Net Lease Industry

Lowest
Cap Rate

6.25%

Lowest cap rate over past 24 months

Average
Cap Rate

7.00%

12 mo avg with 5+ yr lease term


Overview
Taco Cabana was founded in 1978 in San Antonio, Texas, offering freshly prepared Tex-Mex food in a fast-casual, patio-style dining environment. Known for its open-display kitchens, tortillas made from scratch, and drive-thru accessibility, the brand quickly grew throughout Texas and surrounding states. After several ownership changes, Taco Cabana was acquired in 2021 by Yadav Enterprises, a major franchise operator with a diverse QSR portfolio.
Average Property & Lease
Average Sale Price $1,800,000 – $2,800,000
Average NOI $115,000 – $190,000
Building SF 2,800
Lease Term 15 Years
Escalations 10% Every 5 Years
Stock Symbol N/A
CREDIT RATING
S&P

N/A

Moody's

N/A

TENANT DESCRIPTION

Taco Cabana locations typically range from 2,800 to 4,000 square feet, situated on 0.75 to 1.25-acre parcels, and include drive-thrus and covered patio areas. Most leases are structured as 15- to 20-year absolute NNN, with 10% rent increases every 5 years, and are either corporately guaranteed or franchisee-backed, depending on ownership. The brand focuses primarily on urban and suburban sites across Texas, with continued interest in redevelopment and remodel opportunities.

PROS
  • Strong regional brand with high recognition in Texas

  • Absolute NNN leases with long terms and rent bumps

  • Drive-thru and patio seating support high throughput and off-premise sales

  • Backed by an experienced QSR operator (Yadav Enterprises)

  • Ideal size and pricing for private NNN investors

CONS
  • Privately held with no public financials or credit ratings

  • Brand largely concentrated in Texas, limiting national buyer interest

  • Franchise vs. corporate lease structure varies by location

  • Historically faced operational volatility under prior ownership

COMPANY QUICK STATS
Founded 1978
Headquarters San Antonio, TX, U.S.
Number of Locations 140
Revenue https://www.tacocabana.com
Company Website https://www.tacocabana.com
Key Principal Hari Yadav