Applebee’s To Consider Sale, Other Options

USA Today

Casual dining chain Applebee’s International said Tuesday it is exploring its strategic options, including a possible sale of the company.

The company also said it is withdrawing its fiscal guidance as a result of the review, which could be affected by certain strategic decisions.

The company said there is no guarantee a transaction will occur, and it does not plan to disclose further developments until its review is complete.

The move comes after a hedge a hedge fund run by former Securities and Exchange Commission Chairman Richard Breeden nominated four candidates last December to the board of Applebee’s.

Breeden Capital Management has said it wants the company, which has seen its shares substantially underperform the Standard & Poor’s restaurant index recently, to reduce capital expenditures, boost cash returned to shareholders and sell more restaurants to franchisees.