Darden Restaurants has announced the acquisition of Chuy’s Holdings for approximately $605 million in cash. This strategic move will see Chuy’s joining Darden’s portfolio, which already includes popular chains like Olive Garden and LongHorn Steakhouse. The Tex-Mex restaurant chain will be acquired at $37.50 per share, and this acquisition marks Darden’s entry into a new dining category, diversifying its offerings in the competitive restaurant industry.
Chuy’s, founded in 1982 and based in Austin, Texas, currently operates 101 restaurants across 15 states and generated over $450 million in total revenues in the past 12 months. Darden CEO Rick Cardenas expressed his excitement about incorporating Chuy’s into their winning strategy, highlighting the potential for growth and synergy between the two companies. Cardenas noted that the acquisition aligns with Darden’s criteria for adding brands to their portfolio while bringing authentic Tex-Mex cuisine to more guests and communities.
Both companies are optimistic about the future prospects of this deal, with Chuy’s CEO Steven Hislop voicing his anticipation for accelerating business goals and expanding the reach of their made-from-scratch offerings. The transaction is expected to be completed in Darden’s fiscal second quarter, signaling a significant move in the restaurant industry landscape that could potentially lead to enhanced growth and brand presence for both Darden Restaurants and Chuy’s Holdings.