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Darden Restaurants to Acquire Chuy’s Holdings for $605 Million at $37.50 per Share, 50% Premium

Jul 17, 2024, 10:52 PM

Darden Restaurants, the parent company of Olive Garden and Ruth’s Chris Steak House, has announced an agreement to acquire Chuy’s Holdings, Inc., a Tex-Mex restaurant chain based in Austin, Texas, for approximately $605 million. The all-cash deal values Chuy’s at $37.50 per share, representing a significant premium of 50% over its recent stock price. The acquisition, which was jointly announced on July 17, 2024, will expand Darden’s portfolio of casual dining concepts, which already includes brands like LongHorn Steakhouse and YardHouse. The transaction comes as both companies have been facing challenges with customer traffic due to inflation concerns. The deal values Chuy’s at 10X LTM EBITDA and 20x EPS, with Chuy’s stock increasing by 47% following the announcement.