Florida company purchases Ruth’s Chris Steak House restaurants for $715 million

The Orlando owner of Olive Garden and other chain restaurants is buying Winter Park-based Ruth’s Hospitality Group for about $715 million.

Darden Restaurants revealed the all-cash deal Wednesday, saying it is paying $21.50 per share. Ruth’s stock price was at $16.03 per share Tuesday at market closing.

Ruth’s has 80 company-owned or operated Ruth’s Chris Steak House restaurants and 74 franchised locations worldwide.

CEO Cheryl Henry is expected to stay on as president of Ruth’s Chris and report to Darden CEO Rick Cardenas.

“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,” Cardenas said in a news release. ” … Ruth’s Chris is a great complement to our portfolio of brands, and I’m pleased to welcome their nearly 5,000 team members to Darden.”

Darden already has 1,890 restaurants including Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s and The Capital Burger.

The company last acquired Cheddar’s Scratch Kitchen in 2017 for $780 million. Cheddar’s had 165 restaurants at the time of the deal.

Cardenas has been hinting at acquiring a restaurant chain since shortly after he became CEO, telling the Orlando Sentinel last year he would want a full-service restaurant able to make a “meaningful difference” in Darden’s future.

Ruth’s Chris started in 1965 in New Orleans and moved to Central Florida in 2005 after Hurricane Katrina devastated that Louisiana city.

“Our strategy and operating philosophy aligns well with Darden, and we have a strong cultural fit that should ensure a smooth transition,” Henry said in the 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.”

Darden will host a conference call on the deal Thursday.

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