Darden Eating places, which owns eight restaurant chains together with Olive Backyard, Yard Home and The Capital Grille, will purchase Ruth’s Chris Steak Home for $715 million.
“Ruth’s Chris is a powerful and distinctive model within the high-quality eating phase with a formidable historical past of delivering elevated eating experiences to their loyal company,” Rick Cardenas, Darden president and CEO, mentioned in a press release asserting the transaction. “It matches the standards we have now for including a model to our portfolio and helps our successful technique.”
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The acquisition is a part of the corporate’s bigger aim to broaden its market share within the fine-dining phase.
“As we have now seen in our fine-dining manufacturers, customers with revenue ranges above $150,000 proceed to dine out and preserve or improve their spending at informal or fine-dining eating places,” Cardenas mentioned on a name with traders, CNBC reported.
Cardenas additionally added that the margins for upscale eating are “considerably greater.” In Darden’s investor presentation in regards to the acquisition, information from Boston Consulting Group exhibits high-quality eating is anticipated to outpace fast-casual eating places by 2026.
Shares of Ruth’s Chris have risen almost 34% for the reason that announcement.
“We’re excited in regards to the alternative to hitch the Darden household,” Cheryl Henry, president, CEO and chairperson of Ruth’s Chris, mentioned within the press launch. “This transaction may even present extra alternatives for our workforce members to develop of their careers as we proceed to develop our 57-year-old iconic model.”
The transaction is anticipated to be accomplished in June.
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Supply: Entrepreneur