Ruth’s Chris Restaurant Chain Sold for $715 Million to Company With Popular Restaurants in Lafayette

The Ruth’s Chris Steak House chain is being acquired by Darden Restaurants for about $715 million.

The original Chris Steak House was opened on New Orleans’ Broad Street in 1927, and it was acquired by Ruth Fertel in 1965. The company has 154 locations worldwide, including 80 company-owned or -operated restaurants and 74 franchised restaurants.

The company, now based in Winter Park, Florida, suffered as most restaurants did during the pandemic, closing 23 restaurants in early 2020, furloughing workers and announcing that executives were taking less pay.

Shares of Ruth’s Hospitality Group Inc., which owns the restaurants, recovered within a year of the outbreak. Shares were halted before the market opened and jumped more than 30% at the opening bell.

Darden, also based in Florida, is acquiring all outstanding shares of Ruth’s for $21.50 per share, a 34% premium.

“Ruth’s Chris is a strong and distinctive brand in the fine dining segment with an impressive history of delivering elevated dining experiences to their loyal guests,” said Darden CEO Rick Cardenas said in a prepared statement Wednesday.

Darden Restaurants Inc. owns Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s.

In addition to the Ruth's Chris Steakhouse location on Pinhook Road and St. Mary, Darden also has an Olive Garden and a Longhorn Steakhouse location in the Lafayette market

Ruth's Chris Steak House came a long way to become a high-end restaurant chain that specializes in serving premium quality steaks. As I mentioned earlier, the history of the chain dates back to 1965, when a single steakhouse was opened in New Orleans by a woman named Ruth Fertel. At the time, Ruth was a divorced mother of two and was looking for a way to support her family.

That original steakhouse on Broad Street was housed in a small cottage that could seat only around 60 guests. Despite the small size, the restaurant quickly gained a reputation for serving some of the best steaks in the city. Ruth's secret to success was her commitment to using only the highest quality ingredients and preparing everything from scratch.

The restaurant's Louisiana connection runs deeper than just NOLA because, in the early 1970s, Ruth expanded the business by opening a second location in Baton Rouge, Louisiana. Over the next few years, several more restaurants were opened across the United States, and the chain was renamed Ruth's Chris Steak House after a merger with a similarly named restaurant.

Today, Ruth's Chris Steak House is a global brand with locations in several countries, including Canada, Mexico, Hong Kong, and the United Arab Emirates. Despite its growth, the chain has stayed true to its roots, and its commitment to using only the best ingredients and providing exceptional service remains unchanged.

The deal, which was unanimously approved by both companies’ boards, is expected to close next month.