Looking to buy a Taco Bell NNN property? 55 are observed for sale across 22 states, median asking cap rate 5.50%. View Taco Bell NNN properties for sale, cap rate bands and the 1031 buyer guide.
Taco Bell is not investment grade. The ratings shown for Taco Bell are credit rating as reported by the company of its parent company, Yum! Brands, Inc.: BB+ from S&P Global Ratings and Ba2 from Moody’s; all below the BBB-/Baa3 investment grade threshold. Whether that credit stands behind a specific lease depends on the tenant and any guarantor named in the lease. Ratings checked October 8, 2026. See the investment grade credit tenant ratings table.
Taco Bell is not an investment grade tenant. Its parent, Yum! Brands, Inc., is rated BB+ by S&P and Ba2 by Moody’s, below the BBB-/Baa3 threshold, and those are ratings of the parent, not of any lease. Yum!’s 2025 Form 10-K reports that 93% of Taco Bell restaurants were franchised at the end of 2025, so the tenant on a Taco Bell lease is often a franchisee rather than Yum!; confirm the tenant and any guarantor in each lease. Across the active Taco Bell listings InvestmentGrade.com tracks, the median asking cap rate is 5.50% (an asking figure, not a closed-sale cap rate).
| Metric | Figure | Source |
|---|---|---|
| Parent Company | Yum! Brands, Inc. (NYSE: YUM) | Form 10-K |
| Parent S&P / Moody’s Rating | BB+/Ba2 | S&P Global Ratings BB+, as of August 5, 2026; Moody’s Ba2, as of August 5, 2026. Ratings checked October 8, 2026. |
| Investment Grade Status | Parent Rated Below Investment Grade (Yum! Brands, Inc.); confirm the lease guarantor | InvestmentGrade.com classification |
| Restaurants | 9,030 worldwide, 86% in the US; 93% franchised (end of 2025) | Yum! 2025 Form 10-K |
| System Sales | $18.4 billion (2025); same-store sales up 7% | Yum! 2025 Form 10-K |
| Median asking cap rate | 5.50% | Active listings InvestmentGrade.com tracks with an asking cap rate (asking, not closed-sale); latest listing update October 16, 2026 |
| Median asking price | $2.53M (middle half $1.99M to $3.00M) | Active listings InvestmentGrade.com tracks that state an asking price; latest listing update October 16, 2026 |
| Remaining Lease Term | Varies; averages 13.6 years across the 14 listings that state a remaining term | Listings InvestmentGrade.com tracks; confirm the original and remaining term in each lease |
| Building Size | 2,333 sq ft median; lot sizes vary | Listings InvestmentGrade.com tracks that state a building size; confirm the building, lot and any other tenant on the site |
| Lease Tenant | Varies by lease: a franchisee, Taco Bell Corp. or another Yum! entity, sometimes with a guaranty. Listing labels such as “corporate” or “franchisee” describe the listing, not the signed lease parties | Confirm the tenant and any guarantor in each lease |
Asking cap rates are not closing cap rates. Ratings update automatically from our ratings database.
Taco Bell Business Overview
Taco Bell is Yum! Brands’ Mexican-inspired quick service chain. At the end of 2025 the Taco Bell Division had 9,030 restaurants, 86% of them in the US, and 93% were franchised; Yum! owned 8% of US Taco Bell units. System sales rose to $18.4 billion in 2025, with same-store sales up 7%. KFC is Yum!’s largest brand by restaurant count (33,897 units).
Yum! is reshaping its portfolio. In the fourth quarter of 2025 it bought 128 Taco Bell restaurants in the Southeast US from a franchisee, and it sold Pizza Hut in two transactions: the mainland China business to Yum China Holdings, Inc. (closed August 7, 2026) and the rest of the global Pizza Hut business to Toppings TopCo, LLC (LongRange Capital) on September 1, 2026. Yum!’s remaining brands are KFC, Taco Bell and Habit Burger & Grill.
