Owner of Olive Garden and Longhorn Steakhouse to Acquire Chuy’s

Darden Restaurants, Inc. and Chuy’s Holdings, Inc. jointly announced that they have entered into a definitive agreement where Darden will acquire all of the outstanding shares of Chuy’s for $37.50 per share, in an all-cash transaction with an enterprise value of approximately $605 million. Chuy’s will complement Darden’s portfolio of iconic brands, which currently includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze.

Founded in Austin, Texas 1982, Chuy’s owns and operates full-service restaurants serving a distinct menu of authentic, made-from-scratch Tex-Mex-inspired dishes. Chuy’s highly flavorful and freshly prepared fare is served in a fun, eclectic, and irreverent atmosphere, while each location offers a unique, “unchained” look and feel, as expressed by Chuy’s motto: “If you’ve seen one Chuy’s, you’ve seen one Chuy’s!” Chuy’s had 101 restaurants in 15 states as of July 16, 2024, and in the latest twelve months ending March 31, 2024, generated total revenues of over $450 million and average annual restaurant volumes of $4.5 million.

“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.”

The transaction is expected to be completed in Darden’s fiscal second quarter, subject to the satisfaction of customary closing conditions.