Taco Bell

Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., they serve a variety of Tex-Mex foods, including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of “value menu” items. Taco Bell serves more than 2 billion customers each year at 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees.

As the leading Mexican-inspired quick service restaurant brand, Taco Bell plans to have 8,000 restaurants by the year 2023 which we anticipate will add an estimated 100,000 jobs nationwide.

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Parent Company: Yum! Brands
Store Count: 7,000
S&P Rating: BB

S&P Outlook: Stable

Moody Rating: Ba3

Moody Outlook: Under Review (Possible Downgrade)

Typical Lease Characteristics

Lease Term: 15 – 20 Years  Years

Lease Type: Absolute NNN Lease 

Lease Increases: 10% Every 5 years 

Lease Extensions: 4-5 (5) Year Options

Lease Guarantor: Corporate and Franchisee

Positives:

  • Public Company, Credit Rated
  • Low Price Sales Model
  • Typically Long term leases with increases

Negatives:

  • Consumers are showing a growing interest in healthy fast food.
  • Competitive Industry Sector
  • Generally Low Cap Rates

Market Snapshots:

On Market Ranges:

# of Properties in set: 32

Price: $1,758,850 - $2,244,050Average: $2,021,669

PPSF: $830 - $990Average: $873

Year Built: 1982 - 2017Average: 2000

CAP Rate Range: 4.66% - 5.98%Average: 5.48%

Size range: 1,760 sq ft - 4,639 sq ft Average: 2,502 sq ft

Last 12 Month Range:

# of Properties in set: 67

Price: $1,586,230 - $1,973,970Average: $1,762,478

PPSF: $676 - $791Average: $719

Year Built: 1977 - 2018Average: 2000

CAP Rate Range: 4.94% - 5.82%Average: 5.49%

Size range: 1,177 sq ft - 5,100 sq ft Average: 2,531 sq ft

Taco Bell Company Profile

Headquarters Information

Irvine, California

Founded in 1962

Company type: Public

Stock Ticker: YUM

Parent Companyy: Yum! Brands

Sector: Services

Industry: Restaurants

# of Employees: 175,000

S&P Rating: BB

S&P Outlook: Stable

S&P Rating: Ba3

Moody Outlook: Under Review (Possible Downgrade)

Taco Bell Stock Keys

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