Breeden Partners Acquires 5.24% Stake In Applebee's International, Inc.GREENWICH, Conn. -- Breeden Partners, LP, a private investment partnership, today announced that it has today filed a schedule 13D Schedule 13D An form that must be filed with the SEC under Rule 13D when a person or group acquiring more than 5% of any class of a company's shares to disclose this information within 10 days of the transaction. with the Securities and Exchange Commission disclosing that it has acquired 3.9 million shares, or approximately 5.2% of Applebee's International, Inc. (Nasdaq: APPB APPB Array Processor with Pipelined Bus APPB Application Builder ) common stock. Breeden Partners' investment in Applebee's Breeden Partners believes that Applebee's is a fundamentally strong and vibrant business that is currently valued significantly below its potential. The Company operates successful restaurants and has a superb network of franchise owners. Breeden Partners is very pleased to join the Applebee's Neighborhood. However, Breeden Partners also believes that Applebee's has not paid adequate attention to shareholder interests in recent years, and that its share price suffers from poor decisions on allocation of capital to company-owned restaurants and real estate holdings with low returns, as well as from high corporate general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and certain undesirable governance and compensation practices. We hope to assist the company in understanding the imperative to reduce corporate overhead and to use capital that can be freed up by the sale of non-earning assets like real estate and by refranchising company-owned restaurants to repurchase shares at today's low Today's Low The intra-day low trading price. Notes: In other words, this is the lowest price that a stock traded at during the course of the day. More often than not this is lower than the closing price. See also: Today's High values. Now that the company has finally put in place a new management team, we believe that it needs to move with a sense of urgency to take advantage of opportunities for improving its return to shareholders. The reforms we suggest will help Applebee's become as good at delivering value to its shareholders as it already is in delivering great value to its casual dining customers. The goal of all concerned should be to build a great company, not just great restaurants. About Breeden Partners, LP Breeden Partners (the "Fund") is a private investment partnership headquartered in Greenwich, Connecticut Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2000 census, the town had a total population of 61,101. It is home to many hedge funds and other financial service companies that have left Manhattan. Of the $1. that was formed for purposes of investing in companies that it believes are underperforming in terms of earnings and share price. Breeden Partners seeks to invest in companies with strong cash flows and underlying asset values where it can be a catalyst for change that will unlock or restore market value. In each case Breeden Partners seeks an active dialogue with management and the board of directors of portfolio companies to identify and then implement policies or practices designed to, among other things, increase earnings, improve transparency, strengthen accountability for performance or improve corporate compensation and governance practices. Breeden Partners believes that implementing improved management and governance practices will help portfolio companies achieve higher earnings and command a higher multiple higher multiple Obstetrics Multigestation ≥ triplets: quadruplets, quintuplets, sextuplets, septuplets, octuplets, etc tuplets on such earnings in the marketplace. The Fund was launched with a first closing in June, 2006. The California Public Employee Retirement System ("CalPERS") is the Fund's largest investor. The Fund includes both institutional and (qualified) individual high net worth investors in the U.S. and internationally. Breeden Partners is managed by Breeden Capital Management in Greenwich, Connecticut. Both Breeden Partners and Breeden Capital Management were founded by former SEC Chairman Richard C. Breeden and a group of partners who work actively in the business. Mr. Breeden serves as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chief Investment Officer. The firm has a total of approximately 20 professionals, and, together with its affiliates, it has more than $1 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Other senior full time professionals in the firm include Steven J. Quamme, James M. Cotter cot·ter n. 1. A bolt, wedge, key, or pin inserted through a slot in order to hold parts together. 2. A cotter pin. [Origin unknown. and Robert Fields, who serves as Senior Managing Director of Research and Trading. Investment Objective Breeden Partners invests solely in the equity securities of publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. headquartered in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. or Canada. The fund is a long-term, long only investor and does not use any leverage or invest in options or other derivatives. The Fund's governing policies prohibit it from taking a majority equity interest in any portfolio company. |
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