- More digital ordering
- More drive-thru innovation
- Stronger loyalty program
- Menu and value expansion
- Optimized restaurant formats
- Delivery and mobile growth
- Global brand momentum
McDonald's NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
4.1%
This Year Cap
4.2%
Cap Change
0.0%
Last Year Rating
BBB+
This Year Rating
BBB+
Rating Change
No change
McDonald's – NNN Cap Rate Trend
Cap Rate Trends
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Tenant | Year | Cap Rate |
|---|---|---|---|---|---|---|---|
| 5779 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,020 | 6.5 |
| 5780 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,021 | 6.3 |
| 5781 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,022 | 6.0 |
| 5782 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,023 | 6.3 |
| 5783 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,024 | 6.6 |
| 5784 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,025 | 6.6 |
| Tenant | Year | Cap Rate |
Credit (what net-lease buyers care about)
Credit Snapshot
McDonald's
Cap Rates
NNN
Last Year
4.1%
This Year
4.2%
Change
0.0%
S&P Rating
CREDIT
Last Year
BBB+
This Year
BBB+
Change
No change
McDonald's Net Lease: Secure, Essential Investment
McDonald’s is one of the most recognized investment-grade net lease tenants in the quick-service restaurant sector. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers evaluating McDonald’s net lease real estate.
For 1031 exchange buyers, McDonald’s Ground Lease Properties are important to compare against fee simple McDonald’s assets, as lease structure can significantly affect pricing, financing, and long-term resale value.
Investors often target McDonald’s assets for:
- Stable Long-Term Income Potential
- High-Traffic Quick-Service Restaurant Demand
- Strong Global Brand and Tenant Credit
- Attractive 1031 Exchange Compatibility
McDonald’s ground lease investments typically require careful review of rent escalations, remaining lease term, renewal options, and residual land value compared with fee simple ownership.
McDonald’s Ground Lease Properties for 1031 Exchange Buyers
McDonald’s Ground Lease Properties often trade differently than fee simple McDonald’s real estate. Investors should carefully evaluate lease structure, remaining lease term, renewal options, landlord responsibilities, and reversion rights to fully understand long-term risk and return potential.
McDonald's – Credit Trend (S&P vs Moody’s)
Tenant_Rating_Trend
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | TenantKey | Tenant | Year | Moody | SP | Moody_Grade | SP_Grade | Moody_GradeRank | SP_GradeRank |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2022 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 2 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2023 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 3 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2024 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 4 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2025 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 5 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 99centsonlystoresllc | 99 Cents Only Stores, LLC | 2022 | Caa2 | CCC+ | Substantial Risk | Substantial Risk | 2 | 2 |
McDonald's Stock Price (NYSE:MCD)
McDonald's Investment Market Statistics
AVERAGE SALE PRICE
$4,500,000
BUILDING SIZE
3,500 – 5,000 SF
AVERAGE NOI
$200,000
LAND
0.80 – 1.50 acres
$/SF RANGE
$900 – $1,600
LEASE TERM SHOWN
20 years
McDonald's Investor Snapshot (Quick Facts)
Origins & Growth (Past)
- Began as a small California burger stand
- Pioneered the modern fast-food restaurant model
- Expanded rapidly through franchising worldwide
- Built one of the largest restaurant networks
- Introduced standardized menus and operations
- Innovated with drive-thru and quick service
- Became a global leader in quick-service dining
Where McDonald’s Stands Today
- Large U.S. and global restaurant footprint
- Leader in quick-service restaurant industry
- High daily customer transaction volumes
- Strong franchise-driven operating model
- Expanding menu innovation and beverages
- Growing digital ordering and loyalty platforms
- Focus on operational efficiency and margins
Where McDonald’s Stands Today
Why investors buy McDonald's NNN Properties or McDonald's ground Lease Properties?
Pros (what buyers like)
- McDonald’s Brand Strength
Globally recognized quick-service restaurant brand with decades of operating history and strong performance. - Essential Quick-Service Dining
Affordable everyday meals help drive consistent customer traffic across economic cycles. - Prime Retail Real Estate
Many locations sit on high-visibility corners, signalized intersections, and major retail corridors. - Attractive Lease Structures
Long-term ground leases and NNN leases are common, appealing to passive and 1031 exchange investors.
Cons (what can bite you)
- Lease structure differences
Some properties may be franchise-operated, making lease guarantor strength an important diligence factor - High pricing / low cap rates
Strong brand demand often compresses cap rates and increases acquisition pricing - Limited rent growth
Some leases feature modest rent escalations during the primary lease term - Single-tenant reuse risk
Drive-thru restaurant layouts may limit replacement tenant options if the location closes
Investor Decision Framework (Buy / Hold / Sell)
01
✓ Strong “Buy Box” for a McDonald’s Net Lease
• 15–20+ years lease term remaining (or strong renewal options) • Ground lease or absolute NNN lease structure • Hard corner / signalized intersection with strong traffic • Drive-thru location with modern restaurant layout • Rent reasonable vs market (supports resale and backfill)
02
⚠ Yellow Flags (Price Accordingly)
• NN lease with landlord roof/structure responsibility • Flat rent with limited escalations during term • Older restaurant format without modern drive-thru • Secondary retail location with weak traffic counts • Site with poor access or limited parking
Find out more
McDonald's Background & History
McDonald’s is a global quick-service restaurant brand known for burgers, fries, beverages, and affordable fast meals. What began as a small hamburger stand in California grew into one of the most recognizable restaurant brands in the world through a scalable franchise model and rapid expansion.
Today, McDonald’s restaurants are designed for speed and convenience, with many locations offering drive-thru service, digital ordering, and delivery options to serve high customer volumes efficiently.
Why McDonald’s Matters to NNN Investors
McDonald’s operates one of the largest restaurant networks in the United States, serving millions of customers daily. Many locations benefit from prime retail positioning, strong brand recognition, and consistent consumer demand for quick-service dining.
The company continues investing in drive-thru technology, digital ordering, and loyalty programs, helping maintain strong customer traffic and long-term brand relevance.
What Buyers and Sellers Should Evaluate
For investors evaluating McDonald’s NNN properties or ground lease assets, the investment focus is typically on location quality, lease structure, and long-term tenant stability.
Buyers often review factors such as cap rates, lease term, tenant credit, drive-thru performance, traffic exposure, and surrounding retail demand. Strong McDonald’s locations are usually positioned along high-traffic retail corridors, commuter routes, and densely populated trade areas.
As with any net lease investment, property value is ultimately driven by site fundamentals, lease economics, and long-term cash-flow durability.
our team of experts are here for you
Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.
Whether you are comparing McDonald’s ground lease properties or fee simple McDonald’s assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.
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