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Darden Restaurants, Inc., which owns Olive Garden, Ruth’s Chris Steak House and other national restaurant brands, has decided to add Chuy’s to their stable. The companies announced on July 17 that they have an agreement for Darden to acquire Chuy’s in an all-cash transaction valued at $605 million.
Chuy's had 101 restaurants in 15 states as of July 16, 2024, and in the 12 months ending March 31, 2024 generated total revenues over $450 million, and average annual restaurant volumes of $4.5 million. The company was founded in Austin in 1982 and is known for a fun, eclectic and irreverent atmosphere.
"Chuy's is a differentiated brand within the full-service dining industry with strong performance and growth potential," said Darden President and CEO Rick Cardenas. "Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy's is an excellent fit that supports our winning strategy. I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category."
Steven Hislop, Chairman, CEO and President of Chuy's, stated, "We are excited about the opportunity to join the Darden family and its portfolio of well-respected brands. Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures. Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities."
Chuy's board of directors unanimously approved the merger agreement with Darden and determined to recommend that Chuy's stockholders vote to adopt the merger agreement. The definitive merger agreement includes a 30-day "go-shop" period that will allow Chuy's to affirmatively solicit alternative proposals from interested parties.
The transaction is expected to close in Darden's fiscal second quarter subject to certain conditions set forth in the merger agreement, including the approval by a majority of Chuy's stockholders, the expiration or termination of the applicable waiting period under the HSR Act and other customary conditions.
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