Brinker acquires 23 Chili’s units from Chesapeake Foods Inc.
Brinker International Inc. has completed the acquisition of 23 Chili’s Grill & Bar units in the Mid-Atlantic region from franchise operator Chesapeake Foods Inc., the company announced on Thursday.
Details were not disclosed, but the company said the transaction was funded under Brinker’s existing credit facility and is expected to grow earnings per share and cash flow in fiscal 2022.
“The acquisition is in line with our overall growth strategy and belief in the proprietary model,” said Joe Taylor, Brinker’s executive vice president and chief financial officer, in a statement. “We have always valued the decades of high quality operational performance that Chesapeake Foods has brought to the partnership. We are excited about the opportunity to invest in this team and further expand Chilli’s presence in the Mid-Atlantic region. “
During the fourth quarter earnings conference call in August, CEO Wyman Roberts said the pandemic cemented Brinker’s commitment to corporate equity.
Despite the challenges of dealing with labor problems and raw material cycles, he argued that ownership gives the company the ability to deal with the problems effectively.
“It enables us to consistently run our brands and have control over the investments we make to grow the company,” said Roberts.
At the end of June, Brinker owned 1,594 Chili’s and 54 Maggiano’s Little Italy and was based in Dallas. The company owns approximately 1,121 restaurants, including 1,064 chili units in the US
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