New York, July 13 (alphajetsusa.com) – Darden Restaurants Inc(NYSE: DRI), world’s largest full-service restaurant company announced yesterday that it is buying the Irvine-based restaurant chain, Yard House for $585 million.
The deal, which is expected to be finalized by November this year is an all cash deal and will help Darden in expanding its appeal with younger and higher-income guests.
Post deal, Darden expects that its revenue would decrease by 3 to 5 cents per share in the financial year 2019 through next May, however, it will increase after that and the company has decided to cut down its number of shares buyback to compensate for that.
Yard House, serving around in 13 states with its 39 restaurants, offers a variety of draft beers and food like steaks, salads and pizzas.
Darden hopes that the deal will help in raising the total revenue for the financial year 2019 by around 9 to 10 percent while earning from its casual dining restaurants like Olive Garden, Red Lobster and LongHorn Steakhouse restaurants which have started operating almost one year before to increase at a rate of 1 to 2 percent for the same period.