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) February 23, 2004
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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
On February 23, 2004, Applebee's International, Inc. (the "Company") issued
a press release entitled " Applebee's International Enters Into Agreement To
Acquire 10 Franchise Restaurants." The release contained the following
information.
FOR IMMEDIATE RELEASE
Contact: Carol DiRaimo,
Vice President of Investor Relations
(913) 967-4109
APPLEBEE'S INTERNATIONAL ENTERS INTO AGREEMENT
TO ACQUIRE 10 FRANCHISE RESTAURANTS
OVERLAND PARK, KAN., February 23, 2004 -- Applebee's International, Inc.
(Nasdaq:APPB) announced today that it has reached an agreement with Pacific
Gold, Inc., an existing Applebee's franchisee, to acquire the assets of 10
Applebee's restaurants located in southern California for $13.4 million in cash
at closing, subject to adjustment.
Lloyd L. Hill, chairman and chief executive officer, said, "As we've previously
stated, part of our growth strategy is to use our strong balance sheet and
substantial free cash flow for franchise acquisitions. The addition of these
restaurants will provide geographic and operations synergy to our existing base
of company restaurants and will allow us to leverage the talents of Miguel
Fernandez, our regional vice president. The acquisition of these restaurants is
part of a longer-term strategy to more aggressively penetrate the southern
California market using a combination of both company and franchise resources."
Hill continued, "Fiscal year 2003 comparable sales for these restaurants were
higher than the system average, and average weekly sales were in excess of
$46,000. We believe the territory in which these restaurants are located will
ultimately support a total of more than 30 Applebee's restaurants. We look
forward to welcoming this team of associates and their strong operating culture
to Applebee's International."
The acquisition of the restaurants is anticipated to close in the second quarter
of 2004, subject to obtaining operating licenses and other third-party consents.
The company expects the addition of these restaurants to be slightly accretive
to fiscal year 2004 earnings.
Pacific Gold, Inc. and its affiliates currently operate 72 Applebee's
restaurants in four states. Upon completion of the sale, Pacific Gold, Inc. and
its affiliates will continue to operate Applebee's restaurants located in North
Carolina, Oklahoma and Arkansas.
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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. There are currently
1,594 Applebee's restaurants operating system-wide in 49 states and nine
international countries. Additional information on Applebee's International can
be found at the company's website (www.applebees.com).
Certain statements contained in this release are forward-looking and based on
current expectations. There are several risks and uncertainties that could cause
actual results to differ materially from those described, including but not
limited to the ability of the company and its franchisees to open and operate
additional restaurants profitably, the ability of its franchisees to obtain
financing, the continued growth of its franchisees, and its ability to attract
and retain qualified franchisees, the impact of intense competition in the
casual dining segment of the restaurant industry, and its ability to control
restaurant operating costs which are impacted by market changes, minimum wage
and other employment laws, food costs and inflation. For additional 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 11, 2004. The
company disclaims any obligation to update these forward-looking statements.
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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: February 23, 2004 By: /s/ Steven K. Lumpkin
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Steven K. Lumpkin
Executive Vice President and
Chief Financial Officer
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