IHOP 2013 Annual Report Download - page 7

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3
whenever possible, to benefit our fully franchised busi-
ness model. We’re also very proud of the culture we
have cultivated, and are working to build even stronger
relationships with our franchisees.
At the same time, we’re strengthening our Applebee’s®
and IHOP® brands and improving operations. One of the
core tenets of our growth plan involves driving traffic to
our restaurants by continually delighting our guests and
exceeding their expectations. In order to accomplish this,
we are always talking to our guests across all dayparts,
ensuring that we are keeping things fresh and relevant
with our culinary offerings and marketing, service plat-
forms, décor and development. It’s all part of driving
traffic growth with current guests and attracting new
ones, which we believe will contribute to positive and
sustainable same-restaurant sales and traffic.
Managing capital to create value
From a financial management perspective, our growth
strategy encompasses maximizing our free cash flow, while
maintaining a disciplined approach to general and admin-
istrative (G&A) expenses and
capital spending. Doing so will
allow us to retain our financial
flexibility and return cash to
shareholders. To this end, we
will drive value for our fran-
chisees and shareholders by
leveraging our brands, our
people and our financial capital.
We also believe that refinancing our debt is of great impor-
tance. We continue to thoroughly evaluate our options
and manage our cash flow, so that we can position the
company to successfully refinance when the time is right.
Expanding our presence
Another facet of our long-term growth strategy involves
expanding the Applebee’s and IHOP brands internationally.
We see growth potential for our brands in international
markets, and are investing in the necessary resources to
capitalize in this area. Our research shows that casual
dining and family dining remain underdeveloped categories
in most of the world. With two category-leading brands—
Applebee’s ranked #2 in Fast Company’s
“2013 Most Innovative Companies in Food.”3
bute to innovation—
whether we’re creating
eciency, or introducing
a new menu item or idea.”
Julia Stewart