Tim Hortons is owned by Restaurant Brands International (NYSE: QSR), which carries below-investment-grade credit ratings from all three major agencies. This is not distress — RBI is a healthy, cash-generative QSR conglomerate — but NNN investors should understand the credit tier before underwriting. Tim Hortons corporate-guaranteed NNN properties trade at a premium cap rate to comparable investment-grade QSR tenants (McDonald’s, Yum! Brands Taco Bell, Starbucks), reflecting the BB/Ba-tier credit profile rather than operational or going-concern risk.
| Metric | Details |
|---|---|
| Parent / Legal Entity | Restaurant Brands International (NYSE: QSR; TSX: QSR) |
| S&P / Moody‑s / Fitch | BB+ (Positive) / Ba2 (Stable) / BB+ (Positive) |
| Investment Grade Status | Below Investment Grade — BB+ tier, one notch below IG |
| Sector | QSR / Coffee & Breakfast Daypart |
| Ownership | Public (NYSE/TSX: QSR); 3G Capital legacy sponsor, Bill Ackman Pershing Square stake |
| US Location Count | ~620 US locations (~5,600 worldwide including Canada) |
| Geographic Concentration | US footprint concentrated in NY, NJ, PA, OH, MI with growing Florida and Texas presence |
| Cap Rate Range | 5.25% – 6.75% (corporate) / 6.00% – 7.50% (franchisee) |
| Typical Lease Term Remaining | 10 – 20 years on new builds; 5 – 12 years on mid-lease product |
| Guarantee Type | Corporate (RBI / Tim Hortons) or franchisee with personal guarantee |
| Typical Building Size | 1,500 – 3,000 SF, typically with drive-thru |
| Typical Price Range | $1.5M – $3.5M |
Tim Hortons Business Overview & NNN Investment Profile
Tim Hortons is the iconic Canadian coffee and breakfast QSR chain, owned since 2014 by Restaurant Brands International (NYSE: QSR), the New York-listed multi-brand QSR conglomerate that also operates Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs. As of Q1 2026, Tim Hortons operates approximately 5,600 locations worldwide, with roughly 3,900 in Canada (where the brand is the dominant coffee chain with a market share position comparable to Starbucks in the United States), approximately 620 in the United States (heavily concentrated in the Northeast and Great Lakes regions), and growing international presence across the UK, Mexico, and Asia.
For NNN investors, Tim Hortons presents a distinctive profile: strong operating fundamentals and sustained unit-level economics, backed by a below-investment-grade parent in RBI. This combination — operational strength plus below-IG credit — is typical of the 3G Capital-originated QSR holdings model, where cash-generative individual brands sit under a holding company with intentionally elevated financial leverage. For the tenant credit analysis, review the tenant credit ratings database for context on how Tim Hortons prices against IG QSR tenants (McDonald’s BBB+/Baa1, Yum! Brands BB+/Ba2, Starbucks BBB+/Baa1) and other BB-tier franchise systems.
Tim Hortons Credit Rating Analysis
Restaurant Brands International carries below-investment-grade ratings from all three major agencies: S&P Global Ratings at BB+ with a Positive outlook, Moody’s Investors Service at Ba2 with a Stable outlook, and Fitch Ratings at BB+ with a Positive outlook. The BB+ tier places RBI one notch below the investment-grade threshold (BBB- / Baa3). The Positive outlooks at S&P and Fitch reflect both agencies’ view that continued deleveraging, strong Tim Hortons Canadian same-store sales, and the Firehouse Subs 2021 acquisition integration are creating a credit trajectory toward a potential IG upgrade over the 2026–2028 horizon.
The primary credit considerations for NNN investors underwriting a Tim Hortons property are: the below-investment-grade tier at RBI holdco, franchisee concentration risk in the US footprint (a meaningful portion of US properties are guaranteed by franchisees rather than the RBI parent), competitive pressure from Dunkin’ (owned by Inspire Brands private) and Starbucks (public, IG-rated), and the structural difference between the mature Canadian market where Tim Hortons dominates and the US market where the brand is a growth-expansion story competing against entrenched incumbents. Offsetting these: strong cash generation, the RBI holdco portfolio diversification across four distinct QSR brands, the Positive outlook trajectory toward IG, and the 20-year typical base-term lease structure.