Credit Rating Analysis
Yum! Brands, Inc. is rated BB+ by S&P and Ba2 by Moody’s. Yum!’s Form 10-Q for the quarter ended June 30, 2026 reports these as the company’s credit ratings without stating the rating type or an outlook; they are ratings of the parent and sit below investment grade. Taco Bell Funding, LLC has separately issued securitization notes secured by U.S. Taco Bell franchise agreements, royalties and intellectual property; Yum!’s 10-K says those notes are not guaranteed by Yum!, and any rating on them says nothing about a lease.
For a landlord, the parent rating matters only if Yum! or Taco Bell Corp. is the tenant or a written guarantor. Taco Bell leases are often signed by franchisees (93% of Taco Bell restaurants were franchised at the end of 2025), whose credit depends on the operator’s size, finances and restaurant performance. Ask for the franchisee’s financial statements, the number of restaurants it operates and any guaranty.
Taco Bell NNN Lease Structure
Lease terms vary: across the 14 Taco Bell listings we track that state a remaining term, the average remaining term is 13.6 years; confirm the original and remaining term in each lease. Rent schedules vary: 10% increases every five years and annual increases both appear among listings that state a schedule. As of October 8, 2026, 16 of the 51 Taco Bell listings InvestmentGrade.com tracks that state a structure were flagged as ground leases, where the landlord owns only the land, and 35 were flagged as not ground leases; another 9 did not state it. These flags come from listing descriptions, not reviewed leases or title records, so a listing not flagged as a ground lease is not thereby confirmed as fee simple. Confirm the ownership interest in the lease and title documents, and confirm landlord responsibilities.
Taco Bell Cap Rates and Pricing
Live asking cap rates for Taco Bell and other quick service tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| McDonald's | BBB+ / Baa1 | 4.00% | 3.75% to 4.24% | 46 | −124 bps |
| Chick-fil-A | n/a / n/a | 4.25% | 4.00% to 4.50% | 43 | −99 bps |
| Chipotle | n/a / n/a | 5.00% | 4.75% to 5.25% | 87 | −24 bps |
| Taco Bell (rated entity: Yum! Brands, Inc.) | BB+ / Ba2 | 5.50% | 5.00% to 6.00% | 55 | +26 bps |
| Starbucks | BBB+ / Baa1 | 5.75% | 5.35% to 6.15% | 117 | +51 bps |
| Wendy's | B+ / n/a | 6.00% | 5.50% to 6.50% | 81 | +76 bps |
| Popeyes (rated entity: Restaurant Brands International Inc.) | BB+ / n/a | 6.00% | 5.50% to 6.25% | 78 | +76 bps |
| Burger King (rated entity: Restaurant Brands International Inc.) | BB+ / n/a | 6.25% | 6.00% to 6.74% | 71 | +101 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 16, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.
Each median uses active listings InvestmentGrade.com tracks (not marked under contract, pending or closed) that have an asking cap rate: the cap rate stated in the listing or, where a listing gives net operating income and price but no cap rate, one computed from them. The Listings column counts only those listings, so it can be lower than a tenant’s total number of active listings. Ratings for Taco Bell, Popeyes and Burger King are those of the parent company; confirm the tenant and any guarantor in each lease.
The middle half of Taco Bell asking prices runs from about $1.99M to $3.00M, with a median near $2.53M. Individual listings ask cap rates above and below the median; when comparing a property with it, check the remaining lease term, rent increases, building age, location and the tenant and guarantor named in the lease.
Real Estate Footprint
In the Taco Bell listings InvestmentGrade.com tracks that state a building size, the median is 2,333 square feet; lot sizes vary, and a listing can be a co-branded building shared with another brand. Brand-level sales growth does not settle the value of a specific site: residual value depends on drive-through stacking, access, visibility and how easily another quick service user could take over the building. Confirm the building, the lot and any other tenant on the site for each property.
Taco Bell Investment Strengths and Risks
Strengths
- Brand momentum. System sales of $18.4 billion and 7% same-store sales growth in 2025.
- System scale. 9,030 Taco Bell restaurants at the end of 2025, 86% of them in the US (Yum! 2025 Form 10-K).
