Darden Restaurants is purchasing the upscale Ruth’s Chris Steakhouse chain for roughly $715 million. Currently based in Winter Park, Florida, Ruth’s Chris took a major hit during the pandemic, shuttering 23 locations in early 2020. The chain also announced that executive salaries were slashed as they continued to furlough hundreds of employees.
Shares of Ruth’s Hospitality Group Inc. bounced back within a year of the pandemic’s onset. Before the market opened, shares were halted but then increased by more than 30 percent at the opening bell.
Also located in Florida, Darden owns Olive Garden, Yard House, The Capital Grill, Eddie V’s, Bahama Breeze, Seasons 52, and Cheddar’s Scratch Kitchen. The restaurant group will acquire Ruth’s Chris’ outstanding shares for $21.50 each, a 34 percent premium.
“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,” said Rick Cardenas, Darden CEO in a prepared statement.
The acquisition was collectively approved by the boards of both companies and is anticipated to close in June.
Opening its doors on New Orleans’ Broad Street in 1927, the original Chris Steak House was purchased by Louisiana businesswoman, Ruth Fertel in 1965. Fertel mortgaged her house to afford the restaurant after she considered it an omen that her birthday shared Chris Steak House’s opening day of February 5, 1927.
The fine dining chain now has 154 locations worldwide.
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