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Monday, Jul 4, 2022

DineEquity Sells More Restaurants

DineEquity Inc. on Monday said that it has agreed to sell 30 of its Applebee’s restaurants located in and around Washington, D.C., to Potomac Family Dining Group.

The Glendale owners of the Applebee’s and IHOP chains said it expects after-tax proceeds of about $27 million from the sale, which is expected to close in the first quarter of next year. It also expects the transaction to reduce its sale-leaseback related financing obligations associated with 10 properties by about $20 million.

Since acquiring Applebee’s International in 2007, DineEquity has sold a total of 193 Applebee’s company-operated restaurants to franchisees as part of a deal to lower debt and expenses. Potomac Family Dining is new to the Applebee’s system.

“We continue to execute our strategic goal of transitioning Applebee’s into a more highly franchised restaurant system over time.” Chief Executive Julia Stewart said in a statement.

Shares were up 22 cents, or less than a percent, to $54.51 in midday trading on the New York Stock Exchange.

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