Carrabba’s Italian Grill Credit Rating & NNN Cap Rate Analysis

⚠️ Caution: Parent Company in Turnaround, With Restaurant Closures and Lease Non-Renewals.
Carrabba’s Italian Grill is one of four brands operated by Bloomin’ Brands, Inc. (NASDAQ: BLMN), alongside Outback Steakhouse, Bonefish Grill, and Fleming’s Prime Steakhouse. In November 2025, Bloomin’ Brands announced a turnaround strategy under CEO Mike Spanos, with a key focus on Outback Steakhouse. In the third quarter of 2025 the company decided to close 21 U.S. restaurants, completing those closures in October 2025, and not to renew the leases of 22 U.S. restaurants, the majority of which expire over the four years after fiscal 2025 (Form 10-K, fiscal 2025). The parent company announced a reduction of about 100 Restaurant Support Center employees in February 2025 and sold 67% of its Brazil operations on December 30, 2024, keeping a 33% interest. Carrabba’s specifically was the best-performing brand in the portfolio in fiscal 2025 (+2.8% U.S. comparable restaurant sales vs. Outback -0.5%), but investors must evaluate Carrabba’s properties within the context of the broader Bloomin’ Brands turnaround and the ongoing lease non-renewal program.

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 owns, operates and franchises more than 1,440 restaurants in 46 states, Guam and 12 countries (August 5, 2026 release). Carrabba’s had 203 U.S. restaurants as of June 28, 2026 (186 company-owned and 17 franchised), with its largest concentration in Florida.

For NNN investors, Carrabba’s represents a below-investment-grade casual dining credit attached to a parent company currently in active turnaround. Bloomin’ Brands announced the turnaround strategy in November 2025 under CEO Mike Spanos, with a key focus on Outback Steakhouse and on center-of-the-plate quality and service (Form 10-K, fiscal 2025). For fiscal 2025 the company reported adjusted diluted EPS from continuing operations of $1.14 (down from $1.45 in fiscal 2024) and GAAP diluted EPS from continuing operations of $0.10 (fiscal 2024: $(0.61)), and it closed 40 U.S. restaurants during the year, including 21 closed in October 2025. Importantly for Carrabba’s investors, Carrabba’s was the best-performing brand in the Bloomin’ Brands portfolio in FY2025 with +2.8% U.S. comparable restaurant sales growth, compared to Outback -0.5%, Bonefish -2.2%, and Fleming’s +2.5%.

Carrabba’s Credit Rating Analysis (via Bloomin’ Brands)

S&P’s rating on Bloomin’ Brands, Inc. is B+; for Moody’s, our ratings database shows no verified rating (we publish a Moody’s rating only after confirming it from a primary source). The S&P rating is below the BBB- investment-grade threshold. In September 2026, Bloomin’ Brands extended the maturity of its $1.2 billion revolving credit facility to September 25, 2031 (Form 8-K, September 29, 2026).

Source: S&P Global Ratings B+, as of December 9, 2025. Ratings checked October 8, 2026.

Among casual dining peers, S&P’s rating on Bloomin’ Brands is below S&P’s rating on Brinker International, Inc. (BB+, parent of Chili’s and Maggiano’s) and below the S&P rating that Darden Restaurants, Inc. reports for its publicly issued long-term debt (BBB, fiscal 2026 Form 10-K; parent of Olive Garden, LongHorn and The Capital Grille). These ratings apply to the named companies, not to any lease. Texas Roadhouse had no borrowings outstanding under its credit facility as of December 30, 2025 (Form 10-K). Casual dining operators face risks that include commodity and wage costs, competition from fast-casual and delivery-focused concepts, and changing consumer dining patterns. Bloomin’ Brands’ turnaround depends on whether its operational and restaurant investments translate into sustained comparable sales growth, especially at Outback Steakhouse, the key focus of the strategy (Form 10-K, fiscal 2025).

Rating sources: Brinker International: S&P Global Ratings BB+, as of May 1, 2025. Ratings checked September 27, 2026. Darden Restaurants (ratings Darden reports for its publicly issued long-term debt): S&P Global Ratings BBB, as of July 24, 2026; Moody’s Baa2, as of July 24, 2026; Fitch Ratings BBB, as of July 24, 2026. Ratings checked October 8, 2026.

