Chuy’s (NASDAQ:CHUY) stock is rocketing higher on Thursday after the restaurant chain announced a major deal with Darden Restaurants (NYSE:DRI).
This deal involves Darden Restaurants agreeing to acquire CHUY for $605 million in cash. This will require it to pay $37.50 per share for CHUY stock, a 47.9% premium to the stock’s prior closing price.
Darden Restaurants is expecting the acquisition to be neutral to its 2025 earnings per share when excluding the $50 million to $55 million pre-tax expenses connected to it. It also says that the deal will accrue 12 cents to 15 cents in its fiscal 2027 year.
Chuy chairman, president and CEO Steven Hislop said the following about the deal with Darden Restaurants:
“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.”
Details of the Deal for CHUY Stock
The boards of directors of Chuy’s and Darden Restaurants have both unanimously supported the deal. That means it just needs to complete a go-shop period and get approval from CHUY shareholders. They expect it to close in DRI’s fiscal second quarter.
CHUY stock is up 46.9% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
