Get All Access for $5/mo

Olive Garden Parent Company Will Acquire Ruth's Chris Steak House for $715 Million Darden Restaurants, which owns Olive Garden and seven other chains, is approaching the acquisition as a long-term bet on fine dining.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

Joe Raedle | Getty Images
A Ruth's Steak House in Miami, Florida.

Darden Restaurants, which owns eight restaurant chains including Olive Garden, Yard House and The Capital Grille, will acquire Ruth's Chris Steak House for $715 million.

"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," Rick Cardenas, Darden president and CEO, said in a press release announcing the transaction. "It fits the criteria we have for adding a brand to our portfolio and supports our winning strategy."

Related: 2 Modern Challenges Facing the Fine Dining Industry

The acquisition is part of the company's larger goal to expand its market share in the fine-dining segment.

"As we have seen in our fine-dining brands, consumers with income levels above $150,000 continue to dine out and maintain or increase their spending at casual or fine-dining restaurants," Cardenas said on a call with investors, CNBC reported.

Cardenas also added that the margins for upscale dining are "significantly higher." In Darden's investor presentation about the acquisition, data from Boston Consulting Group shows fine dining is expected to outpace fast-casual restaurants through 2026.

Shares of Ruth's Chris have risen nearly 34% since the announcement.

"We are excited about the opportunity to join the Darden family," Cheryl Henry, president, CEO and chairperson of Ruth's Chris, said in the press release. "This transaction will also provide more opportunities for our team members to develop in their careers as we continue to grow our 57-year-old iconic brand."

The transaction is expected to be completed in June.

Related: Will Apple Acquire Disney? An Influential Analyst Thinks So. 'Worth More Together.'

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.