(WCMH) – The parent company of Applebee’s and IHOP says it expects to close 160 restaurants by the end of the fiscal year.
DineEquity Inc. announced the closures in its second quarter fiscal 2017 results.
The company says it will close between 105 and 135 Applebee’s restaurants. The company said in May it would close between 40 and 60 locations.
Applebee’s expects to open between 20 and 30 new restaurants in 2017, the majority of which will be outside the US.
The company says the closures will be based on several criteria, including franchisee profitability, operational results and meeting brand quality standards.
Applebee’s same-restaurant sales declined 6.2% in the second quarter of 2017. The company expects that number to be between six percent and eight percent for the fiscal year.
“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,” said Richard J. Dahl, chairman and interim chief executive officer of DineEquity, Inc.
Between 20 and 25 IHOP restaurants are also expected to close, with between 80 and 95 new locations opening.
Flynn Restaurant Group, parent company of Apple American Group, operates many Applebee’s in central Indiana. Its chairman and CEO, Greg Flynn, on Friday, issued this statement to WISH-TV:
As it has been widely reported, DineEquity, the parent company of the Applebee’s Neighborhood Grill & Bar brand, announced yesterday that it expects to close between 105 – 135 restaurants across the country. We, Apple American Group, a subsidiary of Flynn Restaurant Group, wanted to assure our valued guests and employees that this announcement in no way affects franchised Applebee’s locations that we own and operate. Apple American Group is supported by the strong financial footing of Flynn Restaurant Group and has no plans to close any restaurants at this time. Our Applebee’s Neighborhood Grill & Bar locations are 100 percent open for business and we look forward to continuing to deliver an excellent dining experience that our guests have grown to love.”