QSR & Fast Food NNN

McDonald's ground leases and Chick-fil-A properties regularly trade at low cap rates, reflecting investor confidence in these brands' operational dominance. The QSR sector benefits from America's large annual quick-service food spending, with drive-through-equipped locations commanding premium pricing post-COVID. These properties typically sit on high-visibility pads with excellent access, making them highly fungible — if one QSR tenant leaves, another wants the pad. Ground leases from corporate-operated McDonald's, Chick-fil-A, and Starbucks offer the lowest risk in NNN, with the landlord owning the dirt while the tenant owns (and maintains) the building. Franchise-operated locations carry more risk and trade wider than corporate deals.

1. 1McDonald's ground leases are the closest thing to a bond in NNN investing: low cap rates, near-zero landlord risk, and extremely strong resale liquidity.
2. 2Chick-fil-A is the most sought-after NNN tenant in America. Properties routinely sell above asking price, and cap rates are tight.
3. 3Always distinguish between corporate-guaranteed and franchise-guaranteed leases. The same brand trades wider when only the franchisee signs.
4. 4Drive-through-equipped QSR pads are the most fungible NNN assets — if your tenant leaves, five other QSR brands want that location.
5. 5Starbucks properties pair a widely followed credit with a shorter lease, which is a mid-yield option between a ground lease and a long retail lease.
6. 6Watch Chipotle. Expansion has made it an institutional-quality net-lease holding, and it still yields more than a McDonald's ground lease.