Strategics Add M&A to the Menu

"There are several companies - a handful of public entities, but more private businesses - that meet Darden's acquisition criteria that operate in attractive sub categories with growth profiles above benchmarks that Darden will likely pursue over the coming few years," says Josh Benn, the global head of Kroll's investment banking practice. Brands The KFC, Pizza Hut and Taco Bell owner has made acquisitions in the past, but no notable ones since 2020 when it paid $375 million for the Habit Burger Grill. "Activity is being driven largely by strategic acquirers looking to expand portfolios, enhance their growth trajectory and capitalize on synergy opportunities particularly in light of the fact that organic growth remains challenged for many operators and the elevated cost of building new restaurants has compressed new store ROIC (return on invested capital)," says Benn.