One of the strongest operators in casual dining, almost all company-owned, and what to check on a premium-priced lease, from a buyer’s broker who has closed a corporate Texas Roadhouse.
A Texas Roadhouse NNN property is a large freestanding steakhouse, with a prototype of about 8,000 square feet and parking for about 180 cars, often on a 2- to 2.5-acre pad. Most new deals are corporate absolute NNN ground leases of 15 to 20 years with 10% rent increases every five years. Texas Roadhouse, Inc. (NASDAQ: TXRH) is based in Louisville, Kentucky, and also runs Bubba’s 33 and Jaggers.
Texas Roadhouse has no public credit rating, but it is one of the best performers in the industry: comparable sales rose about 6% in mid-2026, and the company operates nearly 9 in 10 of its restaurants itself. That combination is why its leases trade at some of the lowest cap rates in restaurant net lease. Solid Investments FL represented the buyer of a corporate Texas Roadhouse in Naples, Florida, and helps investors buy them nationwide, including on a 1031 exchange. Our buyer representation is always free to you.
| Tenant / guarantor | Usually Texas Roadhouse corporate; confirm the exact tenant entity and guarantor on each lease |
|---|---|
| Parent company | Texas Roadhouse, Inc. (NASDAQ: TXRH), Louisville, Kentucky |
| Credit rating | No public rating; strong sales and a conservative balance sheet |
| Restaurants | 832 total as of June 2026, including 755 Texas Roadhouse (662 company-operated) plus Bubba’s 33 and Jaggers |
| Recent performance | Company comparable sales up 6.2% in Q2 2026 |
| Building size | Prototype about 8,000 SF, 270–325 seats |
| Typical lease term | 15–20 years on new leases |
| Lease type | Mostly absolute NNN ground leases; some fee-simple deals |
| Rent increases | Typically 10% every 5 years |
| Typical cap rate (2026) | About 4.75%–5.5% |
| Typical price range | About $3M–$6M |
Restaurant counts and sales from Texas Roadhouse, Inc. reports as of Q2 2026. Cap rates and pricing reflect current market conditions and vary by deal.
With a ground lease, you own the land and the tenant owns the building. The main, and really the only, drawback is that you can’t depreciate the building, since land itself isn’t depreciable. The upsides are real: the tenant paid to build the store, so it has a strong vested interest in staying; ground rents are typically at or below market, which gives you upside if the site is ever re-leased; and in most ground leases the building reverts to you when the tenant vacates or the lease ends (every lease is different, so verify it in yours). That’s why ground leases are viewed as safer investments and trade at lower cap rates.
Most new Texas Roadhouse deals are ground leases: you own the land and the tenant owns the building, so there is little to depreciate. Some listings are unclear, so confirm exactly what you are buying.
Nearly all stores are corporate, but confirm the exact tenant entity and whether Texas Roadhouse, Inc. guarantees the lease.
Texas Roadhouse trades at some of the lowest cap rates in restaurant net lease. You are paying for operator quality, so make sure the lease term and rent increases justify the price.
With a 2-plus-acre site and big parking field, the land is your long-term security. Look at the location, access and what else the site could be used for.
Compare the ground rent to what similar pads lease for nearby. Rent at or below market makes the site easy to re-lease if the store ever closed.
Beef and commodity inflation squeezed restaurant margins in 2026. Strong sales have offset it so far, but it is worth watching.
We represented the buyer of this corporate Texas Roadhouse in Naples, Florida:
Casual Dining
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that represented the buyer of a corporate Texas Roadhouse in Naples, Florida. We help investors and 1031 exchange buyers find, underwrite and close Texas Roadhouse properties nationwide, and our buyer representation is free.
As of 2026, Texas Roadhouse NNN properties generally trade around 4.75% to 5.5% cap rates, among the lowest for any restaurant tenant, reflecting its strong sales and corporate leases.
Almost always corporate. Texas Roadhouse operates about 662 of its 755 Texas Roadhouse restaurants, and it has been buying back franchised locations. Always confirm the exact tenant entity and guarantor.
No. Texas Roadhouse, Inc. does not have a public credit rating from S&P or Moody's. Investors rely on its sales, profitability and balance sheet instead.
Many are. Most new Texas Roadhouse deals are absolute NNN ground leases, where you own the land and the tenant owns the building. Some fee-simple deals also trade, so confirm the structure on each property.
For investors who want a passive, high-quality restaurant lease, yes. The trade-off is a lower cap rate and a higher price point, typically about $3 million to $6 million.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed a corporate Texas Roadhouse and know how to read the lease. Tell us your budget and timeline; our buyer representation is completely free.
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