Tim Hortons NNN Lease Structure
Corporate-guaranteed Tim Hortons NNN leases (backed by RBI or the Tim Hortons named subsidiary) typically feature 15–20 year initial terms with four 5-year renewal options, absolute NNN or true NNN lease language (tenant pays taxes, insurance, maintenance, and in absolute NNN leases, roof and structure), and scheduled rental escalations of 10% every 5 years or 1.5% annually. The longer initial term than typical US QSR leases reflects the substantial build-out cost for new Tim Hortons locations, which typically include drive-thru infrastructure, specialty coffee brewing equipment, and Canadian-standard baking equipment.
Franchisee-operated Tim Hortons properties (the more common guarantee structure in US NNN secondary market transactions) feature the same typical 15–20 year initial term but with the franchisee’s operating entity and often personal guarantees from the franchisee principal. This creates materially different credit underwriting from corporate-guaranteed product: the landlord is underwriting the franchisee’s balance sheet and personal net worth alongside the RBI systemwide operating standards. Verify the specific guarantor, obtain personal financial statements for franchisee guarantees where possible, and price franchisee product at a 50–100 bps cap rate premium to corporate-guaranteed equivalents. Review the investment grade guide for the framework on tiering franchise guarantee quality within QSR NNN underwriting.
Tim Hortons NNN Cap Rate & Pricing Trends
Corporate-guaranteed Tim Hortons NNN properties trade at cap rates of 5.25% to 6.75% as of Q1 2026, with the tightest pricing on new-construction drive-thru pad sites in strong Tim Hortons core markets (New York, New Jersey, Ohio, Michigan) with 15+ year remaining terms. Mid-lease corporate product (5–12 years remaining) trades at 6.00% to 6.75%, and shorter-tail product (under 5 years) trades at 7.00%+ with pricing weighted toward residual drive-thru site value. Franchisee-guaranteed product trades 50–100 bps wider than corporate-guaranteed equivalents, typically in the 6.00% to 7.50% range.
Pricing typically ranges from $1.5 million to $3.5 million, reflecting the 1,500–3,000 SF drive-thru QSR format and the suburban/tertiary market context that dominates US Tim Hortons placement. The cap rate premium over IG QSR peers — McDonald’s (BBB+/Baa1) trades at 4.75%–5.75%, Starbucks (BBB+/Baa1) at 5.00%–6.00% — runs 50–100 bps, directly reflecting the BB+ tier credit versus BBB+ tier comparison. Cross-reference against the NNN cap rates 2026 report for the full cross-sector benchmark context and how BB-tier QSR pricing compares to IG QSR and below-IG casual dining.
Tim Hortons Real Estate Footprint
Tim Hortons’ approximately 620 US locations are heavily concentrated in the Northeast and Great Lakes regions: New York (particularly upstate and western NY, where the brand was a pioneer US market), New Jersey, Pennsylvania, Ohio, Michigan, and New England. These are markets with strong Canadian-brand affinity and commuter breakfast traffic. Growth expansion markets include Florida (particularly Central and South Florida where Canadian snowbirds drive seasonal demand), Texas (where RBI has added aggressive development in the 2023–2025 period), and California (selective urban placements).
The US footprint has grown at roughly 8–10% annually since 2022 as RBI has deployed franchisee-partnership growth capital into US market expansion, versus the mature Canadian market where net unit growth is in the low single digits. Drive-thru prototype stores are the dominant new-build format, with typical footprints of 1,500–2,500 SF on quarter-acre to half-acre pad sites. Cross-reference against Dunkin’, Starbucks, and McDonald’s for comparable coffee and breakfast QSR NNN positioning.
Tim Hortons Growth Strategy & Forward Outlook
RBI’s forward strategy for Tim Hortons centers on three pillars: sustained same-store sales growth in the mature Canadian market (where Q4 2025 SSS grew +3.5%, one of the strongest results among mature QSR brands globally), accelerated US unit growth through the franchisee-partnership development model, and selective international expansion in the UK, Mexico, and Asia. The RBI holdco-level strategy is continued deleveraging toward investment grade, which S&P and Fitch have recognized in their Positive outlooks. A potential IG upgrade by either agency over the 2026–2028 period would materially improve the credit profile of all RBI tenant NNN product.
