Carrabba’s Italian Grill is one of four brands operated by Bloomin’ Brands, Inc. (NASDAQ: BLMN) — the others being Outback Steakhouse, Bonefish Grill, and Fleming’s Prime Steakhouse. In November 2024, Bloomin’ Brands launched a turnaround strategy under CEO Mike Spanos. Through Q3 2025, the company closed 21 locations across all four brands and identified 22 additional restaurants that will not renew leases over the next four years as leases expire. The parent company laid off 100 corporate employees in February 2025 and sold its Brazil operations in 2024. Carrabba’s specifically has been the best-performing brand in the portfolio (+1.6% U.S. comparable sales FY2025 vs. Outback -0.6%), but investors must evaluate Carrabba’s properties within the context of the broader Bloomin’ Brands turnaround and the ongoing lease non-renewal program.
| Metric | Details |
|---|---|
| Parent / Legal Entity | Bloomin’ Brands, Inc. (NASDAQ: BLMN) |
| S&P / Moody‑s Rating | BB- / Ba3 (non-investment-grade, active turnaround) |
| Investment Grade Status | Below Investment Grade — Parent Company in Turnaround |
| Sector | Casual Dining — Italian |
| Ownership | Public (NASDAQ: BLMN); HQ Tampa, Florida |
| US Location Count | ~200 Carrabba’s locations (part of 1,450 total Bloomin’ Brands restaurants across 46 states) |
| Geographic Concentration | Nationwide with heavier presence in Florida, Texas, Georgia, Arizona |
| Cap Rate Range | 6.75% – 8.50% |
| Typical Lease Term Remaining | 5 – 15 years |
| Guarantee Type | Corporate (Bloomin’ Brands or operating subsidiary) |
| Typical Building Size | 6,500 – 8,500 SF (purpose-built Italian casual dining format) |
| Typical Price Range | $2.5M – $5.5M |
Carrabba’s Business Overview & NNN Investment Profile
Carrabba’s Italian Grill is a casual dining Italian restaurant concept operated by Bloomin’ Brands, Inc., the Tampa, Florida-based parent company that also operates Outback Steakhouse (the largest brand by unit count), Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. The four-brand Bloomin’ Brands portfolio operates approximately 1,450 restaurants across 46 U.S. states, the U.S. territory of Guam, and 12 international countries. Carrabba’s specifically represents approximately 200 locations within the 1,450-restaurant total, concentrated in the Southeast and Sun Belt markets where Italian casual dining demand is strongest.
For NNN investors, Carrabba’s represents a below-investment-grade casual dining credit attached to a parent company currently in active turnaround. Bloomin’ Brands launched the turnaround program in November 2024 under CEO Mike Spanos, focused on disciplined operational execution, improved guest service consistency, and strategic investments in food quality (particularly steak excellence improvements at Outback). The company reported fiscal year 2025 diluted EPS of $1.14 (down from $1.45 in FY2024) and closed 21 restaurants during the year across all four brands. Importantly for Carrabba’s investors, Carrabba’s was the best-performing brand in the Bloomin’ Brands portfolio in FY2025 with +1.6% U.S. comparable sales growth, compared to Outback -0.6%, Bonefish -0.1%, and Fleming’s +0.1%. Cap rates of 6.75% to 8.50% reflect the below-investment-grade credit plus the purpose-built restaurant format. For the broader credit tenant ratings framework applied to casual dining, Carrabba’s sits in the stable but non-distressed tier.
Carrabba’s Credit Rating Analysis (via Bloomin’ Brands)
Bloomin’ Brands carries S&P ratings in the BB- range and Moody’s Ba3 on its senior unsecured debt. These ratings sit two to three notches below the BBB-/Baa3 investment-grade threshold and reflect a mix of factors: moderate leverage and manageable fixed-charge coverage, sustained positive operating cash flow even through the 2024-2025 turnaround, successful management of refinancing needs, and the parent company’s public disclosure obligations providing meaningful transparency to investors.
