Why Applebee's is struggling while Chili's thrives

Market Trends & Competition - Chili's surpassed Applebee's in US systemwide sales in 2024 [1] - Chili's reported a 31% increase in sales and a 21% increase in traffic last quarter [1] - Applebee's existing locations have experienced sales declines every quarter for the past 2 years [1] Financial Performance & Valuation - Brinker International's (Chili's owner) stock price has increased over the past year [2] - Dine Brands' (Applebee's parent company) stock is down approximately 40% [2] - Dine Brands believes its stock is currently undervalued [2] Strategic Initiatives & Challenges - Applebee's needs to grow its number of restaurants and reinvigorate its brand to prove its potential to investors [3] - Chili's, being mostly company-owned, can more easily implement systemwide initiatives like restaurant renovations [3] - Applebee's is trying to encourage growth by cutting nearly 1 million dollars off the cost of building a new restaurant [4] - Applebee's is beginning to roll out combination locations with IHOP [5]