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[JABEE]

Darden Restaurants has sold its struggling Red Lobster chain of seafood restaurants to private-equity firm Golden Gate Capital for $2.1bn (£1.2bn).

Several activist investors have opposed the move.

They have argued for a larger restructuring of Darden, which also owns the Olive Garden restaurant chain.

Profits at Red Lobster have been hit by rising shrimp prices.

Shares in Darden slumped more than 4% on news of the sale.

...

Golden Gate Capital already owns several US dining chains, including California Pizza Kitchen and On the Border, a causal-dining Mexican chain.

Red Lobster has been struggling to attract US diners to its restaurants after the recession curtailed spending. It has also had to stave off competition from Chipotle and Panera, which do not offer table service and are thus slightly cheaper.

The chain has further been impacted by rising shrimp prices as a result of an incurable bacterial infection which has diminished Southeast Asian stocks.

Analysts at Credit Suisse estimated that the increase in price could cost Red Lobster $30m this year.

The chain is known in the US for its "endless shrimp" specials.

http://www.bbc.com/news/business-27448689

We can taco 'bout it now!

 

[joeyjoejoeshabadoo]

That's a lot of four course meals.

 

[SwiftDeath]

That's a lot of biscuits

 

[BronsonLee]

And how much of that price was just for the cheese biscuits recipe?!

That's a lot of biscuits

NOOOOOOOOO

 

[Futureman]

That's a lot of dinners with Shooter McGavin.

 

[triplestation]

where do all the scrimps come from

 

[God Dayumm]

That's a lot of four course meals.

No, because fine dining is expensive

 

[kingocfs]

That's a lot of biscuits

Worth every penny for the biscuits alone

 

[sixteen-bit]

shoutouts to biscuits

 

[Femmeworth]

Someone important at Golden Gate Capital must really like those biscuits.

 

[SwiftDeath]

NOOOOOOOOO

Spoiler

I'm sorry

 

[GoodlifeX]

Dem biscuits.... everything else was forgettable though

 

[djplaeskool]

I hope my Darden gift card still works there :/

$25 worth of biscuits

 

[CitizenVectron]

On the Border, a causal-dining Mexican chain.

As opposed to Taco Bell, which violates cause and effect?

 

[zma1013]

"Golden Gate Capital's first order of business is to discontinue Red Lobster's biscuits so they can keep them all for themselves those greedy bastards."

 

[Nakazato]

Not the biscuits somebody think of the biscuits

 

[SwiftDeath]

"Golden Gate Capital's first order of business is to discontinue Red Lobster's biscuits so they can keep them all for themselves those greedy bastards."

 

[shadyspace]

I hope my Darden gift card still works there :/

$25 worth of biscuits

If they don't accept my darden card I will take by force the biscuits that are rightfully mine.

 

[Einbroch]

Just make the biscuits at home and save yourself the mediocre seafood!

 

[Delta Assault]

They better not fuck with the Ultimate Feast.

 

[ZealousD]

As opposed to Taco Bell, which violates cause and effect?

Yeah. Their food causes way more diahrrea than it should.

 

[FrostuTheNinja]

These aren't the biscuits you're looking for.

*waves shrimp tail*

 

[Measley]

Red Lobster has been terrible the last few years. This doesn't surprise me.

Bonefish Grill is where its at for high-end seafood IMO.

 

[The Abominable Snowman]

I usually order a fried shrimp appetizer, a side of rice or potatoes, and feast from endless biscuits

As long as I can continue to do this, I will be fine.

 

[Cody_D165]

Another Red Lobster thread eh?
Mandatory reminder to anyone who enters this thread that this exists.

 

[RumblingRosco]

Worth every penny for the biscuits alone

This is why I don't even bother to go to Red Lobster anymroe.

Yo wtf Cody_D165!

 

[King Cobra]

Red Lobster has been terrible the last few years. This doesn't surprise me.

Bonefish Grill is where its at for high-end seafood IMO.

Bonefish...... High end?

And to think pintrest is worth more than double

 

[FrostuTheNinja]

Bonefish Grill is where its at for high-end seafood IMO.

