Applebee’s owner Dine Brands targets fast-food customers | Parami News

Applebee’s and IHOP owner Dine Brands hopes its promotions will lure frustrated fast-food consumers put off by menu prices.

Earnings Benefit First-quarter reports were below Wall Street estimates, and Applebee’s and IHOP anticipated decline in comparable-store sales beyond expectations. Nonetheless, Dine reiterated its full-year forecast and said the results improved sequentially. On Wednesday afternoon, the company’s stock was up less than 1%.

Dine Brands CEO John Peyton is confident that this market strategy will help it to beat fast food outlets as Applebee’s unveils a variety of campaigns, including the comeback of Dollaritas.

“We have a burger called ‘A Whole Lotta’ for $9.99-if you can get our amazing burgers with big portions at $10 each in our experience why would you go buy them from a drive-thru?” How about the paper bag burger that costs $10? He asked CNBC.

At Applebee’s and IHOP restaurant spending fell while consumer retreated This come against a backdrop of more competition than usual amid a shrinking customer base for these two companies. Fast food chains Full-service restaurants or even dining at home are competing for diners’ dollars as Payton has also mentioned.

Payton stated that low-income earners reduced their eating out frequency and became more cautious about expenditures during the first quarter Low income earners make up approximately 40%-50% of Dine Customers, he added.

Applebee’s isn’t alone among casual dining chains trying to take out McDonald’s or other fast food segments Recently Brink International-owned brand Chili’s launched an advertising campaign boasting about Big Mac prices and other fast-food burgers.

McDonald’s is certainly alive to this trend too….”Everybody’s been talking value,” said CEO Chris Kempczynski on the chain’s latest earnings call when fielding questions regarding McDonald’s national value menu plan.

Moreover, Dine may have another advantage over its competitors because apart from being deal oriented, Applebee’s has had several pop-culture moments as of late: A central cameo on the tennis drama “Contenders,” Applebee’s’ meltdown in “Survivor,” and shout-out football from Peyton Manning to Netflix mocking his former rival Tom Brady.

No casual dining chain has been so culturally relevant since Beyoncé mentioned Red Lobster in her hit song “Formation.”

“That is something that is top-of-mind for a lot of people because they grew up with Applebee’s” Payton noted.