CLOSE Casual-dining restaurants have struggled as more customers have gravitated toward quick-service restaurants like Panera Bread or Chipotle Mexican Grill. USA TODAY

There are plans to shutter up to 160 Applebee's and IHOP locations, according to parent DineEquity. (Photo: Andrew Burton, Getty Images)

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.

DineEquity reported net income of $20.9 million, or $1.18 a share, in the second quarter, a drop from $26.4 million, or $1.45 a share, compared to the same quarter last year.

Applebee's domestic system-wide comparable same-restaurant sales declined 6.2% in the second quarter of 2017, while IHOP's declined 2.6% during the same period, according to the company.

"IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and systemwide sales," Dahl said.

DineEquity reiterated its plan to open 20 to 30 Applebee’s, mostly abroad, and revised its plan to open 80 to 95 IHOP restaurants, mostly in the U.S. That's up from the 75 to 90 restaurants globally that it announced previously.

"Restaurant closures are a normal course of business in the industry and when you have a footprint as large as ours," Amy Mason, senior vice president for global communications and consumer insights, said. "They are either older locations in a lapsed trade area, where once vibrant retail, residential and traffic characteristics are no longer present; others are closed when they are underperforming with unsustainable economics. Closing these well-below average restaurants can have a positive brand benefit since guests are no longer experiencing a substandard experience."

On Thursday, the company also named Stephen Joyce, former CEO of Choice Hotels, as its new CEO. He replaces Julia Stewart, who resigned in February; she was at the helm when Applebee's as acquired in 2007.

DineEquity CFO Thomas Emrey resigned in March and no permanent replacement has been named.

The Glendale, Calif.-based company has 3,700-plus restaurants in 19 countries.

DineEquity stock was trading at $38.7, up $1.42 or 3.81%, in mid-afternoon trading.

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Read or Share this story: https://usat.ly/2wMoRw5</s>(WCMH) — The parent company of Applebee’s and IHOP says it expects to close 160 restaurants by the end of the fiscal year.

DineEquity Inc. announced the closures in its second quarter fiscal 2017 results.

The company says it will close between 105 and 135 Applebee’s restaurants. The company said in May it would close between 40 and 60 locations.

Applebee’s expects to open between 20 and 30 new restaurants in 2017, the majority of which will be outside the US.

The company says the closures will be based on several criteria, including franchisee profitability, operational results and meeting brand quality standards.

Applebee’s same-restaurant sales declined 6.2 percent in the second quarter of 2017. The company expects that number to be between six percent and eight percent for the fiscal year.

“We believe 2017 will be a transitional year for Applebee’s and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year,” said Richard J. Dahl, Chairman and interim Chief Executive Officer of DineEquity, Inc.

Between 20 and 25 IHOP restaurants are also expected to close, with between 80 and 95 new locations opening.

This article originally appeared on the website for WOOD TV8’s sister station, WCMH-TV.</s>Aging casual dining brands Applebee’s and IHOP, both owned by Glendale-based DineEquity, announced plans to close as many as 160 restaurants.

Closures at Applebee’s could range from 105 to 135 restaurants, DineEquity said Thursday. That’s more than double the number of closures previously stated by the chain. IHOP will shutter 20 to 25 restaurants.

The company operates 14 Applebee’s in Los Angeles County, nine in San Bernardino County and eight in Riverside County, according to the company website. There are 46 IHOP sites in Los Angeles County, 16 in Riverside County and 11 in San Bernardino County, according to the company website.

The news comes as both brands reported negative same-store sales for the second quarter. Same-store sales, a key indicator of a restaurant’s financial health, decreased 2.6 percent at IHOP and dropped 6.2 percent at Applebee’s.

“We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain,” Richard J. Dahl, interim chief executive of DineEquity, told investors Thursday. “We are focusing on operations and elevating the guest experience, whether in our restaurants or off-premise. We believe 2017 will be a transitional year for Applebee’s, and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year.”

The company did not disclose which locations would close.

The diminishment of both brands comes as older casual dining chains look for a magic formula to attract diners who’ve fled to more relevant brands favored by young families and millennials.

“Applebee’s continues to struggle with consumer relevancy — both a brand-specific challenge and something that the chain bar-and-grill segment as a whole continues to face,” Mark Kalinowski, a Nomura Instinet analyst, said in an earnings report.

In 2016, the company and franchisees invested more than $75 million installing American-made, wood-fired grills at 2,000 restaurants. The restaurants began grilling bone-in pork chops, salmon (over cedar wood) and chicken breast.

