DineEquity Announces Expansion of Applebee's Franchise Into Egypt
Applebee's to Open Ten Restaurants in Ten Years; Cairo Restaurant Slated to Open by July 2012
GLENDALE, CA--(Marketwire - Jul 21, 2011) - DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar and IHOP, with more than 3,500 restaurants worldwide, announced today that its wholly owned subsidiary, Applebee's Services, Inc., has signed a multi-restaurant franchise agreement with AMECO Foods for the development of ten new Applebee's restaurants in Egypt.
Cairo is the latest among a growing list of international locations for DineEquity, including 26 restaurants already open throughout the Middle East in countries including Bahrain, Jordan, Kuwait, Lebanon, Qatar, Saudi Arabia and the United Arab Emirates. Applebee's Neighborhood Grill & Bar currently operates 147 restaurants in 15 countries outside the U.S., with its strongest presence in Mexico, Canada and Saudi Arabia.
"DineEquity is evolving and expanding both our brands around the world and we see international expansion as a critical part of Applebee's continued growth and brand development," said Julia Stewart, DineEquity's Chairman and CEO. "Guests all over the world enjoy our great-tasting food and gathering at their neighborhood Applebee's with friends and family, and we are excited to team up with AMECO to bring that experience to Egypt."
The Egypt-based restaurants will be designed and decorated to convey the iconic Applebee's brand with local images and décor that reflect the neighborhood.
Guests will also find the menu featuring local flavor and favorites. While the core international Applebee's menu includes such signature dishes as Riblets and Realburgers®, restaurants outside of the U.S. typically customize up to 20 percent of their menu with food and beverage that reflects their neighborhood. For example, in Saudi Arabia, Applebee's guests can order Ratatouille Whitefish; in Mexico, a Buffalo Salad and Calamari Kaboom are available every day.
"AMECO's commitment to bringing the Applebee's neighborhood experience to life in Egypt make them a strong franchise partner for us," said Mike Archer, president of Applebee's Services, Inc. "It's exciting for us to be introducing Applebee's to neighborhoods throughout Egypt."
Egypt is familiar landscape for AMECO, which is currently working to open 30 Dairy Queen locations in the country. To ensure operational effectiveness, AMECO has worked with the U.S. Chamber of Commerce in Egypt to expedite the supply chain process. The firm anticipates importing from Applebee's approved U.S. vendors the first year, and transitioning to about 75 percent approved Egyptian suppliers in the second year.
"Applebee's is a global brand that represents top quality and fresh ideas in a warm environment," said Sam Boraie, president, AMECO Foods. "AMECO Foods is proud to join the Applebee's franchisee family and be an integral part of global expansion plans in Egypt. We are excited to open up the neighborhood in Egypt to Applebee's."
On June 20, 2011, DineEquity also announced the expansion of its IHOP franchise into the Middle East, with a multi-restaurant franchise deal for the development of 40 new IHOP restaurants in Kuwait, Saudi Arabia, Jordan, Lebanon, Qatar, the United Arab Emirates, Oman, Bahrain and Egypt. The agreement marked the first major expansion of the IHOP chain outside of North America and represents the largest international development deal in the brand's history.
ABOUT DINEEQUITY, INC.
Based in Glendale, California, DineEquity, Inc., through its subsidiaries, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. DineEquity, Inc., the parent company of Applebee's and IHOP, has more than 3,500 restaurants worldwide. For more information on DineEquity, visit the company's website at www.dineequity.com
ABOUT APPLEBEE'S SERVICES, INC.
Applebee's (www.applebees.com) has more than 2,000 locations in 49 states, 16 countries and one U.S. territory. Based in Lenexa, Kan., Applebee's takes pride in providing a welcoming, neighborhood environment where everyone can enjoy the dining experience. Applebee's Services, Inc., and its affiliates franchise and operate restaurants under Applebee's Neighborhood Grill & Bar and are a DineEquity, Inc. (NYSE: DIN) brand.
Statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words such as "may," "will," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: the effect of general economic conditions; the Company's substantial indebtedness; risk of future impairment charges; the Company's results in any given period differing from guidance provided to the public; the highly competitive nature of the restaurant business; the Company's business strategy failing to achieve anticipated results; risks associated with the restaurant industry; shortages or interruptions in the supply or delivery of food; changing health or dietary preferences; harm to our brands' reputation; litigation; environmental liability; liability relating to employees; failure to comply with applicable laws and regulations; failure to effectively implement restaurant development plans; concentration of Applebee's franchised restaurants in a limited number of franchisees; credit risk from IHOP franchisees operating under our previous business model; termination or non-renewal of franchise agreements; franchisees breaching their franchise agreements; changes in the number and quality of franchisees; inability of franchisees to fund capital expenditures; third-party claims with respect to intellectual property assets; heavy dependence on information technology; failure to protect the integrity and security of individually identifiable information; and other factors discussed from time to time in the Company's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company's other filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof and the Company assumes no obligation to update or supplement any forward-looking statements.