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Taco Bell Operator K-MAC Weighs Sale

By: Emily Fasold

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✨ Summary by AI at Octus
K-MAC Enterprises, a major Taco Bell franchisee in the U.S., is considering a potential sale, with an estimated enterprise value of around $1.5 billion based on its EBITDA of $150 million to $160 million. The company, backed by Mubadala Capital, operates over 350 Taco Bell locations across 10 states and has expanded into Whataburger and 7 Brew Coffee. K-MAC's existing debt includes a $745 million term loan due in 2028, and it holds B3/B- corporate ratings from Moody’s and S&P Global. Arkansas real estate developer Wilson Enterprises plans to invest $400 million in K-MAC to build new stores through 2029.

K-MAC Enterprises, one of the largest Taco Bell franchisees in the United States, is exploring a potential sale, according to sources.

The Mubadala Capital-backed company generates EBITDA in the $150 million to $160 million range, said the sources. Fayetteville, Ark.-based K-MAC operates over 350 Taco Bell locations in 10 U.S. states, according to its website.

K-MAC could fetch about 10x EBITDA in the event of a sale, implying a potential enterprise value in the $1.5 billion area, one of the sources said.

Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth fund Mubadala Investment Co., acquired K-MAC in October 2021 from Lee Equity Partners, according to a press release. Goldman Sachs advised Mubalala on the transaction, while Bank of America and North Point Advisors served as advisors to K-MAC.

Before Mubadala’s purchase, the terms of which were not disclosed, Lee Equity had marketed the company for about $900 million, according to a third-party news report. At the time of the deal, K-MAC operated more than 300 Taco Bell restaurants, about 4% of the chain’s system, according to the press release. It has since expanded into 16 Whataburger restaurants and 50 7 Brew Coffee drive-thru stands.

K-MAC’s existing debt includes a roughly $745 million SOFR+325 bps term loan due July 2028, which was last indicated today slightly above par, according to Solve. A list of the borrower’s CLO holders can be found HERE.

MIC Glen LLC, the borrowing entity for K-MAC, holds B3/B- corporate ratings from Moody’s Ratings and S&P Global Ratings.

Last year, Arkansas real estate developer Wilson Enterprises announced its plan to invest $400 million through 2029 in KMAC to build 40 to 50 new stores a year for the company’s brands, according to a May 2025 press release.

Recent transactions in the restaurant sector include LongRange Capital’s approximately $1.5 billion acquisition of Pizza Hut from Yum! Brands, which was completed earlier this month. LongRange secured bridge-to-securitization financing from UBS to fund the deal, according to an Octus report.

Private equity firms with active investments in the fast-food franchisee sector include Altamont Capital Partners, which has owned Taco Bell franchisee Tacala since 2012, according to its website. Ontario Teachers’ Pension Plan is another investor in the sector, with the sponsor investing in Wendy’s and Taco Bell franchisee Flynn Restaurant Group in 2014.

Spreads for newly issued senior direct lending facilities to back M&A in the consumer discretionary sector tightened to an average of SOFR+505 bps in the second quarter of 2026 from about SOFR+534 bps in the first quarter of 2026, according to Octus’ Private Credit dashboard.

KMAC and Mubadala did not return requests for comment.

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