But, the investment didn’t move the needle on Applebee’s slumping sales. In 2016, Applebee’s reported a 5 percent decrease in domestic same-store sales.</s>LOS ANGELES — The 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. of Glendale, Calif., revised expectations for the full fiscal year during its quarterly earnings call, saying that 105 to 135 Applebee’s restaurants could close, compared to 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 for the chain.

The company said it did not have a list of closures, noting that the exact locations have not been determined.

John Cywinski, Applebee’s president, said during the call that the brand will be “aggressive” on restaurant closures this year. Most of the locations fall into two categories: older restaurants in less-busy areas and restaurants that have performed worse than expected.

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 but resigned as chairman and CEO in March.</s>PHILADELPHIA (CBS)— DineEquity Inc., the parent company of Applebee’s and IHOP says they plan to close as many as 160 locations, according to the Los Angeles Times.

The paper reports that the closures are expected throughout this fiscal year.

DineEquity Inc. says in a quarterly earnings call that 105 to 135 Applebee’s restaurants could close. DineEquity also said it expected to open 20 to 30 new Applebee’s restaurants across the world.

At IHOP, DineEquity said closures could range between 20 and 25 restaurants, but the company expects to open 80 to 95 new locations.

The company told the LA times that they did not have a list of closures, noting that the exact locations have not been determined.

Worldwide, there are 1,968 Applebee’s locations and 1,752 IHOP restaurants.</s>When it comes to IHOP's mega-sized breakfast samplers and Applebee's 1,000-calorie mozarella sticks, apparently America isn't buying.

That seemed to be the case on Friday when parent company DineEquity announced it would close up to 160 of the two chains' restaurants.

Around 105 to 135 Applebee's restaurants will close, a sharp rise in the 40 to 60 locations DineEquity initially predicted it would shut down in the first quarter.

The company also revealed that 20 to 25 IHOP stores will close their doors, up from the 18 that were first estimated.

DineEquity said it has not yet determined which exact locations will close.

Applebee's president John Cywinski said the company plans to close locations that have performed worse than expected and older restaurants in areas that are no longer busy, according to the Chicago Tribune.

But it's not all bad news for fans of the comfort-food chains.

DineQuity revealed it will open 20 to 30 new Applebee's, most of them abroad, and 80 to 95 IHOP restaurants in the US.

The company is hoping that by closing underperforming restaurants now, they will boost both chains' sales later.

'We are investing in the empowerment of our brands by improving overall franchise health,' interim CEO Richard Dahl said in a statement obtained by USA TODAY.

'IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and systemwide sales.'

Dahl added that DineEquity expects to see improvement 'over the next year' after making the 'necessary investments for overall long-term brand health'.

Both chains have undergone big changes in recent years.

The brands were merged in 2007 with the creation of DineEquity, and in 2015 the company moved from Kansas City, Missouri to Glendale, California.

There are currently 1,968 Applebee’s locations and 1,752 IHOP restaurants.

It was revealed in December that the world's first IHOP/Applebee's combination restaurant will open in Detroit in 2017.

The massive 24-hour restaurant will be 12,000 sq ft in size and will be able to seat up to 300 people at a time.</s>The parent company of Applebee's and IHOP plans to close as many as 160 locations of the two restaurant chains.Dine Equity could shut down more than 100 Applebee's and 25 IHOP restaurants this year.Both chains have been hit by a slowdown in the casual dining industry as customers shift to eateries with faster service.The company did not yet specify which locations might close or how many employees could be effected.There are currently about 12,000 Applebee's and 1,700 IHOP locations open woridwide.----------</s>Up to 160 Applebee’s and IHOP locations to close nationwide

The parent company of Applebee’s and IHOP plans to close up to 160 restaurants.

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.

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.

The company declined to release a list of locations that will be shuttered.</s>(WHDH) — The company that owns the popular restaurant chains Applebee’s and IHOP announced Thursday that it plans to close up to 160 locations.

Dine Equity said in a press release that approximately 105 and 135 Applebee’s restaurants will close.

The decision to close the restaurants is based on “franchisee profitability, operational results and meeting brand quality standards,” according to the company.

It was also announced that IHOP will close up to 25 restaurants.

There are 10 Applebee’s and 19 IHOP restaurants scattered across Massachusetts.

It’s not yet clear which locations will be closed.</s>As many as 160 Applebee's and IHOP restaurants could close soon, according to their parent company.DineEquity said the closures could take place during this fiscal year.A majority of the restaurants closing would be Applebee's.The company has not yet determined exact locations. It also has not said how many employees could be affected by the closings.There are currently about 2,000 Applebee's and 1,700 IHOP locations open worldwide.
DineEquity announces it will close 160 Applebee's and IHOP restaurants.