Applebee’s and IHOP parent company DineEquity will shutter 160 stores in a move to combat the shrinking same-store sales and slow traffic that have been plaguing casual-dining concepts.
This news comes on the heels of an announcement that Glendale, California-based DineEquity selected a new chief executive. Board member Stephen Joyce will replace former CEO Julia Stewart, who resigned in March after 16 years with the company. Joyce will begin his role on Sept. 12, the Wall Street Journal reports.
The closures round out to about 135 Applebee’s restaurants and 25 IHOP locations, roughly 60 of which will be corporate-owned locations.
"We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain," interim CEO Richard Dahl said in a statement.
Shares closed up 14% Thursday, according to MarketWatch, as investors responded to the company’s strong Q2 earnings report with net income of $20.9M ($1.18 a share), down from the year-ago quarter, but adjusted per-share earnings came to $1.30, far exceeding analysts' expectations of $1.19. Revenue fell to $155.2M during the quarter, barely missing analysts' estimates of $156M.
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