TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Darden announces sale of Red Lobster for $2.1B


On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Friday, May 16, 2014, 9:30 a.m.
 

Darden Restaurants said it will sell its Red Lobster chain to investment firm Golden Gate Capital in a $2.1 billion cash deal.

Darden, which also owns Olive Garden, announced last year that it planned to spin off or sell Red Lobster to improve its financial performance.

Olive Garden and Red Lobster have been losing customers in recent years. Part of the problem is the growing popularity of fast-casual chains such as Chipotle, where customers don't have to pay as much or wait for table service.

Red Lobster, which opened in 1968, helped popularize seafood among Americans. The first location in Lakeland, Fla., boasted platters that included frog legs and hush puppies for $2.50.

As the chain suffered sales declines more recently, Darden expanded its menu to include more non-seafood dishes in a bid to attract a wider array of customers. The efforts didn't take hold.

Darden CEO Clarence Otis has noted that Red Lobster has been unable to capture higher-income customers.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Harmar developer sells 15 hotels in Western Pa., West Virginia
  2. Rice Energy spin-off priced below expected range
  3. Wesco cautious, reaffirms guidance
  4. Federated Investors forecasts optimistic scenario for growth in economy, markets
  5. Insurers give customers extra time to pay first month’s premium for 2015 under Obamacare
  6. Fed emphasizes patient approach on rate increases
  7. Consumer prices drop aside gas cost plunge
  8. Stock market jumps as Fed pledges patience in rate hikes
  9. Natural gas groups says increase in Pennsylvania taxes would bring dire results for economy
  10. FedEx 2Q profit jumps 23%; revenue up 8% at Moon-based Ground business
  11. 84 Lumber vice president McCrobie says company, housing market rebounding
Subscribe today! Click here for our subscription offers.