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NNN KFC for Sale
KFC is a Yum! Brands chain with 34,747 restaurants worldwide as of June 30, 2026, including 3,424 in the U.S. (Yum! Brands Q2 2026 results, Q2 2026 unit count). The Boulder Group lists a typical KFC net lease as triple net, with a 15-year term and 10% rent increases every five years, and an S&P rating of BB+ that it attributes to KFC’s parent, Yum! Brands, which is below investment grade (The Boulder Group, September 2026). Here is how the lease, the pricing and the tenant fit together.
BB+
S&P rating (Yum! Brands)
3,424
U.S. restaurants (June 30, 2026)
15 Years
Typical lease term
10%
Increase every 5 years
2,100 SF
Typical building size
Triple Net
Typical lease type
Sources: The Boulder Group, Net Lease Tenant Profiles, September 2026; Yum! Brands Q2 2026 unit count (U.S. restaurants). Boulder lists 3,981 KFC locations, which differs from Yum!’s own U.S. count; we use Yum!’s figure.
Key Takeaways
Tenant & Credit Profile
Boulder lists KFC’s S&P rating as BB+ for its parent, Yum! Brands, which is below investment grade (The Boulder Group, September 2026). About 98% of KFC Division restaurants were operated by franchisees as of March 31, 2026 (Yum! Brands Form 10-Q), so the tenant and guarantor on a given property is often a franchisee.
Typically Triple Net Leases
Boulder lists a typical KFC lease as triple net, with a 15-year term and 10% rent increases every five years (The Boulder Group, September 2026). Confirm who is responsible for the roof and structure in any lease you review.
Cap Rates by Remaining Term
KFC properties currently show asking cap rates of 6.30% – 6.60% with 10 years remaining and 5.95% – 6.25% for a new 15-year lease (The Boulder Group, September 2026). Shorter remaining terms price higher.
The U.S. Footprint Is Shrinking
KFC’s U.S. restaurant count fell from 3,523 to 3,424 in the first half of 2026, and U.S. system sales were down 2% excluding currency in the second quarter, even as the worldwide KFC Division grew its restaurant count 7% (unit count, Q2 results).
KFC NNN Cap Rates and Lease Data
If you’re weighing a KFC property, three things shape what you’ll earn: who the tenant is, how the lease is structured, and what yield you’re paying for. Here’s how they fit together.
On the tenant, Boulder lists KFC’s S&P rating as BB+, which it attributes to its parent, Yum! Brands, and which is below investment grade. A typical lease runs 15 years with a 10% rent increase every five years.1 That works out to about 2% a year. About 98% of KFC Division restaurants were operated by franchisees as of March 31, 2026 (Yum! Brands Form 10-Q), so the lease on a specific property is often signed by a franchisee. Confirm who the tenant and guarantor are, and who handles the roof and structure.
On yield, Boulder shows asking cap rates of 5.95% – 6.25% on a new 15-year lease, 6.30% – 6.60% with 10 years left, and 7.00% – 7.30% with 5 years left.2 The pattern is worth knowing: as the remaining term gets shorter, the yield goes up, because you’re being paid more to take on the question of whether the lease is renewed. These are asking rates, not closed sales, so treat them as a guide to where pricing starts.
In dollars, Boulder puts the average sale price at about $2.08 million with average rent of about $108,000 a year. On a typical 2,100 SF restaurant, that works out to roughly $990 per square foot in price and about $51 per square foot in rent.3 The per-square-foot figure looks high because the price covers the land as well as a small building.
1. The Boulder Group, Net Lease Tenant Profiles, September 2026, p. 45. Credit rating is S&P, as reported by Boulder, which labels it a Yum! Brands subsidiary rating; lease type, term and escalations are Boulder’s typical values. The 2% a year figure is our calculation (10% over five years, compounded). ↩
2. The Boulder Group, Net Lease Tenant Profiles, September 2026, p. 45. Asking cap rates as of September 2026. ↩
3. The Boulder Group, Net Lease Tenant Profiles, September 2026, p. 45. Average sale price, average rent and typical building size as reported by Boulder; the per-square-foot figures are our calculation ($2,080,000 and $108,000 divided by 2,100 SF). Boulder lists 3,981 KFC locations; Yum! Brands reported 3,424 U.S. KFC restaurants at June 30, 2026. ↩
KFC as a Tenant
How KFC operates
KFC is a Yum! Brands chain. As of March 31, 2026, the KFC Division had 34,332 restaurants, 90% of them outside the U.S. and 98% operated by franchisees (Yum! Brands Form 10-Q). By June 30 that had grown to 34,747, up 7% from a year earlier (Yum! Brands Q2 2026 results).
