Darden Restaurants believes fine-dining restaurants' sales growth will outpace that of casual-dining eateries through 2026.
But Darden executives made it clear that the deal is because of their conviction in the high-end segment.
Fine-dining restaurants' sales growth is expected to outpace that of casual-dining eateries through 2026, Darden CEO Rick Cardenas told investors Thursday on a conference call to discuss the deal. Upscale restaurants also have "significantly higher" margins, he added.this year, Darden said high-income diners aren't pulling back on spending at The Capital Grille and Eddie V's, the company's existing fine-dining chains.
"As we have seen in our fine-dining brands, consumers with income levels above $150,000 continue to dine out and maintain or increase their spending at casual or fine-dining restaurants," Cardenas said. The average check at Ruth's Chris is $97, according to Darden's investor presentation. For comparison, the average check at Olive Garden, which accounts for roughly half of Darden's revenue, was $21 in fiscal 2022.
In recent months, the casual-dining segment has been struggling as inflation-weary consumers trade down to fast-casual options such as
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Olive Garden owner Darden Restaurants buys Ruth's Chris Steak House for $715 millionRuth's Chris Steak House has more than 150 locations worldwide and generated $505.9 million in revenue in 2022.
Read more »
Olive Garden parent Darden to acquire Ruth’s Chris Steak owner for $715 million in cashOlive Garden parent Darden Restaurants Inc. said Wednesday it’s acquiring Ruth’s Hospitality Group Inc. owner of Ruth’s Chris Steak House, in an all-cash...
Read more »
Olive Garden parent Darden buying Ruth’s Chris for $715MDarden Restaurants is acquiring the Ruth's Chris Steak House, adding to its portfolio of brands that include Olive Garden, LongHorn Steakhouse and Yard House.
Read more »
Owners of Longhorn Steakhouse, Olive Garden, expand fine-dining portfolioThe company that owns Ruth’s Chris Steak House is selling to Darden Restaurants.
Read more »
Florida company purchases Ruth’s Chris Steak House restaurants for $715 millionRuth’s has 80 company-owned or operated RuthsChris Steak House restaurants and 74 franchised locations worldwide, including locations in Birmingham, Huntsville and Mobile.
Read more »
Olive Garden's parent company brings Ruth's Chris Steak House into fold for $715M.OliveGarden's parent company, darden Restaurants, announced its purchase of Ruth's Hospitality Group for $715 million. Ruth's was purchased in an all-cash deal at $21.50 per share, which means RuthsChris Steak House will fall under Darden Restaurants,
Read more »