...November 24, 2025 This report does not constitute a rating action. Tacala's S&P Global ratings-adjusted leverage will likely continue hovering at around 8.0x as incremental profitability from new units and positive comparable growth will support periodic dividend recapitalizations. Excluding preferred equity, we expect S&P Global ratings-adjusted leverage will average in the mid-6x area. We anticipate Tacala's profits will continue to grow, driven by a steady stream of internally funded new unit developments and positive same-store sales growth supported by a compelling value-oriented menu. Tacala and the wider Taco Bell franchise have generated positive comparable growth throughout the year and outperformed the wider quick-service restaurant (QSR) sector, which has faced challenges due to softening consumer sentiment. A successful value-focused menu, including offerings such as the "Luxe" boxes and Cravings Value Menu, and continued menu innovation allowed the franchise to take market...
