Olive Garden’s parent company brings Ruth’s Chris Steak House into fold for $715M
Luke Gentile
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Olive Garden’s parent company, Darden Restaurants, announced its purchase of Ruth’s Hospitality Group for $715 million on Wednesday.
Ruth’s was purchased in an all-cash deal at $21.50 per share, which means Ruth’s Chris Steak House will fall under Darden Restaurants, according to a report.
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Other fine-dining Darden locations include the Capital Grille and Eddie V’s.
These locations, along with Darden’s other fine-dining establishments, reported an 11.7% sales growth in the company’s most recent quarter.
Ruth’s brings with it more than 150 locations that generated $505.9 million in revenue last year, and it marks Darden’s first purchase in at least six years, according to the report.
A press conference surrounding the acquisition will be held by Darden on Thursday.
This purchase is significant because it signals the end of a drought plaguing restaurant deal-making, spurred on by rising interest rates, the report noted.
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In the last few years, big names such as Yum Brands and Restaurant Brands International have turned their attention to expanding existing chains, but the acquisition of Ruth’s by Darden and the suspected sale of Subway are likely to be turning the tide.
The deal for Ruth’s is expected to close in June, and the total integration expenses are anticipated to cost upward of $60 million, according to the report.