Ihop Sells 41 Applebee’s

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Ihop Corp. said Wednesday that it has agreed to sell 41 of company-owned Applebee’s restaurants to the chain’s largest franchisee, Apple American Group LLC. Terms of the deal were not disclosed.


The Glendale-based restaurant owner and operator said in a statement that the restaurants are in Southern California and Nevada and added that it is “confident” it can sell a total of 100 Applebee’s restaurants which should bring in about $90 million to $100 million in fiscal year 2008.


When Ihop bought the Applebee’s chain last year, Ihop said it wanted eventually to sell 475 company-owned Applebee’s stores to franchisees. Applebee’s is about 70 percent franchised.


Based in San Francisco, Apple American owns and operates 145 Applebee’s restaurants in eight states including California. The company had sales of $380 million last year and employs 9,600. Apple American is the largest Applebee’s franchisee and the 3rd largest restaurant franchisee in the U.S.


Shares in Ihop closed down 2.7 percent to $46.79 in trading Wednesday on the New York Stock Exchange.

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