After reading Chapter two, I thought I would share this about DineEquity:
1) DineEquity's Vision is this: "DineEquity unites great franchises, brands and team members to create the world's leading restaurant company, one guest experience at a time."
The effective elements I find here are: Directional, Focused, Feasible, Desirable, and Easy to Communicate.
The shortcomings are: Too reliant on superlatives (the world's leading restaurant company).
2) DineEquity has a wonderful set of Values: Integrity, Excellence, Innovation, Accountability, Inclusion, Trust, and (my personal favorite) Community. They believe in making a difference in the communites they serve.
3) DineEquity Inc. set goals of "energizing our brands, improving the operational performance of our franchsie systems, and maximizing franchise development" - the intention is to transform Applebee's to a nearly 99% franchised system.
4) DineEquity "expects to continue to apply a new business strategy that includes (1) the franchising of more than 90% of the Applebee's company-operated restaurants, (2) specific changes in the manner in which our Applebee's and IHOP businesses are managed and serviced, such as the February 2009 establishment of a purchasing cooperative, and the procurement of products and services from such purchasing cooperative, (3) the possible introduction of new restaurant concepts and (4) improvements to the overall performance of the Applebee's business by applying some of the strategies we previously applied to the IHOP restaurant business." Source: 2009 10K. Basically, IHOP is using its winning strategy to help Applebee's become more profitable.
5) DineEquity has its Corporate Governance Guidelines, Code of Ethics for Executives and Directors, and Policies for Business Conduct posted on its website. It does a great job of listing the board's role and goals. This allows every potential investor to better understand what the company stands for, as well as being open about its responsibilities. Nobody can say that they don't know what their role and responsiblity is.
Today, the stock closed at 32.58; down 0.62.
Monday, August 30, 2010
Beta Article
Here is an interesting article for anyone interested in buying restaurant-related shares:
http://www.mysmartrend.com/news-briefs/news-watch/shares-dineequity-rank-highest-terms-beta-restaurants-industry-din-ruth-rt-e-1
http://www.mysmartrend.com/news-briefs/news-watch/shares-dineequity-rank-highest-terms-beta-restaurants-industry-din-ruth-rt-e-1
Rooty Tooty
Here is an article for anyone interested in visiting IHOP soon:
http://www.marketwatch.com/story/after-25-years-famous-ihop-dish-still-embarrassing-to-say-but-more-delicious-to-eat-2010-08-30?reflink=MW_news_stmp.
http://www.marketwatch.com/story/after-25-years-famous-ihop-dish-still-embarrassing-to-say-but-more-delicious-to-eat-2010-08-30?reflink=MW_news_stmp.
Saturday, August 28, 2010
Chapter 1
After reading Chapter One, I thought I would share the following:
1) IHOP Corp acquired Applebee's in an effort to strengthen its market standing and competitiveness (it then changed its name to DineEquity Inc.).
2) Since IHOP and Applebee's are still two distinct restaurants - IHOP in family dining, Applebee's in casual dining - they each have different strategies.
3) IHOP's strategies include energizing the IHOP brand through advertising, as well as improving operations performance and maximizing franchise development.
4) Applebee's strategies include completing their current 3- 5 year brand revitalization plan, which is continuing the effort to drive profitable sales and traffic by offering specials - 2 for $20 - and differentiating themselves through advertising - "There's no place like the neighborhood", and offering a line of healthy meals. They also recently changed their menu design in hopes of increasing profitablilty.
1) IHOP Corp acquired Applebee's in an effort to strengthen its market standing and competitiveness (it then changed its name to DineEquity Inc.).
2) Since IHOP and Applebee's are still two distinct restaurants - IHOP in family dining, Applebee's in casual dining - they each have different strategies.
3) IHOP's strategies include energizing the IHOP brand through advertising, as well as improving operations performance and maximizing franchise development.
4) Applebee's strategies include completing their current 3- 5 year brand revitalization plan, which is continuing the effort to drive profitable sales and traffic by offering specials - 2 for $20 - and differentiating themselves through advertising - "There's no place like the neighborhood", and offering a line of healthy meals. They also recently changed their menu design in hopes of increasing profitablilty.
Thursday, August 26, 2010
First Blog
When I thought about which company to use, my first thought was - pancakes. Therefore, I looked up IHOP, one of my favorite places to dine. I was surprised to learn that they acquired Applebee's in 2007 and then renamed their company DineEquity; which is a franchising company that provides franchisees with the strategic tools needed to enhance shareholder value.
DineEquity is the largest full-service dining company in the world. There are Applebee's in 16 countries, while IHOP has 1,400 locations in the US. DineEquity is looking to "re-energize" both brands, something that they believe is a core competency of their's.
As of today, they last traded at 32.24, up 0.06 from the previous day.
I am looking forward to learning more about them, as well as eating their pancakes.
DineEquity is the largest full-service dining company in the world. There are Applebee's in 16 countries, while IHOP has 1,400 locations in the US. DineEquity is looking to "re-energize" both brands, something that they believe is a core competency of their's.
As of today, they last traded at 32.24, up 0.06 from the previous day.
I am looking forward to learning more about them, as well as eating their pancakes.
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