Applebee's Continues To Close While IHOP Is Expanding

The decision to close some Applebee's locations follows a similar trend from previous years. In 2017, over 100 Applebee's restaurants were shut down nationwide. Vance Yuwen Chang, Chief Financial Officer of Dine Brands, mentioned during the earnings call that in 2023, the chain closed a net of 33 restaurants domestically. In contrast, IHOP expanded its presence by opening 46 restaurants last year, with 17 of them launched in the fourth quarter alone.

Moralejo emphasized that these closures do not reflect franchisee struggles but rather a response to challenging trade environments. He assured stakeholders that the leadership team is diligently working to mitigate any negative impacts resulting from the closures. Moralejo further explained that closures are a natural part of the business cycle, especially as trade regions evolve and franchise agreements expire.