Darden, the company that owns Olive Garden, Longhorn Steakhouse, and other chains, agreed to buy the Tex-Mex chain Chuy’s for $605 million.
The acquisition comes as both companies were facing a downturn in customer traffic due to consumer concerns about inflation.
The big picture: Darden will acquire all outstanding shares of Chuy’s for $37.50 per share, with Chuy’s known for its fresh food and eclectic decor.
- Chuy’s was founded in 1982 in Austin, Texas, and currently operates 101 restaurants in 15 states with 7,400 employees.
- Darden sees Chuy’s as a differentiated brand with strong growth potential that will expand its dining options.
- In Darden’s fiscal fourth quarter, same-store sales were flat, while Chuy’s same-store sales were down by 5% in its first quarter.
