Applebee's Closing Up to 135 Locations

Andrew Cummings
August 11, 2017

On Thursday, DineEquity said it would shut down more than 100 Applebee's locations and up to two dozen IHOP restaurants by the end of the year. DineEquity the company that owns Applebee's and IHOP announced Thursday that it will be closing several of its restaurant locations nationwide.

"There is no list (of closures) going forward", DineEquity spokesman Patrick Lenow said Friday.

The company reported a net income of $20.9 million in the second quarter, down $5.5 million year over year.

Board director Richard Dahl had been serving as interim chief executive after Julia Stewart stepped down from the position in February amid growing dissatisfaction among investors and franchisees over the company's performance.

According to Zacks, analysts expect that DineEquity will report full year sales of $156.40 million for the current fiscal year, with estimates ranging from $616.79 million to $624.52 million. Finally, Americafirst Capital Management LLC acquired a new stake in shares of DineEquity during the first quarter worth about $147,000. The first consists of older locations in lapsed trade areas, where once-vibrant retail, residential and traffic characteristics are just no longer present, often where the desirable trade area within the town has simply moved over time. The second group consists of restaurants that are underperforming, or "brand-damaging".

He said IHOP "remains on solid ground, despite soft sales this quarter".

IHOP, with its emphasis on breakfast - the fastest growing segment in the restaurant industry - has fared better with a 2.1 percent decline in same-store sales in 2017. Since June 2016, 27 locations around the country have closed.

You may notice fewer Applebee's and IHOP restaurants in your travels over the coming year. In February, Noodles & Company announced it planned to close 55 restaurants.

While closing 160 or so locations of the two chains might seem like a lot, it's just a drop in the bucket for Dine Equity, which now operates more than 3,700 restaurants, including 1,811 Applebee's and 1,646 IHOP locations.

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