UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 23, 1999
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Commission File Number: 000-17962
Applebee's International, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 43-1461763
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4551 W. 107th Street, Suite 100, Overland Park, Kansas 66207
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(Address of principal executive offices and zip code)
(913) 967-4000
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(Registrant's telephone number, including area code)
None
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(Former name or former address, if changed since last report)
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Item 5. Other Events
Applebee's International, Inc. (the "Company") issued a press
release announcing strong third quarter sales trends, increased network
television advertising and increased 1999 earnings expectations. The press
release is attached as Exhibit A hereto and incorporated herein by reference.
Item 7. Exhibits
(c) Exhibits
Exhibit Description
A Press release of the Company dated
September 23, 1999
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
APPLEBEE'S INTERNATIONAL, INC.
(Registrant)
Date: September 23, 1999 By: /s/ George D. Shadid
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George D. Shadid
Executive Vice President and
Chief Financial Officer
3
<PAGE>
Contact: George Shadid FOR IMMEDIATE RELEASE
Chief Financial Officer September 23, 1999
(913) 967-4035
APPLEBEE'S INTERNATIONAL REVIEWS STRATEGIC PROGRESS
AT ANNUAL FRANCHISE CONVENTION
ANNOUNCES STRONG THIRD QUARTER SALES TRENDS;
INCREASED NETWORK TELEVISION ADVERTISING IN 2000
1999 EARNINGS EXPECTATIONS INCREASED
OVERLAND PARK, Kan., Sept. 23, 1999 - Attendees at the Applebee's International,
Inc. (Nasdaq: APPB) franchise convention heard management report today that the
company is experiencing strong sales trends and is exceeding its 1999
expectations as a result of its strategic plan initiatives announced earlier
this year. Over 900 attendees are meeting at the annual event being held this
week in Boca Raton, Fla.
Lloyd L. Hill, chief executive officer, told franchisees that same store sales
for company restaurants are expected to increase by more than 5% in the third
quarter ending September 26, 1999, and system-wide same store sales are expected
to increase approximately 3.5% over last year's third quarter.
Hill told convention attendees, "Our strategic initiatives have been successful
on every front this year. The enhanced food and marketing strategies are in full
swing, with additional enhancements on the way. The success of network
advertising this year has fueled our decision to increase our spending level for
next year. A heightened marketing presence is an important strategic initiative
in further increasing the consumer's awareness of the Applebee's brand, and
expanding our position as a leader in the casual dining segment."
"We are proud of the tremendous progress the Applebee's team, led by Julia
Stewart, and our franchisees have made this year," Hill added. "They have moved
quickly and effectively to implement these strategic initiatives. Our excitement
about the future continues to grow as we head toward the 21st century."
<PAGE>
APPLEBEE'S INTERNATIONAL REVIEWS STRATEGIC PROGRESS
AT ANNUAL FRANCHISE CONVENTION
September 23, 1999
Page 2
Hill reported that network advertising spending will increase to $37 million in
2000, more than double the $16 million spent in 1999. To fund this brand
building strategy, the required contribution level to the national advertising
fund for both company and franchise restaurants will increase to 2.1% of sales
from the current level of 1.5% of sales.
As a result of the strong system-wide sales performance during the quarter, the
company expects its net earnings per share for the third quarter to exceed its
earlier expectations. The company now expects third quarter diluted earnings per
share to be in the range of 52 to 53 cents and diluted net earnings per share
for fiscal year 1999 to be in the range of $1.94 to $1.95. The company will
release its full earnings report for the third quarter on October 27, 1999.
Applebee's International, Inc., headquartered in Overland Park, Kan., currently
develops, franchises and operates Applebee's Neighborhood Grill & Bar
restaurants, the largest casual dining concept in the world. There are currently
1,134 Applebee's restaurants operating in 48 states and seven international
countries. Additional information on Applebee's International can be found at
the company's website (www.applebees.com).
The statements contained in this release regarding anticipated financial results
for the third quarter and fiscal year 1999 and advertising expenditures for 2000
are forward looking and based upon current expectations. There are several risks
and uncertainties that could cause actual results to differ materially from
those described. For a discussion of the principal factors that could cause
actual results to be materially different, the reader is referred to the
company's current report on Form 8-K filed with the Securities and Exchange
Commission on February 23, 1999.
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