Applebee's sales turn positive for first time since early 2023.

Applebee's same-store sales turn positive for the first time since early 2023, driven by a 4.9% increase in Q2 sales primarily due to traffic growth. The chain's strategy adjustment, including a 2 for $25 menu and national campaigns, has contributed to its growth. Off-premises sales account for 22% of sales mix, with per restaurant average weekly sales of approximately $12,800. Applebee's has also made progress in modernizing its portfolio through the Lookin' Good reimaging program.

Applebee's, a subsidiary of Dine Brands, has reported a significant turnaround in its second quarter (Q2) same-store sales, marking the first positive growth since early 2023. The chain's Q2 same-store sales increased by 4.9%, primarily driven by a 3.5% increase in traffic, according to CEO John Peyton [1].

The turnaround can be attributed to several strategic adjustments implemented by Applebee's. One of the key drivers was the introduction of a 2 for $25 menu, which has resonated well with consumers seeking value. This menu was part of the chain's strategy to differentiate itself and appeal to both core consumers and the next generation of loyal guests [1].

Applebee's has also made strides in modernizing its menu offerings. The chain introduced new entrées each quarter, including Sizzlin' Skillets in March and Chicken Parmesan Fettucine in July, which have helped to attract and retain customers [1].

The chain's off-premises business has also shown significant growth, contributing to its overall success. Off-premises sales accounted for 22% of Applebee's sales mix in Q2, with per restaurant average weekly sales of approximately $12,800 [1].

Applebee's has also enhanced its marketing efforts, with a sharper focus on social media. The chain has brought its social media team in-house, leading to increased engagement across all platforms, including TikTok and Meta. This agile approach has resulted in triple-digit growth in engagement [1].

Additionally, Applebee's has made progress with its Lookin' Good reimaging program, a multi-year effort to modernize the brand. Nine of the chain's top 10 franchisees have elected to accelerate remodels, with more than 100 expected to be completed by the end of this year [1].

As a result of these efforts, Dine Brands has lifted Applebee's same-store sales outlook for the year to 1% to 3%, from its previous range of -2% to 1% [1].

References:
[1] https://finance.yahoo.com/news/applebee-sales-turn-positive-first-172506519.html