OVERLAND PARK Kan. With the IHOP Corp. acquisition of Applebee’s International Inc. expected to close Thursday, the Applebee’s chain reported on Wednesday a 1.6-percent year-to-year drop in systemwide, domestic same-store sales for November.
At domestic corporate locations, the majority of which are slated for sale to franchisees once IHOP embarks on its turnaround plan, same-store sales declined 2.3 percent for the four weeks ended Nov. 25. Guest traffic at corporate locations fell between 3 percent and 3.5 percent from a year ago, the company said, but average checks were higher. Same-store sales at franchised Applebee’s units in the United States fell 1.3 percent.
As previously agreed, Glendale, Calif.-based IHOP will pay $25.50 per share in cash for Applebee’s outstanding stock, for a transaction value of about $2.1 billion. Including fees, IHOP’s purchase of the casual-dining giant will total about $2.3 billion. Applebee’s operates or franchises 1,965 restaurants worldwide. IHOP mostly franchises a system of about 1,328 restaurants.
