In this file:
· As many as 160 Applebee's and IHOP locations to close
· Choice Hotels exec named CEO of DineEquity
As many as 160 Applebee's and IHOP locations to close
Zlati Meyer, USA TODAY
IndyStar - Aug. 10, 2017
The parent company of Applebee's and IHOP plans to close up to 160 restaurants, vastly boosting the number of eateries from the two comfort-food chains that it plans to shutter.
Some 105 to 135 Applebee's restaurants will close, up from the 40 to 60 that parent DineEquity said would close in the first quarter. Also on the chopping block are an estimated 20 to 25 IHOP sites, up from about 18.
At the same time, the two chains now will open 125 restaurants globally between them in new locations, DineEquity said.
The casual-dining segment, where both chains are positioned, is experiencing increased troubles as more customers have gravitated to the quick-service restaurants like Panera Bread or Chipotle Mexican Grill, many of which market themselves as offering healthier and more upscale food.
Analysts say Applebee’s, in particular, has had a hard time.
Applebee’s "remains out-of-favor with casual-dining consumers....Sister concept IHOP may be feeling the effects of DineEquity’s struggles as well," said Instinet analyst Mark Kalinowski in a report released Friday.
But DineEquity officials say the painful job of closing restaurants will help in the long run.
"We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain," interim CEO Richard Dahl said in a statement.
He said Applebee's is in the middle if a "transitional year" and is "making the necessary investments for overall long-term brand health."
The company declined to release a list of locations that will be shuttered...
Choice Hotels exec named CEO of DineEquity
Board member Stephen Joyce to replace Julia Stewart
Dan Orlando, Nation's Restaurant News
Aug 10, 2017
IHOP and Applebee’s parent DineEquity Inc. has appointed hotel executive Stephen Joyce to the post of CEO.
Previously the CEO of Choice Hotels International Inc. since 2008, Joyce has also served on DineEquity’s board of directors since 2012.
He replaces former CEO Julia Stewart, who resigned in February after 16 years at the helm of the Glendale, Calif.-based company.
Interim CEO and board chairman Richard Dahl will remain in place as CEO until Joyce officially assumes the role on Sept. 12.
The company’s bylaws were amended to create an independent chairman of the board effective on Joyce’s start date.
“Steve has a long and proven track record of successfully leading global consumer franchised businesses,” Carolina Nahas, lead director of DineEquity, said in a statement.
“While serving as chief executive officer of Choice Hotels, Steve was instrumental in developing a robust performance-based culture, placing an emphasis on agility and innovation and creating momentum and opportunity for the company, franchisees and shareholders. He was also responsible for driving significant growth during one of the most challenging markets in the industry's history.”
Wall Street analyst Stephen Anderson, senior equity research analyst at Maxim Group, echoed those sentiments in a report Thursday...