Brinker

(EAT) - Get Report

warned of falling August same-store sales and set plans to buy back 11.7 million shares through a so-called Dutch auction self-tender at between $35.25 and $38.50 a share.

The Dallas-based operator of the Chili's restaurant chain will spend $450 million on the buyback, bringing its current repurchase authority to $532 million. The Dutch auction, in which the company picks the lowest price in the range that allows it to buy back the intended number of shares, will run through Sept. 26. Brinker closed Monday at $36.82.

Brinker said it expects to report that sales in stores open at least a year fell 2.5% to 3.5% for August. Same-store sales rose 3.2% in the year-earlier period.

The company also closed on a $400 million one-year unsecured credit line.