Top 15 QSR Brands as NNN Investments – Recession-Proof Opportunities with Strong Leases

03/11/2025

Industry Insights Deal Book

Introduction

Investors have increasingly gravitated toward Quick Service Restaurant (QSR) properties with NNN leases – and for good reason. These fast-food assets have a reputation for being recession-resistant and “Amazon-proof.” People will always need to eat, so demand for affordable food remains steady even during economic downturns. In fact, industry analysis shows the quick-service sector continued to grow through the 2008 recession while many other industries contracted. When money is tight, consumers often trade down from full-service dining to value-focused fast food, helping QSR chains like McDonald’s stay resilient (McDonald’s actually posted same-store sales increases in 2008 and 2009. At the same time, QSR businesses provide an **in-person experience** that e-commerce can’t replace – you can’t deliver a hot burger or coffee through the internet. Retail landlords increasingly seek **internet-proof** tenants, and restaurants are a prime choice because they offer services “that can’t be replicated online” . This reliability, even in adverse times, makes QSR properties very attractive.

Another big appeal of QSR investments is the passive income they generate for owners. Most QSR locations are leased on triple-net (NNN) terms, meaning the tenant is responsible for property taxes, insurance, and maintenance. The investor/landlord simply collects rent with little management required. This hands-off structure can provide steady cash flow that’s about as close to “mailbox money” as real estate gets. QSR leases are often long-term and backed by major corporate franchisors, further ensuring dependable income. All of these factors – economic resilience, an internet-proof business model, and truly passive income potential – have made QSR NNN properties some of the most popular investment choices in today’s commercial real estate market.

A variety of Quick Service Restaurant properties

Benefits of QSR NNN Investments

Investing in QSR real estate with triple-net leases offers several key benefits for a passive investor:

Corporate-Backed Leases: Many QSR tenants are large national brands or franchisees with **corporate guarantees** on their leases. This means a strong credit corporation stands behind the rent payments. Even if a particular location’s sales underperform, the corporate lease guarantee ensures the landlord still gets paid on time. These credit-worthy tenants significantly reduce default risk for investors.
Long-Term Tenant Stability: QSR operators tend to sign **long-term leases** – often 10 to 20 years initial term – with multiple extension options. They invest heavily in each location (building out kitchens, drive-thrus, etc.), so they are committed to staying. This long-term occupancy provides a stable income stream and minimizes turnover. It’s not uncommon for a fast-food chain to occupy the same site for decades. The combination of long lease duration and strong tenant commitment makes holding a QSR property a very predictable investment.
Maintenance-Free Ownership: With an **NNN lease**, the tenant covers property expenses like taxes, insurance, and maintenance. In many cases (especially “absolute NNN” deals), the tenant even handles all repairs and upkeep for the building and grounds. The landlord has virtually *no* active management duties. This makes QSR properties ideal for truly passive income – essentially “set-and-forget” investments. As one listing described it, an absolute NNN QSR lease offers “zero landlord responsibilities,” creating an *ideal* management-free scenario for the owner.

1031 Exchange Advantages

QSR NNN properties are also popular with investors completing a **1031 exchange**. Under Section 1031 of the U.S. tax code, an investor can **defer capital gains taxes** by selling one investment property and reinvesting the proceeds into another “like-kind” property of equal or greater value. This is a powerful wealth-building strategy, allowing investors to reposition portfolios without an immediate tax hit.

For example, someone might sell an apartment building or other management-intensive asset and use a 1031 exchange to purchase a passive QSR NNN property. By doing so, they trade the headaches of active management for the ease of a long-term net lease, all while deferring the taxes on their sale. The **triple-net QSR** asset then provides consistent income (often at a similar or higher yield) and the investor has preserved their capital gains. In short, 1031 exchanges let you *swap till you drop* – continually rolling gains into new properties – and QSR NNN deals are an excellent replacement option due to their stability and minimal landlord obligations.

Highlighting SRS Real Estate Listings on Brevitas

On Brevitas, investors can find a range of QSR opportunities, including many marketed by **SRS Real Estate Partners** – a leading brokerage in net lease assets. For instance, SRS is currently offering a Chick-fil-A ground lease in Lafayette, IN priced at $4.46 million. This property features a rare 20-year initial lease term (with ~15 years remaining) and eight 5-year renewal options, exemplifying the long-term stability of a top QSR tenant. SRS also has a Taco Bell in West Frankfort, IL listed at a 5.75% cap rate, with 12+ years remaining on an absolute NNN lease (tenant responsible for everything). That Taco Bell lease includes 1% annual rent increases, steadily growing the owner’s NOI and hedging against inflation.

