Skip to main content
  1. News
  2. Business & Finance
  3. Industry

Red Lobster seafood chain sold for $2.1 billion

See also

It’s official: Darden Restaurants is selling the Red Lobster seafood chain to Golden Gate Capital for $2.1 billion in cash, according to a USA Today article published on Friday, May 16, 2014.

Darden Restaurants, which also owns Olive Garden, was flirting with the idea of selling Red Lobster for some time. The seafood chain wasn’t contributing enough to Darden’s bottom line and efforts to improve Red Lobster’s sales weren’t working as hoped.

Red Lobster’s dismal performance is easily recognized in official financial data. In the three months ending in February, 2014, Red Lobster sales declined 8.7 percent from the previous year, dropping to $611 million. Darden made several attempts to reverse the negative trends, including an expanded menu with non- seafood items to attract more customers, but efforts failed.

Olive Garden and Longhorn Steakhouse, also owned by Darden Restaurants, have each witnessed sales declines of their own. But the declines at these two chains are smaller and upper management believes Olive Garden and Longhorn Steakhouse can more easily turn the corner and improve.

Red Lobster first opened in 1968 in Lakeland, Florida and was the first seafood restaurant to gain nationwide prominence. The chain presently has 700 locations. The $2.1 billion cash offer works out to about $3 million per restaurant.

Shares of Darden Restaurants, ticker DRI, are down approximately 4 percent following the news, in midday trading.

Advertisement

News

  • Gaza conflict
    Israel official: Ceasefire and expanding Gaza conflict are both being discussed
    Video
    Video
  • Air Algerie crash
    Conflicting reports about the Air Algerie disappearance begin to emerge
    Top News
  • Arizona execution
    A Senator familiar with torture denounces Joseph Wood's botched execution as such
    US News
  • Ray Rice suspended
    Ravens' running back Ray Rice is suspended for two games for a domestic violence arrest
    Sports
  • Amazon tribe falls ill
    An Amazonian tribe catches influenza after making first contact with the developed world
    Headlines
  • CIA prison in Poland
    Poland is declared guilty of human rights violations for hosting a secret CIA prison
    Video
    Video

Related Videos:

  • Portraits of Hope: A Photo Collection of Rescued Horses
    <iframe width="560" height="315" src="//www.youtube.com/embed/jAIpFA2yugU?rel=0?rel=0&amp;VQ=HD720&amp;allowfullscreen=true&amp;autoplay=1"></iframe>
  • Amazon reports large net loss for recent quarter
    <div class="video-info" data-id="518340151" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518340151&autoStart=true"></div>
  • Nancy Johnson
    <iframe width="600" height="337" src="//www.youtube.com/embed/ht79GMd53ZM?VQ=HD720&amp;allowfullscreen=true&amp;autoplay=1"></iframe>