Darden Restaurants, Inc. (NYSE: DRI) is the company behind Olive Garden and LongHorn Steakhouse. When you buy an Olive Garden or a LongHorn, the credit question is really a Darden question: which entity signed the lease, and does Darden stand behind it? This page covers Darden’s credit rating, every Darden brand and its restaurant count, live asking cap rates from the listings InvestmentGrade.com tracks, how Darden leases its restaurants, and what to check before you buy one.
| Metric | Details |
|---|---|
| Company | Darden Restaurants, Inc. (NYSE: DRI); restaurant support center in Orlando, Florida |
| Credit Ratings (Darden) | S&P: BBB / Moody’s: Baa2 / Fitch: BBB |
| Rating Source | 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. |
| Investment Grade Status | Parent Rated Investment Grade (Darden Restaurants, Inc.); confirm the lease guarantor |
| Company-Owned Restaurants | 2,218 (August 30, 2026), up from 2,165 on August 24, 2025 |
| Franchised Restaurants | 88 in the United States and 86 international (August 30, 2026) |
| Brands | Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris Steak House, The Capital Grille, Seasons 52, Eddie V’s Prime Seafood, Bahama Breeze and The Capital Burger |
| Planned Openings | 75 to 80 new restaurants in fiscal 2027 |
| Fiscal Year | 52 or 53 weeks ending the last Sunday in May; fiscal 2026 ended May 31, 2026 |
| Live Listings We Track | Olive Garden: 8; LongHorn Steakhouse: 17 (as of October 16, 2026) |
Company figures: Darden Form 10-Q for the quarter ended August 30, 2026 (restaurant counts, franchised restaurants, fiscal 2027 outlook) and Form 10-K for fiscal 2026 (fiscal year, headquarters). Ratings: our ratings database, with the source shown. Listing counts: live figures from the active listings InvestmentGrade.com tracks.
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Darden’s Credit Rating
The credit ratings belong to Darden Restaurants, Inc., not to any single brand. Darden’s publicly issued long-term debt is rated Baa2 by Moody’s, BBB by S&P and BBB by Fitch, which our ratings database classifies as investment grade. Rating sources and dates: 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. In its fiscal 2026 Form 10-K, Darden says it manages its business and financial ratios to target an investment-grade bond rating.
Our investment grade guide explains what each rating step means and where the investment grade line sits, and the tenant credit ratings index shows where Darden sits next to other restaurant and retail tenants.
The rating backs a lease only if Darden does. Darden owns and operates its U.S. restaurants through subsidiaries. Its fiscal 2026 Form 10-K names GMRI, Inc. and certain other subsidiaries as the owners and operators of its restaurants. Before you price a Darden-brand property on Darden’s credit, confirm in the lease which entity is the tenant and whether Darden Restaurants, Inc. guarantees it.
Every Darden Brand, by Restaurant Count
Olive Garden and LongHorn Steakhouse are Darden’s two largest brands by restaurant count, with 1,577 of Darden’s 2,218 company-owned restaurants on August 30, 2026 (calculated by InvestmentGrade.com from the figures below). They also account for 48 to 56 of the restaurants Darden plans to open in fiscal 2027.
