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APPLEBEE'S REPORTS 110 PERCENT INCREASE IN NET EARNINGS FOR FIRST QUARTER OF 1993

 KANSAS CITY, Mo., May 11 /PRNewswire/ -- Applebee's International, Inc., (NASDAQ: APPB) today reported record net earnings of $1,879,000, or 27 cents per share, for its first quarter ended March 28, 1993. This is a 110 percent net earnings increase from $894,000, or 19 cents per share, for the first
quarter of 1992. The company's operating revenue (comprised of company restaurant sales and franchise income) was $21,976,000 for the first quarter of 1993, an increase of 81 percent over operating revenue of $12,147,000 in the first quarter of 1992. Operating earnings increased 97 percent to $2,657,000 in the quarter, compared with $1,348,000 for the same period in 1992.
 The company previously announced that it has agreed to acquire 14 Applebee's restaurants in the state of Minnesota from its franchisee, Midwest Restaurant Associates, Inc. For financial reporting purposes, the operating results of these restaurants during the period Feb. 27 to March 28, 1993, are included in the company's first quarter operating results. The operating revenues of these restaurants for such period were $2,463,000.
 Weighted average shares outstanding in the first quarter increased to 6,957,000 from 4,768,000 in the prior year's first quarter, due to the company's stock offering completed in March 1992, as well as shares issued in connection with the acquisition of the Minnesota restaurants.
 Total Applebee's system sales for the first quarter of 1993 were $130.6 million, an increase of 53 percent over system sales of $85.6 million in the first quarter of 1992. System sales include franchisee sales as reported to Applebee's International, as well as sales of company-owned or operated restaurants.
 System-wide comparable restaurant sales for the first quarter increased 10.3 percent. Comparable sales of company-owned and operated restaurants (excluding the Minnesota restaurants) were up 13.6 percent in the quarter and comparable franchisee sales were up 9.8 percent.
 Unusually severe winter weather affected several franchised markets during the quarter, causing comparable franchisee sales to fall below those achieved by company-owned and operated restaurants.
 As of the date of this release, there are 271 Applebee's restaurants open in 36 states. At March 28, 1993, there were 264 restaurants open, compared with 198 restaurants at the end of the first quarter of 1992. There were also 25 new Applebee's restaurants under construction and 70 additional franchisee sites approved at March 28, 1993. The company pointed out that, while site approvals do not always result in new restaurant openings, the number of franchisee sites approved is a good indicator of new restaurant potential.
 Abe J. Gustin, Jr., chairman and CEO, said, "We're off to a great start in 1993. The Applebee's system had an excellent first quarter, with 14 new restaurants opening during the period, as well as strong restaurant sales. We also continued to post impressive gains in comparable restaurant sales, which we believe were among the best in the industry.
 "Our agreement in February to acquire 14 Applebee's restaurants in the state of Minnesota is an important step in our strategy of increasing the number of company-owned and operated restaurants in the Applebee's system. We plan to increase the number of restaurants in Minnesota, and our franchisee, Midwest Restaurant Associates, will be able to reinvest capital in the expansion of the Applebee's system in other markets, including Seattle/Tacoma, Cleveland and Indianapolis."
 Applebee's International, Inc., headquartered in Kansas City, Mo., develops, franchises and operates a rapidly expanding national chain of restaurants under the trademark Applebee's Neighborhood Grill and Bar.
 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Dollars in thousands except per share amounts)
 13 weeks ended
 March 28, March 29,
 1993 1992
 (Unaudited)(Unaudited)
 Company restaurant operations:
 Food and beverage sales $17,250 $9,154
 Cost of sales:
 Food and beverage 5,220 2,817
 Labor 5,880 3,158
 Direct and occupancy 4,021 2,098
 Amortization of pre-opening costs 124 --
 Total 15,245 8,073
 Company restaurant operating earnings 2,005 1,081
 Franchise operations:
 Franchise income 4,726 2,993
 Franchise expense 993 706
 Amortization of franchise rights 100 106
 Franchise operating earnings 3,633 2,181
 Corporate and operations overhead 2,742 1,765
 Amortization of goodwill and other
 intangible assets 239 149
 Operating earnings 2,657 1,348
 Other income (expense):
 Interest and dividend income 387 143
 Interest expense (17) -
 Other income (expense) 40 (5)
 Total other income 410 138
 Earnings before income taxes 3,067 1,486
 Income taxes 1,188 592
 Net earnings $ 1,879 $ 894
 Net earnings per common share $ 0.27 $ 0.19
 Weighted average shares outstanding 6,957 4,768
 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (Dollars in thousands except per share amounts)
 March 28, Dec. 27,
 1993 1992
 (Unaudited) (Audited)
 Assets
 Current assets:
 Cash and invested cash $12,479 $ 2,100
 Short-term investments 272 20,666
 Interest and dividends receivable 258 844
 Accounts and notes receivable (less
 allowances for bad debts of $222
 in 1993 and 1992) 2,603 2,516
 Inventories 633 440
 Prepaid and other current assets 1,004 888
 Assets held for resale 725 725
 Total current assets 17,974 28,179
 Property and equipment, net 28,887 15,386
 Marketable Securities (market value -
 $15,558 at 3/28/93) 14,836 14,836
 Other assets:
 Goodwill 18,177 1,144
 Franchise interest and rights 7,764 7,939
 Other intangible assets 1,156 71
 Other 586 585
 Total other assets 27,683 9,739
 Total assets $89,380 $ 68,140
 Liabilities and Stockholders' Equity
 Current liabilities:
 Current portion of notes payable $434 $148
 Current portion of obligations
 under noncompetition and
 consulting agreement 273 -
 Accounts payable 5,258 2,823
 Accrued expenses and other
 current liabilities 6,448 4,353
 Accrued income taxes 663 39
 Accrued dividends - 612
 Total current liabilities 13,076 7,975
 Non-current liabilities:
 Notes payable - less current portion 2,219 78
 Franchise deposits 1,174 1,074
 Obligations under noncompetition and
 consulting agreement - less
 current portion 880 --
 Deferred income taxes 509 --
 Total non-current liabilities 4,782 1,152
 Total liabilities 17,858 9,127
 Minority interest in joint venture 441 435
 Stockholders' equity:
 Common stock - par value $0.01 per
 share; Authorized - 25,000,000 shares;
 Issued - 7,363,742 shares in 1993 and
 6,900,860 shares in 1992 73 69
 Additional paid-in capital 61,702 51,082
 Retained earnings 10,155 8,276
 Total 71,930 59,427
 Treasury stock - 93,924 shares
 in 1993 and 1992, at cost (849) (849)
 Total stockholders' equity 71,081 58,578
 Total liabilities and stockholders'
 equity $89,380 $ 68,140
 -0- 5/11/93
 /CONTACT: Jack Falker of Swenson Falker Eilertsen, 612-371-0000, for Applebee's; George Shadid or Sue Carroll of Applebee's International, 816-421-2501/
 (APPB)


CO: Applebee's International, Inc. ST: Missouri IN: REA SU: ERN

AL -- MN018 -- 7245 05/11/93 16:46 EDT
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Date:May 11, 1993
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