I do believe that Red Lobster will close some restaurants for its own health, however none of those properties that will get axed are owned by ARCP, knowing this is much more comforting and will turn out to be a solid investment for ARCP!
Seafood = fish and fuel. Both costs are going up more than wages. I don't know why everyone thinks this is so good. Plus there is less fresh water fish. Ask any fisherman. I see this is a last ditch attempt for this company to make some money. Roll of the dice if you ask me. Looked it over and passed. Good luck to you.
ARCP organized the 500 RL restaurant purchase in 10 separate master lease pools. This indicates they will seek to divest at least a few of these pools to improve diversification. I think ARCP bought these properties at a very attractive price so the subsequent divestment should bring in good profit.
BTW the RL around where I am is always packed. It's true some locations may be suffering, but those located in prime locations are doing very well.
Let me guess. By pooling the leases the pool is less risky than the leases? Is that the sales pitch? Kinda like selling CDOs if you ask me. Package up the garbage and sell it as something new and shiny.
I don't love the RL deal - just not crazy about restaurant investments. However I do think ARCP got the cream of the crop, renovated locations. And the ones that Golden Gate is likely to hold on to if/when they decide to pare down.
But I do have to say when I go by the RL nearest to me in the evening "dinner hours" - I always take note of how many cars are in the parking lot. It is usually packed. Most nights there are very few spaces remaining, even in the middle of the week.
And this is in a good, highly trafficked but not over the top desirable location and there are LOTS of other competing restaurants nearby.