Deal Timeline

Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.

The Acquisition Playbook.

Three patterns run through Brinker International's acquisitions — what it looks for, how it pays, and how it folds in what it buys.

01
Acquisition criteria
Franchise buy-backs, not new-brand M&A: every 2010s acquisition was Brinker re-a...
Franchise buy-backs, not new-brand M&A: every 2010s acquisition was Brinker re-acquiring previously franchised Chili's restaurants (Canada 2013, Pepper Dining 2015, ERJ Dining 2019) to bring high-performing units under direct company operation and capture their earnings and cash flow.
Maggiano's Little Italy11 Chili's restaurants (Alberta, Canada)Pepper Dining Holding Corp.ERJ Dining (116 Chili's restaurants)
02
Capital deployment
Small, credit-facility-funded, bolt-on deals: disclosed purchase prices are mode...
Small, credit-facility-funded, bolt-on deals: disclosed purchase prices are modest ($24.6M, $106.5M, $96.0M), each funded from the existing revolving credit facility and pitched as EPS/cash-flow accretive rather than transformational.
Maggiano's Little Italy11 Chili's restaurants (Alberta, Canada)Pepper Dining Holding Corp.ERJ Dining (116 Chili's restaurants)
03
Integration approach
Net divestor of secondary brands: alongside these buy-backs Brinker exited non-c...
Net divestor of secondary brands: alongside these buy-backs Brinker exited non-core concepts (Macaroni Grill, On The Border, Corner Bakery), concentrating the portfolio on Chili's and Maggiano's — so its acquisition activity is really portfolio pruning plus franchise reconsolidation.
Maggiano's Little Italy11 Chili's restaurants (Alberta, Canada)Pepper Dining Holding Corp.ERJ Dining (116 Chili's restaurants)

The Full Deal Book

4 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.

01 Maggiano's Little Italy Not disclosed
Disclosed in 8-K

Brinker acquired the Maggiano's Little Italy polished-casual Italian concept, adding a second brand alongside Chili's; the deal predates modern electronic SEC filings and no purchase price is disclosed in available filings.

We completed the acquisition of Maggiano's in August 1995.
02 11 Chili's restaurants (Alberta, Canada) $24.6M
Announced Jun 2013 Closed Jun 2013

Brinker bought back 11 franchised Chili's restaurants in Alberta, Canada from an existing franchisee to pursue direct company-owned growth of the Chili's brand in the Canadian market.

On June 1, 2013, we completed the acquisition of 11 Chili's restaurants in Alberta, Canada from an existing franchisee for $24.6 million in cash.
03 Pepper Dining Holding Corp. $106.5M
Announced Jun 2015 Closed Jun 2015

Brinker acquired Pepper Dining Holding Corp., a franchisee operating 103 Chili's Grill & Bar restaurants primarily in the Northeast and Southeast U.S., to bring the units under company operation and roll out its loyalty program and reimaging.

Brinker International, Inc. (NYSE: EAT) today announced it has acquired Pepper Dining Holding Corp., a franchisee of 103 Chili's Grill & Bar restaurants... The purchase price of $106.5 million was funded with availability under Brinker's existing credit facility.
04 ERJ Dining (116 Chili's restaurants) $96.0M
Announced Sep 2019 Closed Sep 2019

Brinker completed the acquisition of 116 Chili's Grill & Bar restaurants (generating ~$300M annualized revenue) from its 14-year franchisee ERJ Dining, primarily in the Midwest, funded from its credit facility and expected to be EPS and cash-flow accretive; total cash consideration was $96.0 million per the FY2020 10-K.

Total cash consideration of $96.0 million, including post-closing adjustments, was funded with borrowings from our existing credit facility. We accounted for this acquisition as a business combination.

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