Let's not get carried away here.

 

[ThatGuyAgain]

If the new owner is smart, they will split off the cheddar biscuits and start a brand new chain: Cheddar Bay

 

[Karkador]

Is this the corporate buyout version of the $30 Italian meal?

 

[FrostuTheNinja]

If the new oner is smart, they will split off the cheddar biscuits and start a brand new chain: Cheddar Bay

Can't wait to try some Cheddar Bay Fried Chicken Sliders.

 

[Cody_D165]

This is why I don't even bother to go to Red Lobster anymroe.

Yo wtf Cody_D165!

See this dude knows.

Spoiler

dem Amazon prices are wack tho

 

[SyNapSe]

Red Lobster is struggling due to competition with Chipotle and Panera Bread? huh

 

[Retrocide]

What's interesting about this deal is is Red Lobster itself minus its real estate holdings is almost worthless

Golden Gate Capital made a separate $1.5 billion deal to sell Red Lobster’s real estate to American Realty Capital Properties, then lease it back. Its other investments include California Pizza Kitchen, Payless ShoeSource and Eddie Bauer.

Link

 

[DietRob]

Another Red Lobster thread eh?
Mandatory reminder to anyone who enters this thread that this exists.

Yep, zero reason to go anymore. I've also nearly perfected a home made variety that I add small bits of bacon to. Godly.

 

[Clydefrog]

Sea cockroach chain worth $2.1 billion

wow

 

[shira]

http://www.bbc.com/news/business-27448689

We can taco 'bout it now!

Red Lobster is Isaih Thomas

http://www.youtube.com/watch?v=cXoJ2cuPdos

 

[Derwind]

Where am I going to get my fine dining experience now?

That's a lot of four course meals.

No, because fine dining is expensive

I love you guys.

Edit; I have to reference back this thread, just to give some context to why I find these comments amusing.

 

[mclem]

As opposed to Taco Bell, which violates cause and effect?

The very thought of eating there makes you shit yourself.

 

[BlackJet]

Sea cockroach chain worth $2.1 billion

wow

You shut your mouth! Lobster is tasty as hell, although I do prefer crab legs.

All this talk is making me want some biscuits..

 

[Archer]

Did someone say Red Lobster?

 

[PeakPointMatrix]

Please someone tell me the cheddar biscuits are okay.

FOR THE LOVE OF GOD TELL ME THE CHEDDAR BISCUITS ARE OKAY!!

 

[ComputerMKII]

I thought an actual red lobster sold for $2.1 billion

 

[Joe Shlabotnik]

The correct pun here is "That's a lot of cheddar

Spoiler

biscuits

".
"Cheddar" being a colloquial term for money.

 

[GSG Flash]

Wow, I didn't know rising shrimp prices could have that much of an effect. The Red Lobsters around here are always packed. Unless you have a reservation, it's atleast a 10 min wait to get in.

 

[okayfrog]

Another Red Lobster thread eh?
Mandatory reminder to anyone who enters this thread that this exists.

I was kinda expecting to be a bit pricey, but it looks like they go for $5.48 at Sam's Club. FIVE FUCKING DOLLARS FOR 30 BISCUITS.

That's just bonkers. There's even a Red Lobster down the street from me, but goddamn, 30 biscuits for $5.48... good lord.

 

[yankeeforever2]

Wow, I didn't know rising shrimp prices could have that much of an effect. The Red Lobsters around here are always packed. Unless you have a reservation, it's atleast a 10 min wait to get in.

Yeah I think they don't have as much as a profit margin as olive garden or a long horn steakhouse which is why they are selling Red Lobster, but I wouldn't be surprised if this end up looking like a horrible sell by them in 10 years.

 

[FStop7]

Red Lobster worth only $100 million more than Oculus Rift.

 

[demon]

I've never once eaten at Red Lobster.

 

[kingocfs]

This is why I don't even bother to go to Red Lobster anymroe.

Yo wtf Cody_D165!

If they were smart they would have locked the recipe up. You'd have to call for reservations months ahead of time.