Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Bye-Bye, Rib Eye

Publicly traded steakhouses are becoming an endangered species.

Duffy's Sports Grill announced that it was buying troubled Roadhouse Grill (OTC BB: GRLL.PK) in a $29 million deal last night.

The 57-unit casual steakhouse chain was on the brink of disappearing before the offer to take the company private came to save the day. Its shares were trading for less than a dime apiece.

So let's call this a small and somewhat insignificant chapter in the very long book of recent chophouse buyouts.

Roadhouse Grill never lived up to the potential of its more notable peers. It once had as many as 85 locations, but spotty profitability kept investors away. The company itself never regained its initial swagger after emerging from bankruptcy five years ago.

The recent moves to go private won't leave us with too many publicly traded steakhouses. We still have Ruth's Chris (Nasdaq: RUTH  ) and Morton's of Chicago (NYSE: MRT  ) on the high end, but the casual-dining end where many of these deals are taking place is drying up. There used to be nearly a dozen chains trading, and now we're down to a few remaining holdouts like Texas Roadhouse (Nasdaq: TXRH  ) and LongHorn Steakhouse parent RARE Hospitality (Nasdaq: RARE  ) .

Will the last publicly traded steakhouse please turn off the grill on the way out?

Outback Steakhouse parent OSI Restaurant Partners is an Inside Value recommendation.

Longtime Fool contributor Rick Munarriz is always on the lookout for a good steakhouse and thankfully has plenty to choose from in Miami. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (12)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 525350, ~/Articles/ArticleHandler.aspx, 10/26/2016 7:38:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
CBRL $132.04 Down -1.08 -0.81%
Cracker Barrel Old… CAPS Rating: ***
MRT.DL $0.00 Down +0.00 +0.00%
Morton's Restauran… CAPS Rating: *
RUTH $14.25 Down -0.20 -1.38%
Ruth’s Hospitality… CAPS Rating: ***
TXRH $38.86 Down -0.13 -0.33%
Texas Roadhouse CAPS Rating: *****