Applebee's International, Inc.reported net earnings of $12.2 million, or 39 cents per share, for the second quarter ended June 29, 1997, an increase of 28% as compared with net earnings of $9.6 million, or 31 cents per share, for the second quarter of 1996.
For the 26 weeks ended June 29, 1997, net earnings were $23.1 million, or 74 cents per share, an increase of 29% as compared with net earnings of $17.9 million, or 58 cents per share, for the comparable period in 1996.
At June 29, 1997, there were 872 Applebee's restaurants open system-wide, including 166 operated by the company and 706 operated by franchisees. During the second quarter, a total of 29 new Applebee's restaurants were opened, including six company and 23 franchise restaurants. As of the date of this release, there are 886 Applebee's restaurants open system-wide, reflecting the opening of 14 restaurants since the end of the second quarter.
The Applebee's development pipeline remains strong with 38 Applebee's restaurants under construction system-wide and an additional 76 franchise sites approved as of the end of June 1997. The company now expects 32 company and at least 115 franchise Applebee's restaurants to open this year.
Rio Bravo Cantina, the company's Tex-Mex restaurant concept continued to expand during the second quarter. At June 29, 1997, there were 45 Rio Bravo Cantinas open, reflecting the opening of seven restaurants during the second quarter of 1997, including three company and four franchise restaurants. The company now anticipates a total of 28 Rio Bravo Cantinas to open this year, including 10 company and 18 franchised restaurants.
Second quarter 1997 system sales for the Applebee's concept reached $460.0 million, compared with $385.8 million in the second quarter of 1996, up 19%. System sales for the 26 week period ending June 29, 1997, were $899.1 million, increasing 21% over the $741.1 million reported for the same period last year. System sales include franchisee sales as reported to Applebee's International, as well as sales of company Applebee's restaurants.
Operating revenues (comprised of company restaurant sales and franchise income) were $130.7 million in the second quarter of 1997, compared with $104.6 million in last year's second quarter, up 25 %. Company restaurant sales increased 26% to $114.8 million in this year's second quarter, compared with $91.1 million a year ago, and included $89.1 million for Applebee's restaurants and $22.0 million for Rio Bravo Cantina restaurants. Operating earnings for the quarter ended June 29, 1997, increased 31% to $19.5 million (14.9% of operating revenues), compared with $14.9 million (14.2% of operating revenues) in the 1996 second quarter.
System-wide comparable sales for Applebee's restaurants increased in the second quarter of 1997 by 0.9% and increased 1.7% for the 26 weeks ended June 29, 1997. Comparable sales of company Applebee's restaurants decreased 0.3% in the second quarter of 1997, while comparable sales for franchise Applebee's restaurants increased 1.2%. Comparable sales for the Rio Bravo Cantina concept decreased 1.8% in the second quarter of 1997 and were flat for the 26 week period. In calculating comparable restaurant sales, restaurants open for at least 18 months are compared from period to period.
Abe J. Gustin, Jr., chairman and co-chief executive officer, said, "Our continued positive earnings momentum in the second quarter positions Applebee's for another strong year in 1997. Additionally, we are pleased with the initial stages of our rollout of new plateware, menu design, new food items and food presentations which are expected to be fully implemented by year-end for all company Applebee's restaurants."
Lloyd L. Hill, co-chief executive officer, president and chief operating officer, added, "Our continued growth in company restaurant and system-wide revenues and net earnings along with our unqualified commitment to providing customer satisfaction, have been, and will continue to be major factors in Applebee's success as we expand our leadership position in our segment."
Applebee's International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates casual dining restaurants in 46 states and four international countries, under the trademarks of Applebee's Neighborhood Grill and Bar and Rio Bravo Cantina.
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