| Brand | Restaurants, Aug 30, 2026 | Restaurants, Aug 24, 2025 | Planned openings, fiscal 2027 | Lease type in Darden’s new-restaurant cost estimates |
|---|---|---|---|---|
| Olive Garden | 953 | 933 | 22 to 26 | Land-only lease |
| LongHorn Steakhouse | 624 | 595 | 26 to 30 | Land-only lease |
| Cheddar’s Scratch Kitchen | 187 | 182 | 6 to 8 | Land-only lease |
| Chuy’s | 112 | 108 | 4 to 6 | Land-only lease |
| Yard House | 95 | 89 | 7 to 10 | Ground and building lease |
| Ruth’s Chris Steak House | 83 | 82 | 1 to 2 | Ground and building lease |
| The Capital Grille | 75 | 73 | 2 to 4 | Ground and building lease |
| Seasons 52 | 44 | 43 | 1 to 2 | Ground and building lease |
| Eddie V’s Prime Seafood | 32 | 29 | 1 to 2 | Ground and building lease |
| Bahama Breeze | 10 | 28 | None (closing or converting) | Not applicable |
| The Capital Burger | 3 | 3 | Not in Darden’s opening table | Not stated |
| Total | 2,218 | 2,165 | 75 to 80 |
Restaurant counts: Darden Form 10-Q for the quarter ended August 30, 2026. Planned openings by brand and the lease basis Darden uses for its new-restaurant capital investment estimates: Darden Form 10-K for fiscal 2026; the 75 to 80 total is Darden’s fiscal 2027 outlook. Actual lease terms vary by site.
Bahama Breeze is winding down. Darden permanently closed about half of its Bahama Breeze restaurants on or about April 5, 2026, and its Form 10-Q for the quarter ended August 30, 2026 says all locations are expected to be closed or converted to other Darden brands by the fourth quarter of fiscal 2027. If you own or are considering a Bahama Breeze property, confirm the lease status and the tenant’s plans for that site directly.
Chuy’s joined Darden when Darden acquired Chuy’s Holdings Inc. on October 11, 2024 (fiscal 2026 Form 10-K). Leases signed before the acquisition may name a Chuy’s entity rather than Darden, so confirm the tenant and any guarantor on each one.
Darden NNN Cap Rates
The table below shows live asking cap rates for Olive Garden and LongHorn Steakhouse from the active listings InvestmentGrade.com tracks. Asking cap rates are what sellers are asking, not closed-sale prices, and pricing on a specific property depends on remaining term, rent level, rent increases, location and lease guarantor.
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| LongHorn Steakhouse (rated entity: Darden Restaurants, Inc.) | BBB / Baa2 | 5.50% | 5.25% to 5.60% | 17 | +26 bps |
| Olive Garden (rated entity: Darden Restaurants, Inc.) | BBB / Baa2 | 5.50% | 5.11% to 5.81% | 8 | +26 bps |
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 19, 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.
Of the LongHorn Steakhouse listings we track, 76% are identified as ground leases in listing materials; for Olive Garden the figure is 63%. See live listings on the Olive Garden NNN for sale and LongHorn Steakhouse NNN for sale pages.
How Darden Leases Its Restaurants
On May 31, 2026, Darden owned the site under 98 of its 2,202 company-owned restaurants and leased the other 2,104. The type of lease matters a great deal to a buyer.
| Darden restaurant real estate (May 31, 2026) | Restaurants |
|---|---|
| On sites Darden owns | 98 |
| Land-only leases (Darden owns the building and equipment) | 1,150 |
| Ground and building leases | 655 |
| Space, in-line and other leases | 299 |
| Total company-owned restaurants | 2,202 |
Source: Darden Form 10-K for fiscal 2026, Item 2, Properties.
In the same filing, Darden bases its new-restaurant capital investment estimates for Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen and Chuy’s on land-only leases, and for Yard House, Ruth’s Chris, The Capital Grille, Seasons 52 and Eddie V’s on ground and building leases. Under a land-only lease, Darden owns the building and equipment and the investor owns the land. That changes three things for a buyer:
- Depreciation. Land is not depreciable (Treas. Reg. 1.167(a)-2). If the tenant owns the building, the buyer of the land generally acquires little or no depreciable basis. Confirm with your tax advisor how much depreciable basis you would actually acquire.
- Reversion. What happens to the building when the lease ends depends on the lease language. Confirm in the lease whether the improvements revert to the landlord or must be removed.
- Financing. Ask lenders how they would finance land under a ground lease before you commit.
