Looking to buy a Popeyes NNN property? 75 are observed for sale across 27 states, median asking cap rate 6.00%. View Popeyes NNN properties for sale, cap rate bands and the 1031 buyer guide.
| S&P Rating | BB+ |
| Moody’s Rating | no verified rating |
| IG Status | Parent Rated Below Investment Grade (Restaurant Brands International Inc.); confirm the lease guarantor |
| U.S. and Canada Locations | 3,542 (June 30, 2026, RBI Form 10-Q) |
| U.S. and Canada System-wide Sales | $6.08 billion in 2025, including franchised restaurants (RBI Form 10-K) |
| Median asking cap rate | See the live table below |
| Remaining Lease Term in Listings We Track | Average 17.3 years across the 22 listings that state a remaining term; confirm in the lease |
| Building Size in Listings We Track | Median 2,347 SF in the active listings that report building size |
Business Overview
Popeyes Louisiana Kitchen, founded in 1972, is the world’s second largest quick service chicken concept by number of restaurants, according to its parent, Restaurant Brands International (RBI). At December 31, 2025, Popeyes had 5,413 restaurants worldwide, including 3,578 in the U.S. and Canada, and global system-wide sales of $7.79 billion in 2025 (RBI Form 10-K).
Rating source: S&P rates the parent, Restaurant Brands International Inc. (RBI), BB+; the source and date are shown with the rating below. Rated entity is the parent, RBI, not the brand or any franchisee. We have not verified a current Moody’s rating.
Popeyes restaurants appear in net lease listings, but at December 31, 2025, 3,397 of the 3,578 Popeyes sites in the U.S. and Canada were owned or leased directly by franchisees (RBI Form 10-K), so the tenant on a lease is usually a franchisee rather than RBI.
For investors evaluating QSR-based NNN properties, understanding tenant creditworthiness and franchise system stability is essential. Our comprehensive NNN investing guide covers lease structures, tenant evaluation, and portfolio construction strategies for maximizing risk-adjusted returns.
Credit Rating
Popeyes is not investment grade. The ratings shown for Popeyes are credit ratings of its parent company, Restaurant Brands International Inc.: BB+ from S&P Global Ratings and BB+ from Fitch Ratings; all below the BBB-/Baa3 investment grade threshold. Whether that credit stands behind a specific lease depends on the tenant and any guarantor named in the lease. Ratings checked September 27, 2026. See the investment grade credit tenant ratings table.
Popeyes does NOT meet investment-grade credit standards:
Source: S&P Global Ratings BB+, as of May 18, 2026; Fitch Ratings BB+, as of January 15, 2026. Ratings checked September 27, 2026.
- S&P Rating: BB+
- Moody’s Rating: no verified rating
- Assessment: Below-IG rating indicates higher credit risk relative to BBB- and Baa3 minimums for institutional investment-grade portfolios
Popeyes’ parent, Restaurant Brands International, carries speculative-grade ratings of BB+ from S&P and BB+ from Fitch. Investors should exercise caution and conduct thorough due diligence when considering Popeyes NNN properties. Popeyes’ U.S. comparable sales fell 2.9% in 2025 and 5.8% in the first six months of 2026 (RBI Form 10-K and Form 10-Q), and the below-IG designation suggests higher volatility and risk than IG-rated tenants.
Financial Performance & Operational Metrics
Popeyes’ U.S. and Canada system-wide sales were $6.08 billion in 2025, and the brand had 3,542 restaurants in the U.S. and Canada at June 30, 2026, plus 1,835 international restaurants at December 31, 2025 (RBI Form 10-K and Form 10-Q). The company’s revenue generation, franchise system stability, and operational performance are critical factors for investors assessing lease quality and tenant stability.
For below-IG tenants like Popeyes, understanding operational trends, franchisee health, menu performance, and management quality becomes even more critical. Investors should request financial statements, franchise performance data, detailed lease abstracts, and competitive analysis as part of due diligence. Our investment grade guide outlines key metrics for assessing tenant quality across credit ratings.