Carrabba’s NNN Lease Structure

Carrabba’s lease terms vary. Bloomin’ Brands reports operating leases with initial terms primarily between 1 and 20 years and restaurant facility leases with renewal periods generally totaling 5 to 30 years, exercisable at the company’s option (Form 10-K, fiscal 2025).

Rent increase terms also vary. In the Carrabba’s listings InvestmentGrade.com tracks, some listings tie annual increases to the consumer price index subject to a cap, and a single listing can describe its increases differently in different places, so rely on the rent schedule in the executed lease rather than a marketing summary. Confirm renewal options and expense and structural obligations in each lease too.

The tenant or guarantor may be Bloomin’ Brands, Inc. or an operating subsidiary (OSI Restaurant Partners, LLC is its primary operating entity), so confirm the entity in each lease. S&P’s rating on Bloomin’ Brands, Inc. is B+; it does not automatically extend to a subsidiary’s lease.

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 2025 decision not to renew the leases of 22 U.S. restaurants, the majority expiring over the four years after fiscal 2025), kick-out clauses tied to sales performance, and whether the specific location is among the 22 restaurants (the company filings we cite do not identify them). A tenant’s willingness to extend a lease may suggest the operator intends to stay, but a request for rent concessions, a shorter term or a restructured lease may signal pressure at that location. Neither is conclusive, so ask the tenant directly and review the restaurant’s sales where the lease requires reporting.

Carrabba’s NNN Cap Rate & Pricing Trends

Live asking cap rates for Carrabba’s Italian Grill and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 16, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.

Rating types: the table note describes its ratings as corporate issuer ratings, but the Olive Garden row shows the ratings Darden Restaurants, Inc. reports for its publicly issued long-term debt (fiscal 2026 Form 10-K), not issuer ratings. None of the ratings in the table rates a lease; confirm the tenant and any guarantor named in the lease.

The buildings are specialized for restaurant use: commercial kitchens (Bloomin’ Brands describes an exhibition kitchen with a wood-burning grill), dining rooms, patio areas where applicable, and restroom-and-waiting-area buildouts. 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 203 U.S. restaurants in 28 states (June 28, 2026) within the broader Bloomin’ Brands system of more than 1,440 restaurants. Florida, the corporate headquarters state, has 66 locations, followed by Texas (14), Georgia (13) and North Carolina (13) (Carrabba’s location directory, October 2026). In the Carrabba’s listings we currently track, the median building size is 6,511 SF; lot size, parking, patio and pickup features vary by site.

The 22 lease non-renewals described above equal about 1.5% of the 1,460-restaurant Bloomin’ Brands system at December 28, 2025, and Carrabba’s closed 7 restaurants in fiscal 2025 (Form 10-K, fiscal 2025). The company filings we cite do not identify which properties are affected, so each Carrabba’s property needs its own assessment of remaining lease term, the restaurant’s sales where the lease requires reporting, and local market conditions.

Carrabba’s Forward Outlook

The forward outlook for Carrabba’s specifically draws on the brand’s +2.8% U.S. comparable restaurant sales in FY2025, the best of the four brands, though Carrabba’s +1.7% trailed the combined U.S. +2.3% in the second quarter of 2026. In its August 5, 2026 release, Bloomin’ Brands raised its fiscal 2026 diluted EPS outlook to $0.85 to $0.95 (adjusted $0.90 to $1.00) and updated its U.S. comparable restaurant sales outlook to 1.0% to 2.0%.

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) and delivery-first Italian concepts, the success of the broader Bloomin’ Brands turnaround on sister brands (particularly Outback, the largest brand and the key focus of the strategy), and the 22-restaurant lease non-renewal plan. 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 local markets, as well as a scenario in which the tenant defaults or the lease is rejected in a restructuring. A long remaining base term gives a longer contractual rent obligation, but contractual rent is an obligation of the tenant and any guarantor, not assured collection.

Carrabba’s NNN Investment: Pros & Cons

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