Applebee’s International To Close 24 Restaurants

ipdgroup.com:

Applebee’s International, Inc. lately announced it is closing 24 of its 528 company-owned restaurants. System-wide, there are more than 1,940 Applebee’s Neighborhood Grill & Bar restaurants.

Last week, the company announced that the Strategy Committee of independent directors had a broad mandate to conduct a comprehensive evaluation of the company’s strategic alternatives, as well as its business and financial strategies. As part of its work, the Committee reviewed the results of an extensive analysis to identify those restaurants not meeting acceptable levels of return on investment and other key operating metrics.

Of the 24 restaurant closings, 10 are located in two states in the New England region, while the remaining 14 are scattered across 9 other states.

‘These restaurant closures will have a positive impact on our future earnings, cash flow and return on invested capital,’ said Dave Goebel, president and chief executive officer. ‘In particular, following these closings, our New England market will be stronger and better positioned for future growth and success. The decision to close underperforming restaurants reflects the company’s and our board’s commitment to disciplined capital allocation and to ensuring we are maximizing both our physical assets and invaluable people resources,’ Goebel said.

In the past, Applebee’s has closed an average of 1 or 2 company-owned restaurants per year.