Diner chains to shut some sites
The Glendale-based parent of Applebee’s and IHOP restaurants said Thursday that as many as 160 locations could close throughout this fiscal year, though the company also plans to open dozens of new restaurants.
DineEquity Inc. revised expectations for its full fiscal year during an earnings call for its second quarter that ended June 30, saying that 105 to 135 Applebee’s restaurants could close, compared with previous expectations that 40 to 60 locations could shut down. These closures will be determined based on criteria such as store profitability, operational results and “brand quality standards.”
At the same time, DineEquity said it expected to open 20 to 30 new Applebee’s restaurants across the globe, most in international locations. In a best-case scenario, the net number of Applebee’s closures could be 75.
On the IHOP side, DineEquity said closures could range between 20 and 25 restaurants, while the company expects to open 80 to 95 new locations, most of which will be in the U.S. That could mean 75 net openings.
Worldwide, there are 1,968 Applebee’s locations and 1,752 IHOP restaurants.
DineEquity also named Stephen Joyce, former head of hotel firm Choice Hotels International Inc., as its new chief executive. Joyce replaces Julia Stewart, who engineered the IHOP and Applebee’s merger.