Yesterday, Dine Brands, the owner of both IHOP and Applebee’s, released its Q3 results, which show independent sales in the domestic market of both restaurant brands are at a loss.
A new hybrid restaurant, combining IHOP and Applebee’s, is already successfully implemented in the overseas market. The new restaurant is hoped to bring new life to the iconic restaurants in the domestic market. The first combined Applebee’ s-IHOP restaurant in the US will open near San Antonio, Texas, early next year.
Scott Gladstone, CEO and President of International at Dine Brands Global, said the merger has been a win for the brand’s international markets. “By leveraging IHOP’s morning popularity and Applebee’s evening appeal, we can cover all day parts and bring delicious and memorable dining experiences with world-class service to guests every day. So far, we have been pleased with the improved overall performance and returns of our dual-branded restaurants.”
Applebee’s domestic sales declined 5.9% for the third quarter of 2024. IHOP’s year-over-year domestic sales declined 2.1% for the third quarter of 2024.
“Having two iconic brands in our portfolio that complement each other is a competitive advantage, and we plan to leverage this to improve the economics and drive growth across our system,” Dine Brands CEO John Peyton said.
In yesterday’s earnings release, Peyton said, “During the third quarter, we continued to experience consumer pullback and the pressures of a highly promotional operating environment. We know we need to do more in the near term to drive traffic and get back to better top-line performance. For the fourth quarter, we are enhancing our value proposition for guests and remain focused on executing our plans across our brands.”
Vance Chang, CFO, added, “Our third-quarter results demonstrated the resiliency of our business model despite the challenges to our top line. Our cash flow generation ability through market cycles is supported by our asset-lite model and the scale of our platform. We are confident in our ability to drive long-term value for our stakeholders.”
Dine Brands Global and its three brands, Applebee’s, IHOP and Fuzzy’s Taco Shop have over 3,500 restaurants across 19 international markets.
By CEO NA Editorial Staff
