Bye-Bye Biscuits: Red Lobster Files For Chapter 11 Bankruptcy Protection
Portfolio Pulse from Aaron Bry
Red Lobster has filed for Chapter 11 bankruptcy protection, aiming to reduce its number of locations and find a buyer. The company faces significant debt, higher labor costs, and escalating rents. Darden Restaurants (NYSE:DRI), which once owned Red Lobster, could be impacted if similar challenges affect its other brands.
May 20, 2024 | 5:52 pm
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Darden Restaurants (NYSE:DRI), which once owned Red Lobster, could face similar challenges if its other brands like Olive Garden are unable to adapt to the current consumer environment.
Red Lobster's bankruptcy highlights broader issues in the restaurant industry, such as higher labor costs and escalating rents. If Darden's other brands face similar challenges, it could negatively impact their financial performance.
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