Looking to buy an Olive Garden NNN property? 8 are observed for sale across 7 states, median asking cap rate 5.50%. View Olive Garden 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) | 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 (Italian) |
| Headquarters | Orlando, Florida (Darden) |
| Restaurants | 953 company-owned (August 30, 2026), up from 933 a year earlier |
| Segment Sales (Fiscal 2026) | $5.59 billion |
| Average Annual Sales per Restaurant | $5.8 million (fiscal 2026) |
| Same-Restaurant Sales | +4.0% (fiscal 2026); +1.0% (fiscal Q1 2027, comparable calendar) |
| Planned Openings | 22 to 26 new restaurants in fiscal 2027 |
| Current Prototype | About 7,700 SF, 250 seats |
| Median asking cap rate | See the live table below |
| New-Restaurant Lease Basis | Darden bases its Olive Garden new-restaurant investment estimates on land-only leases (fiscal 2026 Form 10-K); confirm the structure and remaining term in each 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 figures from active listings InvestmentGrade.com tracks, which refresh weekly; asking cap rates are not closed-sale cap rates.
Olive Garden Business Overview and NNN Investment Profile
Olive Garden is the largest brand of Darden Restaurants, the company behind LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52 and Eddie V’s. Olive Garden operated 953 company-owned U.S. restaurants at the end of August 2026 and generated $5.59 billion of sales in fiscal 2026, about 42% of Darden’s $13.2 billion total. In July 2025 Darden sold its eight Canadian Olive Gardens to Recipe Unlimited, which now operates them as a franchisee.
Olive Garden is a volume machine. Its average restaurant produced $5.8 million of sales in fiscal 2026, on an average check of about $25.00 per person with alcohol at just 4.1% of sales. Same-restaurant sales rose 4.0% for fiscal 2026, driven by a 2.9% higher average check and a 1.0% increase in guest counts. Growth slowed to 1.0% in the first quarter of fiscal 2027, while sister brand LongHorn Steakhouse grew 6.8%. We break down what that divergence means for landlords in LongHorn vs. Olive Garden: same Darden credit, different cap rates.
Olive Garden remains Darden’s highest-margin large brand, with a first-quarter segment profit of $270.8 million on $1.33 billion of sales. For NNN investors, Darden’s ratings are shown in the table above; a rating at or above BBB‑/Baa3 is investment grade, and it matters for a lease only where Darden signs or guarantees the lease.
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 rating. 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.
Why Olive Garden Matters for NNN Investors
Darden disposed of Red Lobster in fiscal 2015 and still reports guarantees on leased properties assigned to third parties, primarily from that sale and the 2025 sale of its Canadian Olive Gardens (fiscal 2026 Form 10-K). For casual dining NNN buyers, Olive Garden’s unit volumes and Darden’s ratings make it a useful reference point; see the investment grade guide for how ratings relate to lease credit, and compare each property on its lease, not the brand.
The buildings are large. The current Olive Garden prototype is about 7,700 square feet with 250 seats, bigger than a LongHorn at about 5,800 square feet. That produces high absolute rent and strong sales per restaurant, but also means a larger box to re-lease if a restaurant ever closes. Re-leasing risk matters more when you underwrite the renewal, so compare the restaurant’s sales with its rent.
Cap Rate Analysis and Pricing for Olive Garden NNN Properties
Live asking cap rate for Olive Garden:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| 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 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 8 active Olive Garden net lease listings across 7 states, last observed October 16, 2026. The count includes ground leases and excludes listings that bundle several properties or tenants, leasehold interests, vacant or dark stores, and land or owner-user sales. Asking cap rates are not closed-sale cap rates, and the sample is small, so treat it as directional.
What moves the price:
- Building age. An older building can ask a different cap rate than new construction; compare the remaining term and who pays for roof, HVAC and parking replacement under the lease.
- Ground lease or land and building. A land-only ground lease and a sale of the land and the building are different investments, so compare listings with the same structure.
- Yield versus Treasuries. The live table above shows the median asking cap rate’s spread over the 10-year Treasury yield (FRED series DGS10) and the date of that yield.
How Olive Garden Compares With Other Casual Dining NNN Tenants
The table below compares live asking cap rates for Olive Garden and other casual dining tenants. Open each tenant’s page for its credit profile and who signs its leases.
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Olive Garden (rated entity: Darden Restaurants, Inc.) | BBB / Baa2 | 5.50% | 5.11% to 5.81% | 8 | +26 bps |
| LongHorn Steakhouse (rated entity: Darden Restaurants, Inc.) | BBB / Baa2 | 5.50% | 5.25% to 5.60% | 17 | +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.
