| Metric | Details |
|---|---|
| Entity / Legal Name | GMRI, Inc. d/b/a LongHorn Steakhouse (subsidiary of Darden Restaurants) |
| Parent Company | Darden Restaurants, Inc. (NYSE: DRI) |
| S&P / Moody‑s Rating | BBB / Baa2 |
| Rating Outlook | Stable |
| Investment Grade Status | Investment Grade |
| Sector | Restaurant / Casual Dining (Steakhouse) |
| Headquarters | Orlando, Florida (Darden HQ) |
| US Location Count | ~580+ restaurants |
| Cap Rate Range | 5.50% – 6.75% |
| Typical Lease Term | 15 – 20 years (NNN) |
| Guarantee Type | Corporate (Darden Restaurants, Inc.) |
| Typical Building Size | 6,000 – 7,500 SF |
| Typical Price Range | $3,000,000 – $9,000,000 |
LongHorn Steakhouse Business Overview & NNN Investment Profile
LongHorn Steakhouse is Darden Restaurants’ second-largest brand and its fastest-growing, operating approximately 580 locations primarily in the eastern and southern United States. The brand occupies the “affordable steakhouse” niche, offering a full-service dining experience with steak-focused menus at price points significantly below premium steakhouse competitors. LongHorn has been Darden’s most consistent same-store sales performer, regularly outpacing the casual dining industry average and even outperforming sibling brand Olive Garden on a percentage basis in recent quarters.
For NNN investors, LongHorn carries the identical Darden BBB/Baa2 investment grade corporate guarantee as Olive Garden. This means LongHorn NNN properties offer the same credit quality as the larger brand but with the added appeal of a growth story: Darden has been actively expanding LongHorn’s footprint, targeting underserved markets in the Midwest and West where the brand has historically had limited presence. New-construction LongHorn restaurants with 18 to 20 year lease terms represent some of the most compelling investment-grade casual dining NNN opportunities in the market.
LongHorn Steakhouse carries the same Darden Restaurants BBB/Baa2 investment grade credit as Olive Garden, Yard House, The Capital Grille, and all other Darden brands. NNN leases are guaranteed at the Darden corporate level regardless of which brand occupies the restaurant, providing investors with $11 billion+ revenue backing on every lease obligation.
Cap Rate Analysis & Pricing for LongHorn Steakhouse NNN Properties
LongHorn Steakhouse NNN properties trade in the 5.50% to 6.75% cap rate range as of Q1 2026, slightly wider than Olive Garden due to the smaller brand footprint and higher geographic concentration in the Southeast. New-construction locations with 18+ year terms in growth markets trade at the tighter end. Pricing typically ranges from $3 million to $9 million for freestanding restaurants of 6,000 to 7,500 SF.
| Comparable Restaurant NNN Tenant | S&P / Moody‑s | Cap Rate Range |
|---|---|---|
| Olive Garden (Darden) | BBB / Baa2 | 5.25% – 6.50% |
| Chili‑s (Brinker) | BB+ / Ba1 | 6.00% – 7.25% |
| Outback Steakhouse (Bloomin‑) | BB / Ba3 | 6.25% – 7.50% |
Yes. LongHorn Steakhouse carries the same Darden Restaurants BBB/Baa2 investment grade credit rating as all other Darden brands. It is the only investment-grade steakhouse brand in the NNN market.
LongHorn Steakhouse NNN properties trade in the 5.50% to 6.75% cap rate range as of Q1 2026, carrying the Darden investment-grade premium over non-IG casual dining competitors.
Both target the affordable steakhouse segment, but LongHorn carries Darden’s BBB/Baa2 investment grade credit while Outback’s parent Bloomin’ Brands is rated BB/Ba3, two full rating tiers lower. This credit differential translates to LongHorn trading 75 to 100 basis points tighter on comparable lease terms.
Yes. LongHorn is Darden’s fastest-growing brand, actively expanding into underserved Midwest and Western markets. This growth pipeline creates a steady flow of new-construction NNN investment opportunities with long lease terms and modern building formats.
The Only LongHorn Steakhouse NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker typically pays a cooperating commission to the buyer’s broker. On the majority of transactions, this means there is no separate fee to you as the buyer. Where a cooperating commission is not available, our compensation is agreed upon with you in advance so there are never surprises.
Find It — LongHorn Steakhouse and Darden portfolio NNN properties sourced with corporate guarantee confirmation and new-construction opportunities in growth markets identified before you commit.
Fund It — Darden’s BBB/Baa2 investment grade credit attracts aggressive life company and CMBS pricing. We have 150+ lender relationships to find best execution.
Exit It — Selling a LongHorn property? Investment grade steakhouse NNN is a rare and highly sought-after asset. Premium pricing is the norm.
Get Your Free LongHorn Steakhouse NNN Consultation →
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Related NNN Tenants
Own a LongHorn Steakhouse Property? Capital Markets Strategies Beyond Selling
Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting NNN properties across investment-grade and non-investment-grade credit tiers. We structure rate-and-term refinancing, cash-out refis, and bridge-to-perm takeouts.
Evaluating a 1031 exchange or disposition? We represent both sides of LongHorn Steakhouse NNN transactions — whether you are looking to exit at peak value, exchange into a higher-quality credit tenant, or reposition within the same sector.
Need a current valuation? We maintain live comps on LongHorn Steakhouse NNN transactions and can produce a Broker Opinion of Value within 48 hours reflecting today’s cap rate market.
Own multiple LongHorn Steakhouse properties? Considering an off-market sale?
Investment Grade represents owners on confidential disposition of LongHorn Steakhouse portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. LongHorn Steakhouse buyer demand runs deep, and portfolio sales consistently produce stronger pricing than sequential individual sales because the institutional buyer pool is structured around portfolio acquisition.
For multi-property owners considering a portfolio disposition, see Selling Investment Grade NNN Off-Market: Tenant-by-Tenant Buyer Demand. For the full off-market framework covering individual property dispositions, sale-leasebacks, and 1031 coordination, see Off-Market CRE Sales: The Complete 2026 Guide.
The pre-listing conversation is at no cost and fully confidential. Email team@investmentgrade.com or see contact Investment Grade.
