Foodservice Equipment Reports

Landry’s To Acquire Mitchell’s Restaurants In $10M Deal

Ruth’s Hospitality Group will focus on its core steakhouse concept after reaching an agreement to sell its Mitchell’s Fish Market and Mitchell’s/Cameron’s Steakhouse restaurants to Landry’s Inc. for $10 million.

The deal, significantly less than the $92 million Ruth’s paid for the concepts in early 2008, includes 18 Mitchell’s Fish Market locations and three Cameron’s Steakhouse units. The sale, announced Nov. 17, is expected to close within 75 days of that date. In addition to the sale, Winter Park, Fla.-based Ruth’s said it plans to repurchase as much as $50 million in company stock.

Ruth’s now will concentrate on one concept, Ruth’s Chris Steak House. “While the Mitchell’s restaurants continue to be profitable and generate positive cash flows, the sale of these restaurants will enable us to direct all of our resources toward the continued growth and expansion of our flagship Ruth’s Chris Steak House brand,” Ruth’s CEO Michael O’Donnell said in a statement. “We are confident that Mitchell’s will complement Landry’s existing seafood-restaurant portfolio.”

Mitchell’s will be the fifth seafood concept in Houston-based Landry’s portfolio. Its brands include Landry’s Seafood, Bubba Gump Shrimp Co., The Oceanaire and McCormick & Schmick’s.

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