These are just two examples of the QSR NNN investments available on the Brevitas marketplace. In addition to SRS’s listings, many other brokers are marketing QSR properties on Brevitas – from brand-new Starbucks drive-thrus in high-traffic locations to established McDonald’s and Wendy’s franchises. The platform gives investors access to nationwide inventory all in one place. Each listing provides key details like lease length, rent escalations, tenant credit, and location demographics, allowing buyers to evaluate the strength of the deal. Be sure to explore Brevitas for the latest QSR offerings hitting the market.

Top 15 QSR Brands to Watch

When it comes to net lease investments, certain quick-service restaurant brands stand out for their market dominance and investment appeal. Below are 15 top QSR brands to keep on your radar (and often found in NNN listings):

McDonald’s: The world’s largest fast-food chain with over 38,000 restaurants globally. McDonald’s is synonymous with the QSR sector and is often viewed as a “blue-chip” tenant. It has a long track record of weathering recessions by leveraging its famous value menu and vast scale. Many McDonald’s locations are absolute NNN ground leases, making them highly prized by investors for their stability.
Starbucks: The dominant coffee QSR, with ~35,000 stores worldwide (and ~15,000 in the U.S.). Starbucks locations are frequently sought in the net lease market – the company often signs corporate leases of 10+ years. These cafés benefit from daily repeat traffic and a loyal customer base. As a tenant, **Starbucks** is known for strong sales and reliable corporate backing, with many stores seeing drive-thru expansion to meet demand.
Chick-fil-A: A leading fast-food brand specializing in chicken sandwiches. Remarkably, Chick-fil-A was the third-largest U.S. restaurant chain by sales in 2022 (about $18.8 billion in system sales) despite having only around 2,800 locations. Its average unit volumes are the highest in the industry. Chick-fil-A’s ground leases (often 15-20 year terms) are considered trophy assets – though the company is private, its strong brand and sales make it a top-tier net lease tenant.
Taco Bell: The biggest Tex-Mex fast-food chain, with over 7,000 U.S. units. **Taco Bell** is part of Yum! Brands (alongside KFC and Pizza Hut) and has a huge following for its affordable, innovative menu. Taco Bell franchises commonly sign long NNN leases with regular rent bumps. Investors like Taco Bell deals for their high traffic (especially late-night) and the backing of Yum!’s corporate strength. In some markets, new Taco Bell ground leases have even traded at cap rates in the mid-4% range, reflecting their popularity.
Burger King: A household name in burgers, Burger King has around 18,700 locations globally. It’s the second-largest burger chain after McDonald’s. Many Burger King restaurants are franchised, and net lease offerings usually come with franchisee guarantees (sometimes backed by the parent company Restaurant Brands International). While Burger King’s performance can be uneven, it remains a major QSR player with iconic branding. Investors often find slightly higher cap rates on BK properties compared to McDonald’s or Chick-fil-A, but with proper due diligence they can be solid assets.
Wendy’s: Another top burger chain, with about 7,000 restaurants worldwide. Wendy’s is known for its fresh beef and steady marketing presence. It has been modernizing its stores and menu in recent years, strengthening its competitive position. Net lease Wendy’s properties typically feature 20-year franchise leases with corporate guarantees (in the case of large franchise operators). They offer investors exposure to the burger segment with a well-recognized brand and typically include periodic rent escalations.
Dunkin’ (Donuts): A leader in coffee and breakfast, Dunkin’ has over 9,000 U.S. locations (now often just branded “Dunkin’”). It’s especially dominant in the Northeast U.S. Dunkin’ shops are usually franchised and often found in smaller footprints or pad sites. Investors appreciate Dunkin’ as a tenant for its daily repeat business (morning coffee rush) and the backing of Inspire Brands (the parent company). NNN Dunkin’ leases tend to be shorter (10-15 years) but are frequently absolute net. Drive-thru locations are particularly desirable post-pandemic.
Chipotle Mexican Grill: A fast-casual powerhouse that’s effectively part of the QSR landscape. Chipotle has about 3,200+ stores and pioneered the fast-casual concept with its build-your-own burritos and bowls. In recent years Chipotle has added drive-thru pick-up lanes (“Chipotlanes”) to new locations, making them even more attractive net lease investments. Chipotle corporate signs long leases and has excellent credit, often yielding cap rates in the 4-5% range. Its combination of strong brand, growth, and now drive-thru accessibility makes Chipotle a top brand to watch for NNN investors.
