“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,” Dahl said.
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“IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and system-wide sales,” Dahl said. “IHOP is currently rolling out initiatives to address the convenience needs of our guests, which are inclusive of online ordering as well as accelerating tests for delivery and development of an IHOP mobile application. We believe these will create enhanced revenue channels.”
Internationally, DineEquity plans Applebee’s franchisees to “develop between 20 and 30 new restaurants globally, the majority of which are expected to be international openings.” It expects IHOP franchisees to “develop between 80 and 95 restaurants globally, the majority of which are expected to be domestic openings.”
Between the two chains, 125 new restaurants will open.
The specific locations where restaurants will close and be developed are not yet known.