NNN Property Details & Economics
In the Popeyes listings we track (latest observation October 12, 2026):
- Building size: median 2,347 SF in the listings that report building size
- Remaining lease term: average 17.3 years across the 22 listings that state one; renewal options vary
Investors should model conservative assumptions regarding rent escalations, lease renewals, and potential credit deterioration when evaluating Popeyes properties.
Lease Structure & Tenant Obligations
Triple-Net (NNN) leases for Popeyes properties allocate operating expenses, property taxes, and insurance to the tenant. This structure places significant responsibility on the tenant, usually a Popeyes franchisee, to maintain property condition and pay occupancy costs. Investors should review specific lease agreements to understand:
- Rent escalation clauses and frequency
- Property maintenance and repair obligations
- Property tax payment responsibility
- Insurance coverage requirements
- Lease renewal options and terms
- Default and remedies provisions
Given Popeyes’ below-IG status, lease terms should be carefully negotiated to provide investors with appropriate protections and remedies in the event of operational challenges or financial distress.
Geographic & Market Considerations
Popeyes operates quick-service restaurant locations across multiple states and markets. Property locations should be evaluated based on:
- Market demographics – population density, income levels, traffic patterns
- Competition – proximity to other QSR competitors and dining options
- Economic trends – local business activity and consumer spending patterns
- Strategic positioning – visibility, accessibility, and foot traffic patterns
For Popeyes properties in particular, market strength becomes a key hedge against tenant credit weakness. Strong market fundamentals can provide additional investor protection if Popeyes encounters operational challenges.
Investment Grade Credit Rating Standards
Investment-grade status requires S&P ratings of BBB- or higher, or Moody’s ratings of Baa3 or higher. These thresholds represent the boundary between investment-grade and speculative-grade (below-IG) credit profiles. Popeyes’ parent, Restaurant Brands International, is rated BB+ by S&P, which places it in the below-IG category.
Some institutional investors and conservative portfolios limit purchases to investment-grade tenants. This limits the pool of potential buyers for below-IG tenant NNN properties, which may impact:
- Exit liquidity and resale timelines
- Cap rate compression for below-IG properties
- Portfolio diversification options
- Refinancing availability and terms
Investors considering Popeyes NNN properties should understand these market dynamics and their implications for long-term investment performance.
Risk Assessment & Due Diligence
Below-IG tenants warrant heightened due diligence. Key areas to investigate include:
- Financial trending – revenue growth/decline, margin compression, debt levels
- Competitive positioning – market share, brand strength, customer retention
- Management quality – track record, operational expertise, strategic direction
- Franchisee performance – unit-level profitability, franchisee satisfaction, growth plans
- Industry trends – QSR sector dynamics, consumer preferences, regulatory impacts
- Lease quality – tenant creditworthiness, payment history, lease terms
- Environmental & legal – Phase I ESA, title insurance, encumbrances
Given Popeyes’ below-IG status and the higher risk profile, investors should conduct thorough financial analysis and consider working with experienced commercial real estate and credit analysis professionals.
Comparison to Investment-Grade Alternatives
For investors seeking below-IG credit exposure, comparing Popeyes to other below-IG tenants can help optimize risk-return profiles. Conversely, investors prioritizing safety should compare investment grade alternatives like McDonald’s (BBB+/Baa1) or bank tenants such as Truist (A/A3), TD Bank (A+/Aa1), or US Bank (A/A3).
Our tenant rating directory provides side-by-side credit ratings for many NNN tenants, so investors can compare credit across rating levels.
Popeyes NNN Cap Rates
Live asking cap rates for Popeyes 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 |
| TD Bank | A+ / Aa1 | 5.00% | 5.00% to 5.25% | 5 | −24 bps |
| U.S. Bank | A / A3 | 5.50% | 5.13% to 5.84% | 7 | +26 bps |
| Popeyes (rated entity: Restaurant Brands International Inc.) | BB+ / n/a | 6.00% | 5.50% to 6.25% | 75 | +76 bps |
| Truist | A / A3 | 6.25% | 6.16% to 7.00% | 5 | +101 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.
