Financing

Brinker buys 37 Chili's from franchisee Quality Dining Inc.

The restaurants are in six states in the Great Lakes and Northeast markets. The deal continues Brinker's strategy of operating more of its own stores.
Chili's sign
Photograph: Shutterstock

Chili's parent Brinker International bought 37 restaurants from franchisee Quality Dining Inc.

The locations are in six states—Michigan, Indiana, Ohio, Pennsylvania, New Jersey and Delaware—a Brinker spokesperson said.

The deal closed in October, according to an SEC filing. Terms were not disclosed. 

Indiana-based Quality Dining Inc. had been a Chili's franchisee since the 1990s. It also operates nearly 150 Burger Kings as well as its own Papa Vinos concept. 

The 37 stores are in addition to another 23 that Brinker acquired from franchisee Chesapeake Foods in September. It continues the company's strategy to operate most of its own restaurants.

The deal makes the Chili's system about 91% company-operated in the U.S., with 1,125 corporate stores and 109 franchised locations.

“We're very forward in our belief that corporate ownership is the best way over time to drive returns in this segment,” CFO Joseph Taylor said during the company's investor day in October.

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