Rating agency commentary through late 2025 and early 2026 has cited: continued strong Tim Hortons Canadian operating performance, successful integration of Firehouse Subs (acquired 2021), disciplined refranchising at Burger King, and measured US expansion without overextension. The primary forward risks flagged include: competitive pressure in the US breakfast and coffee dayparts from Starbucks, Dunkin’, and McDonald’s McCafé, potential share loss in the mature Canadian market if specialty coffee positioning weakens, and the structural leverage at RBI holdco that requires sustained EBITDA growth to continue deleveraging. For NNN landlords, the practical implication is that Tim Hortons offers long base-term lease security backed by a healthy below-IG operator with a credible path to IG upgrade over the next 2–4 years.
Tim Hortons NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| Path to Investment Grade: S&P and Fitch carry Positive outlooks at BB+; potential IG upgrade in 2026–2028 would re-rate all RBI NNN product tighter. | Currently Below IG: BB+/Ba2/BB+ tier credit means 50–100 bps cap rate premium over IG QSR peers; upgrade is not guaranteed. |
| Long Base-Term Leases: 15–20 year initial terms with four 5-year renewal options; exceptional base-term income predictability. | Franchisee Guarantor Dilution: Meaningful share of US NNN product is franchisee-guaranteed; corporate-parent credit does not apply without verification. |
| Strong Operating Fundamentals: Dominant Canadian market position, +3.5% Q4 2025 SSS, aggressive US unit growth. | US Growth Execution Risk: ~620 US locations vs. ~3,900 Canadian; US market expansion is ongoing and competitive vs. Dunkin’, Starbucks, McCafé. |
| Drive-Thru Format: 1,500–3,000 SF drive-thru pad sites offer broad alternative-use potential (QSR, coffee, quick-service food) if Tim Hortons ever vacates. | Holdco Leverage: RBI net-debt-to-EBITDA at 4.3x remains elevated; deleveraging trajectory depends on sustained Tim Hortons and Burger King performance. |
Comparable NNN Tenants
| Tenant | Rating | Sector | Cap Rate Range |
|---|---|---|---|
| Tim Hortons (RBI) | BB+ / Ba2 | Coffee / Breakfast QSR | 5.25% – 6.75% |
| Burger King (RBI) | BB+ / Ba2 | QSR Burgers | 5.50% – 7.00% |
| Popeyes (RBI) | BB+ / Ba2 | QSR Chicken | 5.50% – 6.75% |
| Starbucks | BBB+ / Baa1 | Coffee / Breakfast | 5.00% – 6.00% |
| Dunkin’ (Inspire) | Not Rated (Private) | Coffee / Breakfast QSR | 5.50% – 7.00% |
Frequently Asked Questions About Tim Hortons NNN Investments
No. Tim Hortons is owned by Restaurant Brands International (NYSE: QSR), which carries below-investment-grade ratings from all three major agencies: S&P BB+ with Positive outlook, Moody’s Ba2 with Stable outlook, and Fitch BB+ with Positive outlook. The BB+ tier sits one notch below investment grade. The Positive outlooks at S&P and Fitch reflect a credible deleveraging trajectory that could lead to an IG upgrade over the 2026–2028 horizon.
Corporate-guaranteed Tim Hortons NNN properties trade at 5.25% to 6.75% cap rates as of Q1 2026, with the tightest pricing on new-construction drive-thru pad sites in core Northeast and Great Lakes markets with 15+ year remaining terms. Mid-lease corporate product (5–12 years remaining) trades at 6.00% to 6.75%. Franchisee-guaranteed product trades 50–100 bps wider, typically 6.00% to 7.50%.
Restaurant Brands International (NYSE: QSR; TSX: QSR), the New York-listed multi-brand QSR conglomerate formed in 2014 through the merger of Burger King and Tim Hortons with sponsorship from 3G Capital Partners. RBI also owns Popeyes Louisiana Kitchen (acquired 2017) and Firehouse Subs (acquired 2021). Bill Ackman’s Pershing Square Capital Management holds a meaningful long equity position in RBI.
Corporate-guaranteed Tim Hortons leases are signed or backstopped by RBI or the Tim Hortons named subsidiary, providing the full holdco credit profile. Franchisee-guaranteed leases are signed by the individual franchisee’s operating entity, with credit backed by the franchisee’s balance sheet and often personal guarantees. Franchisee product typically trades 50–100 bps wider in cap rate and requires franchisee-specific financial underwriting in addition to systemwide brand analysis.
