Olive Garden parent Darden Restaurants has acquired two restaurant chains in the past three years, reinforcing its position as the largest full-service restaurant operator in the U.S. It may be just getting started.
At the ICR conference Monday, Darden CFO Raj Vennam indicated that Darden will continue to be aggressive on M&A. He noted that in mature industries, the largest players typically have double-digit market share; today, Darden’s share is in the single digits.
“That just tells you that there’s opportunity for us to further increase that over time,” he told the audience of investors and media members in Orlando.
Darden operates 10 full-service chains with more than 2,100 locations and generated $12 billion in sales in fiscal 2025. In 2023, it acquired Ruth’s Chris Steak House for $715 million, adding another steak chain to a portfolio that also includes LongHorn Steakhouse and The Capital Grille. The following year, it bought Chuy’s Tex-Mex for $605 million, planting a flag in the full-service Mexican segment.
The company’s other brands are Yard House, Cheddar’s Scratch Kitchen, Seasons 52 and Eddie V’s Prime Seafood. It is considering strategic alternatives for a 10th brand, Bahama Breeze Island Grille. Most were added via acquisiton.
Executives did not say what type of brand Darden might be in the market for this time around. In the past, it has targeted company-operated concepts that it believes have long-term growth potential, but has generally been cuisine-agnostic.
There has been a smattering of acquisitions in the full-service segment this year, including Denny’s announced sale for $620 million, California Pizza Kitchen, and Hooters, out of bankruptcy.
Market share is not the only thing driving Darden’s appetite for M&A. More restaurants also equals more scale, which is Darden’s biggest competitive advantage, Vennam said. In particular, scale helps the company hire and retain employees, because they can grow their careers across multiple brands and roles. This leads to better operations in its restaurants.
“We just operate our restaurants, we believe, better than anybody we compete against … and that’s just gonna continue for us, and it’s enabled by the platform,” CEO Rick Cardenas said.
Orlando-based Darden is coming off a strong quarter for its two largest brands, Olive Garden and LongHorn Steakhouse, leading it to raise its sales and earnings guidance for the year.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.