Compared to casual dining peers, Bloomin’ Brands sits below Darden Restaurants (BBB/Baa2 — parent of Olive Garden, LongHorn, The Capital Grille) and Texas Roadhouse (not rated but investment-grade-equivalent fundamentals), and at parity with Brinker International (BB/Ba2 — parent of Chili’s and Maggiano’s). The competitive and structural challenges facing casual dining are well-documented: commodity cost inflation, wage pressure, competitive encroachment from fast-casual (Chipotle, Cava, Sweetgreen) and delivery-native concepts, changing consumer dining patterns, and ongoing rebuild of post-pandemic traffic patterns. Bloomin’ Brands’ turnaround depends on whether the operational and menu investments can translate into sustained comparable sales growth at the key brands (Outback and Bonefish); Carrabba’s is already performing and the smaller Fleming’s is positioned in the less-pressured premium steakhouse segment.
Carrabba’s NNN Lease Structure
Carrabba’s leases are typical for casual dining freestanding restaurant NNN: 15-to-20-year initial terms with 10% every-five-year or fixed-dollar escalations, multiple 5-year renewal options, and absolute-NNN structures with the tenant responsible for property taxes, insurance, maintenance, and structural obligations. The corporate guarantor is typically Bloomin’ Brands, Inc. or the Carrabba’s-specific operating subsidiary. The guarantee is backed by the BB-/Ba3 publicly-rated credit and Bloomin’ Brands’ financial disclosure obligations.
Investors evaluating a Carrabba’s property should obtain the specific lease and verify: current rent schedule including any post-2024 amendments, remaining base term, renewal option structure, percentage-rent provisions if applicable, assignment and subletting rights (particularly relevant given the parent company’s stated intent to non-renew 22 restaurants over the next four years), kick-out clauses tied to sales performance, and whether the specific location is in the 22-restaurant non-renewal list (Bloomin’ Brands has not publicly disclosed which specific properties are identified). A current-tenant willingness to negotiate lease extensions or rent concessions may signal that the specific location is viewed as stable by the operator; conversely, a tenant seeking to shorten or restructure a lease may signal that the location is on the non-renewal list.
Carrabba’s NNN Cap Rate & Pricing Trends
Carrabba’s NNN properties trade at cap rates of 6.75% to 8.50% as of Q1 2026, with dispersion driven by remaining lease term, sales performance where visible, location quality within the Sun Belt and Southeast concentration, and the specific property’s status within the ongoing footprint optimization. Properties with long remaining base terms in strong Sun Belt submarkets with visible positive comparable sales trajectory trade at the tighter end (6.75%–7.5%). Properties with shorter lease tails or identified as non-renewal candidates trade at 8.0%–8.5%+.
Pricing typically ranges from $2.5M to $5.5M for the 6,500-8,500 SF purpose-built Italian casual dining format. The buildings are specialized for restaurant use — commercial kitchens with specialized Italian cooking equipment (pizza ovens, pasta stations), dining rooms with wine displays, patio areas where applicable, and restroom-and-waiting-area buildouts. Replacement cost basis for new construction of an equivalent format runs $300-$400 per SF; existing properties in reasonable condition trade at $350-$650 per SF depending on submarket quality. For broader guidance on pricing below-investment-grade casual dining, review the investment grade guide framework.
Carrabba’s Real Estate Footprint & Bloomin’ Brands Optimization
Carrabba’s operates approximately 200 locations within the broader 1,450-restaurant Bloomin’ Brands portfolio, heavily concentrated in Florida (corporate headquarters state), Texas, Georgia, Arizona, and other Sun Belt states where Italian casual dining demand is strongest. The typical property is a 6,500 to 8,500 SF freestanding restaurant on 1 to 2 acres, with surface parking for 80-150 vehicles, patio or outdoor dining areas where applicable, and drive-through pickup for to-go orders.
The Bloomin’ Brands 2024-2025 store optimization closed 21 restaurants across all four brands during fiscal 2025 (not broken out by brand). The 22 identified for non-renewal over the next four years represents approximately 1.5% of the total Bloomin’ Brands footprint. For Carrabba’s specifically, the better-performing brand within the portfolio, the proportion of affected locations is likely below this average — but specific properties have not been publicly identified, so every Carrabba’s property requires individual assessment. Legacy Carrabba’s properties in strong Sun Belt submarkets with positive comparable sales are lower-risk; properties in underperforming submarkets with shorter remaining lease terms are higher-risk.
