Taco Bell
Most Taco Bell net lease deals are guaranteed by franchisees, not by Yum! Brands (BB+), so the operator's size and financials drive the credit. The brand has strong unit economics and steady growth, and large multi-hundred-unit franchisees are the most sought-after guarantors.
- US units
- 7,784
- FY2025
- 3Y net growth
- +8.1%
- vs. FY2022
- Credit rating
- BB+
- Sub-investment grade
- Typical term
- 15–20 yr
- Franchisee-signed NNN (absolute NNN common)
- Model
- Franchised
- Subsidiary of Yum! Brands
Unit count
Taco Bell in the news
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Taco Bell net lease FAQ
What is Taco Bell's credit rating?
Taco Bell is rated BB+ (Yum! Brands), which is below investment grade. Check the lease to confirm whether the rated entity is the actual guarantor.
How many Taco Bell locations are there in the US?
Taco Bell reported about 7,784 US locations as of FY2025. That is +8.1% versus 7,198 in FY2022.
What does a typical Taco Bell net lease look like?
Lease type: Franchisee-signed NNN (absolute NNN common). Initial term: 15–20 yr. Rent increases: 1.5–2% annually or 10% every 5 yrs. These are market-typical terms; actual deals vary by vintage, location and whether the lease is corporate or franchisee-signed.
Is Taco Bell corporate or franchised?
Operating model: Franchised (~93% franchised); leases typically franchisee-signed. Taco Bell is part of Yum! Brands. For net lease investors this determines whether rent is backed by the corporate parent or by a franchisee.