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APPLEBEE'S REPORTS 81 PERCENT INCREASE IN NET EARNINGS FOR THIRD QUARTER OF 1993

 OVERLAND PARK, Kan., Oct. 27 /PRNewswire/ - Applebee's International, Inc., (NASDAQ: APPB) today reported record net earnings of $2,766,000, or 19 cents per share, for its third quarter ended Sept. 26, 1993. This is an 81 percent net earnings increase from $1,529,000, or 11 cents per share, for the third quarter of 1992.
 Third quarter operating revenue (comprised of company restaurant sales and franchise income) was $32,751,000, an increase of 122 percent over operating revenue of $14,763,000 in the third quarter of 1992. Operating earnings increased 105 percent to $3,996,000 in this year's third quarter, compared with $1,946,000 for the same period in 1992.
 For the 39 weeks ended Sept. 26, 1993, net earnings were $6,654,000, or 47 cents per share, an increase of 80 percent over net earnings of $3,706,000, or 30 cents per share, in the comparable period last year.
 During the third quarter of 1993, the company changed its method of accounting for certain pre-opening costs of company-owned restaurants, to reflect these costs in the period in which they are incurred, rather than its previous method of amortizing such pre-opening costs over a 12 month period. This change, and the resulting restatement of the first and second quarters of 1993, did not have a significant effect on net earnings for the third quarter or the nine months ended September 26, 1993.
 Weighted average shares outstanding in the third quarter of 1993 increased to 14,561,000, compared with 13,552,000 in the comparable period last year, primarily as the result of shares issued in connection with the acquisition of 14 Minnesota restaurants from a franchisee, as of February 26, 1993. Shares outstanding in both 1993 and 1992 have been adjusted to reflect the two-for-one stock split effected on June 25, 1993.
 Applebee's total system sales were $162.4 million in the third quarter of 1993, an increase of 49 percent over $109.1 million in last year's third quarter. For the first nine months of 1993, total system sales were $436.2 million, compared with $290.9 million for the comparable period last year, and $404.2 million for all of 1992. System sales include franchisee sales as reported to Applebee's International, as well as sales of company-owned or operated restaurants.
 For the third quarter of 1993, Applebee's system-wide comparable restaurant sales were up 7.8 percent over the third quarter of 1992. Comparable sales of company-owned and operated restaurants were up 10.7 percent and comparable franchisee sales were up 7.2 percent for this same period. For the first nine months of 1993, system-wide comparable sales increased 9.4 percent over the same period in 1992.
 As of the date of this release, there are 329 Applebee's restaurants open in 39 states. At Sept. 26, 1993, there were 318 restaurants open, compared with 230 restaurants at the end of the third quarter of 1992. There were also 39 new Applebee's restaurants under construction and 56 additional franchisee sites approved at Sept. 26, 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., Applebee's chairman and CEO, said, "Our system continues to grow at a record pace, with 81 restaurants opened so far this year. This is more restaurants than we have opened in any other year in the history of the Applebee's concept. We expect that by the end of 1993 we will have at least 350 restaurants open, compared with 250 at the end of 1992. Approximately 12 to 14 of the new openings in 1993 will be company-owned restaurants and the balance will be franchised.
 "The availability of financing for our franchisees is excellent. In that regard, $l?ion of short-term construction financing has recently been made available to Applebee's franchisees by Bell Atlantic Capital Corporation, as part of their existing $75 million long-term financing pool.
 "In addition to record numbers of new restaurant openings, our system-wide annualized average sales per restaurant have been over $2.1 million for the first nine months of 1993, which is getting close to our maximum restaurant capacity. For that reason, our comparable restaurant sales statistics, which have been so favorable over the last 18 to 24 months, will become less meaningful in the future than the significant new restaurant opening potential of the total Applebee's system."