Frequently Asked Questions
Is Popeyes investment-grade?
No. Popeyes’ parent, Restaurant Brands International, is rated BB+ by S&P and BB+ by Fitch, below the BBB- investment grade threshold; we could not confirm a current Moody’s rating. Most Popeyes restaurants are franchised, so many leases rely on the franchisee rather than RBI.
What cap rates do Popeyes NNN properties offer?
Current median asking cap rates for Popeyes 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.
How many Popeyes locations exist in the US?
Restaurant Brands International reports Popeyes restaurants for the U.S. and Canada combined: 3,542 at June 30, 2026 (Form 10-Q). Worldwide, Popeyes had 5,413 restaurants at December 31, 2025 (Form 10-K).
What lease terms do Popeyes NNN listings show?
In the Popeyes listings we track that state a remaining lease term (22 listings), the average remaining term is 17.3 years. Terms and renewal options vary, so verify them in each lease agreement.
What due diligence should I conduct on Popeyes properties?
Given Popeyes’ below-IG status, conduct thorough financial analysis, review franchisee performance data, verify lease terms, commission Phase I environmental assessments, analyze competitive positioning, and consider working with experienced commercial real estate professionals.
Contact & Resources
For questions about Popeyes NNN properties or investment-grade tenant evaluation, contact our team. We also provide resources on 1031 exchange planning and portfolio construction strategies.
When the buyer owns the building, a cost segregation study may reclassify part of the purchase price, such as site improvements and some building systems and equipment, into 5-, 7- or 15-year property. That property can qualify for 100% bonus depreciation under Internal Revenue Code section 168(k) if acquired and placed in service after January 19, 2025; property is not treated as acquired after that date if a written binding contract to acquire it was entered into on or before that date (IRS Notice 2026‑11). How much qualifies varies widely by property and should be supported by a detailed, engineering-based study. On a ground lease where the tenant owns the building, the investor owns only land, which cannot be depreciated, and equipment owned by the tenant is not the landlord’s to depreciate. On a taxable sale, depreciation taken, including bonus depreciation, can be recaptured as ordinary income to the extent of gain under Internal Revenue Code sections 1245 and 1250 (under section 1250, generally only depreciation in excess of straight-line). A 1031 exchange can defer gain on real property held for investment or business use if the exchange meets section 1031’s requirements, including identifying replacement property within 45 days and receiving it within 180 days or by the due date, with extensions, of that year’s tax return if earlier (section 1031(a)(3)), but recapture can still apply in an exchange (sections 1245(b)(4) and 1250(d)(4)). This is general information, not tax advice; consult a tax professional. In restaurants and auto service buildings, the tenant often owns much of the kitchen, drive-through and service equipment; confirm in the lease. See the QSR and Auto Service NNN Depreciation Guide.
Popeyes Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Popeyes 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
Popeyes NNN Properties Observed For Sale
75 active Popeyes net lease listings observed across public listing sources, most recently Oct 12, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Valley, AL | $1,745,000 | 6.00% | 2,400 | n/a | View listing |
| Portland, OR | $1,570,000 | 6.00% | 1,742 | n/a | View listing |
| Waterbury, CT | $1,650,000 | 5.33% | 2,200 | 15.6 yrs | View listing |
| Windham, CT | $1,692,307 | 6.50% | 2,363 | n/a | View listing |
| Las Cruces, NM | $2,875,000 | 5.74% | 3,347 | n/a | View listing |
| Gallup, NM | $2,500,000 | 7.00% | 2,344 | n/a | View listing |
| Lincoln, NE | $910,606 | 6.00% | 2,482 | n/a | View listing |
| Salem, OR | $2,583,368 | 6.00% | 2,333 | 16.9 yrs | View listing |
Search all 75 observed Popeyes 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.
