ORLANDO, Fla. — Darden Restaurants Inc. has entered into a merger agreement to acquire all of the outstanding shares of Ruth’s Hospitality Group for $21.50 per share, in an all-cash transaction with an equity value of approximately $715 million.
Ruth’s, owner and operator of Ruth’s Chris Steak House, will complement Darden’s portfolio of different brands which currently includes Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s.
Ruth’s Chris has 154 locations around the globe, including 80 company-owned or -operated restaurants and 74 franchised restaurants, generating system-wide sales of more than $860 million, total revenues of more than $500 million and average annual restaurant volumes for company-owned or -operated locations of $6.2 million in Ruth’s fiscal year 2022.
“Ruth’s Chris is a strong and distinctive brand in the fine-dining segment with an impressive history of delivering elevated dining experiences to their loyal guests,” Rick Cardenas, president and CEO of Darden. “It fits the criteria we have for adding a brand to our portfolio and supports our winning strategy. Ruth’s Chris is a great complement to our portfolio of brands, and I’m pleased to welcome their nearly 5,000 team members to Darden.”
“We are excited about the opportunity to join the Darden family,” says Cheryl Henry, president, CEO and Chairperson of Ruth’s. “Our strategy and operating philosophy aligns well with Darden, and we have a strong cultural fit that should ensure a smooth transition. This transaction will also provide more opportunities for our team members to develop in their careers as we continue to grow our 57-year-old iconic brand.”
