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March 25, 2014

United States

Florida—Red Lobster Hurt by High Shrimp Prices

 

Darden Restaurants plans to sell or spin off Red Lobster, one of its nine subsidiaries, but the high price of shrimp is making that more difficult as Red Lobsters revenues and profits drop.  In recent months, another factor weighing on Red Lobster has been shrimp prices.  Executives said that in the last quarter Red Lobsters costs rose about 30 percent because of “production issues in Asia [early mortality syndrome on shrimp farms].”  On an annual basis, Chief Financial Officer Brad Richmond said the company is facing a $30 million increase in shrimp costs, and the company does not expect its shrimp costs to return to normal levels until early 2015.

 

Source: Yahoo News.  Shrimp Costs Have Red Lobster in Hot Water.  March 21, 2014.

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