4 months ago
Key Takeaways
- Darden Restaurants will bargain Tex-Mex edifice concatenation Chuy's for $605 cardinal successful cash.
- The $37.50-per-share woody is simply a 48.4% premium complete Chuy's closing value Wednesday.
- Chuy's has a 30-day "go-shop" action to look for different imaginable suitors.
Shares of Chuy’s Holdings (CHUY) soared Thursday aft Darden Restaurants (DRI) announced it was buying nan Tex-Mex edifice concatenation for $605 cardinal successful cash.
The genitor of Olive Garden, LongHorn Steakhouse, and different eateries said it was paying $37.50 per stock for Chuy’s, a 48.4% premium complete nan stock’s closing value yesterday.
Darden CEO Says Chuy's 'Supports Our Winning Strategy'
Darden Chief Executive Officer (CEO) Rick Cardenas explained that based connected nan company’s criteria for description , “We judge Chuy's is an fantabulous fresh that supports our winning strategy.” Chuy’s has 101 locations successful 15 states, and posted $450 cardinal successful gross for nan 12-month play ending March 31.
Darden anticipates nan acquisition will not effect diluted earnings per stock (EPS) successful fiscal 2025, and will beryllium accretive by $0.12 to $0.15 per stock successful fiscal 2027.
Under nan position of nan deal, Chuy’s has a 30-day “go-shop” action to activity different buyers.
The news sent shares of Chuy’s Holdings surging 48% to $37.34 arsenic of 10:34 a.m. ET Thursday. Darden Restaurant shares fell 1.6% to $144.95.
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