Tags: darden | cheddars scratch kitchen | restaurants | deal

Darden, Cheddar's Scratch Kitchen Deal Worth $780M Announced

Image: Darden, Cheddar's Scratch Kitchen Deal Worth $780M Announced

Exterior entrance of Olive Garden Italian Kitchen restaurant. (Georgesheldon/Dreamstime.com)

By    |   Wednesday, 29 Mar 2017 06:05 AM

Darden Restaurants is set to buy Cheddar’s Scratch Kitchen for $780 million, adding to the 1,500 restaurants and 150,000 employees it had prior to the deal.

Darden Restaurants – the Orlando-based restaurant operator – announced Monday that it plans an all-cash transaction, according to Fox Business.

Cheddar’s is located in nearly 30 U.S. states with 165 restaurant locations, and Darden CEO Gene Lee said it’s a great fit for Darden’s portfolio.

“Cheddar’s is an undisputed casual-dining value leader with broad appeal and strong average restaurant volumes,” Lee said in a statement, according to the Orlando Sentinel. “Cheddar’s is a great fit in the Darden portfolio because it complements our existing brands.”

“This addition will also enable Darden to further strengthen two of our most important competitive advantages: our significant scale and our extensive data and insights,” Lee said, according to Bloomberg.

The move is expected to boost Darden’s earnings by 2018.

“The accretive Cheddar’s acquisition is smart use of the company’s cash position,” said Oppenheimer analyst Brian Bittner.

Darden also announced on Monday that its sales were up to 1.7 percent to $1.87 billion for the third quarter, the Orlando Sentinel noted.

“We continued to gain market share as we outperformed industry same-restaurant sales by a considerable margin again this quarter,” Lee said.

The last time Darden’s bought a restaurant brand was in 2012, when it acquired Yard House – a popular high-end sports bar with nearly 70 locations around the country.

Cheddar’s Scratch Kitchen will be joining a long list of other restaurants in Darden’s portfolio, including Olive Garden, LongHorn Steakhouse, The Capital Grille, Yard House, Bahama Breeze, Seasons 52, and Eddie V’s Prime Seafood.

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Darden Restaurants is set to buy Cheddar's Scratch Kitchen for $780 million, adding to the 1,500 restaurants and 150,000 employees it had prior to the deal.
darden, cheddars scratch kitchen, restaurants, deal
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2017-05-29
Wednesday, 29 Mar 2017 06:05 AM
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