Brinker International Inc. wants Romano's Macaroni Grill off its menu. The owner of casual dining restaurants sold its majority share of the Italian eatery to MacAcquisition LLC for $131.5 million in cash on Aug. 18. Brinker will still retain a 19.9% interest in Macaroni Grill. For Fitch Ratings, the sale had no impact on Brinker's debt ratings. Fitch maintains a BBB- rating and negative outlook on Brinker.
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The deal frees up additional cash for Brinker, which a little over a year ago, sold 95 Chili's restaurant locations for $155 million. The divestments seem like a good cushion for Brinker, since the economy is slowing down and consumers seem to be paring down their discretionary spending. Meanwhile, Fitch "expects the company to use a significant portion of its free cash flow for debt reduction to improve its credit profile."
Despite the Macaroni Grill sale, the Dallas-based company still has an affinity for Italian cuisine via its family-style chain, Maggiano's Little
Italy. - Gerald Magpily
See TheDeal.com: Brinker to sell Romano's (subscription required)
See Fitch pressl release (registration required)
Comments
This saled ended up with about 50 people loosing their jobs in the Jackson, MS area just last week. It a horrible corporate world that we live in, when you are told that the place you call work is closing in 1 week and then you are on your on.
With very little warning, good citizens of this state and country with familys, school, cars, rent, mortgages, and other obligation were dumped by the corporate company that they devoted the majority of their time to.
It is buisness like this that will lead the United States into another down fall, increasing the unemployment rate and ultimately giving familys no hope of seeing a better future for generations to come.
CEOs, board member, and upper management need to realize their greed and how it affects those that truely make there companies what they are.