Darden Plans to Split Off Red Lobster

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Dec. 19 (Bloomberg) -- Darden Restaurants plans to separate its Red Lobster business, halt acquisitions and cut expenses as restaurant sales slow. Julie Hyman reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Breakup.

I'm not sure there was romance involved in this particular partnership.

Red lobster -- why red lobster in a complex red lobster has not been doing as well as other chains.

-- why red lobster?

Red lobster has not been doing as well.

Jarden's declining sales have -- darden's declining sales have been more consistent.

There were other chains they were partnered with that were doing better.

It is either going to sell it off or spin it.

It has not decided it is -- it has not decided.

People are going fast casual and now they are staying away from fast food, is that if?

That is part of it.

I got some sales trends from npd group this morning that shows the average check at casual dining establishments is part of it.

The average check has been actually going up for the consistently, but traffic is going down.

They are not necessarily getting people through the door.

It is surprising that you would see that.

And what we were saying earlier about inflation, there you have it.

Higher ticket, inflation.

At the morning call this morning, the darden executives are talking about promotions.

The endless shrimp promotion and the price of shrimp going up, that means lower margins.

It partly has to do with the volatility in seafood prices.

There is competition in that area and you have other places offering seafood promotions of various types also.

But the thing is, darden is not just offering lobster, but slowing the growth of its other chains.

It is not going to expand with all of garden.

It is going to slow the growth of longhorn and have modest growth in specialty business.

All across the board it is tightening up.

Thank you, julie hyman.

? moving and shaking this hour.

Lowe's chairman jonathan tisch, the home of new york's power breakfast at the loews regency hotel right nearby reopens next month.

It has been undergoing a massive renovation, $100 million.

It is the most expensive for the hotel chain since the 1970s. breakfast at the region has been

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