CHICAGO Darden Restaurants Inc. has ruled out Applebee's and other bar-and-grill concepts as potential acquisition targets because the segment is already overcrowded, according to a Reuters report.
Speaking Tuesday at the Reuters Food Summit here, Darden's president and chief operating officer Drew Madsen fielded questions about the casual-dining giant's earlier indications that it may seek to expand through acquisitions. said the company was "not really interested" in the bar-and-grill space because of overcrowding in the segment, Reuters reported. Asked if Applebee's International Inc. was one of the potential candidates, Madsen was quoted as responding, "We're not looking at that."
Applebee's, parent to a 1,942-unit namesake chain, said last month that it was exploring alternative strategies that could include a sale of the company.
Madsen reiterated Darden's plan to purchase a chain of about 100 units that has the growth potential to reach $1 billion in annual systemwide sales.
Orlando, Fla.-based Darden operates more than 1,440 restaurants under five brands including Red Lobster and Olive Garden.