Chili's Beats Applebee's: Dine Brands' Plan to Turn the Tables

Chili's Sales Surge Exposes Applebee's Struggles: Dine Brands Aims for Comeback In a surprising turn of events, Chili's has overtaken Applebee's in US systemwide sales for the first time in 2024, according to data from Technomic. This significant development underscores the challenges faced by Applebee's, owned by Dine Brands, which has seen declining sales for the past two years. The contrast is stark: Chili's reported a 31% increase in sales and a 21% increase in traffic last quarter, while Applebee's sales have steadily declined. John Peyton, CEO of Dine Brands, acknowledged the situation, stating, "We are crazy undervalued, in our opinion. The stock, at the moment, is not anticipating what we think are the fundamentals of the company and the potential for growth." To address the issue, Applebee's is implementing a strategy focused on cost reduction and brand revitalization. They are cutting nearly $1 million from new restaurant construction costs and exploring combination locations with IHOP, another Dine Brands chain. This approach aims to encourage growth and regain investor confidence. Only time will tell if this strategy will be successful in reversing Applebee's fortunes and restoring its position in the market.