Olive Garden Tenant Overview


  • Well-known chain
  • Follows common layout
  • Annual rent increases


  • Competitive sector
  • Ground leases do not allow investors to depreciate building value

Earnings Highlights

Earnings Summary
  • In 2022, Olive Garden's U.S. sales reached approximately 4.5 billion U.S. dollars, up from 3.59 billion in 2021.
  • The company also raised its earnings outlook for fiscal 2023 to a range of $10.3 billion to $10.45 billion from its previous range of $10.2 billion to $10.4 billion.
  • Olive Garden, which accounts for nearly half of Darden’s revenue, saw an increase of 7.6% in same-store sales.

Tenant Description

Italian themed chain restaurant seeking to provide family friendly atmosphere along with delicious food.

Founded in Orlando, FL in 1982, Olive Garden started with the mission to provide a fun, welcoming atmosphere to patrons alongside exciting Italian dishes. Nowadays we recognize Olive Garden as one of the largest chains of Italian themed restaurants in the US and around the world.

This type of instant recognition in the consumer market can be an invaluable asset, but there are other reasons why Olive Garden represents a good net lease investment for prospective buyers. One of the primary reasons is that their leases will incorporate rental increases, usually annually, to offset inflation in the market. Typically, the leases will also be on the longer side, and include options to extend, usually 6 options at 5 years. The leases will tend to be structured as a ground or NNN lease, relieving the property owner of any worries about maintaining the structure.

Almost always, Olive Garden restaurants are in prime locations with high visibility and easy access, these properties are quick to be noticed by potential consumers. The restaurants will also follow a common layout for casual dining, making it easy to move another tenant in should Olive Garden vacate. Additionally, if it’s a ground lease, the ownership will get the building when the tenant leaves.
Owned by Darden Restaurants, the corporate guarantee will give assurances to the landlord, as Darden is publicly traded and rated at Baa2 and BBB for Moody’s and S&P respectively. Currently, there are over 800+ Olive Garden locations operating around the world.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3,582,813
NOI $153,619
$/Square Foot $345 - $370
Building SF 7,500 - 8,000
Lot Size 1 - 2 Acres
Lease Term Varies
Escalations 1.5% Annually
Stock Symbol DRI
Credit Rating
Moody's Baa2
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Wilmington, NC 4.00%
Bloomington, IL 4.62%
Oklahoma City, OK 4.75%
Menomonee Falls, WI 6.08%