[3/4/17] Applebee’s will close between 40 and 60 locations this year.
DineEquity, Applebee’s parent company, confirmed the news Wednesday.
“We believe that restaurant closures are an important tool to preserving the financial health of the system,” acting CEO Richard Dahl said in a call to investors this week. The company’s CEO and CFO have both resigned in recent weeks.
DineEquity reported fourth quarter earnings this week. Revenue was down 10% to $154.2 million from $171.3 in the same quarter last year. Adjusted earnings per share were $1.37 compared to $1.59 in the same period of 2015, driven by lower gross profit. This was caused by a 7.2% decline in Applebee’s same-store sales, said interim CFO Gregg Kalvin.