For a side-by-side look at the two largest brands, including same-restaurant sales and the ground lease trend in new LongHorns, read LongHorn vs. Olive Garden for NNN investors.
New Construction and Off-Market Darden Properties
Darden expects 75 to 80 new restaurant openings in fiscal 2027. If you want a newly built Olive Garden, LongHorn or another Darden brand, join the waitlist at the top of this page and we will reach out when one fits.
Buying a Darden NNN Property: What to Check
- Tenant and guarantor. Identify the entity that signed the lease and whether Darden Restaurants, Inc. guarantees it. The logo on the building is not the credit on the lease.
- Ground lease or fee simple. Confirm whether you are buying the land only, or the land and the building.
- Remaining term and options. Confirm the primary term, the renewal options and when each can be exercised.
- Rent increases. Increase schedules vary by lease. Confirm the amount and timing in the lease rather than relying on a listing summary.
- Brand and location performance. Darden reports results by segment, not by restaurant. Compare the brand’s trend with the site’s trade area and visibility.
- 1031 timing. If you are in an exchange, plan the search around your identification and closing deadlines (Internal Revenue Code section 1031(a)(3)). Our 1031 exchange guide covers the rules.
Frequently Asked Questions
What is Darden Restaurants’ credit rating?
Darden’s publicly issued long-term debt is rated Baa2 by Moody’s, BBB by S&P and BBB by Fitch, which our ratings database classifies as investment grade. The rating applies to a lease only if Darden signs or guarantees it.
Which restaurant brands does Darden own?
Darden’s Form 10-Q for the quarter ended August 30, 2026 lists Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris Steak House, The Capital Grille, Seasons 52, Eddie V’s Prime Seafood, Bahama Breeze and The Capital Burger. Darden had 2,218 company-owned restaurants on that date, led by 953 Olive Gardens and 624 LongHorns.
What cap rates are sellers asking for Darden NNN properties?
Live median asking cap rates for Olive Garden and LongHorn Steakhouse are shown in the table on this page, drawn from the active listings InvestmentGrade.com tracks. Asking cap rates are not closed-sale cap rates, and pricing for a specific property depends on remaining term, rent level, location and lease guarantor.
Are new Olive Garden and LongHorn properties ground leases?
Darden bases its new-restaurant capital investment estimates for Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen and Chuy’s on land-only leases, under which Darden owns the building and the landlord owns the land (fiscal 2026 Form 10-K). Confirm the property rights in each offering and lease.
How many new restaurants will Darden open in fiscal 2027?
Darden’s fiscal 2027 outlook calls for 75 to 80 new restaurant openings, including 26 to 30 LongHorn Steakhouses and 22 to 26 Olive Gardens (total: Form 10-Q for the quarter ended August 30, 2026; by brand: fiscal 2026 Form 10-K).
Related Research
- Olive Garden Credit Rating and NNN Cap Rate
- LongHorn Steakhouse Credit Rating and NNN Cap Rate
- LongHorn vs. Olive Garden for NNN Investors
- Olive Garden NNN Properties For Sale
- LongHorn Steakhouse NNN Properties For Sale
- Investment Grade Tenant Credit Ratings Index
- New Construction NNN Properties For Sale
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Sources. Darden Form 10-Q for the quarter ended August 30, 2026 (restaurant counts, brands, franchised restaurants, Bahama Breeze, fiscal 2027 outlook); Darden Form 10-K for fiscal 2026 (fiscal year, subsidiaries, Chuy’s acquisition, properties, planned openings and lease basis by brand, rating target); Treas. Reg. 1.167(a)-2 (land not depreciable); Internal Revenue Code section 1031(a)(3) (exchange deadlines); ratings from our ratings database with the source shown; InvestmentGrade.com tracked listings for live cap rates and listing counts. InvestmentGrade.com is not a credit rating agency. Information only; not investment, tax or legal advice. Company figures are as of the dates shown. Last reviewed October 22, 2026.
