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QSRCredit: S&P: BB+ (Yum!)

Taco Bell NNN Properties for Sale in Florida

Taco Bell, owned by Yum! Brands (NYSE: YUM), is one of the largest QSR chains in America with approximately 7,400 US locations. Most properties are franchisee-owned and leased, so lease guarantees vary — corporate-guaranteed deals trade tighter than franchisee-guaranteed deals.

Typical Cap Rate

5.25% - 6.00%

Lease Term

20 years

Price Range

$1.8M - $3.5M

Building Size

2,000 - 2,500 SF

Lot Size

0.60 - 1.00 acres

Credit Rating

S&P: BB+ (Yum!)

Investment Highlights

Lease Structure

Taco Bell leases vary widely depending on corporate vs. franchisee guarantee. Corporate-guaranteed deals trade at 5.25-5.75% cap rates; franchisee-guaranteed trade wider (5.75-6.5%) depending on franchisee credit strength. 20-year initial terms with 4-5 five-year options.

Taco Bell Tenant Profile

Yum! Brands owns Taco Bell, KFC, and Pizza Hut with ~57,000 global restaurants. Credit: S&P BB+, Moody's Ba2 (non-investment grade but stable). Most US Taco Bells are franchisee-operated; corporate-guaranteed deals are preferred by investors.

Taco Bell in Florida

Florida has 400+ Taco Bell locations. Corporate-guaranteed properties in growth markets trade at 5.25-5.75% cap rates. Franchisee-guaranteed deals require individual franchisee credit analysis.

Why Buy Taco Bell

  • +Established QSR brand with strong customer loyalty
  • +Drive-thru pad sites in prime locations
  • +20-year lease commitments
  • +Absolute NNN on most corporate deals
  • +Wider cap rates than Chick-fil-A/Starbucks

Considerations

  • Critical to verify corporate vs. franchisee guarantee
  • Non-investment-grade parent credit (BB+)
  • Franchisee deals require credit diligence on operator
  • Competitive QSR Mexican segment

Related QSR Tenants

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