Although it is not exactly clear what has happend to Applebee's lately, fast casual consumers should not panic just yet. Even though, unfortunately, this family-friendly fast casual has posted earnings for its third quarter of $22.1 million, or $0.28 per share, a 23% drop from last year. And while revenue climbed 8.6% to $305.3 million, it still came up short of expectations. And even though Applebee's did manage its 29th consecutive quarter of same-store sales growth, an increase of 0.9% is nothing to write home about. Company restaurants continue to falter, with comps falling 1.6%. Franchise locations, meanwhile, kept the streak alive, with a 1.8% gain.
But take heart, your fast casual fans, most trends continue to point upward in the area of dining out, Applebee's is well-positioned to continue to be a dining destination for many folks. Its history of modest growth, sustainable expansion plans, and an expanding marketplace should bode well for Applebee's, as well as for its investors who show a little patience. A 233% dividend hike and aggressive stock repurchases should also help appease shareholders in the meantime.
