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THE PUBLICATIONS & BLOG OF NEIL NARAN WITH MARCUS & MILLICHAP
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Tenant Report of the Week: Taco Bell


Taco Bell is an American Chain of Fast Food Restaurants based out of Irvine, CA. It is also considered the largest taco and burrito restaurant chain in the world. The business is a subsidiary of YUM! Brands, Inc (Pizza Hut, KFC). The restaurants serve a variety of Mexican inspired foods that include tacos, burritos, quesadillas nachos, novelty, and specialty items with their variety of “value menu” items. The company was founded in 1964 Glen Bell in Downey, CA where the company has grown to approx. 7,000+ stores of which 93% are independently owned and operated by Franchisees. Like other fast-food brands, Taco Bell offers unique options in different countries, such as the Chicken Tikka Masala burrito in India and the Kimchi Quesadilla in Korea. Vegan and vegetarian options can also be found at the fast-food chain known for its witty social media personality and creative campaigns.

  • Average CAP Rate (2019): 5.44%

  • Average CAP Rate (2018): 5.56%

  • Lease Guaranty: Corporate & Franchisee

  • Average Sales per Unit (Store): $1,600,000

  • Total Number of Units (# of Stores): 7,000+ Units

  • Average Building Size: 2,500 Square Feet

  • Average Property Sales Price: $2,095,187

  • Average NOI (Rent): $114,825 / Year

  • Top State with Units: California (14%)

  • Credit Rating: Moderate (Moody's: Ba2)

  • Average lease Term: 15 Years

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