Dine Brands, the parent company of Applebee’s and IHOP, plans to boost sales in 2025 with expanded value meals and improved marketing after a challenging 2024. CEO John Peyton acknowledged the need for compelling promotions to drive traffic, following four consecutive quarters of domestic same-store sales declines. Shares of Dine have dropped 50% over the past year. The company faced reduced customer spending, particularly from those earning less than $75,000, amid rising living costs. This slowdown led several casual-dining chains, including Red Lobster and TGI Friday’s, to file for bankruptcy. Applebee’s struggled to stand out in the competitive value wars, despite pop-culture moments boosting its profile. Brinker International’s Chili’s succeeded with viral promotions, reporting significant sales growth. Applebee’s popular two for $25 deal accounts for about a fifth of tickets, with plans to expand value offerings. Dine is also enhancing its social media presence and seeking a new Applebee’s president with strong marketing skills. For 2025, Dine forecasts modest sales growth for both brands. — news from CNBC
