Darden Restaurants agrees to buy Chuy's in $605M transaction
AUSTIN (KXAN) -- The company that owns Olive Garden, Longhorn Steakhouse and other chains just agreed to buy Austin original Tex-Mex chain Chuy's.
This deal comes as both restaurant companies have been struggling with a downturn in customer traffic due to consumer concerns about inflation, according to the Associated Press.
"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," said Chairman, CEO and President of Chuy's Steven Hislop said in the release.
In the $605 million transaction for the restaurant chain, Darden said it wanted to "acquire all of the outstanding shares of Chuy's," according to a release from PR Newswire.
Chuy's was founded in Austin in 1982 and serves "a distinct menu of authentic, made-from-scratch Tex-Mex inspired dishes," the release said.
As of July 16, Chuy's had 101 restaurants in 15 states, the release said.