Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OVERLAND PARK, KS-Applebee’s International’s board of directors is considering exploring strategic alternatives for the 1,942-unit chain, including a sale of the company. To “enhance shareholder value,” management is also considering a recapitalization of the locally based firm.

Executives are considering a sale as a flood of private-equity money has been buying up restaurant companies. Two firms are acquiring the Outback Steakhouse chain for $3.2 billion, Landry’s sold its Joe’s Crab Shack chain last year for $192 million and steakhouse-chain Logan’s Roadhouse traded hands last year for $486 million.

The move comes as sales and earnings at the chain have fallen as guest traffic has dropped. Domestic same-store sales were down 5.8% year over year in January. In its most recently-reported quarter, which ended Oct. 25, same-store sales fell 2.3%, and earnings per share fell to 20 cents from 28 cents.

Executives expect to release fourth-quarter earnings tomorrow. They have also withdrawn their guidance forecast for the coming year, which included the opening of 10 to 15 new units, and a same-store sales increase between 1% and 2%.

Applebee’s has hired Citigroup Global Markets Inc., as well as Banc of America Securities as financial advisors. Its legal representation is comprised of Cravath, Swaine & Moore LLP, New York City; and Blackwell Sanders Peper Martin LLP, of Kansas City, MO.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.