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.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Oakland firm Qualaris Healthcare’s software saves time in hospitals
  2. Mylan completes inversion with Abbott to move headquarters to Netherlands, lower taxes
  3. PNC Bank to cut financing of mountaintop removal coal companies
  4. Highmark lays off nearly 100 workers, mostly in IT, as membership declines
  5. Consumer spending dinged by declining gas prices
  6. Construction picks up, but workers hard to find
  7. Lumber Liquidators shares plunge 25%
  8. Shift in what powers the grid raises concerns about fuel diversity
  9. Mylan closes $5.3B tax-lowering deal with Abbott Labs
  10. Pittsburgh gas pump prices up nearly 9 cents
  11. Free-market thinker Hall to lead Congressional Budget Office