Applebee's International exploring strategic alternatives that could include sale

By Lisa Kerner

Charlotte, N.C., Feb. 13 - A committee of independent directors formed by the board of directors of Applebee's International, Inc. is considering strategic alternatives for enhancing shareholder value, including a possible recapitalization or sale of the company.

Citigroup Global Markets Inc. and Banc of America Securities LLC have been retained to assist in the process, according to a company news release.

Breeden Capital Management LLC, an investment fund manager based in Greenwich, Conn., said it has urged Applebee's board to study a potential recapitalization or restructuring since October.

"Applebee's recent history is one of pronouncements that are not followed by action," chairman and chief executive officer Richard C. Breeden said in a Breeden Capital news release.

"What counts is whether Applebee's actually implements sensible changes in strategy, capital allocation and board leadership to deliver more of the company's intrinsic value to shareholders.

"We hope the company will not contemplate using this announcement as a pretext to delay the annual meeting or to entertain a sale of the company at valuations reflecting current depressed EBITDA levels."

Applebee's said it has withdrawn its fiscal year 2007 guidance and will release results for the fourth quarter and fiscal year 2006 after the market closes on Wednesday.

The Overland Park, Kan., company develops, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar brand.

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