Fast Food Triple Net Lease Tenant of the Quarter – Taco Bell NNN

Feb 3, 2022

In 1954, when Glen Bell started Bell’s Drive In and Taco Tia near San Bernardino, California, it’s likely he never imagined there would be 7,000+ nationwide Taco Bell fast food restaurants in 2022. As the world’s leading Mexican-inspired quick service restaurant (QSR), the company serves over 42 million US customers per week, and continues to innovate and grow with mobile, desktop, and delivery services.1

Given its stability in the market, essential fast food offerings, omnichannel adaptability, property expansion plans, and the low-maintenance, reliable income offered to net lease investors, Taco Bell is Westwood Net Lease Advisors’ Fast Food Triple Net Lease Tenant of the Quarter, Q1 2022. Here’s why you should consider a Taco Bell NNN for sale.

Here’s What You Need to Know Before Investing in a Taco Bell NNN For Sale

Taco Bell (Taco Bell Corp., a subsidiary of Yum! Brands, Inc.) is ranked #4 by The 2021 QSR 50: The Fast-Food Industry’s Leading Annual Report. This ranking is especially meaningful, as the listed companies “navigated the greatest restaurant crisis” of all time. Taco Bell is in good company with McDonald’s holding the #1 spot, Starbucks at #2, and Chick-fil-A at #3.

QSR Magazine awarded this high ranking to Taco Bell for reasons other than increased sales and revenue. Expanded, more personal delivery, drive-thru services, innovative store models, and a transformative digital experience using AI are keys to Taco Bell’s success.

Taco Bell is also named one of Fast Company’s Top 10 Most Innovative Companies in the World.1

Go Mobile & Concierge Service

Taco Bell is always looking at ways to redefine the QSR customer experience and provide exceptional service. With its AI-driven app and smart-kitchen-technology Go Mobile restaurant program, customers benefit from easy tablet-ordering, drive-thru and curbside pickup lanes, in-store shelves for pickups, and kiosks. The company has also rolled out its next service-oriented development with 1,000+ Bellhops – team members who provide concierge-style service at the Go Mobile drive-thrus and pickup lanes.

Innovative Store Models

Taco Bell continues to innovate with various store models. One style is a smaller inside footprint with more drive-thru lanes (Go Mobile), and for locations that don’t have room for drive-thrus, there are order-ahead kiosks and pickup cubbies. The company is also expanding its eat-in-only urban Cantina model with adult beverages.

As a NNN commercial real estate investor, Taco Bell’s dedication to overall growth and the addition of locations that fit consumers’ ever-changing demands means the opportunity exists for property ownership with reliable, guaranteed monthly income for up to 15 years and wealth-building potential without landlord responsibility.

Investing in Taco Bell Corp.: Details & Financials

Taco Bell has 7,620 US locations and is the largest taco and burrito chain in the world. Ninety-four percent of the company’s QSRs are franchised through 350 franchise organizations. According to the company’s third-quarter (October 28, 2021) results, Taco Bells’ same-store sales grew +8% on a 2-year basis. 1,2  The company has an S&P Global rating of BBB (August 2021) and a Moody’s bond rating of Ba2 (March 2021).

In a press release, Mike Grams, Taco Bell’s President and Global COO, said, “Our restaurant portfolio continues to rapidly evolve, striking a crucial balance between being technology-forward and social-oriented.” He further explained to CNN, “Even amid the challenging pandemic, we are continuing to grow due in large part to the strength in our franchise partnerships as well as the flexible formats we offer.” 3

Within the year, Taco Bell Corp. plans to open another one thousand “industry-defying” locations in collaboration with its franchisees and NNN investors.

Taco Bell restaurant, blue sky, green trees

Why Taco Bell is a Top Net Lease Commercial Property Investment

Why is Taco Bell such a great triple net lease commercial property investment? As with other triple nets, Taco Bell NNN quick service properties provide stability, long-term, guaranteed income, no or very-low owner responsibility, and the ability to build wealth.

While Taco Bell Corp. works toward 10,000 global fast food, QSR locations and prioritizes development, the door opens for triple net property investors to purchase a new or existing Taco Bell and feel confident in the investment.

“Taco Bell’s unique business model of building different restaurant styles based on target audience, demographics, and each location’s physical attributes is unique. It provides the NNN investor with the opportunity to diversify within one company by location, property size, and restaurant style, balancing risk and reward,” said Jason Simon, VP Westwood Net Lease Advisors.

Benefits of Owning a Taco Bell NNN Lease Property

If you are interested in a Taco Bell for sale anywhere in the nation – from Nevada, Arizona, or Colorado to Iowa, North Carolina, Texas, Georgia, Florida, or in somewhere in between – fast food and quick service restaurant NNN lease properties are easy to own no matter where you live. There are many additional benefits of investing in Taco Bell properties.

Taco Bell QSRs are dependable

They are essential, pandemic-proof and recession-proof, and proven to perform well in any economy.

Absolute Triple Net Leases

Taco Bell fast food restaurants for sale typically operate with absolute triple-net leases, which means no landlord responsibilities or management costs.

Monthly Income Guaranteed

High-credit tenants operate with 10–20 year, guaranteed leases, ensuring monthly income for the lease term.

Rent Increases Cover Inflation

Inflation and any other costs are typically covered by 5-to-10% rent increases every five years with extension options, so you can opt to keep your Taco Bell NNN for years beyond the original lease terms.

Tangible Assets with High Quality Real Estate

These commercial NNN investments are tangible assets bolstered by their high-quality, underlying real estate.

Range of Purchase Prices Offer Flexibility

Taco Bell quick service restaurants are available in various price points for all types of investors, usually between $1.5 and $4.5 million.

Smart Trade with 1031 Exchange

Using the 1031 exchange, these NNN lease properties are a smart trade for a high-maintenance or underperforming property investment.

New 100 dollar bills covering a table

To Wrap it Up – Tenant of the Quarter: Taco Bell NNN Lease Commercial Property

For nearly 70 years, Taco Bell has provided Mexican-inspired fast food in a quick service restaurant environment that is dynamic, quality-oriented, and service-centered to keep people coming back for more, and the company isn’t slowing down.

Taco Bell Corp. plans to open hundreds of new US locations annually with a customer focus, location-specific floor plans, and technology that creates a highly efficient business model. These reliable, low- or no-maintenance fast food NNNs offer asset diversification within one company and dependable, long-term, worry-free monthly income.

For these reasons and more, Taco Bell wins Westwood’s Fast Food NNN Tenant of the Quarter recognition.

Westwood Logo in blue/goldNo-Obligation NNN Investment Conversation

If you’re interested in purchasing a Taco Bell NNN quick service restaurant or any other fast food property with all cash, a commercial mortgage, or utilizing a 1031 exchange to do so, be sure to connect with a Westwood buyer’s advisor right away. The triple net market is highly competitive – properties often sell before they’re listed, which is why our advisors review the market and connect with colleagues daily to find you the most recently listed, off-market, and developing properties.

It is our pleasure to represent you, as a triple net lease and 1031 exchange buyer, and guide you through every step of the process – from the property search to closing – all at no charge to you. Contact us today for a no-obligation, free conversation, 314-997-5227.


Resources:
1 https://www.tacobellfranchise.com/
2 https://s2.q4cdn.com/890585342/files/doc_financials/2021/q3/Yum-Brands-Q3-2021-Earnings-Release.pdf
3 https://edition.cnn.com/2021/03/23/business/taco-bell-go-mobile-restaurant/index.html

Looking To Buy Commercial Property?

Find out why triple-net lease real estate investments should be part of your investment portfolio.