Carrabba’s Forward Outlook
The forward outlook for Carrabba’s specifically is more positive than for Bloomin’ Brands overall, reflecting the brand’s +1.6% U.S. comparable sales performance in FY2025 and relatively better positioning within the Italian casual dining category (which faces less direct competition from fast-casual than the Outback steak category does from Texas Roadhouse or LongHorn). For fiscal 2026, Bloomin’ Brands projects total U.S. comparable restaurant sales growth of 0.5% to 2.5%, diluted EPS of $0.70-$0.85, with first-quarter 2026 expected to be flat to +1%.
Key risks to the forward outlook include: continued commodity cost inflation affecting center-of-the-plate (steak, seafood, pasta) pricing, wage inflation at the store level, competitive encroachment from fast-casual Italian concepts (Pieology, Blaze Pizza, Modern Market) and delivery-first Italian concepts, the success of the broader Bloomin’ Brands turnaround on sister brands (particularly Outback, which anchors the parent company’s credit), and the ongoing 22-restaurant non-renewal program. Investors underwriting a Carrabba’s property should model a scenario in which the lease is not renewed at the next expiration, particularly for locations with short remaining terms or weaker submarket fundamentals. Strong Sun Belt Carrabba’s properties with long base terms can be underwritten with higher confidence in contractual rent through expiration.
Carrabba’s NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| Best-Performing Bloomin’ Brand: Carrabba’s +1.6% FY2025 U.S. comparable sales was the best of the four Bloomin’ Brands concepts, supporting a relatively stronger underwriting case. | Below Investment Grade Parent: Bloomin’ Brands carries BB-/Ba3 ratings; corporate guarantee has limited recourse value in a restructuring scenario. |
| Public Company Disclosure: Quarterly SEC filings provide meaningful transparency into operating trends, turnaround progress, and store-count changes. | Active Turnaround: Parent company launched comprehensive turnaround November 2024; outcome depends on execution of operational and menu investment program. |
| Sun Belt Concentration: Carrabba’s heavier footprint in Florida, Texas, Georgia, Arizona aligns with growing demographic markets. | 22-Location Non-Renewal Program: Bloomin’ Brands has identified 22 restaurants for non-renewal over next four years as leases expire; specific locations not publicly disclosed. |
| Absolute-NNN Structure: Typical absolute-NNN lease structure minimizes landlord operational exposure beyond rent collection during the base term. | Specialized Restaurant Format: 6,500-8,500 SF Italian casual dining buildout requires meaningful TI investment for alternative-use conversion. |
Comparable NNN Tenants
| Tenant | Rating | Sector | Cap Rate Range |
|---|---|---|---|
| Olive Garden (Darden) | BBB / Baa2 | Italian Casual Dining | 5.50% – 6.50% |
| Outback Steakhouse | BB- / Ba3 | Steak Casual Dining (Bloomin’) | 6.75% – 8.50% |
| Chili’s | BB / Ba2 | Grill & Bar Casual Dining | 6.50% – 8.00% |
| Texas Roadhouse | Not Rated (IG-like) | Steak Casual Dining | 5.25% – 6.25% |
| Carrabba’s Italian Grill | BB- / Ba3 | Italian Casual Dining | 6.75% – 8.50% |
Frequently Asked Questions About Carrabba’s NNN Investments
No. Carrabba’s is operated by Bloomin’ Brands, Inc. (NASDAQ: BLMN), which carries S&P ratings of BB- and Moody’s of Ba3 — two to three notches below the BBB-/Baa3 investment-grade threshold. The company is not in financial distress but is executing a comprehensive turnaround program under CEO Mike Spanos that includes operational restructuring, corporate workforce reduction, and ongoing store optimization.
6.75% to 8.50% as of Q1 2026, with dispersion based on remaining lease term, sales performance, and location quality within the Sun Belt concentration. Pricing typically ranges from $2.5M to $5.5M for the 6,500-8,500 SF purpose-built Italian casual dining format.
Bloomin’ Brands launched a comprehensive turnaround under CEO Mike Spanos in November 2024 focused on: disciplined operational execution, improved guest service consistency, strategic investments in food quality (particularly Outback steak excellence), simplification of operating priorities, workforce reduction (100 corporate employees laid off February 2025), disposition of non-core operations (Brazil sold 2024), and store optimization (21 restaurants closed in FY2025, 22 additional identified for non-renewal over next four years).
