OVERLAND PARK, Kan. Shareholders of Applebee’s International Inc. elected activist investor Richard C. Breeden to the company’s board of directors during their annual meeting on Friday, Applebee’s said in a statement.
Officials also revealed that the company’s namesake casual-dining chain will introduce a marketing campaign next week with the theme "Grilling Fresh" and featuring celebrity chef Tyler Florence, according to media reports on the meeting. Menu additions will include crunchy onion rings, a California shrimp salad and an Aloha Burger, the press reports said.
In its statement on the meeting, Applebee’s said its strategic review, which began in February, is ongoing. The company has indicated that the exercise could result in a sale, recapitalization or asset securitization of the 1,937-unit chain. Further due diligence is needed before Applebee’s asks potential buyers to submit definitive proposals, the company said. Dave Goebel, Applebee’s president and chief executive, told shareholders that it was "premature to comment on the likelihood or potential values in a recapitalization or sale," according to the company’s statement.
The company also stated that there were no assurances that any transaction would be pursued or completed.
New board member Breeden, whose hedge fund Breeden Capital Management LLC holds more than 5-percent stake in Applebee’s, has been lobbying for change at the casual-dining giant and until last month was engaged in a proxy battle for a board seat. Applebee’s and Breeden settled their differences in late April and the restaurant company gave seats to Breeden and another nominee from his hedge fund. Friday’s shareholder vote was required for the nominees to serve full three-year terms.
All board nominees this year, including chairman Lloyd Hill and three other incumbents, were elected at the meeting by about 95 percent of the votes cast, Applebee’s said.
Applebee’s has reported negative sales since 2005. Florence, a star of TV cooking shows, was brought on board in August 2006 to create more upscale menu items and boost Applebee’s image. Same-store sales and traffic trends remain negative. For the first quarter ended April 1, domestic systemwide same-store sales fell 4 percent.