Darden Restaurants Inc., the owner of Olive Garden, said it’s buying Ruth’s Hospitality Group Inc., an upscale steakhouse chain of 154 locations, for about $715 million.
(Bloomberg) — Darden Restaurants Inc., the owner of Olive Garden, said it’s buying Ruth’s Hospitality Group Inc., an upscale steakhouse chain of 154 locations, for about $715 million.
The pending acquisition will add to Darden’s portfolio, which already includes the LongHorn Steakhouse brand, as well as the Capital Grille, Bahama Breeze and Cheddar’s Scratch Kitchen. Orlando-based Darden said in a statement that Ruth’s Chief Executive Officer Cheryl Henry will continue to lead the Ruth’s Chris chain, reporting to Darden CEO Rick Cardenas.
“Ruth’s Chris is a strong and distinctive brand within the fine dining segment,” Raymond James analyst Brian Vaccaro said in a research report. He said that the fine-dining chain has strong annual unit sales of about $6.3 million, and an experienced group of franchise owners.
Ruth’s shares jumped as much as 34% to $21.42 on Wednesday after the deal was announced. Darden is offering $21.50 per Ruth’s share in the all-cash transaction. Darden shares, which have gained about 9% this year, were little changed.
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