IHOP In Bid To Buy Applebee's - Applebee's Stock Down - Olive Garden Stock Soaring

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June 13 (Bloomberg) -- Ihop Corp., the biggest U.S. pancake-house chain, offered to buy Applebee's International Inc., people familiar with the matter said.

The bid was for more than $2 billion, a person with direct knowledge of the offer said. There may be other bidders, said the people, who declined to be identified because the proposal isn't public. Applebee's stock-market value is about $1.92 billion.

Ihop, which has about 1,300 locations and half the market value of Applebee's, said in February it may acquire a chain that isn't a competitor. Applebee's, with 1,900 casual-dining restaurants, began seeking a buyer after shareholder Breeden Capital Management LLC nominated four board candidates in December and called the stock's performance a ``disaster.''

Applebee's ``is in the middle of a transition,'' Malcolm Knapp, a New York-based restaurant consultant, said today. ``It's going to take a lot of work.''

Applebee's stock declined 4.1 percent in the three years that ended Feb. 12, the day before it said it may sell itself. Darden Restaurants Inc., owner of the Olive Garden and Red Lobster chains, rose 86 percent during that time, while California Pizza Kitchen Inc., with about 200 restaurants, almost doubled.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3rWmEbm0et0&refer=home

it has become considered as cheap to eat out as it is to shop for groceries and cook and clean etc.

Seriously my wife and I know several couples (with kids and without) who go out to eat every single night or they do a fast food run twice or so times a week.

My wife and I have gone the other way-she now goes to a local farm on weekends and gets grassfed beef (there is not comparison) and real eggs and such. We still buy some stuff from the store of course but once the garden gets pumping the only things we will have to buy are paper products and diapers.

F'ing Amateur!!

Okay we NEVER thought that could happen.

BTW- check out the farm food thing. Really really good.

I'm in the process of converting my backyard.

Mono-cropping is boring. And facist.

I wonder if Chef Boyardee will demand his recipes back.

There are probably ten chains offering the exact same thing Applebee's does. Let's see...right off the top of my head, you've got Applebee's, Chili's, Red Robin, Ruby Tuesday, Bennigan's, TGIFriday's...I'm not even trying hard and I came up with six in ten seconds.

Applebee's is a prime takeover target because their segment is overcrowded. If someone DOES buy that chain, they need to go in and convert it to a new name and a new concept.