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) March 20, 2007
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APPLEBEE'S INTERNATIONAL, INC.
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(Exact Name of Registrant as Specified in Its Charter)
DELAWARE 000-17962 43-1461763
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4551 W. 107th Street, Overland Park, Kansas 66207
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(Address of principal executive offices) (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.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act 17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.05 Costs Associated with Exit or Disposal Activities.
On March 20, 2007, the Audit Committee of the Board of Directors of
Applebee's International, Inc. (the "Company") approved management's
recommendation to close 24 underperforming restaurants located in 11 states. The
Company's ongoing analysis and review of its restaurant portfolio determined
that these restaurants did not have the potential to deliver acceptable
long-term returns on invested capital. The Company currently expects to close
approximately 19 restaurants by the end of the first fiscal quarter of 2007. The
remaining restaurant closures will be dependent upon the outcome of negotiations
with the landlords, as well as other factors. The Company currently expects
pre-tax costs for the first fiscal quarter of 2007 to include: (a) approximately
$13.5 to $15.5 million in non-cash impairment charges for all 24 restaurants;
(b) approximately $8.0 to $10.0 million in lease contract termination costs for
the restaurants expected to close in the first fiscal quarter of 2007; and (c)
approximately $0.5 to $1.0 million in other costs. As required by Statement of
Financial Accounting Standards No. 146, "Accounting for Costs Associated with
Exit or Disposal Activities," the Company will not record any lease contract
termination costs until the restaurants have been closed. The Company currently
expects that lease contract termination costs for the remaining five restaurants
will be approximately $1.5 to $2.5 million. The actual amount of any cash
payments made by the Company for lease contract termination costs will be
dependent upon ongoing negotiations with the landlords of the leased restaurant
properties.
Item 2.06 Material Impairments.
The requirements for this Item 2.06 are included in Item 2.05 above.
Certain statements contained in this Current Report on Form 8-K regarding
the timing of restaurant closures and the amount of costs to be incurred 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. For additional discussion of the principal factors that could cause
actual results to be materially different, the reader is referred to the
Company's Form 10-K for the fiscal year ended December 31, 2006. 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 hereunto duly authorized.
Date: March 21, 2007
APPLEBEE'S INTERNATIONAL, INC.
By: /s/ Steven K. Lumpkin
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Steven K. Lumpkin
Executive Vice President and
Chief Financial and Strategy
Officer
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