Chevy’s to Buy Mexican-Food Chain

Restaurant operator Chevy’s Inc. agreed to acquire a chain of 66 Mexican-style restaurants from Applebee International Inc. for $53 million in cash, expanding its reach into the Southeast and Midwest markets. San Francisco-based Chevy’s, which operates restaurants primarily in the Western U.S., said it will spend about $6 million to bring the Rio Bravo Cantina franchisees into its network of almost 100 Fresh Mex restaurants. Chevy’s, a closely held company, will also assume $6 million of Applebee’s debt in the deal. Applebee’s said it will take a $5.04-million charge against first-quarter earnings for selling the Rio Bravos and four other restaurants. Applebee’s said in November it was considering options for Rio Bravo, which had struggled to be profitable. The sale is consistent with its strategy of focusing on a single brand, Applebee’s Neighborhood Grill & Bar. Shares of the Overland Park, Kan.-based company fell 13 cents to close at $23.88 on Nasdaq.