A pedestrian wearing a protective mask walks past a Ruth’s Chris restaurant in Washington, D.C., on Monday, April 20, 2020.Andrew Harrer | Bloomberg via Getty ImagesDarden Restaurants said Wednesday it is buying Ruth’s Hospitality Group, the parent company of Ruth’s Chris Steak House, for $715 million.The deal values Ruth’s at $21.50 per share in an all-cash transaction. The steakhouse has more than 150 locations worldwide and generated $505.9 million in revenue in 2022.Ruth’s shares spiked nearly 34% in premarket trading, after closing Tuesday at about $16 per share. Darden’s stock was flat.Ruth’s will join Darden’s fine-dining portfolio, which already includes The Capital Grille and Eddie V’s. In Darden’s most recent quarter, its fine-dining restaurants reported same-store sales growth of 11.7%. The segment’s average weekly sales had more than doubled compared with pre-pandemic levels.The steakhouse is Darden’s first acquisition in six years. It bought Cheddar’s Scratch Kitchen in 2017 for $780 million. CEO Rick Cardenas signaled in January that the company was looking to add a 10th chain to its portfolio, for the right price.Darden plans to hold a conference call Thursday at 8:30 a.m. ET to discuss the deal.The agreement breaks a drought for restaurant deal-making. Rising interest rates have made acquisitions more expensive.On top of that, many restaurant giants such as Yum Brands and Restaurant Brands International have instead focused on turning around the laggards in their portfolios and expanding their newer chains. A turbulent stock market, inflation and concerns about a r …
