Many chains grew too aggressively as Americans pulled back on dining spending.
"We believe 2017 will be a transitional year for Applebee's and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year", Richard J. Dahl, the chairman and interim Chief Executive Officer of DineEquity, Inc. said. In February, DineEquity CEO Julia Stewart quit the company amid a steady decline.
Steering DineEquity's ship will be Stephen Joyce, the former CEO at Choice Hotels announced as the company's new leader Thursday. He takes over on September 12.
Equities analysts forecast that DineEquity, Inc (NYSE:DIN) will post sales of $156.40 million for the current quarter, according to Zacks Investment Research.
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DIN stock was up 1% as of noon Friday, but is down 49% year-to-date.
These closures typically fall into one or two categories. First, those that are older and located where high traffic is no longer present. The second category consists of underperforming, and perhaps, even brand-damaging restaurants with unsustainable unit economics.
A list of closing restaurants has not yet been released.
The casual-dining segment has been under pressure from fast-casual rivals such as Panera Bread and Chipotle Mexican Grill, which have emphasized their food as more healthful options to fast-food competitors such as McDonald's and Wendy's.
"IHOP remains on solid ground, despite soft sales this quarter". Same-store traffic fell by 3% during June.
Since March 3, 2017, it had 4 insider purchases, and 0 sales for $506,486 activity. Since June 2016, 27 locations around the country have closed. Officials of the parent company explained that the closures are due to the absence of traffic the restaurants used to get. DineEquity operates almost 2,000 Applebee's locations nationwide, including 10 in the Richmond area.
Amid a hard environment for family-oriented restaurant chains, DineEquity has been focusing on boosting its brands through food and menu innovation, remodeling efforts, and online ordering.