 Applebee's International, Inc., headquartered in Overland Park, Kan., 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
 (In thousands, except per share amounts)
 (Unaudited)
 13 weeks ended 39 weeks ended
 9/26/93 9/27/92 9/26/93 9/27/92
 Company restaurant operations:
 Food and beverage sales $26,743 $10,758 $67,222 $29,578
 Cost of sales:
 Food and beverage 7,974 3,316 20,186 9,112
 Labor 8,561 3,822 21,969 10,444
 Direct and occupancy 6,307 2,467 15,804 6,822
 Pre-opening expense 119 41 326 49
 Total cost of sales 22,961 9,646 58,285 26,427
 Company restaurant operating
 earnings 3,782 1,112 8,937 3,151
 Franchise operations:
 Franchise income 6,008 4,005 15,936 10,789
 Franchise expense 1,386 899 3,525 2,598
 Amortization of franchise
 rights 87 106 274 318
 Franchise operating earnings 4,535 3,000 12,137 7,873
 Corporate and operations
 overhead 3,908 2,019 10,009 5,667
 Amortization of goodwill and
 other intangible assets 413 147 1,050 448
 Operating earnings 3,996 1,946 10,015 4,909
 Other income (expense):
 Investment income 532 468 1,264 1,051
 Interest expense (49) -- (115) --
 Other income (expense) 3 10 109 14
 Total other income 486 478 1,258 1,065
 Earnings before income taxes 4,482 2,424 11,273 5,974
 Income taxes 1,716 895 4,461 2,268
 Earnings before cumulative
 effect of change in
 accounting method 2,766 1,529 6,812 3,706
 Cumulative effect on prior
 years (to Dec. 27, 1992) of
 change in accounting method -- -- (158) --
 Net earnings $2,766 $1,529 $6,654 $3,706
 Earnings per common share:
 Earnings before cumulative
 effect of change in
 accounting method $0.19 $0.11 $0.48 $0.30
 Cumulative effect on prior
 years (to Dec. 27, 1992) of
 change in accounting method -- -- (0.01) --
 Net earnings $0.19 $0.11 $0.47 $0.30
 Weighted average shares
 outstanding 14,561 13,552 14,340 12,203
 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (Dollars in thousands, except per share amounts)
 9/26/93 12/27/92
 (Unaudited) (Audited)
 Assets
 Current assets:
 Cash and invested cash
 (including restricted cash
 of $5 in 1993 and $243 in 1992) $8,576 $2,100
 Short-term investments 4,789 20,666
 Interest and dividends receivable 244 844
 Accounts and notes receivable (less
 allowance for bad debts of $322 in
 1993 and $222 in 1992) 3,817 2,516
 Inventories 813 440
 Prepaid and other current assets 1,058 888
 Assets held for resale -- 725
 Total current assets 19,297 28,179
 Property and equipment, net 38,973 15,386
 Marketable securities (market value -
 $12,842 in 1993 and $15,109
 in 1992) 12,031 14,836
 Other assets:
 Goodwill 19,032 1,144
 Franchise interest and rights 7,415 7,939
 Other intangible assets 999 71
 Other 1,231 585
 Total other assets 28,677 9,739
 Total assets $98,978 $68,140
 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (Dollars in thousands, except per share amounts)
 9/26/93 12/27/92
 (Unaudited) (Audited)
 Liabilities and Stockholders' Equity
 Current liabilities:
 Current portion of notes payable $399 $148
 Current portion of obligations
 under noncompetition and
 consulting agreement 244 --
 Accounts payable 6,037 2,823
 Accrued expenses and other
 current liabilities 8,518 4,353
 Accrued income taxes 1,277 39
 Accrued dividends -- 612
 Total current libailities 16,475 7,975
 Non-current liabilities:
 Notes payable-less current portion 2,180 78
 Franchise deposits 1,349 1,074
 Obligations under noncompetition
 and consulting agreement-less
 current portion 880 --
 Deferred income taxes 1,225 --
 Total non-current liabilities 5,634 1,152
 Total liabilities 22,109 9,127
 Minority interest in joint venture 502 435
 Stockholders' equity:
 Preferred stock-par value $0.01 per
 share: authorized-1,000,000 shares;
 no shares issued -- --
 Common stock-par value $0.01 per
 share: authorized-25,000,000 shares;
 issued-14,773,484 shares in 1993 and
 13,801,720 shares in 1992 148 69
 Additional paid-in capital 62,209 51,082
 Retained earnings 14,859 8,276
 Total 77,216 59,427
 Treasury stock-187,848 shares in
 1993 and 1992, at cost (849) (849)
 Total stockholders' equity 76,367 58,578
 Total liabilities and stockholders'
 equity $98,978 $68,140
 -0- 10/27/93
 /CONTACT: Jack Falker of Swenson/Falker, 612-371-0000, for Applebee's; or George Shadid or Sue Carroll of Applebee's International, 913-967-4000/
 (APPB)


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

DB-AL -- MN023 -- 7559 10/27/93 17:36 EDT
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