Looking to buy a LongHorn Steakhouse NNN property? 17 are observed for sale across 9 states, median asking cap rate 5.50%. View LongHorn Steakhouse NNN properties for sale, cap rate bands and the 1031 buyer guide.
| Metric | Details |
|---|---|
| Operating Entity | GMRI, Inc. and other Darden subsidiaries own and operate the restaurants |
| Parent Company | Darden Restaurants, Inc. (NYSE: DRI) |
| Credit Ratings (Darden publicly issued long-term debt) | 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 |
| Sector | Casual Dining (Steakhouse) |
| Headquarters | Orlando, Florida (Darden) |
| Restaurants | 624 (August 30, 2026), up from 595 a year earlier |
| Segment Sales (Fiscal 2026) | $3.42 billion |
| Average Annual Sales per Restaurant | $5.6 million (fiscal 2026) |
| Same-Restaurant Sales | +6.8% (fiscal Q1 2027, comparable calendar) |
| Planned Openings | 26 to 30 new restaurants in fiscal 2027 |
| Current Prototype | About 5,800 SF, 180 seats |
| Median asking cap rate | See the live table below |
| Common New-Build Structure | Land-only ground lease (Darden’s capital investment estimates for new LongHorns assume land-only leases); confirm the term in the lease |
Operating and credit data: Darden fiscal 2027 first quarter release (September 24, 2026) and Form 10-K for fiscal 2026. Cap rates: live asking cap rates from listings InvestmentGrade.com tracks, shown in the table below.
LongHorn Steakhouse Business Overview and NNN Investment Profile
LongHorn Steakhouse is Darden Restaurants’ second-largest brand by sales and had the highest same-restaurant sales growth of Darden’s four segments in the first quarter of fiscal 2027. The chain opened its first restaurant in 1981, was acquired by Darden, and operated 624 restaurants at the end of August 2026, located primarily in the eastern United States. Its average check was about $28.50 per person in fiscal 2026, with alcoholic beverages accounting for 8.1% of sales.
The operating momentum is real. LongHorn’s same-restaurant sales rose 7.2% in fiscal 2026 and another 6.8% in the first quarter of fiscal 2027 on a comparable calendar basis, against 1.0% for sister brand Olive Garden. Segment sales grew 10.9% in the quarter to $860.9 million, and segment profit rose 14.6% to $154.6 million. We explain why that matters for landlords in LongHorn vs. Olive Garden: same Darden credit, different cap rates.
For NNN investors, LongHorn pairs a parent, Darden, whose publicly issued long-term debt carries investment grade ratings and which owned and operated 2,202 U.S. restaurants through subsidiaries at May 31, 2026, with a brand whose average annual sales per restaurant rose from $5.2 million in fiscal 2025 to $5.6 million in fiscal 2026. Darden’s credit supports a lease only if Darden signs or guarantees it, and brand averages do not show how an individual restaurant performs, so confirm the lease obligor and the store’s own sales for each property.
Darden’s fiscal 2026 annual report states that its publicly issued long-term debt carries these three ratings, and that Darden manages its business and financial ratios to target an investment-grade bond rating. Darden reported $13.2 billion of sales in fiscal 2026. Always confirm who signed the specific lease and whether Darden or a Darden operating subsidiary is the obligor. Compare other tenants on the investment grade credit tenant ratings index.
Cap Rate Analysis and Pricing for LongHorn Steakhouse NNN Properties
Live asking cap rates for LongHorn Steakhouse:
| 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 |
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.
InvestmentGrade.com currently tracks 17 active LongHorn Steakhouse net lease listings across 9 states. Cap rates in the table are asking cap rates, not closed transactions, and the samples are small.
Three things drive where a LongHorn prices:
- Structure. New LongHorns are often land-only ground leases. Darden’s annual report says its capital investment estimates for new LongHorn restaurants, which include building costs, are based on land-only leases, so in those leases the tenant pays to build the restaurant and the investor owns the land; confirm in the lease who owns the building during the term and at lease end. As of October 8, 2026, in the LongHorn listings InvestmentGrade.com tracks, new builds (2025 and 2026 construction) asked a lower median cap rate than seasoned buildings (2024 and older).
- Remaining term. As of October 8, 2026, the four new-build LongHorn listings InvestmentGrade.com tracks that report a remaining term show about 10 years (9.7 to 10.3 years). Confirm the primary term in the lease.
- Yield versus Treasuries. The live table above compares the median asking cap rate with the latest 10-year Treasury yield (FRED series DGS10). Where a new-build ground lease asks a cap rate close to the Treasury yield, the extra yield is small, and the investor is paid mainly in rent increases and land ownership.
How LongHorn Compares With Other Casual Dining NNN Tenants
The comparison below uses live asking cap rates. For each tenant’s credit profile, open its full page.
| 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 |
| Outback Steakhouse (rated entity: Bloomin' Brands, Inc.) | B+ / n/a | 5.50% | 5.25% to 6.00% | 11 | +26 bps |
| Chili's | BB+ / n/a | 5.50% | 5.43% to 6.25% | 6 | +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 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.
Each tenant’s rated entity and ratings, where on file, appear in the table. A lower asking cap rate is not proof of better credit, so compare the lease, the guarantor and the remaining term, not just the headline number.