KFC: Kentucky Fried Chicken, also under the Yum! Brands umbrella, is a global fried chicken giant with ~25,000 units worldwide (over 3,900 in the U.S.). Many KFC locations are older, but Yum and its franchisees have been remodeling stores to modern standards. KFC offers absolute NNN leases in many cases, with relatively affordable price points. Investors are drawn to KFC deals for their established history and the fact that fried chicken remains one of the top fast-food categories (especially in international markets). Co-brand locations (e.g. KFC/Taco Bell combo units) can also be found, providing multiple revenue streams.
Domino’s Pizza: The largest pizza chain worldwide (by sales), with around 19,500 stores globally (6,700+ in the U.S.). Domino’s is known for its delivery and tech prowess, and it performed strongly during the pandemic due to its carryout/delivery model. Most Domino’s stores are franchised and occupy small retail spaces, sometimes inline or endcap units rather than freestanding buildings. Still, standalone Domino’s with drive-thru or pick-up windows do come to market. As a tenant, Domino’s has excellent brand recognition and steady demand for pizza, making it a solid, if not flashy, net lease candidate (often at slightly higher cap rates due to smaller footprint and franchisee credit).
Popeyes: A fast-growing chicken QSR chain famous for its fried chicken and spicy chicken sandwich. Popeyes (owned by Restaurant Brands International) has about 3,900 restaurants. It experienced a surge in popularity after its chicken sandwich became a viral hit in 2019, leading to significant sales growth. New Popeyes locations with drive-thrus are being built across the country, usually on 15-20 year NNN leases. Investors like Popeyes deals as a way to ride the growth of the chicken segment – cap rates are typically a bit higher than Chick-fil-A, but the brand momentum is strong and backed by a major corporate parent.
Sonic Drive-In: A unique drive-in fast-food chain with ~3,500 locations in the U.S., known for its carhop service and extensive drink menu. Sonic (also part of the Inspire Brands family) often occupies larger parcels because of its drive-in stalls. Net lease investors are attracted to Sonic properties for their distinctive format and loyal regional customer base (especially in the South and Midwest). Most Sonics are franchised on long-term NNN ground leases. One consideration is that the drive-in model is weather-sensitive, but many sites also have drive-thru lanes. Overall, Sonic adds diversity to a net lease portfolio while still providing a reliable QSR tenant.
Arby’s: A major sandwich QSR chain with over 3,400 units, Arby’s offers a menu of roast beef sandwiches and more. It’s part of Inspire Brands (which also owns Dunkin’, Sonic, and Buffalo Wild Wings). Arby’s has been updating its image and menu, which has helped sales. From an investor perspective, Arby’s locations are typically freestanding with drive-thrus and absolute NNN leases (~20 years). The franchisees are often large operators with corporate backing. While not as “flashy” as some newer brands, Arby’s provides steady performance and is a familiar name – a solid net lease tenant in the quick-service space.
Raising Cane’s: A fast-food chain that focuses exclusively on chicken finger meals – and has exploded in popularity. Raising Cane’s has roughly 650 locations and doubled its system-wide sales from 2019 to 2022 (from ~$1.5 billion to $3.1 billion). The chain is expanding rapidly across the U.S., often signing 15-20 year ground leases on new builds. Investors are very keen on Cane’s due to its high sales volumes and cult-like customer following. The company has plans to roughly triple its store count in coming years, which signals plenty more net lease opportunities featuring Raising Cane’s as the tenant. It’s definitely a brand to watch (and one that can trade at low cap rates akin to top-tier QSR tenants).
Dutch Bros Coffee: An emerging drive-thru coffee chain that went public in 2021. Dutch Bros has about 700+ locations (and growing quickly toward a goal of 4,000 in the U.S.). It offers coffee, smoothies, and drinks via small-footprint drive-thru kiosks, primarily in the western states but expanding into new markets. Dutch Bros properties are attractive as NNN investments because they have a proven drive-thru model, relatively low development cost, and a youthful brand with a loyal fan base. Many Dutch Bros come to market as sale-leaseback deals with 15-year terms. Cap rates tend to be in the 5% range or below for new leases, reflecting investor excitement about this brand’s growth trajectory.

