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How Former IHOP CEO Julia Stewart Acquired Applebee's in a $2.3 Billion Deal

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DIN$32.02 −2.97%

Julia Stewart built her early career in the restaurant industry, starting as an IHOP food server at age 16 before serving as senior vice president of franchise operations at Taco Bell. In 1998, she joined Applebee's as president of its domestic division under a promise of becoming chief executive if she turned around the business. Despite driving a 14% increase in systemwide sales to $2.35 billion in 1999 and a 20% gain in earnings per share, she was denied the top post after roughly three and a half years and subsequently resigned.

Following her exit, Stewart became chair and chief executive of IHOP, where she spearheaded a corporate expansion. In 2007, she orchestrated IHOP's acquisition of Applebee's in a transaction valued between $2.1 billion and $2.3 billion. The takeover united the two dining chains under DineEquity, which was later rebranded as Dine Brands Global, Inc. (NYSE:DIN), and resulted in the departure of Applebee's executive leadership.

Investors in multi-brand restaurant operators follow how consolidated portfolio management affects operational margins and systemwide revenue. Dine Brands Global, Inc. (NYSE:DIN) stock was down 2.97% at $32.02 in recent market action.

Key points

  • Julia Stewart served as domestic division president at Applebee's, boosting systemwide sales by 14% to $2.35 billion in 1999.
  • After being denied a promotion to chief executive, Stewart resigned and eventually became chair and CEO of IHOP.
  • In 2007, Stewart led IHOP's acquisition of Applebee's for approximately $2.1 billion to $2.3 billion.
  • The transaction combined both restaurant chains under DineEquity, which was later renamed Dine Brands Global, Inc. (NYSE:DIN).

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Questions and answers

How much did IHOP pay to acquire Applebee's?

IHOP acquired Applebee's in 2007 in a deal valued between $2.1 billion and $2.3 billion, creating the parent company later known as Dine Brands Global.

Who is Julia Stewart and what is her connection to Applebee's?

Julia Stewart served as president of Applebee's domestic division before becoming CEO of IHOP, where she spearheaded IHOP's $2.3 billion acquisition of Applebee's.

What parent company operates IHOP and Applebee's?

Both restaurant chains are operated by Dine Brands Global, Inc. (NYSE:DIN), which was formed after the 2007 merger initially called DineEquity.