McCormick & Schmick's Seafood Restaurant Receives Buyout Offer From LSRI (MSSR, RUTH, MRT, BNHNA)

According to a report released

, McCormick & Schmick's Seafood Restaurants

was offered a $173.3 million buyout from LSRI Holdings, a subsidiary of Landry's Restaurants, and its owner Tilman J. Fertitta. Incorporated in the offer is a bid of $9.25 per share (all cash), which is a 30 percent premium to MSSR's Friday closing price of $7.21. Shares jumped more than 29 percent on Monday in reaction to the LSRI offer. “We believe the offer represents a unique opportunity for [MSSR] stockholders to realize the value of their shares at a significant premium to [MSSR's] current and recent stock price,” said Fertitta. With that news in mind, Benzinga took the opportunity to explore other food and restaurant chains that could be ripe for a buyout. Ruth's Hospitality Group

, an upscale dining restaurant group which recently returned to profitability in its fourth quarter after reporting net losses of $2.7 million in December 2009, is currently trading at $5.02 per share and could represent significant value should LSRI wish to continue to expand into the fine dining arena. Sitting comfortably between MSRI and RUTH is Morton's Restaurant Group

, currently trading at $7.40. The company has been mooted for a possible sale, but to recoup all the money shareholders have lost since it went public five years ago, the steakhouse chain needs to persuade potential buyers to pay through the nose. Mortons would need to attract a per-share bid of $17, and this has been putting off interested parties. Benihana

is currently trading at $8.50, an increase of 7 percent for the third four-week period. This consistent growth is attractive to buyers, and BNHNA would be an interesting move for Fertitta should he be looking for some international flavor to his investments.