Wall Street analysts on Friday praised Darden Restaurants Inc.’s decision to acquire the growing Yard House chain, saying the hip, young brand will be a spark within the largest casual-dining operator’s more mass-market portfolio.
Orlando, Fla.-based Darden said Thursday that it has agreed to buy Yard House USA Inc. for USD 585 million in cash in a deal expected to close in Darden’s second quarter.
Following the announcement, most analysts argued that Yard House would certainly benefit from Darden’s resources as the largest casual-dining operator in terms of scale, supply chain and operational strengths, as well as its access to real estate. Others pointed to the upside for Darden.
“Yard House fits well within their portfolio and has no operational (i.e. distraction) impact on the core brands,” wrote Jeffrey Bernstein of Barclays Capital Inc. “And we should not forget the expertise Yard House offers Darden’s portfolio, such as successful bar operations and targeting a younger demo.”
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