Lease Structure and Due Diligence
- Guarantor. Darden’s restaurants are owned and operated by GMRI, Inc. and other subsidiaries. Confirm which entity signed the lease and whether the parent stands behind it.
- Land only versus land and building. Land is not depreciable (Treas. Reg. 1.167(a)-2), so owning only the land under a ground lease generally offers little depreciation or cost segregation benefit. Investors who want depreciation may prefer a property where they also own the building. This is general information, not tax advice.
- Reversion. Check whether the building transfers to the landlord or must be removed at lease end.
- Term and options. Verify remaining primary term, rent increases and renewal options. Do not assume 15 to 20 years.
- Sales reporting. If the lease requires sales reporting, request it. Rent as a share of sales is a useful early indicator of renewal risk.
Frequently Asked Questions
Is LongHorn Steakhouse investment grade?
LongHorn Steakhouse is a brand, not a rated company. It belongs to Darden Restaurants, whose restaurants are owned and operated through subsidiaries such as GMRI, Inc. Darden’s publicly issued long-term debt is rated Baa2 by Moody’s, BBB by S&P and BBB by Fitch, according to Darden’s fiscal 2026 Form 10-K filed July 24, 2026, and our ratings database classifies it as investment grade. That rating supports a lease only if Darden signs or guarantees it, so confirm the tenant and any guarantor in each lease.
What cap rate do LongHorn Steakhouse NNN properties sell for?
Current median asking cap rates for LongHorn Steakhouse and comparable tenants are shown in the live table on this page. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.
How long are LongHorn Steakhouse leases?
As of October 8, 2026, the four newly built LongHorn ground leases InvestmentGrade.com tracks that report a remaining term show about 10 years. Older properties can have much less. Always verify the term, rent increases and options in the lease.
Is LongHorn Steakhouse still growing?
Yes. LongHorn grew from 595 to 624 restaurants in the year to August 30, 2026, opened 27 restaurants in fiscal 2026, and Darden plans 26 to 30 more in fiscal 2027. Same-restaurant sales rose 6.8% in fiscal Q1 2027 on a comparable calendar basis.
How does LongHorn compare with Outback Steakhouse as an NNN investment?
Both are casual dining steakhouses. LongHorn’s parent, Darden, has publicly issued long-term debt rated BBB by S&P and Baa2 by Moody’s, while Outback’s parent, Bloomin’ Brands, is rated B+ by S&P. Either rating matters only if that parent signs or guarantees the lease. Current median asking cap rates for both appear in the comparison table on this page.
Can I depreciate a LongHorn Steakhouse property?
It depends on what you own. If you buy the land and the building, the building can be depreciated when it is used in a trade or business or held for the production of income (IRC 167(a)); land cannot be (Treas. Reg. 1.167(a)-2). Under a land-only ground lease, common for new LongHorns, the investor buys the land and the tenant pays to build the restaurant, so the investor may have little or nothing to depreciate; confirm ownership of the improvements in the lease. This is general information, not tax advice; confirm your situation with a tax advisor.
Related NNN Tenants
1031 benchmark: Darden credit with a restaurant real estate spread
LongHorn’s parent, Darden, carries investment-grade ratings on its publicly issued long-term debt, but those ratings support a lease only if Darden signs or guarantees it, so confirm the tenant and any guarantor in the lease. The diligence question is whether the yield, which on the new ground leases InvestmentGrade.com tracks has asked close to the 10-year Treasury yield (as of October 8, 2026), is justified by guaranty strength, remaining term, rent increases and site-level sales.
Compare LongHorn against the 1031 tenant credit shortlist and the 2026 NNN cap rate framework before making it one of your identified replacement properties.
LongHorn Steakhouse Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market LongHorn Steakhouse properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Sources. Darden Form 10-K for fiscal 2026 (ratings, properties, unit economics, opening plans); Darden fiscal 2027 first quarter release (September 24, 2026); FRED series DGS10 (10-year Treasury yield in the live tables); InvestmentGrade.com tracked listings. InvestmentGrade.com is not a credit rating agency. Information only; not investment, tax or legal advice. Last updated October 8, 2026.
LongHorn Steakhouse NNN Properties Observed For Sale
17 active LongHorn Steakhouse net lease listings observed across public listing sources, most recently Oct 16, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Millville, NJ | $3,760,000 | 5.50% | 5,627 | n/a | View listing |
| Saraland, AL | $3,245,614 | 5.70% | 5,780 | n/a | View listing |
| Albertville, AL | $3,451,000 | 5.65% | 5,780 | n/a | View listing |
| Sheboygan, WI | $2,410,000 | 5.60% | 5,780 | 9.7 yrs | View listing |
| Lexington, SC | $3,429,000 | 5.25% | 5,800 | n/a | View listing |
| Indian Land, SC | $3,580,000 | 5.00% | 5,780 | 10.3 yrs | View listing |
| Troy, MI | $3,739,131 | 5.75% | 8,329 | n/a | View listing |
| Copley, OH | $2,615,766 | 6.00% | 5,691 | 3.9 yrs | View listing |
Search all 17 observed LongHorn Steakhouse listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