The U.S. is a small and shrinking part of that. KFC had 3,424 U.S. restaurants at June 30, 2026, down from 3,523 at the start of the year, with 112 closures and 13 openings in the first half (Q2 2026 unit count). The U.S. was 12% of KFC system sales in 2025 (Q2 2026 results).
For an investor, that means a typical building of about 2,100 SF on a 15-year lease with 10% rent increases every five years (The Boulder Group, September 2026).
Financial strength and recent results
Second-quarter 2026 KFC Division system sales were $9.57 billion, up 10% (6% excluding currency), with same-store sales up 2%. KFC U.S. system sales were down 2% excluding currency (Yum! Brands Q2 2026 results).
Boulder lists a BB+ rating for the Yum! Brands subsidiary, which is below investment grade. Because Yum! is not the tenant on most leases, look at the franchisee’s finances as well as Yum!’s, and review current credit ratings and SEC filings as part of your due diligence.
Why Investors Buy KFC Properties
KFC’s case rests on the brand’s scale and the pricing. Worldwide, the KFC Division opened 660 gross new restaurants in the second quarter (Yum! Brands Q2 2026 results), and Boulder’s typical lease runs 15 years with 10% rent increases every five years (The Boulder Group, September 2026).
On pricing, KFC’s 10-year asking range of 6.30% – 6.60% is higher than Jack in the Box at 5.50% – 5.80% and McDonald’s at 4.50% – 4.80% (The Boulder Group, September 2026). A higher starting yield is the trade-off for a BB+ rating tied to the parent and a shrinking U.S. footprint.
Risks and Market Conditions
The U.S. business is the main risk. KFC U.S. system sales were down 2% excluding currency in the second quarter, and the U.S. restaurant count fell by 99 in the first half of 2026 (Q2 2026 results, unit count).
Franchisee quality matters too. Because about 98% of KFC Division restaurants are franchise-operated, look at the operator’s other locations and sales, the lease guarantor, the local trade area and the remaining lease term before you buy.
Build a Diversified NNN Portfolio
Pairing a KFC with other net-lease brands spreads risk across tenants, industries and markets. Compare other brands we help buyers acquire:
KFC NNN FAQs
How are KFC leases structured?
Boulder lists a typical KFC lease as triple net, with a 15-year term and 10% rent increases every five years (The Boulder Group, September 2026). Confirm who handles the roof and structure in the lease you’re reviewing.
What cap rate do KFC properties trade at?
Asking cap rates currently run 7.00% – 7.30% with 5 years remaining, 6.30% – 6.60% with 10 years remaining and 5.95% – 6.25% for a new 15-year lease (The Boulder Group, September 2026). Actual cap rates vary by location, remaining lease term, guarantor and rent history. Contact us for current cap rates on specific KFC listings.
What does a KFC property cost?
The Boulder Group reports an average sale price of about $2.08 million with average annual rent of about $108,000 (September 2026). Price depends on location, remaining lease term and guarantor.
Does the franchisee matter?
Yes. About 98% of KFC Division restaurants were operated by franchisees as of March 31, 2026 (Yum! Brands Form 10-Q), so the franchisee, and any franchisee guarantee, is often what stands behind your rent. Ask for the operator’s financials and how many restaurants they run.
Questions about NNN KFC Properties for Sale?
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Market data, cap rates, and tenant statistics on this page come from third-party reports and company disclosures, cited in the footnotes. We believe these sources are reliable but do not guarantee their accuracy or completeness. Figures reflect the date of each source and change with market conditions, so verify current numbers before relying on them.