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APPLEBEE'S INTERNATIONAL, INC.
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FOR IMMEDIATE RELEASE
Investor Contact:
Carol DiRaimo, (913) 967-4109
Media Contact:
Laurie Ellison, (913) 967-2718
Applebee's International Provides Update
on the Strategy Committee of the Board of Directors
OVERLAND PARK, KAN., March 12, 2007 - Applebee's International, Inc.
(Nasdaq:APPB) and its Board of Directors today provided an update on the
activities of its Strategy Committee.
The independent co-chairs of the Strategy Committee are Jack Helms, chairman of
Goldsmith, Agio and Helms, a Minneapolis-based investment banking firm, and Eric
Hansen, member, Holman, Hansen & Colville, P.C., a Kansas City law firm. The
other members of the committee, all independent directors, include Mike Volkema,
chairman of Herman Miller, Inc. (Nasdaq:MLHR), a leading global provider of
office furniture and services; Burton "Skip" Sack, former Applebee's franchisee
and executive, former chairman of the National Restaurant Association and the
company's largest individual shareholder; and Pat Curran, chairman of Cook
Composites and Polymers, a global leader in gel coatings and resins.
Helms, Volkema and Sack are the company's slate of independent directors who
will be nominated for re-election to the board at the shareholder meeting this
spring. The company's fourth nominee for re-election will be Lloyd Hill, former
chief executive officer and current chairman of the board.
The Strategy Committee has a broad mandate to conduct a comprehensive and
independent evaluation of the company's strategic alternatives. The committee is
reviewing both the company's business and financial strategies.
From a business perspective, the committee is focusing on the company's returns
on capital, the mix of company-owned versus franchised restaurants, overhead
cost structure and strategies for improving same-store sales.
From a financial perspective, the committee currently is in the process of
reviewing a variety of alternatives to determine its optimal capital structure,
potential use of proceeds from any additional borrowings, and the potential
impact on the company's long-term value as a stand-alone entity. Simultaneously,
the committee is exploring a potential sale of the company and has instructed
its advisors to contact potential buyers in an organized process designed with
the help of the committee's financial and legal advisors.
At this time, it is premature to comment on the likelihood or potential values
in a recapitalization or sale relative to the other options the committee is
evaluating. There can be no assurance that any transaction will be pursued, or
if pursued, that it will be consummated by the company.
"After several months of work, we are deep into our review of the company's
business plan and have more recently begun our evaluation of the company's
financial strategies," Helms said. "Our advisors are working productively with
the management team, and the committee and full board are involved in the
process. Our goal is to develop visible business and financial initiatives that
maximize value for all shareholders. We are leaving nothing of significance out
of our scope and have not yet reached any conclusions, preliminary or otherwise,
on which strategy would be in the best interests of shareholders. Members of the
Strategy Committee and full board are substantial shareholders in their own
right, so our work clearly aligns with the best interests of our shareholder
base."
The committee is expected to require approximately an additional six to eight
weeks to conduct its preliminary financial review. The committee does not
anticipate having a definitive recommendation at that time but hopes to be in a
position to provide shareholders with more information on its thinking.
* * * * *
Applebee's International, Inc., headquartered in Overland Park, Kan., develops,
franchises and operates restaurants under the Applebee's Neighborhood Grill &
Bar brand, the largest casual dining concept in the world. As of Feb. 25, 2007,
there were 1,942 restaurants operating system-wide in 49 states, 16
international countries, and one U.S. territory. Additional information on
Applebee's International can be found at the company's website
(www.applebees.com).
IMPORTANT INFORMATION
Applebee's International, Inc. ("Applebee's") plans to file with the SEC and
mail to its stockholders a Proxy Statement in connection with its 2007 Annual
Meeting, and advises its security holders to read the proxy statement and other
documents relating to the 2007 Annual Meeting when they become available,
because they will contain important information. Security holders may obtain a
free copy of the proxy statement and other documents (when available) that
Applebee's files with the SEC at the SEC's web site at www.sec.gov. The proxy
statement and these other documents may also be obtained for free from
Applebee's by directing a request to our Corporate Secretary, Applebee's
International, Inc., 4551 West 107th Street, Overland Park, KS 66207.
CERTAIN INFORMATION CONCERNING PARTICIPANTS
Applebee's, its directors and named executive officers may be deemed to be
participants in the solicitation of Applebee's security holders in connection
with its 2007 Annual Meeting. Security holders may obtain information regarding
the names, affiliations and interests of such individuals in Applebee's Annual
Report on Form 10-K for the year ended December 31, 2006, and its proxy
statement dated April 11, 2006, each of which is filed with the SEC. To the
extent holders of Applebee's securities have changed from the amounts disclosed
in the proxy statement, such changes have been reflected on Statements of Change
in Ownership on Form 4 filed with the SEC. These documents are available free of
charge at the SEC's website at www.sec.gov.
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