Orlando-based Darden Restaurants might be looking now for a new restaurant chain to acquire, according to an analyst's note released Monday.
In a meeting with Darden management last week, restaurant-industry analyst Steve West said executives discussed the challenge of growing revenue after a few years and believe they have to look to another acquisition that has relatively high average checks, can expand nationally and generates anywhere from $500 million to $1 billion in sales annually.
The company, owners of Olive Garden, Red Lobster and other chains, indicated the types of restaurant chains it would prefer include steak, Asian, Mexican or even a "differentiated" bar and grill chain, according to West, with Stifel Nicolaus.
The company bought two steakhouse chains in 2007 – LongHorn Steakhouse and Capital Grille. But there is still growth potential in that market, West said.
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