IHOP 2015 Annual Report Download - page 48

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28
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Cautionary Statement Regarding Forward-Looking Statements
Statements contained in this report may constitute forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, which may
cause actual results to be materially different from those expressed or implied in such statements. You can identify these
forward-looking statements by words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,”
“intend,” “plan” and other similar expressions. You should consider our forward-looking statements in light of the risks
discussed under the heading “Risk Factors,” as well as our consolidated financial statements, related notes, and the other
financial information appearing elsewhere in this report and our other filings with the United States Securities and Exchange
Commission. The forward-looking statements contained in this report are made as of the date hereof and the Company assumes
no obligation to update or supplement any forward-looking statements.
You should read the following Management's Discussion and Analysis of Financial Condition and Results of Operations in
conjunction with the consolidated financial statements and the related notes that appear elsewhere in this report.
Business Overview
The Company
The first International House of Pancakes restaurant opened in 1958 in Toluca Lake, California. Shortly thereafter, the
Company's predecessor began developing and franchising additional restaurants. The Company was incorporated under the
laws of the State of Delaware in 1976 with the name IHOP Corp. In November 2007, the Company completed the acquisition
of Applebee's International, Inc., which became a wholly-owned subsidiary of the Company. Effective June 2, 2008, the name
of the Company was changed to DineEquity, Inc. (“DineEquity,” “we” or “our”). Through various subsidiaries (see Exhibit 21,
Subsidiaries of DineEquity, Inc.), we own and franchise the Applebee's Neighborhood Grill & Bar® (“Applebee's”) concept in
the bar and grill segment within the casual dining category of the restaurant industry, and own, franchise and operate the
International House of Pancakes® (“IHOP”) concept in the family dining category of the restaurant industry. References herein
to Applebee's® and IHOP® restaurants are to these two concepts, whether operated by franchisees, area licensees or us.
Domestically, IHOP restaurants are located in all 50 states and the District of Columbia, while Applebee's restaurants are
located in every state except Hawaii. Internationally, IHOP restaurants are located in three United States territories and nine
international countries; Applebee's restaurants are located in two United States territories and 15 international countries. With
over 3,700 restaurants combined, we believe we are the largest full-service restaurant company in the world.
Our Vision
To be the preferred franchisor of choice and deliver maximum franchisee and stockholder value.
Our Mission
To unite great franchisees, iconic brands and team members to create the world's leading restaurant company - one guest at
a time.
Our Value Creation Strategy
We are focused on generating strong free cash flow and returning a substantial portion of it to stockholders. To build value,
we seek to maximize our business by focusing on the following key strategic priorities:
• Innovate and evolve strong brands;
• Facilitate franchisee restaurant development; and
• Maintain strong financial discipline.
Our fundamental approach to brand building centers on a strategic combination of initiatives intended to continually
innovate and evolve both brands. These initiatives include menu innovation, maximization of advertising and media, expanding
our digital and social marketing presence, maintaining a consistent level of operational excellence, and creating new
prototypes, remodels and restaurant designs. Our shared services operating platform allows our senior management to focus on
key factors that drive both our brands while leveraging the resources and expertise of our scalable, centralized support
structure. As announced in September 2015, we are in the process of consolidating core brand and franchisee support functions
that had been based in Kansas City, Missouri into our Glendale, California headquarters. This consolidation will enable cross-
brand collaboration to provide for faster innovation and effective implementation to the benefit of both domestic and
international franchisees.