Darden Restaurants, owner of eight restaurant chains including Olive Garden, Yard House and The Capital Grille, is acquiring Ruth’s Chris Steak House for $715 million.
“Ruth’s Chris is a strong and distinctive brand in the gourmet segment with an impressive history of delivering high-quality dining experiences to their loyal patrons,” said Rick Cardenas, president and CEO of Darden. press release announcement of the transaction. “It fits the criteria we have for adding a brand to our portfolio and supports our winning strategy.”
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The acquisition is part of the company’s larger goal to expand its market share in the gourmet segment.
“As we’ve seen with our fine-dining brands, consumers with income levels above $150,000 continue to eat out and maintain or increase their spending at casual or fine-dining restaurants,” Cardenas said on a call to investors, CNBC. reported.
Cardenas also added that margins for fine dining are “significantly higher.” At Darden’s investor presentation on the acquisition, data from Boston Consulting Group shows that fine dining is expected to outpace fast-casual restaurants through 2026.
Shares of Chris van Ruth are up nearly 34% since the announcement.
“We are excited about the opportunity to join the Darden family,” said Cheryl Henry, president, CEO and chairman of Ruth’s Chris, in the press release. “This transaction will also provide our team members with more opportunities to advance in their careers as we continue to grow our 57-year-old iconic brand.”
The transaction is expected to close in June.
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