LongHorn Steakhouse NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

LongHorn Steakhouse

Last Year Cap

6.0%

This Year Cap

6.1%

Cap Change

0.1%

Last Year Rating

BBB

This Year Rating

BBB

Rating Change

No change

LongHorn Steakhouse – NNN Cap Rate Trend

Cap Rate Trends

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Tenant Year Cap Rate
5779 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,020 6.5
5780 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,021 6.3
5781 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,022 6.0
5782 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,023 6.3
5783 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,024 6.6
5784 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,025 6.6
Tenant Year Cap Rate

Credit (what net-lease buyers care about)

Credit Snapshot

LongHorn Steakhouse

Cap Rates NNN
Last Year 6.0%
This Year 6.1%
Change 0.1%
S&P Rating CREDIT
Last Year BBB
This Year BBB
Change No change

LongHorn Steakhouse Net Lease: Secure, Essential Investment

LongHorn Steakhouse is a nationally recognized casual dining restaurant brand and one of the most established names in the steakhouse segment. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.

For 1031 exchange buyers, LongHorn Steakhouse Ground Lease Properties are important to compare against fee simple LongHorn Steakhouse assets, as lease structure can materially impact pricing, financing, and long-term resale value.

Investors often target LongHorn Steakhouse assets for:

  • Stable Income Potential
  • Established National Brand Recognition
  • Corporate-Operated Restaurant Model
  • Attractive 1031 Exchange Compatibility

LongHorn Steakhouse Ground Lease Properties require close comparison of rent escalations, remaining lease term, extension options, and residual land value versus fee simple ownership.

LongHorn Steakhouse Ground Lease Properties for 1031 Exchange Buyers

LongHorn Steakhouse Ground Lease Properties often trade differently than fee simple LongHorn Steakhouse assets. Buyers should carefully evaluate lease structure, remaining term, renewal options, landlord responsibilities, and reversion rights to understand long-term risk and return.

LongHorn Steakhouse – Credit Trend (S&P vs Moody’s)

Tenant_Rating_Trend

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank
1 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2022 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
2 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2023 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
3 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2024 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
4 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2025 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
5 admin2 2025 03:43 PM admin2 2025 03:43 PM 99centsonlystoresllc 99 Cents Only Stores, LLC 2022 Caa2 CCC+ Substantial Risk Substantial Risk 2 2
TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank

Darden Restaurants Stock Price (NYSE: DRI)

LongHorn Steakhouse Investment Market Statistics

AVERAGE SALE PRICE

$6,000,000

BUILDING SIZE

3,000 – 5,000 SF

AVERAGE NOI

$275,000

LAND

0.75 – 1.5 acres

$/SF RANGE

$478 – $796

LEASE TERM SHOWN

20 years

LongHorn Steakhouse Investor Snapshot (Quick Facts)

Origins & Growth (Past)

• Founded in 1981 in Atlanta
• Expanded through new restaurant development
• Built large steakhouse restaurant footprint
• Focused on suburban retail corridors
• Strengthened brand and menu positioning
• Joined Darden Restaurants in 2007

 

Where LongHorn Steakhouse Stands Today

• Extensive U.S. restaurant footprint
• Leading casual steakhouse brand
• High daily guest traffic
• Primarily corporate-operated restaurants
• Expanding digital and off-premise channels
• Focus on efficiency and cost control

 
 

Where LongHorn Steakhouse Stands Today

• More digital ordering
• Increased operational efficiency
• Growth in off-premise sales
• Stronger guest engagement
• Optimized restaurant footprint
• Focus on core menu
• Benefiting from consumer dining demand

Why investors buy LongHorn Steakhouse NNN Properties or LongHorn Steakhouse ground Lease Properties?

Pros (what buyers like)

  • Strong tenant credit
    LongHorn Steakhouse is part of Darden Restaurants, and many LongHorn net lease deals are evaluated with Darden’s corporate credit profile in mind.
  • Corporate-operated restaurant model
    LongHorn is primarily operated within Darden’s corporate restaurant platform rather than a franchise-heavy structure, which can make lease backing more straightforward for investors.
  • Established national brand
    LongHorn is one of the larger casual steakhouse concepts in the U.S., with a broad footprint and long operating history that supports brand recognition and customer familiarity.
  • Prime retail real estate locations
    Many LongHorn sites are positioned on strong suburban retail corridors, restaurant clusters, and outparcel locations with good visibility, parking, and traffic exposure.
  • Attractive lease structures
    Long-term NNN or ground leases appeal to passive investors and 1031 exchange buyers seeking predictable income and limited management responsibility.

