DineEquity Inc. said Friday that Julia Stewart plans to resign as chairman and chief executive of the Glendale-based parent of the Applebee’s and IHOP restaurant chains, effective March 1.
The company gave no reason for Stewart’s departure, but it comes as DineEquity reported declines in preliminary fourth-quarter and full-year earnings.
DineEquity’s stock tumbled in response, losing $6.39 a share, or nearly 10%, to $60.16 in midday trading. The stock has plunged 30% in the last two months.
The company said one of its directors, Richard Dahl, would be interim chairman and chief executive while DineEquity’s board searches for Stewart’s replacement. DineEquity operates and franchises 3,700 restaurants in 18 countries.
Stewart previously headed IHOP, originally the International House of Pancakes. She merged that company with Applebee’s, which she had earlier served as president, in 2007 to create DineEquity.
“I am confident in the strong roadmap that has been set forth and will continue to cheer for the company’s success,” Stewart said in a statement.
But both chains are struggling in the U.S. market. IHOP’s domestic comparable sales in the fourth quarter – that is, restaurants open at least a year – fell 2.1% from a year earlier, DineEquity said. Applebee’s domestic comparable sales fell 7.2% in the quarter.
“I will be working very closely with the Applebee’s franchisees to improve performance,” Dahl said in a statement.
Also in the fourth quarter, DineEquity said preliminary results showed profit fell to $21.1 million, or $1.18 a share, from $25 million, or $1.35 a share, a year earlier.
DineEquity said it would report its definitive fourth-quarter and full-year results March 1.
At a press conference, President Trump shrugged off a rocky start. An executive order has been drafted to end protection for 'Dreamers,' who were brought to the U.S. illegally as children. New York real estate scion Robert Durst confessed to killing a writer, a witness said in court. The Governors Ball after the Oscars will be decked out for the stars.
At a press conference, President Trump shrugged off a rocky start. An executive order has been drafted to end protection for 'Dreamers,' who were brought to the U.S. illegally as children. New York real estate scion Robert Durst confessed to killing a writer, a witness said in court. The Governors Ball after the Oscars will be decked out for the stars.
At a press conference, President Trump shrugged off a rocky start. An executive order has been drafted to end protection for 'Dreamers,' who were brought to the U.S. illegally as children. New York real estate scion Robert Durst confessed to killing a writer, a witness said in court. The Governors Ball after the Oscars will be decked out for the stars.
At a press conference, President Trump shrugged off a rocky start. An executive order has been drafted to end protection for 'Dreamers,' who were brought to the U.S. illegally as children. New York real estate scion Robert Durst confessed to killing a writer, a witness said in court. The Governors Ball after the Oscars will be decked out for the stars.
Nickel Diner owners, Kristen Trattner and Monica May, closed their restaurant in downtown Los Angeles for the day in solidarity with a national "Day Without Immigrants." (Mark Boster / Los Angeles Times )
Nickel Diner owners, Kristen Trattner and Monica May, closed their restaurant in downtown Los Angeles for the day in solidarity with a national "Day Without Immigrants." (Mark Boster / Los Angeles Times )
Kenneth Turan and Justin Chang chat about the 2017 Academy Awards, and which movie might win for best Picture.
Kenneth Turan and Justin Chang chat about the 2017 Academy Awards, and which movie might win for best Picture.
President Trump met with Israeli Prime Minister Benjamin Netanyahu. A powerful new storm is expected to wallop Southern California on Friday. L.A. Mayor Eric Garcetti says backers of Measure S are engaged in "dirty tricks." 16-year-old Mauricio Gomez is from El Salvador, a country with one of the highest murder rates in the world.
President Trump met with Israeli Prime Minister Benjamin Netanyahu. A powerful new storm is expected to wallop Southern California on Friday. L.A. Mayor Eric Garcetti says backers of Measure S are engaged in "dirty tricks." 16-year-old Mauricio Gomez is from El Salvador, a country with one of the highest murder rates in the world.
Harvard-Westlake wins 1A opener
Harvard-Westlake wins 1A opener
james.peltz@latimes.com
Twitter: @PeltzLATimes
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