RISE - Menu Monitor

IHOP Corp. will acquire Applebee’s International Inc. for $2.1 billion. IHOP management will focus on re-energizing Applebee’s
system performance by driving marketing and operational improvements and plans to franchise many of Applebee’s 508
company-owned units. (Phx.corporate-ir.net 7/16/07)
Western Sizzlin Corp. and Lion Fund L.P. CEO and chairman Sardar Biglari, an Applebee’s shareholder, opposes Applebee’s
pending purchase by IHOP because he thinks Applebee’s is worth more than $25.50 per share and will vote against the
transaction. (Company Release 7/25/07)
Applebee’s International Inc. reported for the second quarter ended July 1 net earnings increased 18.6% to $24.2 million from
$20.4 million for the same period last year. Revenues rose 2.5% to $332.2 million from $324.1 million. Same-store sales fell
0.9%. (Company Release 8/1/07)
Applebee’s International Inc. reported August same-store sales decreased 0.9% systemwide compared to year-before figures.
Domestic franchise sales fell 0.7% and company-owned unit sales declined 1.6%. (Company Release 9/4/07)
Applebee’s disclosed that five directors believe the deal between IHOP and Applebee’s wasn’t fair to stockholders. These five,
including its chairman, chief executive and chief financial officer, plan to vote their shares against the transaction. The
directors believe that stockholders would receive a higher value that would come from a separate plan to keep the company
independent and overhaul its strategy. (Blogs.wsj.com 9/7/07)
Applebee’s is being targeted by Birth Without Boundaries International for asking breastfeeding mothers to be “respectful” of
other patrons. In early September, the not-for-profit organization recruited 2,000 people to gather outside 97 Applebee’s in 44
states to protest in favor of a “friendlier” breastfeeding policy. The demonstration followed an August incident at a Lexington,
KY, Applebee’s, where a manager allegedly told a nursing mother to cover herself and her nursing baby with a blanket
because another guest had complained. Birth Without Boundaries International, based in Harrisburg, PA, works to eliminate
restrictions imposed on birthing women and their babies. (NRN Daily NewsFax 9/11/07)
Applebee’s reported for the third quarter ended September 30, domestic company-owned same-store sales declined 0.2% and
domestic franchised same-store sales fell 0.4%. For the five-week period that ended September 30, systemwide domestic
same-store sales rose 0.6%. (NRN Daily NewsFax 10/5/07)
IHOP CEO Julia Stewart plans to rejuvenate the Applebee’s chain, which IHOP recently purchased. Stewart plans to sell most
of Applebee’s company-owned locations to franchisees and revamp the company’s look and menu to make it stand out. The
process of revamping the brand could take until 2010. (Associated Press 9/27/07)
Applebee’s International Inc. agreed to settle a class-action lawsuit filed by a union challenging its proposed sale to IHOP
Corp. The New Jersey Building Labors Pension claims the deal robbed Applebee’s shareholders of financial benefits that
might have been received had the company remained independent and sold its remaining company-owned units to
franchisees. Applebee’s will not pay any money, but has agreed to give its shareholders more information about the
transaction. (Associated Press 10/14/07)
IHOP plans to sell most of Applebee’s company-owned stores to franchisees after completing its $2.1 billion acquisition of the
bar-and-grill chain in late October. It also will make menu changes and update décor. (Yahoo! Finance 9/27/07)
Applebee’s International Inc. stockholders have voted to accept a merger agreement between the company and IHOP Corp.
The announcement comes after a special stockholder meeting held October 30 in which more than 70% of shares voted in
favor of the merger agreement. The transaction is expected to close by November 29. (Applebee’s International Inc. Press
Release 10/30/07)
IHOP Corp. has completed its acquisition of Applebee’s International Inc. for $25.50 per share in cash, or about $1.9 billion.
The total value of the transaction comes to about $2.3 billion because of the assumption of Applebee’s debt and the
transaction fees IHOP will pay. IHOP plans to sell most of Applebee’s company-run restaurants to franchisees, cut costs and
complete sale-leaseback transactions on corporately owned real estate assets. IHOP also detailed for the first time that it
planned to sell 475 of Applebee’s 510 corporate locations by the end of 2010. Select markets could be sold by early next year.
(NRN.com 11/29/07)
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