Darden to Spin-off Red Lobster

Darden Restaurants Inc. (Orlando), owner of a variety of restaurant brands that includes Olive Garden, LongHorn Steakhouse and Bahama Breeze, has announced it will spin off its Red Lobster business, as part of a cost-cutting plan.

Bloomberg News reported that Darden expects to do a tax-free spin off of Red Lobster to its shareholders and may also consider a sale of the 705-location, $2.6 billion seafood brand.

Kim Lopdrup, president of Darden’s Specialty Restaurant Group, will become ceo of Red Lobster after the separation.