Red Lobster’s New CEO Aims for Historic Turnaround After Bankruptcy

Red Lobster, the 57-year-old seafood chain, has emerged from bankruptcy after a swift three-month restructuring. The company, which faced significant losses from an ill-fated endless shrimp promotion and other missteps, is now under the leadership of Damola Adamolekun.

The 36-year-old CEO, formerly of P.F. Chang’s, forecasts positive net income by fiscal 2026 and projects a 43 percent growth in adjusted EBITDA from 2025 to 2027. Adamolekun boldly predicts this will become “the greatest comeback in the history of the restaurant industry.”

His confidence stems from a proven track record. As CEO of P.F. Chang’s, he navigated the pandemic, restored profitability, and grew revenue to approximately US$1 billion. A former Goldman Sachs investment banker, Adamolekun views risk as manageable.

“Risk on its own isn’t something to avoid. You just need adequate return,” he stated.

His strategy for Red Lobster explicitly rules out reviving the loss-leading endless shrimp deal. Instead, he is executing a US$60 million plan to refurbish existing locations – repairing infrastructure and updating decor – while streamlining the menu for efficiency.

The chain, now operating about 500 restaurants, is also focusing on value, aiming to “lower the check” for customers.

Initiatives like a revived Lobsterfest promotion, a new happy hour menu, and the return of fan favorites form part of the operational overhaul. Adamolekun acknowledges the challenge but remains undaunted. “I don’t mind setting really high goals, and I don’t mind going after difficult things,” he said.