There will be fewer Applebee’s and IHOP restaurants in the future as the parent company has set it plans to close between 105 to 135 Applebee’s restaurant and from 20 to 25 IHOP locations. Last quarter, DineEquity said it planned to close from 40 to 60 Applebee’s and just under 20 IHOP locations.
While closing some underperforming locations, the company also plans to open between 20 to 30 Applebee’s and more than 80 IHOP locations. DineEquity did not release a list of locations that are closing.
There are numerous IHOPs and several Applebee’s locations in North Texas.
“We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain,” said Richard J. Dahl, chairman and interim CEO. “ We are focusing on operations and elevating the guest experience, whether in our restaurants or off-premise. We believe 2017 will be a transitional year for Applebee’s and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year.”
Dahl said that “IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and system-wide sales. IHOP is currently rolling out initiatives to address the convenience needs of our guests, which are inclusive of online ordering as well as accelerating tests for delivery and development of an IHOP mobile application. We believe these will create enhanced revenue channels.”
Glendale, California-based DineEquity Inc. (DIN) on Thursday reported second-quarter earnings of $20.9 million.
On a per-share basis, the company said it had profit of $1.18. Earnings, adjusted for one-time gains and costs, were $1.30 per share.
The parent company of Applebee’s and IHOP restaurants posted revenue of $155.2 million in the period.
DineEquity shares have decreased 52 percent since the beginning of the year. The stock has decreased 51 percent in the last 12 months.