Darden Restaurants, Inc. has successfully completed the acquisition of Chuy's Holdings, Inc. in an all-cash transaction valued at approximately $605 million. The acquisition was financed through the proceeds of a $400 million offering of 4.350% senior notes due 2027 and a $350 million offering of 4.550% senior notes due 2029. Chuy's Holdings, which operates more than 100 restaurants across 15 states, will now join Darden's portfolio of differentiated brands, which include 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 Holdings provides a distinct menu of authentic, made-from-scratch Tex-Mex inspired dishes, served in a unique, eclectic, and irreverent atmosphere. Following the completion of the merger, Chuy's Holdings common stock ceased trading on NASDAQ.
As of the latest reporting period, Darden's portfolio now includes over 1100 restaurants across its various brands. This represents a significant increase from the previous period. The acquisition of Chuy's Holdings further diversifies Darden's offering, adding a new cuisine and dining experience to its existing portfolio.
The acquisition is expected to contribute to Darden's financial performance in the coming quarters. Investors will be keen to see how the addition of Chuy's Holdings impacts Darden's revenue and profitability in the next financial reporting period. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $157.6. For more information, read the company's full 8-K submission here.
