Olive Garden is about to get a lot bigger in Canada.
The casual giant sold its eight company restaurants to Recipe Unlimited, the country’s largest full-service restaurant company with over 1,200 locations in Canada, the U.S., and the Middle East. The Olive Garden stores are based in British Columbia, Alberta, Saskatchewan, and Manitoba.
Recipe entered a development agreement with Darden to “significantly expand” Olive Garden across Canada. It grants the group exclusive rights to open and operate new Olive Garden restaurants in the country. The acquisition is effective immediately.
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“Our partnership with Recipe marks the beginning of an exciting new chapter for Olive Garden in Canada,” Brad Smith, president of Darden International and franchising, said in a statement. “Their proven track record in operating beloved restaurants throughout the country will help us better serve our Canadian guests and team members, while unlocking new opportunities for growth.”
Recipe said it will use its “extensive operational expertise, supply chain efficiencies, and strong marketing capabilities to further enhance the Olive Garden experience in Canada.”
“We are incredibly excited to welcome Olive Garden into the Recipe family,” Recipe CEO Frank Hennessey said in a statement. “Olive Garden is a brand with a strong legacy of success and a loyal following, and we see immense potential for growth across Canada. This acquisition and subsequent development agreement align perfectly with our strategy to expand our presence in the casual dining segment with leading brands that resonate with Canadian consumers.”
At the end of fiscal 2024, Olive Garden franchised in the U.S. (11 locations), Latin America (31 locations), the Middle East (one location), and The Caribbean (one location).
The chain operates over 930 company-owned units in the U.S. It is the largest brand in Darden’s portfolio, followed by LongHorn (591), Cheddar’s (181), Chuy’s (108), Yard House (88), Ruth’s Chris (82), The Capital Grille (71), Seasons 52 (43), Eddie V’s (29), Bahama Breeze (28), and The Capital Burger (three).
Olive Garden posted 6.9 percent same-store sales growth in Q4. Pricing was about 2.7 percent, and traffic increased close to 3 percent. Quarterly sales grew 8.1 percent to $1.38 billion. Olive Garden also delivered a 23.8 percent profit margin, 100 basis points higher than Q4 2024. For the fiscal 2025 year, Olive Garden’s sales were $5.21 billion, up from $5.07 billion.
