Apple South signs contract to purchase 18 Marcus Corporation Applebee's.MILWAUKEE--(BUSINESS WIRE)--May 1, 1995--The Marcus Corporation The Marcus Corporation (NYSE: MCS)is a publicly held company with two divisions, Marcus Theatres and Marcus Hotels and Resorts. Stephen H. Marcus, son of the company's founder, is chairman and chief executive officer. (NYSE NYSE See: New York Stock Exchange :MCS) today announced that its Marcus Restaurants division has signed a contract to sell its 18 Applebee's Neighborhood Grill & Bar restaurants to Apple South, Inc. (NASDAQ/NM:APSO APSO Agency for Personal Service Overseas APSO Audio Precision System One (audio signal measurement device) APSO Appalachian People's Service Organization APSO Adaptive Particle Swarm Optimization ) of Madison, Ga., the largest operator of Applebee's. The proposed sale also includes Marcus Restaurants' development rights in the Chicago metropolitan area “Chicagoland” redirects here. For for the racing venue, see Chicagoland Speedway. The Chicago metropolitan area is the metropolitan area associated with the city of Chicago in the United States. and a significant portion of Wisconsin, including Milwaukee, Madison, Green Bay, LaCrosse lacrosse (ləkrôs`), ball and goal game usually played outdoors by two teams of 10 players each on a field 60 to 70 yd (54.86 to 64.01 m) wide by 110 yd (100.58 m) long. Two goals face each other 80 yd (73. , Eau Claire Eau Claire (ō klâr), city (1990 pop. 56,856), seat of Eau Claire co., W central Wis., on the Chippewa at the mouth of the Eau Claire River, in a hilly lake region; inc. 1872. and Wausau. Marcus Restaurants will sell its 18 existing units, two restaurants under construction, five under development, and its development territories to Apple South for approximately $48 million in cash. The 18 operations being sold have aggregate annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of approximately $40 million or about $2.2 million per existing store. The transaction is contingent upon the consent of Applebee's International (NASDAQ/NM:APPB APPB Array Processor with Pipelined Bus APPB Application Builder ), the franchisor. Tom E. DuPree, Jr., chairman and chief executive officer of Apple South, said, ``We believe that the approval process will be resolved within the next 30 days. These restaurants and the related franchise territory would match well geographically with the units we acquired in March in Iowa, Illinois and Wisconsin.'' Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation, said ``The sale is in the best interests of The Marcus Corporation, our Applebee's associates and Applebee's International. It's a win-win-win. Our company will have new capital to expand our theatre, hotel, motel, and KFC KFC Kentucky Fried Chicken (restaurant chain) KFC Kenya Flower Council KFC Kitchen Fresh Chicken (Kentucky Fried Chicken motto) KFC Kung Fu Cult (Cinema) KFC Kitchen Fixed Charge divisions; Apple South will retain virtually all of our 1,300 Applebee's restaurant employees; and Applebee's International will continue to have a strong franchisee anticipated to grow at an even faster pace than we did.'' ``For our customers and associates, the change in ownership will be unnoticeable. Apple South has the same commitment to its associates and customers as we do. As a result, systems, policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental should, for the most part, remain intact,'' said Bruce J. Olson, group vice president for The Marcus Corporation. He added that an associates hotline has been established to handle employee questions. Marcus Restaurants opened its first Applebee's in Mayfair Mall in Wauwatosa, Wis., in September of 1990. Today, the company operates Applebee's in Appleton, Ashwaubenon (Green Bay), Brookfield, Eau Claire, Glendale, Greendale, Madison East, Madison West, Racine and Wauwatosa, Wisconsin; and in Bloomingdale, Crystal Lake, Deerfield, Hodgkins, Mt. Prospect, Naperville, Schaumburg and Streamwood, Illinois. Apple South, already the nation's largest operator of Applebee's, currently operates 139 Applebee's, 16 Italian-themed restaurants and 10 Hardee's. There are over 520 Applebee's Neighborhood Grill and Bar restaurants open in 43 states with 25 under construction and 75 more approved. Applebee's International operates over 100 company-owned units and franchises the balance. Applebee's International reported revenues of $208.5 million in 1994. The Marcus Corporation, headquartered in Milwaukee, Wisconsin, operates 104 Budgetel Inns in 27 states; three Woodfield Suites in Wisconsin and Colorado; five hotels and one resort in Wisconsin and Minnesota; 197 movie screens in Wisconsin and Illinois and 35 KFC restaurants in Wisconsin. For fiscal 1994, ended May 26, 1994, revenues were $246.3 million. Year-to-date sales for the first three quarters ended February 2, 1995, were $202.0 million, up 17.5 percent. CONTACT: The Marcus Corporation, Milwaukee Bruce J. Olson, 414/274-0531 Ken MacKenzie, 414/274-0512 |
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