In 1917, 15-year-old Ray Kroc lied about his age to join the Red Cross as an ambulance driver, but the war ended before he completed his training. He then worked as a piano player, a paper cup salesman and a Multimixer salesman.

In 1954, he visited a restaurant in San Bernardino, California that had purchased several Multimixers. There he found a small but successful restaurant run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. They produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality and quick service.

They were looking for a new franchising agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name and operating system. By 1958, McDonald’s had sold its 100 millionth hamburger.

McDonald’s Corporation operates and franchises McDonald’s restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, Latin America, and internationally. The company’s restaurants offer various food products, soft drinks, coffee, and other beverages.

As of December 31, 2016, it operated 36,899 restaurants, including 31,230 franchised restaurants comprising 21,559 franchised to conventional franchisees, 6,300 licensed to developmental licensees, and 3,371 licensed to foreign affiliates; and 5,669 company-operated restaurants. McDonalds Corporation was founded in 1940 and is based in Oak Brook, Illinois.

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S&P Rating: BBB+

S&P Outlook: Stable

Moody Rating: Baa1

Moody Outlook: Stable

Typical Lease Characteristics

Lease Term: 10 – 20 Years  Years

Lease Type: Absolute NNN Lease 

Lease Increases: 10% Every 5 years 

Lease Extensions: 4-5 (5) Year Options

Lease Guarantor: Corporate


  • Public Company, Credit Rated
  • Typically located in high traffic locations
  • Typically Long term leases with increases


  • Consumers are showing a growing interest in healthy fast food.
  • Competitive Industry Sector

Market Snapshots:

On Market Ranges:

# of Properties in set: 13

Price: $2,281,380 - $2,779,620Average: $2,622,280

PPSF: $610 - $790Average: $695

Year Built: 1965 - 2013Average: 2002

CAP Rate Range: 3.93% - 4.34%Average: 4.13%

Size range: 2,376 sq ft - 5,122 sq ft Average: 3,951 sq ft

Last 12 Month Range:

# of Properties in set: 36

Price: $1,563,710 - $1,890,200Average: $1,718,360

PPSF: $412 - $489Average: $452

Year Built: 1957 - 2015Average: 1996

CAP Rate Range: 3.82% - 5.29%Average: 4.60%

Size range: 2,546 sq ft - 5,590 sq ft Average: 4,061 sq ft

McDonald’s Company Profile

Headquarters Information

Oak Brook, Illinois

Founded in 1955

Company type: Public

Stock Ticker: MCD

Sector: Services

Industry: Restaurants

# of Employees: 375,000

S&P Rating: BBB+

S&P Outlook: Stable

S&P Rating: Baa1

Moody Outlook: Stable

McDonald’s Stock Keys

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