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Applebee's Investor Not Happy With Offer Price To Make IHOPplebees By IHOP

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DealBook reports that Lion Fund chairman and 1.4 percent stake Applebee’s shareholder Sardar Biglari is experiencing some acid reflux regarding IHOP’s proposed acquisition of the chain. While analysts have crowded around the stark ideological differences in business strategies between the two “restaurants” (IHOP owns 26.3% of its locations, whereas Apple is primarily a franchisor, and owns only 10 of its 1,306 establishments), and Keith Hahn refuses to believe that anyone would want to live in a society where soccer moms, Two and a Half Men, AND IHOPplebees exists, Biglari’s issue is that the purveyor of annoying commercials starring celebrity "chef" Tyler Florence is being lowballed.
Since the $1.9 billion deal was made public last week, IHOP’s stock price has surged, shooting up by about 17 percent to $65.76. Since a buyer’s stock tends to go down after announcements of this nature, Biglari thinks an undervaluation is at hand. He told the Applebee’s board that they’ve “made a grave mistake” in agreeing to the bid, and refused to eat in an International House of Pancakes—a restaurant that DealBook points out, “is known for its pancakes”—until conditions (the $25.50 sale price) improve.
Just to play devil’s advocate, and not because we necessarily think Biglari is wrong, here’s what some of our commenters have had to say about Applebee’s in the past:

Used to work for a waiter and in the kitchen sometimes...once undercooked the chicken (that ish was more raw than BSD's bunghole) for the Buffalo Chix Salad...Manager wanted to get it out...just had me douse it in Buffalo Sauce so the customer couldn't see the pink...and served it...This manager left after a busted-ugly waitress he was having an affair with tried to kill herself...twice. This merger is like a White-trash wedding in a trailer park.
Posted by: LexSteelz | June 14, 2007 12:35 PM
I work for applebees, This would be a glorified Denny's. Except much more messed up. Yea can I get me a side of bbq covered slap jacks and some steak. Mmm, yeap thats me trailer i live it it follows me 1974 ford pickup where ever I go. And also can I get a beer?
Actually applebees stinks thiscould be a great thing.
Posted by: Apple B*tch | June 14, 2007 02:28 PM
applebees is the work of the devil. if ihop gives them a penny i will take is as a sign that they are in a partnership with the terrorists.
Posted by: Anonymous | July 25, 2007 03:16 PM

Earlier: Mergin’ good in the neighborhood – Ihopplebees in the works
Applebee’s Sale Gives Investor Indigestion [DealBook]