New-construction Tim Hortons corporate-guaranteed leases typically run 15–20 year initial terms with four 5-year renewal options, absolute NNN or true NNN lease structure, and rental escalations of 10% every 5 years or 1.5% annually. This is among the longest initial-term QSR lease structures in the US NNN market, reflecting the substantial drive-thru and specialty equipment build-out cost.
No material closure program. Tim Hortons US unit count has grown at roughly 8–10% annually since 2022, from approximately 450 US locations to approximately 620 as of Q1 2026, driven by the franchisee-partnership development model and RBI’s accelerated US expansion strategy. This growth profile contrasts sharply with the mature Canadian market (3,900+ locations), where net unit growth runs in the low single digits.
QSR drive-thru properties offer strong cost segregation potential. Specialty equipment (coffee brewing, bakery infrastructure, drive-thru technology), site utilities, signage, paving, lighting, and HVAC can be reclassified from 39-year real property to 5-, 7-, or 15-year recovery periods. For Tim Hortons’ BB+ corporate-guaranteed credit income, front-loaded depreciation can materially improve after-tax IRR and partially offset the cap rate premium relative to IG QSR peers. See our full ranking of net lease sectors by depreciation value: Best NNN Tenants for Bonus Depreciation: The Complete Ranking.
The Only Tim Hortons NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker pays the cooperating commission. That means you get a dedicated Tim Hortons NNN advisor handling sourcing, underwriting, financing, and closing — and on the majority of transactions, there is no separate fee to you as the buyer.
Here’s what that buys you on a below-IG QSR acquisition:
Find It — On-market and off-market Tim Hortons NNN properties sourced and underwritten on your behalf, with particular attention to the corporate-versus-franchisee guarantee distinction (50–100 bps cap rate spread), the specific market trade-area strength, and the lease structural terms including ground-lease vs. build-to-suit structure. We know which Northeast and Great Lakes markets are correctly priced for Tim Hortons franchisee credit, which Florida and Texas growth markets are compressing cap rates too aggressively on new-build corporate product, and where the underlying drive-thru site value adds residual optionality.
Fund It — Below-IG QSR NNN is a mainstream lending segment. CMBS, bank paper, and select life companies all actively underwrite corporate-guaranteed RBI product, though at modestly wider rate spreads than IG QSR peers (McDonald’s, Starbucks). Franchisee-guaranteed product requires more specialized lender relationships. We maintain 150+ lender relationships including the specific desks that price RBI paper at the low end of the BB+ spread range and those that underwrite franchisee personal guarantees effectively.
Exit It — Selling a Tim Hortons asset, repositioning through a 1031, or running a sale-leaseback with RBI? Our Capital Markets desk targets the private investors, family offices, and 1031 exchanges actively acquiring below-IG QSR with long lease tails — not a public blast that signals desperation.
Not committed to Tim Hortons? Tell us your criteria — cap rate floor, credit tier, lease structure, geography, equity check size — and we’ll find the deal that fits. We represent investors across the full NNN credit spectrum, from QSR and pharmacy to industrial, medical, and big box retail. The tenant is a variable. Your criteria is the constant.
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Related NNN Tenants
Own a Tim Hortons Property? Capital Markets Strategies Beyond Selling
Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting below-IG QSR NNN across CMBS, bank, and select life company desks. We structure rate-and-term refinancing, cash-out refis, and bridge-to-perm takeouts, pricing RBI paper at the low end of the BB+ spread range consistently.
Evaluating a 1031 exchange or disposition? We represent both sides of Tim Hortons NNN transactions — whether you are looking to exit ahead of a potential RBI IG upgrade, exchange into IG QSR (McDonald’s, Starbucks) for tighter cap rate, or reposition through a sale-leaseback structure with RBI.
Building an RBI-portfolio NNN allocation? Tim Hortons anchors RBI’s coffee and breakfast daypart. Off-market multi-brand RBI portfolios — Tim Hortons, Burger King, Popeyes across a single market — trade at cap rate discounts of 50–100 bps to single-asset pricing and offer systemwide credit analysis efficiencies.
