
Cheddar's Scratch Kitchen is owned by Darden Restaurants Inc. (NYSE: DRI), a publicly traded American restaurant company headquartered in Orlando, Florida. Darden acquired Cheddar's in 2017 for approximately $780 million. The chain operates 184 company-owned locations across 28 states as of May 2026. Darden reported total sales of $13.21 billion in fiscal year 2026, with Cheddar's contributing to the Other Business segment alongside Yard House, Chuy's, and Seasons 52.
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Cheddar's Scratch Kitchen | Darden Restaurants | Wholly owned |
Cheddar's Scratch Kitchen was founded in 1979 by Aubrey Good and Doug Rogers in Arlington, Texas. The name "Cheddar's" was proposed by a fifth-grade class when the founders asked for restaurant name suggestions. The original concept was simple: quality food, made from scratch, at a fair price.
The restaurant targeted families and budget-conscious diners with generous portions and affordable pricing. The made-from-scratch approach set Cheddar's apart from competitors that relied more heavily on pre-packaged and processed ingredients. The chain's signature items included hand-breaded chicken tenders, homemade croissants, and scratch-made soups.
Through the 1980s and 1990s, Cheddar's expanded across the southern and midwestern United States. The chain reached 10 locations by 1995 and continued growing through a mix of company-owned and franchised units. The brand was known as Cheddar's Casual Cafe during this period.
In 2015, the brand rebranded from Cheddar's Casual Cafe to Cheddar's Scratch Kitchen. The name change emphasized the scratch-cooking aspect of the concept, differentiating it from competitors in the value dining segment where pre-made and processed food is common.
Darden Restaurants acquired Cheddar's in 2017 for approximately $780 million. At the time, Cheddar's had 165 locations across 28 states with average annual restaurant volumes of $4.4 million. The acquisition was part of Darden's strategy to add a value-focused brand to its portfolio, which already included mid-range concepts like Olive Garden and premium concepts like The Capital Grille.
After the acquisition, Darden integrated Cheddar's into its shared services infrastructure, including supply chain, marketing, and operational support. Darden also acquired franchised units to consolidate ownership. The transition was not without challenges. In the years immediately following the acquisition, Cheddar's struggled with operational integration and menu simplification. Restaurant Business Online reported that it took several years for the chain to "hit its stride" under Darden ownership.
By 2023, Cheddar's generated approximately $751 million in revenue with 23,000 employees across 185 locations. The chain was ranked #72 in Technomic's Top 500 Chain Restaurant Report for 2024.
As of May 2026, Cheddar's operates 184 company-owned locations, up from 181 in May 2025. The chain has limited but steady growth, with 3 net new locations added in fiscal year 2026. Darden's fiscal 2027 outlook includes 75 to 80 new restaurant openings across all brands, with Cheddar's expected to contribute a modest share.
Doug Rogers passed away in 2025. Cheddar's posted a tribute on LinkedIn honoring his legacy: "In 1979, Doug Rogers and Aubrey Good opened the first Cheddar's in Texas with a simple promise: quality food, handcrafted with care, at a fair price."
What restaurants does Darden own?
Darden owns 11 restaurant brands: Olive Garden (936 locations), LongHorn Steakhouse (601), Cheddar's Scratch Kitchen (184), Chuy's (109), Yard House (91), Ruth's Chris Steak House (82), The Capital Grille (73), Seasons 52 (45), Eddie V's (30), Bahama Breeze (28), and The Capital Burger (3). Total: 2,182 restaurants as of November 23, 2025.
Is Darden Restaurants publicly traded?
Yes. Darden Restaurants, Inc. is publicly traded on the New York Stock Exchange under the ticker DRI. The company is a component of the S&P 500. There is no parent company or controlling shareholder.
Who owns Darden Restaurants?
Darden Restaurants is an independent publicly traded corporation with no parent company. The company is owned by institutional investors, mutual funds, and individual shareholders. Major institutional holders include Vanguard Group, BlackRock, and State Street Corporation. There is no dual-class share structure or founder control.
What were Darden's FY2026 financial results?
For FY2026 (fiscal year ended May 31, 2026), Darden reported total sales of $13.21 billion, up 9.4% year over year, with blended same-restaurant sales growth of 4.5%. Reported diluted EPS from continuing operations was $10.44, and adjusted diluted EPS was $10.64, up 11.4% from the prior year. The fiscal year included a 53rd week of operations, which contributed approximately 2.1% to sales growth and $0.25 to EPS.
Does Darden own Red Lobster?
No. Darden sold Red Lobster to Golden Gate Capital in 2014 for $2.1 billion. Red Lobster subsequently filed for Chapter 11 bankruptcy in May 2024. Darden has no ownership interest in Red Lobster.
When was Darden Restaurants founded?
Darden Restaurants was spun off from General Mills as an independent public company in 1995. Its origins trace to 1968 when Bill Darden opened the first Red Lobster in Lakeland, Florida. General Mills acquired Red Lobster in 1970 and developed Olive Garden in 1982 before spinning off the restaurant division as Darden Restaurants.
How many restaurants does Darden operate?
Darden operates 2,182 company-owned restaurants across 11 brands, primarily in the United States. All restaurants are company-owned rather than franchised.
What is Darden's FY2027 outlook?
Darden's FY2027 outlook projects total sales of $13.60 to $13.75 billion, same-restaurant sales growth of 2.5% to 3.5%, 75 to 80 new restaurant openings, total capital spending of approximately $875 million, and diluted EPS from continuing operations of $11.10 to $11.35.
Cheddar's Scratch Kitchen has no documented major food safety recalls, regulatory actions, or significant public controversies as of July 2026. The chain operates under Darden's food safety protocols and quality assurance programs.
The chain has faced typical restaurant industry challenges, including occasional customer complaints about service quality and wait times. These appear to be isolated incidents rather than systemic problems. No class-action lawsuits, major health code violations, or regulatory enforcement actions have been reported.
The transition of franchised locations to company ownership following the 2017 Darden acquisition created some operational friction. Darden acquired 44 franchised units from Greer Companies as part of the deal. The integration of these locations into Darden's standardized operations took several years, and the chain's performance was uneven in the first few years post-acquisition. Restaurant Business Online reported that Cheddar's was "finally hitting its stride" six years after the acquisition, suggesting a prolonged integration period.
Darden Restaurants as a parent company has faced controversies at other brands, including labor disputes at Olive Garden and animal welfare concerns at LongHorn Steakhouse. No brand-specific controversies have been directed at Cheddar's.
These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.
| Brand | Parent Company | Country | Founded | Market Position | Primary Market | Gender Target |
|---|---|---|---|---|---|---|
| Famous Brands | South Africa | 1934 | Mass market | South africa | All-ages |
Market Positioning: Cheddar's Scratch Kitchen competes with 1 brands in the same categories, ranging from mass market to luxury positioning.
Geographic Distribution: Competitors are headquartered across multiple regions, indicating global competition in this market segment.
Brand Heritage: Competitor brands range from established heritage brands to newer market entrants, with founding years spanning several decades.
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