No, this is an Urban Legend. The USDA doesn't use letter-grading. No meat is used in ANY American-owned and inspected restaurant that is not USDA-passed meat.
The USDA has a letter-grading system for maturity of the cow, not the meat itself. The grading runs from A to E. A is an animal less than 30 months old, D is an animal that's between 6 and 8 years. E is any animal over 8 years. Basically, grade D and E cattle are used-up milk cattle. It's thoroughly possible they'd use this beef in their products; there's absolutely nothing wrong with it and all that time on the hoof would give it lots of good flavor. The odds of them using it are very low, though, because there's just not that much of it. Most beef in America is slaughtered before the animal reaches 30 months, so you can figure most of Taco Bell's meat is going to be A grade.
The grade I suspect Taco Bell uses is called "standard-minus." It's good meat. It's "almost devoid" of marbling--flecks of fat through the meat--because the less marbling they have in the meat, the less grease they have to figure out how to get rid of. Besides, almost all Taco Bell meat is ground beef anyway; what would they care about marbling?
Update:="h2headingh3"style="color:rgb(0,0,0);"name="update:">In January 2011, Taco Bell was in the press for being sued for false advertising of their "beef" when actually their taco meat filling contains more fillers and additives than real meat.
Here is a list of ingredients in Taco Bell's "beef":
Beef, water, isolated oat product, salt, chili pepper, onion powder, tomato powder, oats (wheat), soy lecithin, sugar, spices, maltodextrin (a polysaccharide that is absorbed as glucose), soybean oil (anti-dusting agent), garlic powder, autolyzed yeast extract, citric acid, caramel color, cocoa powder, silicon dioxide (anti-caking agent), natural flavors, yeast, modified corn starch, natural smoke flavor, salt, sodium phosphate, less than 2% of beef broth, potassium phosphate, and potassium lactate.
Update: I believe the above to be only partly accurate, and largely based on assumptions. There is no evidence that Taco Bell beef comes from Grade A cows, even if one assumes the beef is indeed coming from the USA. A lot of the low quality beef in the USA is imported from Central and South America, mainly Brazil.
Grade D and E cattle (or cattle that would be classified as such) are commonly used for processed beef products. Taco Bell ground beef is processed, precooked, sealed in heat proof plastic bags, frozen, then re-heated in hot water in the bag (this form of cooking is called Sous-vide).
While all meat meant for consumption must pass a USDA inspection that marks it safe to eat, companies may choose to have their meat graded voluntarily. Taco Bell does not have their meat graded, and it is wrong to call it Grade E meat. Taco Bell's meat is inspected by the USDA, however, and it is safe to eat when cooked properly.
The USDA has a letter-grading system for maturity of the cow. It runs from A to E-
-A is an animal less than 30 months old, D is an animal that's between 6 and 8 years. E is any animal over 8 years. Basically, grade D and E cattle are used-up milk cattle. It's thoroughly possible they'd use this beef in their products; there's absolutely nothing wrong with it and all that time on the hoof would give it lots of good flavor. The odds of them using it are very low, though, because there's just not that much of it. Most beef in America is slaughtered before the animal reaches 30 months, so you can figure most of Taco Bell's meat is going to be A grade.
The grade I suspect Taco Bell uses is called "standard-minus."
If only someone who actually KNOWS the answer would kick their two cents' worth in...
No
I believe the boxes containing the dining halls meat shipments say it best - Grade D But Edible.
Surf to http://www.epicportions.com/2009/12/02/taco-bell-grade-d-meat/. Taco Bell is using non-food in their meat. I wonder what that is. Cat food? Dog food? Does anyone know?
A B C after that grade D
No, the only failing grade is an F. D is just below average.
i
A D is a passing grade for 9th grade. It is the overall average of all grades that makes the difference between passing and repeating a grade.
Probably a D grade.
1.0
This will vary from school to school. At most times a D is a passing grade, but at some schools if you get 3 D's than you would go to summer school. If given a D you are given partial credit.
For colleges and universities, a D grade is a minimum passing grade. However, it is unsatisfactory, and one with a D average cannot graduate and is at risk of academic dismissal. In addition, D grades will not transfer to other schools.
Usually, it will be a grade of 'D+'
4th grade :D