Red Lobster Is For Sale
Darden, the parent company of Red Lobster, announced this week that they're looking to spin off or sell Red Lobster, according to The Associated Press.
The seafood chain has 705 locations in the United States and Canada, with fiscal sales of $2.6 million in 2013, but it's not enough to keep shareholders happy in an era when more people are looking to chains like Chipotle or Panera for a less-expensive, quicker sit-down meal.
Olive Garden and LongHorn Steakhouse are both also owned by Darden, and they're not getting off easy, either: the company will not be opening any new locations of either chain for the foreseeable future, the company announced.
Should Darden be able to sell or spin Red Lobster off into a separate company, they anticipate at least $60 million in annual savings starting in 2015. If they spin it off, they should be able to report higher earnings and more consistent sales across the board.