Red Lobster

Red Lobster Hospitality LLC is an American casual dining restaurant chain headquartered in Orlando, Florida. The company has operations in Canada, Malaysia, Saudi Arabia, the United Arab Emirates, Qatar, Mexico, and Japan, in addition to the United States.

As of February 24, 2013, the company had 705 locations worldwide. Golden Gate Capital has been Red Lobster’s parent company since it was acquired from Darden Restaurants on July 28, 2014. On August 6, 2014, Red Lobster announced their new headquarters location in CNL Center City Commons in Orlando. On March 6, 2015, Red Lobster officially opened the Restaurant Support Center.

  • Real Estate Profile
  • Company Profile
  • Stock Charts
  • News
Parent Company: Golden Gate Capital
Store Count: 705
S&P Rating: N/R

S&P Outlook: NR

Moody Rating: B3

Moody Outlook: Stable

Typical Lease Characteristics

Lease Term: 15– 20 Years  Years

Lease Type: Absolute NNN Lease 

Lease Increases: 10% Every 5 years 

Lease Extensions: 4-5 (5) Year Options

Lease Guarantor: Corporate

Tenant Overview

Company founder Bill Darden opened his first restaurant, The Green Frog, at age 19. Thirty years later, Bill brought his passion for seafood to Lakeland, Fla., where he debuted the first Red Lobster in 1968. Bill’s vision was to create a place where America could go for seafood for generations and where employees could fulfill their aspirations.

As it grew into a national brand, Red Lobster introduced guests to fresh dishes such as popcorn shrimp, calamari, snow crab and lobster – often for the first time. Over the years, the brand’s passion for fresh, delicious seafood has kept Red Lobster evolving. The restaurant introduced an award-winning Today’s Fresh Fish Menu, installed wood-fire grills in every restaurant in North America, trained staff to become seafood experts and most recently launched a new restaurant design, inspired by the New England coast.

Positives:

  • Generally located in areas with strong demographics
  • Established Brand within its sector
  • Typically Long term leases with increases

Negatives:

  • Higher price point restaurant
  • Competitive Industry Sector
  • Susceptible to economic trends and pressures

Market Snapshots:

On Market Ranges:

# of Properties in set: 34

Price: $4,085,740 - $5,353,730Average: $4,696,252

PPSF: $520 - $690Average: $628

Year Built: 1966 - 2011Average: 1985

CAP Rate Range: 5.18% - 6.66%Average: 5.89%

Size range: 3,520 sq ft - 9,587 sq ft Average: 7,512 sq ft

Last 12 Month Range:

# of Properties in set: 35

Price: $3,414,490 - $3,989,560Average: $3,594,199

PPSF: $459 - $533Average: $489

Year Built: 1953 - 2012Average: 1989

CAP Rate Range: 5.51% - 7.01%Average: 5.99%

Size range: 2,613 sq ft - 9,870 sq ft Average: 7,205 sq ft

Red Lobster Company Profile

Headquarters Information

Orlando, Florida

Founded in 1968

Company type: Private

Parent Company: Golden Gate Capital

Sector: Services

Industry: Restaurant

# of Employees: 58,000

S&P Rating: N/R

S&P Outlook: NR

S&P Rating: B3

Moody Outlook: Stable

No stock information is available for this tenant.
No news available for this tenant.

Contact Form - Investments

    • ?
      Main, New Hampshire, Vermont, New York, Massachusets, Rhode Island, Conneticut, New Jersey, Pennsylvania, Maryland, West Virginia, Virginia
    • ?
      Florida, Georgia, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, Mississippi, Alabama, Georgia, Louisiana
    • ?
      Arizona, New Mexico, Texas, Oklahoma, Colorado
    • ?
      California, Alaska, Nevada
    • ?
      Oregon, Washington, Idaho, Montana
    • ?
      Utah, Wyoming, North Dakota, South Dakota, Nebraska, Kansas
    • ?
      Ohio, Indiana, Illinois, Missouri, Iowa, Minnesota, Michigan, Wisconsin
    • ?
      Alaska, Washington, Nevada, Wyoming, South Dakota, Texas, Florida, New Hampshire