This week on Nation’s Restaurant News, Olive Garden parent Darden to acquire Ruth’s Chris in $715M deal ranked as the week's top story. Olive Garden parent Darden Restaurants Inc. has entered into an agreement to acquire the 154-unit Ruth's Hospitality Group Inc. in a deal valued at about $715 million, the companies said Wednesday. Orlando, Fla.-based Darden, which also owns the LongHorn Steakhouse and Cheddar’s Scratch Kitchen brands among others, said it will commence a tender offer of $21.50 a share for Ruth’s shares in an all-cash transaction. Fine-dining steakhouse Ruth’s Chris is based in Winter Park, Fla.
In other news, it was just five years ago when Texas Roadhouse exceeded $2 billion in sales and, last year, the company surpassed $4 billion for the first time. CEO Jerry Morgan believes the company has the potential to double its revenue again within the next decade. If big traffic numbers continue to flow into Texas Roadhouse’s restaurants, there’s no reason to believe that goal isn’t attainable. During the company’s Q1 earnings call Thursday, Morgan said the company generated record guest counts, with traffic up 7.6% on the quarter, continuing its 10 straight years of positive traffic patterns. Notably, the company’s total revenue on the quarter was $1.174 million, putting it on track to surpass its record revenues in 2022.
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