Dine Brands to Close Underperforming IHOP Restaurants

Dine Brands Global Inc. expects to close as many as 100 IHOP restaurants over the next six months, a direct result of the coronavirus pandemic’s chokehold on the food service industry, the company announced Wednesday.In a quarterly report with the Securities and Exchange Commission, the Glendale franchisor of the IHOP and Applebee’s banners revealed it is conducting financial evaluations of IHOP franchisees and individual restaurants whose viability has been threatened by the virus.The company stipulated, “the timing and extent of any closures resulting from these evaluations are uncertain.”In the company’s earnings call with investors Wednesday, IHOP President Jay Johns said, "we're confident we will eventually replace these severely underperforming restaurants with better-performing restaurants.”During the quarter, 16 IHOP restaurants closed permanently, bringing to 35 the total number of IHOP locations that have shuttered this year. There are 1,687 remaining IHOP restaurants.Dine Brands said it also expects to close 15 Applebee’s locations during the fourth quarter.That would add to the 52 Applebee’s closures in the U.S. this year, with 20 of those coming since July 1.Shares of Dine Brands (DIN) closed Wednesday down 52 cents, or less than a percent, to $55.97 on the New York Stock Exchange.