IHOP 2010 Annual Report Download - page 4

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We know one thing for sure:
Our strategy
works.
To our DineEquity family
of shareholders:
2010 was a milestone year of progress for DineEquity.
Our business fundamentals were strong across the board.
Applebee’s revitalization strategies took hold in a meaningful
way with our same-restaurant sales performance turning
positive for the second half of the year. The sale of Applebee’s
company-operated restaurants moved materially forward
with nearly 150 locations sold in the last six months. We
delivered Applebee’s most protable company-operated
restaurant performance in more than ve years. IHOP
opened its 1,500th location while optimizing marketing,
menu, operations and remodel strategies to build upon
its lead in family dining. In addition, we eliminated the
renancing risk associated with our previous securitized
capital structure with a new bank and bond transaction that
was accretive to our bottom line performance.
All in all, I could not be more pleased with everything that
we have accomplished to date, and the positive momentum
we are creating in every aspect of our business.
Strategic promise of the Applebee’s
acquisition materializing
When we acquired Applebee’s in 2007, our intention
was twofold — to revitalize the brand and to transition
the business to a more highly franchised one — just as
we had done previously with IHOP. More than three years
later, we have made signicant progress in achieving
this transformation.
Applebee’s domestic system-wide same-restaurant sales
performance is clearly leading the competitive set, and is
the result of our holistic and integrated approach to brand
nagement. We are embracing operational excellence system-
wide, making it the foundation upon which we implement
all change. As a result, Applebee’s today benets from an
all-time high in guest satisfaction. We are delivering a great
guest experience and continue to raise the bar from
an operations excellence perspective. Menu innovation
has been a critical component of our success. Since the
acquisition, more than 80% of the Applebee’s menu consists
of either new offerings or improved neighborhood favorites
with better, fresher ingredients. Unique, new promotions
like “Sizzling Entrees” or “Great Tasting And Under 550
Calories,” along with new items available in our “2 for $20”
line-up, as well as innovative lunch and late night offerings,
are setting the standard for grill and bar menu innovation.
We are fostering guest connections through Applebee’s
“There’s No Place Like the Neighborhood®” advertising
campaign, which is resonating with guests and making
the brand relevant. We are focused on communicating the
“everyday” value that our brand stands for. We are strategically
advertising products that have been value engineered to be
protable performers for our system. We are driving our late
night business through local restaurant marketing efforts
around sports and other events, along with beverage and
appetizer offerings. And, our new “Connections” remodel
program, launched in June 2010, offers a relevant and
contemporary update to our guests’ favorite neighborhood
grill and bar.
The positive momentum in the Applebee’s system is building.
With every meal we serve and every beverage we pour, we
are bringing ‘neighborhood’ to life in every neighborhood we
call home. This momentum continues into 2011 with new
and differentiated initiatives that will take our excellence,
innovation and connection strategies to the next level.
Strengthening IHOP’s market
leadership position
Over the past several years, IHOP has maintained its number
one position in family dining by employing an unwavering
commitment to brand energizing strategies that are similar to
those now responsible for revitalizing Applebee’s. As a result,
IHOP has fared better than most of the competitive set
through the economic downturn, maintaining essentially at
domestic system-wide same-restaurant sales results over the
past two years.
IHOP continues to emphasize value and differentiation to
drive system momentum. Anchored by our franchisees’
commitment to operational excellence, IHOP’s performance
reects integrated marketing, menu and remodel strategies
DINE EQUITY 2010
ANNUAL REPORT
14 PAGES + COVER
Trim Size:
8.25 x 10.75
Spot colors:
PMS 268
PMS 179
Overall Satin AQ
___
PAGE 2:
Type prints PMS 268,
PMS 179 + 100%K
DineEquity 2010 Annual Report02