Chuy’s will complement Darden’s brand portfolio which includes Olive Garden. Credit: Jonathan Weiss / Shutterstock.

Darden Restaurants has agreed to acquire Chuy’s Holdings in a $605m transaction.

The all-cash deal will see Darden add Chuy’s to a portfolio already containing Olive Garden and LongHorn Steakhouse.

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Established in 1982 in Austin, Texas, Chuy’s runs full-service restaurants offering made-from-scratch Tex-Mex-inspired dishes. It operates 101 locations across 15 states in the US.

Chuy’s reported more than $450m in total revenues and average annual restaurant volumes of $4.5m in the 12 months ending 31 March 2024.

The acquisition, unanimously approved by both companies’ boards of directors, is expected to be completed in Darden’s fiscal second quarter.

Darden Restaurants president and CEO Rick Cardenas said: “Chuy’s is a differentiated brand within the full-service dining industry with strong performance and growth potential.

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“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 their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”

Chuy’s Holdings chairman, president and CEO Steven Hislop said: “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.”

In June 2023, Darden Restaurants completed the acquisition of Ruth’s Hospitality Group for $715m.

The deal was executed through Darden’s indirect wholly-owned subsidiary, the Ruby Acquisition Corporation.