A softness in sales and rising real estate prices will lead thecompany to cut its 2008 capital expenditures by 20%, reducing thenumber of company-owned restaurants to be opened. However, thecompany has recently signed agreements with four franchisees thatwill result in expansion in the United States, Peru, South Koreaand Canada.

"Our plans are to continue to grow the Chili's brand at arational pace while taking things more slowly with the otherbrands," said Charles M. Sonsteby, executive vp and CFO.

The bulk of the growth will be in the company's Chili's concept,including the opening of 20 to 44 new units on the East Coast incoming years, if Brinker's franchise agreement with Pepper DiningInc., is approved. Under the agreement, Pepper also would acquire89 company-owned locations, making it the largest franchiseagreement in Brinker's history. Brinker expects the deal to closein the fourth quarter.