Red Lobster Shuts Times Square (23 Years); FY2026 Net Income Seen ~$2.1M
Red Lobster closed its Times Square location (June 14, after 23 years); building going residential; FY2026 net income projected ~$2.1M post-bankruptcy.
TL;DR — Red Lobster closed its Times Square flagship after 23 years as new CEO Damola Adamolekun pursues a turnaround that projects a return to profit (~$2.1M net income) in fiscal 2026 following the chain’s 2024 bankruptcy.
Red Lobster closed its Times Square flagship as part of a post-bankruptcy turnaround. The context:
What happened
Red Lobster closed its Times Square flagship after 23 years, citing prolonged building construction that hurt access and foot traffic; the building is slated for residential conversion. The closure comes as CEO Damola Adamolekun — who took over in August 2024 — leads a post-bankruptcy turnaround that projects a return to profit, with net income of roughly $2.1 million in fiscal 2026. He has positioned Red Lobster as an "AI-forward" restaurant company and ruled out reviving the Endless Shrimp deal that helped trigger the 2024 bankruptcy.
| Detail | |
|---|---|
| Times Square run | 23 years (closed) |
| Reason | Construction; building going residential |
| FY2026 net income (projected) | ~$2.1M (return to profit) |
| CEO | Damola Adamolekun (since Aug 2024) |
What they said
"I think this can be the greatest comeback in the history of the restaurant industry." — Damola Adamolekun, CEO, Red Lobster
Why it matters
- Shrink to survive. Closing weak locations is central to the post-bankruptcy plan.
- Casual dining under pressure. Red Lobster’s retrenchment mirrors a broader 2026 squeeze.
- A real-estate story too. A Times Square restaurant becoming apartments reflects shifting urban economics.
FAQ
Why did Red Lobster close its Times Square location?
After 23 years, Red Lobster closed the flagship citing prolonged building construction that hurt access, visibility and foot traffic; the building is slated for residential conversion. It is part of a broader post-bankruptcy shrink-to-profit strategy.
Is Red Lobster recovering?
Under CEO Damola Adamolekun, Red Lobster projects a return to profit with roughly $2.1 million in net income in fiscal 2026, after its 2024 bankruptcy — driven by cost cuts, closures and a repositioning he calls "AI-forward."
Sources
Image: “Red Lobster restaurant” by Anthony22, CC BY-SA 3.0, via Wikimedia Commons.
← Back to all posts