Applebee’s turnaround plan generated the casual-dining giant’s largest gain in same-store sales in more than a decade during the second quarter, a domestic increase of 5.7%.
But the three-month stretch wasn’t without its pain to the brand. Parent company Dine Brands Global also revealed that 30 Applebee’s units were closed during the period. The company says it expects to close a total of 80 to 90 Applebee’s restaurants this year, an increase from earlier projections of closing 60 to 80.
Dine Brands’ other restaurant holding, the IHOP family-dining chain, posted a 0.7% rise in comps.
Simultaneous with the release of Q2 results, Dine Brands announced that it intends to refinance the company’s long-term debt by replacing roughly $1.31 billion in notes with new notes valued at about $1.75 billion.
"We've made great progress stabilizing the performance of our brands and we are excited about the results to date,” Dine Brands CEO Steve Joyce said in a prepared statement. “We are also working on a number of key initiatives that we believe will create significant long-term value for our shareholders, including the refinancing of our debt this year."
Dine Brands generated a net income of $12.7 million, a decrease of 42.5% from the year-ago quarter. The company said profits were hurt by the previously disclosed contribution by the franchisor of $16.5 million to Applebee’s advertising fund, a part of the turnaround plan.
Revenues were $184.5 million, down 2.2%.
The California-based company is the franchisor of 3,690 total stores, with 1,900 operating under the Applebee’s brand name.