Cons (what can bite you)

  • Lease structure variability
    Some assets may be NN or modified NNN rather than true absolute NNN, leaving the landlord responsible for roof, structure, or certain capital items.
  • Casual dining sales risk
    Restaurant traffic and unit performance can be affected by consumer spending shifts, dining competition, labor costs, and broader casual dining trends.
  • Flat or limited rent growth
    Some LongHorn leases may include minimal escalations, which can limit long-term NOI growth.
  • Restaurant re-tenanting challenges
    Older or highly customized steakhouse layouts can require capital to reposition if the tenant vacates.
  • Location quality matters
    Not every LongHorn site is equal—secondary trade areas, weaker access, or older real estate can materially affect resale and re-tenanting value.
  • Large-box restaurant exposure
    Bigger freestanding restaurant boxes can narrow the replacement tenant pool if the site goes dark, especially in softer retail corridors.

Find out more

LongHorn Steakhouse Background & History

LongHorn Steakhouse is a nationally recognized casual dining restaurant brand best known for its steak-focused menu, broad U.S. restaurant footprint, and strong position within the full-service steakhouse segment. What began as a single restaurant in Atlanta evolved into one of the most established names in casual dining and is now operated as part of Darden Restaurants, one of the largest full-service restaurant companies in the United States.

Over time, the brand expanded across the country through company-operated restaurant growth, building a large base of freestanding locations positioned in suburban retail corridors, outparcels, and major commercial trade areas. Today, customers rely on LongHorn Steakhouse locations for dine-in occasions, takeout, and growing off-premise demand, while the brand continues to benefit from broad consumer recognition and Darden’s operating scale.

As consumer preferences have shifted toward convenience, digital ordering, and value, the company has adapted through off-premise channels, restaurant optimization, operational efficiency initiatives, and continued focus on core menu execution.

Why LongHorn Steakhouse Matters to NNN Investors

LongHorn Steakhouse remains relevant to net lease investors because it is a nationally recognized restaurant concept with a long operating history, broad footprint, and established presence across major retail corridors. The business model is centered on casual dining traffic, repeat guest visits, and well-positioned restaurant sites in strong suburban trade areas.

Many LongHorn Steakhouse properties are located on outparcels, signalized intersections, and established restaurant corridors with good access, parking, and surrounding retail synergy. In addition, the brand’s scale within the Darden platform helps keep LongHorn active in the single-tenant net lease and sale-leaseback market.

This focus on a recognizable, service-based restaurant concept helps explain why LongHorn Steakhouse remains relevant even as dining habits evolve. Management continues to focus on restaurant performance, guest traffic, operational improvements, and digital / off-premise growth across the broader Darden platform.

What Buyers and Sellers Should Evaluate

For investors evaluating LongHorn Steakhouse NNN properties, a LongHorn Steakhouse net lease, or a LongHorn Steakhouse ground lease, the investment thesis is typically centered on lease structure, guarantor strength, unit-level performance, and real estate quality rather than brand recognition alone. As a result, buyers often place greater emphasis on rent coverage, site fundamentals, and long-term restaurant usability than on the brand by itself.

Common searches include LongHorn Steakhouse real estate, LongHorn Steakhouse cap rate, LongHorn Steakhouse lease term, LongHorn Steakhouse tenant credit, and restaurant performance. Ultimately, LongHorn Steakhouse net lease value is driven by site-specific factors, lease economics, lease backing, and how the location fits within the broader Darden restaurant network and local trade area.

As restaurant competition and consumer habits continue to evolve, the strongest LongHorn Steakhouse locations tend to be those positioned in proven retail corridors with strong visibility, access, parking, traffic counts, and surrounding population density. Buyers and sellers should evaluate each property individually, including ingress and egress, nearby competition, co-tenancy, building layout, trade area demographics, and lease language that defines landlord responsibilities.

In addition, investors should consider long-term cash-flow durability, rent escalations, unit sales performance, and how the asset may perform across different hold periods and exit strategies. Because LongHorn Steakhouse properties are generally tied to the broader Darden Restaurants operating platform, underwriting should focus carefully on lease guaranty, expense responsibilities, restaurant format, and the residual value of the underlying real estate.

our team of experts are here for you

Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.

Whether you are comparing LongHorn Steakhouse ground lease properties or fee simple LongHorn Steakhouse assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.

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