Current Market Trends & Risks

It’s important to consider the broader market context when investing in QSR NNN properties. While these assets are highly resilient, external economic factors can still influence performance and pricing. Here are a few current trends and potential risks in the QSR net lease market:

Interest Rates & Cap Rates: Rapidly rising interest rates over the past year have put upward pressure on cap rates across commercial real estate. However, QSR cap rates have remained relatively low compared to other sectors. Recent research shows the average cap rate for QSR net lease deals is around 5.4%, about 64 basis points lower than the single-tenant net lease market overall. Notably, QSR cap rates have *not* increased as quickly as interest rates, due to very high investor demand and a lag in repricing. This means premium QSR assets are still selling at strong (low) cap rates, which is great for existing owners but can make acquisition yields tighter. If interest rates continue to climb, there is a risk that cap rates could eventually inch up further for QSR properties, potentially softening values. That said, the steady appetite for “essential” QSR assets has so far helped this sector hold its value remarkably well despite the higher cost of debt.
Consumer Spending & Sales Trends: Macroeconomic conditions like inflation and disposable income directly affect QSR sales. During inflationary periods, fast-food chains often raise menu prices, and while demand has been fairly inelastic (people still buy their burgers and coffee), there are limits. If consumers face economic strain, they may consolidate visits or opt for cheaper menu items. The good news is QSRs usually fare better than casual dining in a downturn – they benefit from customers trading down to less expensive dining. Recent industry projections remain optimistic: the U.S. QSR sector is valued at over $400 billion and expected to grow ~10% through 2029, reflecting confidence in sustained consumer demand. Still, investors should monitor same-store sales and foot traffic trends for their tenants. Strong brands with value propositions (Dollar menus, combo deals) are likely to keep performing well even if growth in consumer spending slows.
Supply Chain & Operating Costs: The past few years have seen significant supply chain disruptions – from food ingredient shortages to packaging price increases – which have impacted restaurant operations. QSR operators have generally navigated these challenges through bulk purchasing and menu adjustments, but higher food costs and wage inflation can squeeze franchisee profit margins. Labor shortages in the restaurant industry have also led to rising wages and more automation. For a net lease investor, these operational issues are one step removed (since you’re not running the restaurant), but they can affect the financial health of your tenant. The encouraging sign is that supply chains are improving in 2023 and many QSRs have successfully raised menu prices to protect their margins. Additionally, the biggest brands have the scale to weather supply and labor challenges better than independent eateries. It’s wise to factor in the *credit strength and operational efficiency* of your QSR tenant – the stronger their business, the lower the risk to your rent stream, even in a choppy supply environment.

Conclusion & Call-to-Action

In summary, QSR NNN properties combine the best qualities of real estate and essential retail. They offer reliable, long-term income backed by well-known corporate tenants that sell products (quick meals and drinks) people demand in any economy. These investments have proven their mettle through recessions and market shifts – all while providing truly passive ownership benefits. Whether you’re an investor looking for steady cash flow, a 1031 exchanger seeking to defer taxes, or simply someone who believes in the enduring strength of fast-food businesses, QSR properties can be a compelling addition to your portfolio.

As with any investment, it’s important to conduct due diligence on location quality, lease terms, and tenant financials. But the overall outlook for QSR real estate remains bright. Consumer preferences for convenience and value continue to drive the sector, and top brands are expanding and adapting (through drive-thru innovation, digital ordering, etc.) to keep sales strong. The net lease market for QSRs is correspondingly robust, offering opportunities ranging from new construction pad sites to decades-old flagship locations.

If you’re ready to explore available QSR NNN investments, Brevitas provides a powerful platform to connect with listings nationwide. From Starbucks and McDonald’s to emerging concepts like Raising Cane’s, you can find a range of options to fit your investment criteria. Take the next step toward owning a *recession-resistant, internet-proof,* income-producing property.

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