Brinker International Acquires 23 Franchised Chili's Restaurants
Brinker International, Inc. (NYSE: EAT) has acquired 23 Chili's Grill & Bar restaurants from franchisee Chesapeake Foods, Inc., funded through its credit facility.
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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.
Details
News Market Reaction – EAT
The recorded move for EAT in the trading session of this news was -1.96%.
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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.
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