Carrabba’s has been the best-performing brand in the Bloomin’ Brands portfolio in FY2025, with +1.6% U.S. comparable sales growth. This compares to Outback Steakhouse -0.6%, Bonefish Grill -0.1%, and Fleming’s Prime Steakhouse +0.1%. For NNN investors, this performance differential is meaningful: Carrabba’s properties benefit from a healthier underlying brand trajectory than the other Bloomin’ Brands concepts.
Apply a below-investment-grade casual dining framework. Base case can rely on contractual rent through remaining base term given the stable parent credit, but model a credible scenario in which the lease is not renewed, particularly for locations with short remaining terms or weaker submarket fundamentals. Verify whether the specific property may be on the 22-location non-renewal list (not publicly disclosed). Strong Sun Belt Carrabba’s properties with long base terms can be underwritten with higher confidence.
Yes, with meaningful capital cost. The 6,500-8,500 SF purpose-built Italian casual dining format converts reasonably well to other casual dining concepts (BJ’s Restaurants, Cheddar’s, independent Italian concepts), fast-casual restaurants (Chipotle, Cava in larger formats), specialty food and grocery (small-format Whole Foods or Trader Joe’s prototypes), or demising to multi-tenant restaurant or service retail. Typical repositioning cost for restaurant-to-restaurant conversion runs $75-$200 per SF plus TI allowances.
Purpose-built restaurants offer exceptional cost segregation potential. Commercial kitchen equipment (where part of the leased property), specialized HVAC and exhaust, plumbing for restaurant-scale water and grease management, decorative interior finishes, dining room furniture and buildouts (where landlord-owned), patio improvements, signage, parking, and landscaping can be reclassified from 39-year real property to 5-, 7-, or 15-year recovery periods. For a below-investment-grade asset where the tenant may require lease concessions or non-renewal, front-loaded depreciation can materially improve the after-tax return profile during the base-term hold. See our full ranking of net lease sectors by depreciation value: Best NNN Tenants for Bonus Depreciation: The Complete Ranking.
The Only Carrabba’s NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker pays the cooperating commission. That means you get a dedicated Carrabba’s NNN advisor handling sourcing, underwriting, financing, and closing — and on the majority of transactions, there is no separate fee to you as the buyer.
Here’s what that buys you on a casual dining NNN acquisition under an active-turnaround parent company:
Find It — On-market and off-market Carrabba’s NNN properties sourced and underwritten on your behalf, with particular attention to remaining lease term, sales performance indicators where visible, the specific property’s likelihood of inclusion in the 22-location non-renewal program, and the submarket’s underlying casual dining demand fundamentals.
Fund It — Financing BB-/Ba3 casual dining is accessible territory. Regional bank, life company paper (on longer leases), and CMBS lenders all actively underwrite this credit tier. We maintain 150+ lender relationships including the specific desks that price casual dining correctly.
Exit It — Selling a Carrabba’s asset, repositioning through a 1031, or running a strategic hold through the Bloomin’ Brands turnaround? Our Capital Markets desk targets the private investors, 1031 buyers, and casual dining portfolio aggregators actively acquiring this asset class.
Not committed to Carrabba’s? Tell us your criteria — cap rate floor, credit tier, lease structure, geography, equity check size — and we’ll find the deal that fits. We represent investors across the full NNN credit spectrum, from QSR and pharmacy to industrial, medical, and big box retail. The tenant is a variable. Your criteria is the constant.
Get Your Free Carrabba’s NNN Consultation →
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Related NNN Tenants
Own a Carrabba’s Property? Capital Markets Strategies Beyond Selling
Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting casual dining NNN across the full credit spectrum, including the specific desks that price BB-/Ba3 restaurant exposure correctly.
Evaluating a 1031 exchange or disposition? The Bloomin’ Brands turnaround window may represent a good exit opportunity if you are moving to a higher-quality credit tenant, or alternatively a hold opportunity if you expect the turnaround to succeed and cap rates to compress.
Received a lease non-renewal signal? If Carrabba’s approaches you about restructuring the lease or indicates the location may not renew, we produce Broker Opinions of Value reflecting both the status quo and the non-renewal scenario so you can evaluate your options with real market data.
Own multiple Carrabba's Italian Grill properties? Considering an off-market sale?
Investment Grade represents owners on confidential disposition of Carrabba's Italian Grill portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. Carrabba's Italian Grill 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.
