly 6.0% on October 1, 2026, using the notes’ 72 basis point spread at pricing in August 2025 and the 5.24% 10-year Treasury yield that day (FRED); that is an estimate, not a market quote. The live median McDonald’s asking cap rate in the table on this page is below that estimate. A ground lease offers what the bond does not: scheduled rent increases, ownership of the land and 1031 exchange eligibility. Land is not depreciable, so a land-only ground lease provides no depreciation deduction.
Does a franchisee or the corporation sign these leases?
It varies, so confirm in each executed lease and any guaranty. Some McDonald’s listings are marketed as having a corporate tenant or guarantee, but that is a listing label, not lease evidence, and some McDonald’s properties are leased to franchisees, which carry the franchisee’s credit. Starbucks runs its company-operated stores itself, but that does not show which entity signed a particular lease or whether Starbucks Corporation guarantees it. Licensed Starbucks stores inside other businesses are operated by the licensee.
