UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 23, 2003
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Commission File Number: 000-17962
Applebee's International, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 43-1461763
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4551 W. 107th Street, Suite 100, Overland Park, Kansas 66207
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(Address of principal executive offices and zip code)
(913) 967-4000
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(Registrant's telephone number, including area code)
None
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(Former name or former address, if changed since last report)
Item 5. Other Events
On January 23, 2003, Applebee's International, Inc.(the "Company") issued a
press release entitled "Applebee's International Enters Into Agreement to
Acquire 11 Franchise Restaurants." The press release is included below.
FOR IMMEDIATE RELEASE
Contact: Carol DiRaimo,
Director of Investor Relations
(913) 967-4109
APPLEBEE'S INTERNATIONAL ENTERS INTO AGREEMENT
TO ACQUIRE 11 FRANCHISE RESTAURANTS
OVERLAND PARK, KAN., January 23, 2003 -- Applebee's International, Inc.
(Nasdaq:APPB) announced today that it has reached an agreement with Thomas and
King, Inc., an existing Applebee's franchisee, to acquire the assets of 11
Applebee's restaurants for $23.2 million in cash at closing, subject to
adjustment. The restaurants are located in Illinois, Indiana, Kentucky and
Missouri.
Lloyd L. Hill, chairman and chief executive officer, said, "Part of our growth
strategy is to use our strong balance sheet and substantial free cash flow for
franchise acquisitions. These restaurants are contiguous to the St. Louis market
that we acquired in 1997, and their addition will provide geographic and
operations synergy to our base of company restaurants. Fiscal year 2002
comparable sales for these restaurants were higher than the system average, and
average weekly sales were in excess of $44,000. We believe the territory in
which these restaurants are located will ultimately support a total of more than
15 Applebee's restaurants. We look forward to welcoming this team of associates
and their strong operating culture to Applebee's International."
The acquisition of the restaurants is anticipated to close late in the first
quarter of 2003, subject to obtaining operating licenses and other third-party
consents. The company expects the addition of these restaurants to be slightly
accretive to fiscal year 2003 earnings.
Thomas and King is currently the largest franchisee in the Applebee's system
with 85 restaurants in seven states. Upon completion of the sale, Thomas and
King will continue to operate Applebee's restaurants located primarily in
Arizona, Kentucky and Ohio.
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Applebee's International, Inc., headquartered in Overland Park, Kan., develops,
franchises and operates restaurants under the Applebee's Neighborhood Grill &
Bar brand, the largest casual dining concept in the world. There are currently
over 1,500 Applebee's restaurants operating system-wide in 49 states and nine
international countries. Additional information on Applebee's International can
be found at the company's website (www.applebees.com).
Certain statements contained in this release are forward looking and based on
current expectations. There are several risks and uncertainties that could cause
actual results to differ materially from those described, including but not
limited to the ability of the company and its franchisees to open and operate
additional restaurants profitably, the continued growth of its franchisees and
its ability to attract and retain qualified franchisees, the impact of intense
competition in the casual dining segment of the restaurant industry and its
ability to control restaurant operating costs which are impacted by market
changes, minimum wage and other employment laws, food costs and inflation. For
additional discussion of the principal factors that could cause actual results
to be materially different, the reader is referred to the company's current
report on Form 8-K filed with the Securities and Exchange Commission on July 16,
2002. The company disclaims any obligation to update these forward-looking
statements.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
APPLEBEE'S INTERNATIONAL, INC.
(Registrant)
Date: January 23, 2003 By:/s/ Steven K. Lumpkin
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Steven K. Lumpkin
Executive Vice President and
Chief Financial Officer
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