Up to 135 Applebee's restaurant could close, revised expectations show
Posted August 11
DineEquity, the parent company of Applebee's and IHOP, expects to close between 105 and 135 Applebee's restaurants this fiscal year, according to revised projections.
Previous expectations pegged the closures at 40 to 60 Applesbee's locations and 18 IHOP locations. The new expectations, released Thursday morning, bumped the number of potential IHOP closures up to between 20 and 25 restaurants, though the company said it could open between 80 and 95 restaurants globally.
While DineEquity expects to add its global IHOP locations, it only expects to develop between new 20 and 30 Applebee's restaurants, making for a net loss in total stores.
"The expected closures will be based on several criteria, including franchisee profitability, operational results and meeting our brand quality standards," the company said in its financial report.
DineEquity did not say which stores could potentially close.