Here's why Applebee's owner Dine Brands hasn't found Chili's recent success

Core Insights - Chili's has surpassed Applebee's in U.S. systemwide sales for the first time in 2024, with sales growing from approximately $3.6 billion in 2021 to $4.6 billion in 2024, while Applebee's sales remained flat at $4.1 billion during the same period [1] - In the most recent fiscal quarters, Chili's reported a 31% increase in same-store sales, whereas Applebee's experienced a 2.2% decline, marking the eighth consecutive quarter of declines for Applebee's [2] Company Performance - Dine Brands, the parent company of Applebee's, has seen its share price decline by about 40% over the past year, with analysts suggesting that returning to positive same-store sales could significantly boost the stock [3] - Dine Brands operates as an "asset light business," primarily through franchised restaurants, which limits operational control compared to Chili's, which is mostly company-owned [4] Strategic Initiatives - Dine Brands is planning to remodel all its locations over the next three years and is incentivizing franchisees to adopt these renovations early [6] - The company is also introducing combination restaurants featuring both IHOP and Applebee's, with the first location opened in Seguin, Texas, showing promising sales growth from $2 million to $6 million annually [7][8] Market Outlook - Despite softer traffic in 2024, there is optimism about future growth and success within the Applebee's franchisee community [9]