Applebee's comps slide in 0.3% in 3rd Q, have fallen 1.8% YTD

Nation's Restaurant News,  Oct 15, 2007  by Sarah E. Lockyer

Tags: Applebee's

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OVERLAND PARK, KAN. -- With a $2.1 billion buyout to be voted on later this month, Applebee's International Inc. reported that domestic systemwide same-store sales for its namesake casual-dining chain continued to trend negative in the third quarter, despite a slight uptick of 0.6 percent for the quarter's last five weeks ended Sept. 30.

Domestic systemwide same store sales at Applebee's Neighborhood Grill & Bar, the nation's largest casual-dining chain, fell 0.3 percent for the third quarter, reflecting a 0.2-percent drop at corporate restaurants and a 0.4-percent slide at franchised locations.

Domestic systemwide same-store sales for the first nine months of the year have decreased 1.8 percent, the company said.

Applebee's, which has 1,953 corporate or franchised locations, was able to record a rare uptick in same-store sales for September, driven by two more weeks of television advertising versus a year ago and the new Ultimate Trios promotion, which company officials said has been popular with diners.

The promotion, priced in corporate markets at $10.99, allows guests to build a sampler platter with three out of seven items, such as miniature bacon cheeseburgers, boneless chicken wings or steak quesadillas.

An advertising insert in markets that include about 75 percent of corporate units also boosted September sales by about 1 percent, Applebee's said.

The insert offered customers a trial incentive for a free Dessert Shooter, valued at $1.99, with the purchase of an entree or an Ultimate Trios meal.

The company expects to release complete third-quarter results during the week of Oct. 29. Applebee's also has set Oct. 30 as the date for a shareholder vote on a proposed $25.50-per-share buyout by family-dining franchisor IHOP Corp.

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