Poor performance has Darden looking to to spin off Red Lobster


Not sure how this will shake out for Kingsport’s persistent wishing for a Red Lobster, but Darden has reiterated its plans to divest itself of the seafood chain.
The seafood chain has been struggling with earnings and this year shrimp inflation is not helping. Seafood accounts four about a quarter of Darden’s total costs of good sold and shrimp is the most popular item.
The inflation is driven by production issues in Asia. The bottom line is $6 a pound jumbos – an all-time high.
Analysts don’t expect any relief until 2015.
At the same time lobster prices have fallen.
The reason for the shrimp shortage is a disease that hit the world’s three largest producers: Thailand, China and Vietnam.

 

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