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APPLEBEE'S INTERNATIONAL TO ACQUIRE MINNESOTA RESTAURANTS FROM FRANCHISEE

 KANSAS CITY, Mo., March 2 /PRNewswire/ -- Applebee's International, Inc., (NASDAQ: APPB) announced today that it has agreed to acquire 14 Applebee's restaurants in the state of Minnesota from its franchisee, Midwest Restaurant Associates, Inc. The agreement includes 13 Twin Cities restaurants, one in Rochester, Minn., certain sites currently under development, and future development rights for most other Minnesota population centers.
 Complete terms of the agreement were not disclosed. The company indicated, however, that the purchase price will be a combination of Applebee's common stock, cash, and promissory notes. Final closing is subject to completion of full due diligence, obtaining liquor licenses, third party consents, etc.
 Applebee's International currently owns or operates 32 restaurants. Upon closing of this transaction, the company will own or operate 46 restaurants.
 Midwest Restaurant Associates is one of Applebee's largest franchisees. In addition to the 14 restaurants included in this agreement, Midwest also has 11 Applebee's restaurants currently open in the states of Ohio, Indiana and Washington, as well as a number of Applebee's sites in various stages of construction or planning.
 Midwest reported sales of $24.5 million for the 13 Minnesota restaurants open for all or a portion of fiscal 1992.
 "Acquisition of Midwest's Minnesota properties is a major step in Applebee's stated strategy of increasing the number of company-owned and operated restaurants," said Abe J. Gustin, Applebee's chairman and CEO. "These are very successful and well-managed restaurants, and we see the potential for at least 10 or 12 more restaurants in the Minneapolis-St. Paul area and other Minnesota cities, including Duluth, St. Cloud and Mankato."
 Donald Strang Jr., co-chairman of Midwest Restaurant Associates, said, "The sale of our outstanding portfolio of Minnesota restaurants to Applebee's International presents an excellent opportunity for us to reinvest capital in the development and expansion of our Applebee's franchises in other population centers where we have development rights, including Seattle/Tacoma, Cleveland and Indianapolis. We enjoy an excellent relationship with Applebee's International and we expect to open upwards of 40 new restaurants over the next four years."
 Applebee's International, Inc., headquartered in Kansas City, develops, franchises and operates a rapidly expanding national chain of 261 restaurants under the trademark Applebee's Neighborhood Grill and Bar.
 -0- 3/2/93
 /CONTACT: Jack Falker of Swenson Falker Eilertsen, 612-371-0000, for Applebee's International; or George Shadid or Sue Carroll of Applebee's International, 816-421-2501/
 (APPB)


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

AL -- MN010 -- 1987 03/02/93 13:16 EST
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Publication:PR Newswire
Date:Mar 2, 1993
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