Olive Garden Owner to Buy Yard House for $585 Million in Cash
Facebook isn’t the only company that can swing the proverbial cash genitalia, and this time the acquisition is happening in the food world. Darden Restaurants, Inc., the owners of such chains such as Red Lobster, Olive Garden and Seasons 52 have just bought the Irvine-based Yard House chain for $585 million in cash.
The deal captures the 39-unit chain in the midst of a growth spurt, which means all current 39 locations across 13 states will now operate under the Darden Restaurants hierarchy.
Yard House’s first location launched back in 1996, and is known for its music, energetic atmosphere, and its 130+ average tap selection — which takes full advantage of the recent craft beer movement. Each location averages volumes of $8.4 million, according to a release from Darden’s investor relations.
The move to buy Yard House seems quite strategic (duh) for the Darden Restaurants brand, after a multi-year reliance on sliding sales of some of their underperforming properties like Red Lobster and Olive Garden. Through the purchase, Darden will reportedly have “near $1 billion in annual sales.”
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