Brinker (NYSE: EAT)

A 16-unit, upscale casual dining Mexican concept owned by Brinker International.

Engagement Goals

Brookwood advised Brinker International in the sale of its Cozymel’s division to a financial buyer.

Engagement Process and Outcomes

The Situation – Brinker chose to divest Cozymel’s because it no longer desired to operate two competing Mexican brands. Due to Cozymel’s slower than expected growth performance, Brinker chose to focus on its larger, faster growing Mexican concept, On The Border. A challenging factor to the transaction was the fact that the concept management team was unaware of the sale process until the management presentation stage of the sale process.

Effective Marketing – Brookwood contacted approximately 60 financial and strategic buyers. A large component of the division’s value was in its real estate; Cozymel’s owned 9 of the 16 properties, and entered into ground leases on the other 7 units.

The Result – Cozymel’s was sold to a financial buyer at a valuation very attractive to its shareholders.