Interested in selling your McDonald’s NNN property or McDonald’s lease property and was wondering what you can get for it in today’s changing market?
Contact us for a complimentary broker opinion of value for your off-market McDonald’s NNN property for sale or McDonald’s ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your McDonald’s NNN property or the inclusion of a McDonald’s ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market McDonald’s properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of January 2023, McDonald’s has over 38,000 stores in 119 countries and territories. Of these, over 14,000 are located in the United States and Canada.
Revenue and income
In 2022, McDonald’s total revenue was $89.2 billion. Net income was $10.4 billion.
Future plans
McDonald’s plans to continue expanding its global footprint. In 2023, the company plans to open over 2,000 new stores worldwide. McDonald’s also invests in new technologies, such as self-order kiosks and mobile ordering.
Corporate vs. franchise
About 90% of McDonald’s restaurants are franchised. The remaining 10% are corporate-owned. Franchisees typically incur an initial franchise fee, which varies between $500,000 and $2.7 million, in addition to ongoing costs calculated as a percentage of their sales.
Additional information McDonald’s Properties
McDonald’s had its beginnings in 1940 in San Bernardino, California. The company is known for its iconic Golden Arches logo. McDonald’s is the world’s largest fast-food restaurant chain. The company’s most popular products include the Big Mac, Happy Meals, and french fries. McDonald’s is a publicly traded company listed on the New York Stock Exchange under the “MCD.”
McDonald’s History
McDonald’s has its origins dating back to 1940 when Richard and Maurice McDonald opened a fast-food restaurant in San Bernardino, California. Initially known as “McDonald’s Bar-B-Q,” the restaurant’s name changed to “McDonald’s” in 1948, reflecting its focus on speedy service. The concept of fast-food restaurants gained immense popularity, leading to rapid expansion across the United States in the 1950s and 1960s. Innovations like the Speedee Service System and the introduction of the iconic Big Mac helped establish McDonald’s as a global brand. In 1961, Ray Kroc acquired the rights to franchise McDonald’s, sparking its worldwide growth. The company expanded internationally, entering markets such as Canada, Japan, Australia, China, and Russia. In 1984, McDonald’s became a publicly traded New York Stock Exchange company. McDonald’s continually adapts to changing consumer preferences, introducing new menu items, technology-driven ordering systems, and sustainability initiatives.
Why Invest in Ground Lease and NNN Lease of McDonald’s?
Investing in McDonald’s ground lease and triple net (NNN) lease properties offers compelling reasons:
1) McDonald’s NNN Property Investment: Stable income
When investing in commercial real estate, few opportunities offer the same stability and reliability as a McDonald’s NNN (Triple Net Lease) property investment. With its globally recognized brand and robust market presence, McDonald’s stands as a beacon of assurance in commercial property investments. An in-depth discussion of the numerous factors that make purchasing a McDonald’s NNN property a wise decision for those looking to generate steady and reliable income over the long term sale will be provided in this article.
2) McDonald’s NNN Property Investment: Established tenant
One of the critical advantages of McDonald’s NNN property investments is the presence of an established and enduring tenant. McDonald’s has stood the test of time, becoming not just a fast-food chain but a global icon. This enduring success drastically reduces the risk associated with vacancy or lease default, ensuring a stable and reliable tenant for your property investment. In a world where business landscapes can be unpredictable, having a tenant with the reputation and staying power of McDonald’s is a significant asset for property investors.
3) McDonald’s NNN Property Investment: Low management responsibility
Another enticing feature of McDonald’s NNN property investments is the minimal management responsibility they entail for landlords. With in-ground and NNN leases, the onus of managing property maintenance and associated expenses falls squarely on the tenant. This arrangement dramatically reduces the landlord’s management obligations and frees up time and resources that would otherwise be spent on property upkeep. With McDonald’s taking care of the property’s well-being, landlords may feel secure in their investment.
4) McDonald’s NNN Property Investment: Favorable lease terms
Long-term lease agreements with built-in rent escalations are a hallmark of McDonald’s NNN property investments. These lease terms give investors a high degree of predictability regarding income generation. The built-in rent escalations ensure that rental income grows over time, helping investors hedge against inflation and increase their returns on investment. This aspect makes McDonald’s NNN property investments attractive for those looking for stable, long-term financial gains.
5) McDonald’s NNN Property Investment: Real estate value
Beyond the stable income streams and favorable lease terms, McDonald’s strategic locations in high-traffic areas contribute significantly to the real estate value of these investments. The company’s meticulous site selection ensures that McDonald’s outlets are in prime locations, often characterized by high visibility and heavy foot traffic. As a result, properties housing McDonald’s restaurants have the potential for significant capital appreciation. This appreciation can offer investors an opportunity for long-term wealth accumulation and steady rental income.
Pros and Cons of McDonald’s Ground Lease and NNN Lease Investment
Pros:
1. Stable income from a globally recognized brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.
Cons:
1. Lease renewal risk when the term expires.
2. Dependency on McDonald’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.
Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.