Brinker International Acquires 23 Franchised Chili's Restaurants

Rhea-AI Summary

Brinker International, Inc. (NYSE: EAT) has acquired 23 Chili's Grill & Bar restaurants from franchisee Chesapeake Foods, Inc., funded through its credit facility. This strategic acquisition aims to bolster Brinker’s growth strategy and enhance its presence in the Mid-Atlantic region. The company anticipates that the transaction will be accretive to earnings per share (EPS) and cash flow in fiscal year 2022. Joe Taylor, Brinker’s CFO, highlighted the long-standing partnership with Chesapeake and the value of ownership in driving performance.

Positive

• Acquisition of 23 Chili's restaurants expected to enhance market presence.
• Projected EPS and cash flow accretion in fiscal 2022.
• Strengthening of company-owned business model.

Negative

• None.

DALLAS, Sept. 2, 2021 /PRNewswire/ -- Today, Brinker International, Inc. (NYSE: EAT) completed the acquisition of 23 Chili's® Grill & Bar restaurants located in the Mid-Atlantic region from its 37-year franchisee, Chesapeake Foods, Inc. The transaction was funded with availability under Brinker's existing credit facility and is expected to be EPS and cash flow accretive in fiscal year 2022.

"This acquisition aligns with our overall growth strategy and belief in the company-owned model," said Joe Taylor, executive vice president and chief financial officer of Brinker. "We've always appreciated the decades of quality operating performance that Chesapeake Foods brought to the partnership. We're excited about the opportunity to invest in this team and further grow Chili's presence in the Mid-Atlantic region."

ABOUT BRINKER
Brinker International, Inc. is one of the world's leading casual dining restaurant companies. Based in Dallas, as of Aug. 4, 2021, Brinker owned, operated, or franchised 1,648 restaurants under the names Chili's® Grill & Bar (1,594 restaurants) and Maggiano's Little Italy® (54 restaurants).

FORWARD LOOKING STATEMENTS
The statements contained in this release that are not historical facts are forward-looking statements subject to risks and uncertainties which could cause actual results to differ materially from expectations. For more information, review the caption "Risk Factors" in our fiscal 2021 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission relating to forward-looking statements.

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SOURCE Brinker International, Inc.

FAQ

What is the significance of Brinker International's acquisition of 23 Chili's restaurants?

The acquisition is part of Brinker’s growth strategy, aiming to expand its company-owned restaurants in the Mid-Atlantic region.

How is Brinker International funding the acquisition of Chili's restaurants?

The acquisition is funded through available resources under Brinker's existing credit facility.

When is Brinker International expecting the acquisition to impact EPS and cash flow?

Brinker expects the acquisition to be accretive to EPS and cash flow in fiscal year 2022.

Who was the previous owner of the acquired Chili's restaurants?

The 23 Chili's restaurants were previously owned by franchisee Chesapeake Foods, Inc.

What is Brinker International's strategy following the acquisition?

Brinker aims to invest in the new locations to further grow its brand presence in the Mid-Atlantic region.