Asking cap rates vary with building age, lease structure, remaining term and rent level, so compare listings with the same structure. A lower asking cap rate is not proof of better credit, so compare the lease, the guarantor and the remaining term.
Lease Structure and Due Diligence
- Guarantor. Confirm which Darden entity signed the lease and whether the parent stands behind it.
- Ground lease versus land and building. In a land-only ground lease you own the land, and the tenant often owns the building during the term; confirm in the lease. Land is not depreciable (Treasury Regulation section 1.167(a)-2), while a building you own can be. 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. Active Olive Garden listings that report a remaining term average 7.8 years (3 listings). Verify the remaining term, rent increases and renewal options in the lease.
- Building age. On older buildings, check roof, HVAC and parking condition and who pays for replacement under the lease.
Frequently Asked Questions
Is Olive Garden investment grade?
Our ratings database has no separate rating for Olive Garden; its restaurants are owned and operated by GMRI, Inc. and certain other subsidiaries of Darden Restaurants, Inc. (fiscal 2026 Form 10-K). 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, which our ratings database classifies as investment grade. That rating applies to a lease only if Darden signs or guarantees it, so confirm the tenant and any guarantor in each lease.
What cap rate do Olive Garden NNN properties sell for?
Current median asking cap rates for Olive Garden 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 many Olive Garden restaurants are there?
Darden operated 953 company-owned Olive Garden restaurants on August 30, 2026, up from 933 a year earlier, and plans 22 to 26 new openings in fiscal 2027. Additional Olive Gardens outside the U.S. are operated by franchisees.
Is Olive Garden or LongHorn a better NNN investment?
Both are Darden brands, so Darden’s ratings apply to either only where Darden signs or guarantees the lease. In fiscal 2026 Olive Garden had higher average sales per restaurant ($5.8 million versus $5.6 million) and a higher segment profit margin (22.5% versus 18.6%); LongHorn had faster same-restaurant sales growth (7.2% versus 4.0%) and has a smaller prototype (about 5,800 square feet versus 7,700). Compare current asking cap rates for both in the live table on this page.
What brands does Darden Restaurants operate?
Darden operates Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52 and Eddie V’s, plus The Capital Burger. Bahama Breeze locations are being closed or converted to other brands by fiscal 2027.
Can I depreciate an Olive Garden property?
If you buy the land and the building, the building can be depreciated. If you buy a land-only ground lease, the structure Darden uses as the basis for its new Olive Garden investment estimates (fiscal 2026 Form 10-K), you own the land, which is not depreciable (Treasury Regulation section 1.167(a)-2), and a building the tenant owns is not yours to depreciate. This is general information, not tax advice; confirm your situation with a tax advisor.
Related NNN Tenants
Use Olive Garden as the casual dining 1031 credit benchmark
Olive Garden’s parent, Darden, is classified as investment grade in our ratings database, which makes Olive Garden a useful benchmark when a 1031 buyer compares restaurant income against weaker franchisee or turnaround-credit leases.
Compare Darden’s credit, lease term, rent coverage, location quality and cap rate spread against the 2026 NNN cap rate framework. For a broader buyer shortlist, review investment-grade NNN tenants for a 1031 exchange before trading credit quality for headline yield.
Olive Garden Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Olive Garden 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 shown in the live tables); InvestmentGrade.com tracked listings. InvestmentGrade.com is not a credit rating agency. Information only; not investment, tax or legal advice. Listing figures are live; company figures are as of the dates shown. Last reviewed October 8, 2026.
Olive Garden NNN Properties Observed For Sale
8 active Olive Garden 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 | |
|---|---|---|---|---|---|
| KANSAS CITY, KS | $5,000,000 | 5.50% | 7,401 | n/a | View listing |
| Prattville, AL | $5,000,000 | 5.50% | 7,814 | n/a | View listing |
| Moline, IL | $2,062,000 | 6.40% | 6,836 | n/a | View listing |
| Oregon, OH | $2,621,359 | 5.15% | 6,489 | n/a | View listing |
| Selma, NC | $3,900,000 | 5.00% | 6,496 | 10.0 yrs | View listing |
| Orlando, FL | $3,069,000 | 5.75% | 9,172 | 3.3 yrs | View listing |
| Humble, TX | $4,759,000 | 6.00% | 10,800 | n/a | View listing |
| Mission, TX | $3,368,000 | 4.75% | 7,805 | 10.0 yrs | View listing |
Search all 8 observed Olive Garden 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.
