I hope Darden keeps these two concepts out of the OKC market, we don't need anymore chain steakhouses.



Darden adds two restaurant chains

BUSINESS UPDATE
Darden Restaurants said Friday its $1.19 billion purchase of the owners of LongHorn Steakhouse and Capital Grille restaurant chains can make it a more significant player in the competitive steakhouse segment of the dining industry.



Orlando, Fla.-based Darden announced a deal last week to acquire all of Rare Hospitality Inc.'s outstanding shares in a tender offer with a price of $38.15 per share.

Darden, which operates the Italian chain Olive Garden and seafood restaurants Red Lobster, said the additions will help it challenge Outback Steakhouse in the steakhouse segment.

Competition is fierce in casual dining, where affordability and consistency are key, and fluctuations in food costs and factors that affect consumer behavior, such as high gasoline prices, can affect profits.

For the fiscal year that ended in June, Darden sales were up 4 percent to $5.57 billion.

Darden has 1,400 restaurants, with more than 600 Olive Gardens and Red Lobsters each.

Atlanta-based Rare Hospitality has 317 restaurants, including 287 LongHorn Steakhouse restaurants and 28 Capital Grille restaurants.

Outback, meanwhile, has more than 900 restaurants worldwide.

Darden Chairman and Chief Executive Clarence Otis said there was plenty of room for unit growth at LongHorn and enough infrastructure to add the two chains to a lineup that also includes Caribbean-themed Bahama Breeze and Seasons 52, a grill and wine bar with seasonal menus.

In May, Darden closed nearly half its 129 Smokey Bones locations and put the other 73 on the sales block because stores weren't selling enough.

Source: The Associated Press