Darden Acquires Tex-Mex Chain Chuy’s for $605 MillionDarden Acquires Tex-Mex Chain Chuy’s for $605 Million Darden Restaurants, the parent company of Olive Garden, has announced the acquisition of Tex-Mex restaurant chain Chuy’s for $605 million. The move expands Darden’s portfolio of well-known restaurant brands, which also 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. “An Excellent Fit” for Darden Portfolio “Chuy’s is a distinctive 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.” Chuy’s currently operates 101 restaurants in 15 states and generated over $450 million in revenue over the past 12 months. The acquisition is expected to close in Darden’s second fiscal quarter. Accelerating Business Goals Steven Hislop, chairman, CEO, and president of Chuy’s, expressed excitement about joining the Darden family. “Darden shares many of our core values, particularly our operating philosophy and strong team member cultures,” he said. “Together, we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities.” Darden’s Fiscal Highlights Darden’s recent earnings report showed total revenue growth of 8.6% to $11.4 billion in the fourth quarter of fiscal 2024. The company’s financial outlook for fiscal 2025 projects total revenue between $11.8 billion and $11.9 billion. The acquisition of Chuy’s further diversifies Darden’s restaurant portfolio and strengthens its position in the competitive dining industry.
Darden Restaurants, owner of Olive Garden, is buying Tex-Mex restaurant chain Chuy’s for $605 million. Darden’s press site shared details of the transaction.
Chuy’s is just the latest addition to the company’s extensive portfolio of well-known restaurant brands, which also 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.
“Chuy’s is a distinctive brand within the full-service dining industry with strong performance and growth potential,” Darden President and CEO Rick Cardenas said in the release. “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 its 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”
Olive Garden owner Darden Restaurants buys Tex-Mex chain Chuy’s https://t.co/ZSZXqUld6s
— NBC DFW (@NBCDFW) July 17, 2024
Steven Hislop, chairman, CEO and president of Chuy’s, added, “We are excited about the opportunity to join the Darden family and its portfolio of respected brands. Darden shares many of our 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 close in Darden’s second fiscal quarter. The boards of directors of both Darden and Chuy’s have unanimously approved it. The press release notes that the Tex-Mex chain currently operates 101 restaurants in 15 states. As of March 31, 2024, Chuy’s generated more than $450 million in revenue over the past 12 months.
According to PR Newswire, Darden acquired Ruth’s Hospitality Group, the parent company of Ruth’s Chris Steakhouse, in June 2023. USA Today reported that it was acquired for $715 million. According to Darden’s most recent earnings report, the company’s fourth-quarter fiscal 2024 financial highlights included total revenue growth of 8.6% to $11.4 billion, driven by mixed sales from restaurants in the same region. The company’s financial outlook for fiscal 2025 is estimated at total revenue of $11.8 billion to $11.9 billion.
