A shareholder of Dine Brands Global, the parent company of IHOP and Applebee’s Neighborhood Bar & Grill, has proposed that the company sell IHOP, according to documents filed with the Securities & Exchange Commission on Wednesday.
The stockholder proposal requests that the board of directors of the company, based in Glendale, Calif., “engage an investment banking firm to effectuate a spin-off of the Corporation’s IHOP business unit, if properly invested.”
The proposal is scheduled to be voted on during the company’s annual meeting on May 12, which may be held using remote communications, according to a letter to stockholders by board of directors chair Richard Dahl and CEO Stephen Joyce.
In the company’s proxy statement, the board recommended against the proposal.
IHOP has been outperforming sister brand Applebee’s. Family-dining IHOP saw a 1.1% increase in same-store sales for the most recent quarter — its eight quarter of growth — while casual dining Applebee’s saw comps continue to decline, by 2.5% for the quarter, which ended Dec. 31, 2019.
Share prices for Dine Brands’ stock have fallen precipitously with the onset of the COVID-19 pandemic, as have shares in other full-service restaurants, having dropped from $90.18 per share on March 4 to $21 when the market closed on April 2.
Only stockholders of record at close of business on March 18, 2020 are eligible to vote.
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