| Metric | Details |
|---|---|
| Entity / Legal Name | Chili’s Grill & Bar (operated by Brinker International, Inc.) |
| Parent Company | Brinker International, Inc. (NYSE: EAT) |
| S&P / Moody‑s Rating | BB+ / Ba1 |
| Rating Outlook | Stable (S&P) / Negative (Moody‑s) |
| Investment Grade Status | Non‑Investment Grade — Speculative (one notch below IG) |
| Sector | Restaurant / Casual Dining |
| Headquarters | Dallas, Texas |
| US Location Count | ~1,200+ restaurants |
| Cap Rate Range | 6.00% – 7.25% |
| Typical Lease Term | 15 – 20 years (NNN) |
| Guarantee Type | Corporate (Brinker International, Inc.) |
| Typical Building Size | 5,500 – 7,000 SF |
| Typical Price Range | $2,500,000 – $8,000,000 |
Chili’s Business Overview & NNN Investment Profile
Chili’s Grill & Bar is one of the largest casual dining chains in the United States, operating approximately 1,200 domestic locations and over 1,600 worldwide. It is the flagship brand of Brinker International (NYSE: EAT), which also operates Maggiano’s Little Italy. Chili’s has emerged as one of the strongest performers in casual dining over the past two years, driven by a value-focused menu strategy, viral social media marketing (particularly on TikTok), and strong operational execution. The brand’s same-store sales have significantly outpaced the casual dining segment, fueled by the wildly popular Triple Dipper appetizer and competitive value meals that have attracted traffic from both fast-food and higher-end casual competitors.
Brinker International carries S&P BB+ and Moody‑s Ba1 ratings, placing Chili’s just one notch below the BBB‑/Baa3 investment grade threshold. This near-IG positioning means Chili’s NNN properties trade at a meaningful premium to most casual dining competitors, second only to Olive Garden (Darden BBB) within the segment. Unlike many casual dining chains that are 90%+ franchised, Brinker operates a significant number of company-owned Chili’s restaurants, meaning corporate-guaranteed NNN leases are more readily available in the market.
Brinker International sits just one notch below investment grade at both agencies. S&P maintains a stable outlook, while Moody‑s has a negative outlook reflecting concerns about the sustainability of the recent sales surge and the company’s leveraged balance sheet. Despite the negative Moody‑s outlook, Chili’s operational momentum has been exceptional, with same-store sales growth consistently outperforming the casual dining industry. If Brinker can sustain this performance while managing leverage, a future upgrade to investment grade would drive meaningful cap rate compression for existing NNN holders.
Cap Rate Analysis & Pricing for Chili’s NNN Properties
Chili’s NNN properties trade in the 6.00% to 7.25% cap rate range as of Q1 2026. Corporate-guaranteed locations with long remaining terms in primary suburban markets trade at the tighter end. Properties in secondary markets or with shorter terms approach the wider end. Pricing typically ranges from $2.5 million to $8 million for these mid-format casual dining locations of 5,500 to 7,000 SF.
| Comparable Restaurant NNN Tenant | S&P / Moody‑s | Cap Rate Range |
|---|---|---|
| Olive Garden (Darden) | BBB / Baa2 | 5.25% – 6.50% |
| Outback (Bloomin‑) | BB / Ba3 | 6.25% – 7.50% |
| Applebee‑s (Dine Brands) | B+ / B1 | 6.50% – 8.00% |
Not yet, but it is one notch away. Brinker International carries S&P BB+ and Moody‑s Ba1, just below the BBB‑/Baa3 investment grade threshold. An upgrade would make Chili’s the second investment-grade casual dining brand alongside Olive Garden.
Chili’s NNN properties trade in the 6.00% to 7.25% cap rate range as of Q1 2026, tighter than most casual dining peers due to Brinker’s near-investment-grade credit and strong recent operational performance.
Chili’s has been the standout performer in casual dining, driven by value-focused marketing and viral social media engagement. This operational strength has compressed cap rates and strengthened investor confidence in the brand, even as Moody’s maintains a cautious negative outlook on Brinker’s leverage.
An upgrade to BBB‑/Baa3 would likely compress Chili’s NNN cap rates by 50 to 75 basis points as institutional buyers who are restricted to investment-grade credits enter the buyer pool. Current holders would see meaningful appreciation.
The Only Chili’s 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 — Chili’s NNN properties sourced with Brinker corporate guarantee confirmation, same-store sales trend analysis, and location quality assessment before you commit.
Fund It — BB+/Ba1 near-investment-grade credit attracts competitive permanent financing. We have 150+ lender relationships to find best execution for casual dining NNN.
Exit It — Selling a Chili’s property? The hottest brand in casual dining commands strong buyer demand. A potential upgrade to investment grade makes this an ideal time to hold or exit at premium pricing.
Get Your Free Chili’s NNN Consultation →
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Related NNN Tenants
Own a Chili's Grill & Bar 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 Chili's Grill & Bar 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 Chili's Grill & Bar NNN transactions and can produce a Broker Opinion of Value within 48 hours reflecting today’s cap rate market.
Own multiple Chili's Grill & Bar properties? Considering an off-market sale?
Investment Grade represents owners on confidential disposition of Chili's Grill & Bar portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. Chili's Grill & Bar 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.
