Acquistions, China

IHOP acquired Applebee's in 2007, then followed that by changing the parent name to DineEquity.
As of now, IHOP has no operations in China, however, they do have operations in the Carribean Islands, as well as Canada and Mexico.

Share Price update

50.04

-0.31 (-0.62%)

 

1. Range49.90 - 51.24
3. 52 week 19.97 - 51.24
5. Open 50.53
6. Vol / Avg. 243,713.00/284,000.00
7. Mkt cap 897.10M

Vertical Integration/ Outsourcing

IHOP does not really have a need to do either of these strategies. With the close relationship that they have with suppliers, it would not make sense to integrate backward. As far as outsourcing goes, I am not sure how they could outsource anything in the restaurant biz. It would be interesting to imagine what that would be like though.

Share Price update

DineEquity, Inc. 

(Public, NYSE:DIN)

45.66

-0.91 (-1.95%)

After Hours: 45.66 0.00 (0.00%)

Oct 6, 4:26PM EDT

Generic Strategies

IHOP appears to follow the generic strategy of broad differentiation. They offer buyers something attractively different from competitors such as Bob Evans and Denny's. IHOP has various ways to offer pancakes unlike anyone else, and they continually mix it up as seasons change; which leads me into the many product lines that they offer - in pancakes alone! They tout these differentiating features as well in their ads (like the New York Cheesecake pancakes). Lastly, they concentrate on these differentiating areas, while the rest of the menu is relatively comparable to other restaurants.

Share Price Update

44.96

-0.02 (-0.04%)

After Hours: 44.96 0.00 (0.00%) Oct 1, 5:17PM EDT 

DineEquity In Preliminary Deals To Refranchise 86 Applebee's

DineEquity In Preliminary Deals To Refranchise 86 Applebee's

by Tess Stynes, Dow Jones Newswires Posted: Friday, October 1, 2010 at 12:18PM EDT DineEquity Inc. (DIN) said it has reached three preliminary deals to refranchise a combined 86 company-owned Applebee's restaurants, continuing its effort to move to a franchisee operating model. Since IHOP bought Applebee's in 2007 to form DineEquity, the company has been selling company-owned Applebee's restaurants to help pay down debt. As of June 30, it had total debt of about $2.2 billion. The potential sales in the latest deals include 36 locations in St. Louis, 20 in Virginia and 30 in the Washington D.C. market. DineEquity said in a filing Wednesday with the Securities and Exchange Commission that it would continue to have a significant amount of debt after the transactions are completed. The company refranchised 110 Applebee's since the merger through June 30, leaving 393, or 20%, of the chain's total number of locations. A deal is in place to sell 63 in Minnesota and Wisconsin and is slated to close in the fourth quarter. But DineEquity noted Wednesday that if the deal is terminated by mid-November, the company won't be able to carry out plans to redeem $28 million of preferred stock. To read the rest of the story, please go to: The Wall Street Journal.