DineEquity Confident in Long-term Brand Loyalty After CEO Steps Down

As Julia Stewart stepped down on Wednesday from her post as CEO of DineEquity, which owns IHOP and Applebee’s restaurants, officials are confident in long-term brand loyalty amid challenging retail times.

Stewart coordinated the merger of IHOP and Applebee’s in late 2007. Richard Dahl, lead director of the board, will serve as interim CEO while a search for a permanent CEO replacement is conducted.

IHOP’s domestic systemwide comparable same-restaurant sales declined 2.1 percent for the fourth quarter of 2016; while Applebee’s domestic systemwide comparable same-restaurant sales declined 7.2 percent for the fourth quarter of 2016.

For fiscal 2016, IHOP’s domestic system-wide comparable same restaurant sales decreased 0.1 percent; while Applebee’s domestic systemwide comparable same-restaurant sales decreased 5 percent.

“I’m very proud to have led this company and been part of its historic transformation over the last 16 years,” Stewart said on Wednesday. “We have always been focused on delivering shareholder value. We successfully turned around IHOP early in my tenure and then did it again in 2013. We acquired and subsequently re-franchised Applebee’s and, in the process, created a fully-franchised DineEquity. It’s an incredible story and it’s been an incredible journey.”

Stewart’s first job was as a food server at an IHOP in San Diego.

“It was then that I first fell in love with this industry,” she added. “It is an industry where we have the opportunity to make a positive impact on people’s lives by providing them a place to gather with family and friends for great food and service. The restaurant industry, which is the second-largest employer in the private sector, provides millions of opportunities for a first job and millions more as a career. Those of us that work in hospitality truly enjoy serving others. I’ve spent my entire career in this great industry and these last 16 years have been both incredibly challenging and rewarding. And it’s provided me with experience and accomplishments I will long savor as I move on … we have created one of the world’s largest full-service restaurant companies with two iconic brands, both No. 1 in their respective categories for the last nine years.”

Looking ahead, Stewart is confident about the success of DineEquity, including “the well-researched and detailed plan we have created for Applebee’s, which coupled with the many strategic initiatives at IHOP, will continue to best position DineEquity for a bright and successful future. I am looking forward to seeing the DineEquity team and its franchisees take both brands to new heights in the years to come.”

Dahl shares Stewart’s optimism.

“While this has been a challenging period for the industry, particularly for casual dining and Applebee’s, I have confidence in our brands, our franchisees, and our team members,” said Dahl. “Working with a world-class management consulting firm to conduct a comprehensive diagnostic on Applebee’s, we are moving forward with a plan to significantly invest in the growth of our brands for the long-term benefit of our franchisees and shareholders. We have identified key strategic initiatives, which we believe will drive meaningful improvements in sales and traffic over time.  To drive the business forward, we know that there is more that needs to be done. I am confident in our road map.”

Recent Content

Membership and Pricing

Videos and podcasts

Membership and Pricing