Risks
- Franchisee credit. With 93% of Taco Bell restaurants franchised, the tenant is often a franchisee rather than Yum!; confirm the tenant and any guarantor in the lease.
- Parent below investment grade. Yum! is rated BB+/Ba2 (S&P/Moody’s).
- Lease variation. Rent schedules, guaranties and landlord duties differ widely between leases.
Comparable Quick Service Restaurant Cap Rates
The live table in the cap rate section above compares Taco Bell’s median asking cap rate with McDonald’s, Chick-fil-A, Chipotle, Starbucks, Wendy’s, Popeyes and Burger King, using the same listing rules and date for every tenant. Differences between those medians mix credit, who signs the lease, ground lease versus other structures, remaining term and location, so they do not measure the effect of any one factor. Ratings for Taco Bell, Popeyes and Burger King are those of the parent company, and their leases are often signed by franchisees, so confirm the tenant and any guarantor in the lease.
Frequently Asked Questions: Taco Bell NNN Investments
Is Taco Bell investment grade?
No. Parent Yum! Brands, Inc. is rated BB+ by S&P and Ba2 by Moody’s, below investment grade. Those are ratings of the parent, and a Taco Bell lease is often signed by a franchisee rather than Yum!, so confirm the tenant and any guarantor in the lease.
Who guarantees Taco Bell leases?
It depends on the lease. Yum!’s 2025 Form 10-K reports that 93% of Taco Bell restaurants were franchised at the end of 2025, so the tenant is often a franchisee, sometimes with a personal or corporate guaranty from the operator. Some leases are with Taco Bell Corp. or another Yum! entity. Confirm the tenant and guarantor in each lease.
What is the current Taco Bell NNN cap rate?
Current median asking cap rates for Taco Bell and comparable tenants are shown in the live table on this page. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.
Is Pizza Hut still part of Yum! Brands?
No. Yum! sold Pizza Hut in mainland China to Yum China Holdings, Inc., closing August 7, 2026, and sold the rest of its global Pizza Hut business to Toppings TopCo, LLC (LongRange Capital) on September 1, 2026. Yum!’s 10-K notes that it can remain secondarily liable on leases it assigned to franchisees, so confirm in any Pizza Hut lease whether a Yum! entity is still a tenant or guarantor.
What do Taco Bell net lease properties look like?
They vary. In the active Taco Bell listings InvestmentGrade.com tracks, the median building size among listings that state one is 2,333 square feet, the median asking price is $2.53M, and the average remaining lease term across the 14 listings that state one is 13.6 years. Lot size, original lease term and whether another brand shares the building also vary, so confirm them for each property.
Depreciation note (general information, not tax advice): On a fee simple Taco Bell, the buyer owns the building, which can generally be depreciated if it is used in a trade or business or held for the production of income (26 U.S.C. 167(a)); on a ground lease, the buyer owns only the land, and IRS Publication 946 states that you cannot depreciate the cost of land. Restaurant equipment may belong to the operator. Confirm what you are buying and its tax basis with a tax professional.
Taco Bell Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Taco Bell properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
Taco Bell NNN Properties Observed For Sale
55 active Taco Bell net lease listings observed across public listing sources, most recently Oct 16, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Middleboro, MA | $1,440,000 | 5.00% | 3,000 | n/a | View listing |
| Farmington, NM | $3,400,000 | 5.50% | 3,500 | 20.0 yrs | View listing |
| Forestville, MD | $1,995,000 | 4.95% | 2,100 | n/a | View listing |
| Odenton, MD | $2,527,000 | 4.75% | 2,115 | n/a | View listing |
| Collins, MS | $1,733,000 | 6.00% | 2,187 | n/a | View listing |
| Jackson, MS | $1,762,600 | 7.25% | 3,193 | n/a | View listing |
| Atchison, KS | $2,181,800 | 5.50% | 2,061 | 20.0 yrs | View listing |
| Clinton, AR | $2,656,000 | 5.25% | 2,135 | n/a | View listing |
Search all 55 observed Taco Bell listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
