QUALITY DINING, INC. COMPLETES PURCHASE OF RESTAURANT CONCEPTS; Company Acquires Grady's American Grill and Spageddies Italian Kitchen Concepts

Business Wire, Dec 22, 1995

MISHAWAKA, Ind.--(BUSINESS WIRE)--Dec. 22, 1995--Quality Dining, Inc. (Nasdaq/NM:QDIN) today announced that the Company has completed the purchase of the Grady's American Grill and Spageddies Italian Kitchen concepts from Brinker International, Inc.

The Grady's American Grill acquisition includes 42 Grady's American Grill restaurants for a purchase price of $74.4 million, which was paid in cash. The restaurants are located in 16 states throughout the country. The existing management of Grady's American Grill will remain with the concept.

Daniel B. Fitzpatrick, chairman, president and chief executive officer of Quality Dining, Inc., stated, "The acquisitions represent a milestone in our company's history, as we have now added concept ownership to our strong base of franchised restaurants. Both Grady's American Grill and Spageddies are successful casual dining concepts led by talented and committed management teams and are expected to add growth, profitability and shareholder value to Quality Dining."

Fitzpatrick further commented on Grady's American Grill, "During the last few months we have carefully reviewed many of the aspects of the Grady's American Grill business. We are confident that we are purchasing a successful concept but, more importantly, inheriting a first rate management team. Led by Arthur J. DeAngelis, the concept head, we have a group of professionals who have consistently demonstrated a passionate pursuit of operational excellence. The underlying strength of this management group will benefit our entire organization."

DeAngelis commented, "The management team of the concept is proud to join the Quality Dining organization. At Grady's American Grill, we have developed a culture focused on providing guests with a unique dining experience through superior service and outstanding food quality. The heritage of Grady's American Grill is premised upon operational excellence. Therefore, Quality Dining's long history of hands-on management, focused on exceeding customer expectations, is a great fit for our management team."

Fitzpatrick added, "Brinker International has done an outstanding job of positioning the concept for long-term success. Over the next several months, we will focus our efforts on reinforcing the core strengths of the concept and positioning it for future growth. We welcome the entire Grady's American Grill team to Quality Dining and are extremely excited by the addition of this proven, successful concept to our company."

Pursuant to the Spageddies agreement, which closed in November, Brinker International, Inc. has transferred to Quality Dining all rights to the Spageddies concept in the United States while Brinker has retained the international rights to the concept. Quality Dining currently operates five Spageddies Italian Kitchen restaurants. In addition to Brinker's international rights, they retained limited rights to operate five Spageddies' units domestically under a license agreement with Quality Dining.

Fitzpatrick commented on the Spageddies acquisition, "Spageddies is a competitive concept in the growing Italian dining segment. As demonstrated in our latest Spageddies unit openings, we have positioned the concept as an appealing, mid-priced Italian casual dining restaurant. The concept is very well received by our guests, and we look forward to the development of new units in selected markets."

As a result of the acquisitions, the Company is contemplating a one-time, pre-tax charge in the first quarter of fiscal 1996 for corporate structuring and integration issues. The pre-tax charge of up to $1.6 million will result in an after-tax impact of $0.10 to $0.12 per share.

Quality Dining, Inc. currently operates a total of 141 quick- service and casual theme dining restaurants located in 20 states throughout the country. The Company operates 61 Burger King restaurants, 42 Grady's American Grill restaurants, 18 Chili's Southwestern Grill & Bar restaurants, 15 Bruegger's Bagel Bakeries and 5 Spageddies Italian Kitchen restaurants.

CONTACT: Quality Dining, Inc., Mishawaka

David M. Findlay, 219/271-4600