News of Applebee’s closing up to 135 of its locations in 2017 came out today.
The decision will have Applebee’s closing between 105 and 135 locations during the year. The restaurant chain was previously only expecting to close anywhere from 40 to 60 locations in 2017. It will also be opening between 20 and 30 new locations.
The stores being hit by the Applebee’s closing decision face a list of criteria to determine if they will stay open. This includes franchisee profitability, operational results and meeting the quality standards of parent company DineEquity Inc (NYSE:DIN).
“We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain,” Richard Dahl, Chairman and interim CEO of DineEquity Inc, said in a statement. “We are focusing on operations and elevating the guest experience, whether in our restaurants or off-premise.”
IHOP, another location that belongs to DineEquity Inc, is also planning to close more stores in 2017. The breakfast chain will be closing up to 25 stores.However, the chain is also planning to open between 80 and 95 new locations this year.
News of IHOP and Applebee’s closing stores came during DineEquity Inc’s earnings report for the second quarter of the year. This saw the company reporting earnings per share of $1.30 on revenue of $155.20 million. Wall Street was expecting DIN to report earnings per share of $1.17 on revenue of $155.33 million.
DIN stock was up 1% as of noon Friday, but is down 49% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.