DIN

Risks Related to Our Franchise Business Model Restaurant development plans under development agreements may not be implemented effectively and developed restaurants may not achieve desired results.
We rely on franchisees to develop IHOP, Applebee's and Fuzzy's restaurants.
Restaurant development and the success of restaurants opened by our franchisees involve substantial risks, including the following: • the demand for IHOP, Applebee’s and Fuzzy's restaurants and the selection of appropriate franchisee candidates; • costs of construction, permit issuance and regulatory compliance; • the availability of suitable locations and terms for potential development sites, including lease or purchase terms for new locations; • the availability of financing, at acceptable rates and terms, to both franchisees and third-party landlords, for restaurant development and/or implementation of our business strategy through new remodel programs and other operational changes; • delays in obtaining construction permits and in completion of construction; • competition for suitable development sites; • challenges in the general labor market and our franchisees' ability to maintain adequate staffing of restaurants; • changes in governmental rules, regulations, and interpretations (including interpretations of the requirements of the Americans with Disabilities Act); and • general economic and business conditions.
As of December 28, 2025, Applebee's franchisees operated 1,413 Applebee's restaurants in the United States.
Of those restaurants, the ten largest Applebee's franchisees owned 1,153 restaurants, representing 82% of all franchised Applebee's restaurants in the United States.
The largest Applebee's franchisee owned 459 restaurants, representing 32% of all franchised Applebee's restaurants in the United States.
Of the 1,672 IHOP domestic franchise and area license restaurants as of December 28, 2025, approximately 521 restaurants have property lease/sublease agreements and/or notes and equipment contract obligations outstanding.
Our and our franchisees’ continued success is directly dependent upon maintaining a favorable public view of the IHOP, Applebee's and Fuzzy's brands.
Negative publicity (e.g., crime, scandal, litigation, on-site accidents and injuries or other harm to customers, social issues and food-borne illness) at a single IHOP, Applebee's or Fuzzy's location can have a substantial negative impact on all restaurants within their respective system.
Any outbreak of food-borne illness or other food-related incidents attributed to IHOP, Applebee's or Fuzzy's restaurants or within the food service industry or any widespread negative publicity regarding the IHOP, Applebee's or Fuzzy's brands or the restaurant industry in general could harm our reputation.
Our company-owned restaurants and our franchisees may produce or receive through the supply chain sub-standard or non-compliant food or beverage products.
Although we maintain liability insurance, and each franchisee is required to maintain liability insurance pursuant to its franchise agreements, a liability claim could injure the reputation of all IHOP, Applebee's or Fuzzy's restaurants, whether or not it is ultimately successful.
Disruptions in our relationships with suppliers and distributors may reduce the payments we receive from our franchisees or our pancake and waffle dry mix distributors or the profits generated by our company-owned restaurants.
Changing health or dietary preferences may cause consumers to avoid IHOP, Applebee's and Fuzzy's restaurants in favor of alternative options.
Various additional factors such as: (i) the Food and Drug Administration’s menu labeling rules; (ii) nutritional guidelines issued by the United States Department of Agriculture and issuance of similar guidelines or statistical information by state or local municipalities; (iii) academic studies; or (iv) efforts by environmental, animal health and welfare and sustainability advocacy groups, may impact consumer choice and cause consumers to select foods other than those that are offered by IHOP, Applebee's or Fuzzy's restaurants.
We may not be able to adequately adapt IHOP, Applebee's or Fuzzy's restaurants' menu offerings to keep pace with developments in consumer preferences, which may result in reduced royalty revenues from a decline in demand for our food and fewer guests visiting our restaurants.

Gone since FY2024

Risks Related to Our Franchised Business Model Restaurant development plans under development agreements may not be implemented effectively and developed restaurants may not achieve desired results.
We rely on franchisees to develop Applebee's, IHOP and Fuzzy's restaurants.
Restaurant development and the success of restaurants opened by our franchisees involve substantial risks, including the following: • the demand for Applebee’s, IHOP and Fuzzy's restaurants and the selection of appropriate franchisee candidates; • costs of construction, permit issuance and regulatory compliance; • the availability of suitable locations and terms for potential development sites, including lease or purchase terms for new locations; • the availability of financing, at acceptable rates and terms, to both franchisees and third-party landlords, for restaurant development and/or implementation of our business strategy through new remodel programs and other operational changes; • delays in obtaining construction permits and in completion of construction; • competition for suitable development sites; • challenges in the general labor market and our franchisees' ability to maintain adequate staffing of restaurants; • changes in governmental rules, regulations, and interpretations (including interpretations of the requirements of the Americans with Disabilities Act); and • general economic and business conditions.
As of December 31, 2024, Applebee's franchisees operated 1,454 Applebee's restaurants in the United States.
Of those restaurants, the ten largest Applebee's franchisees owned 1,173 restaurants, representing 81% of all franchised Applebee's restaurants in the United States.
The largest Applebee's franchisee owned 460 restaurants, representing 32% of all franchised Applebee's restaurants in the United States.
Of the 1,694 IHOP domestic franchise and area license restaurants as of December 31, 2024, approximately 554 restaurants have property lease/sublease agreements and/or notes and equipment contract obligations outstanding.
Our and our franchisees’ continued success is directly dependent upon maintaining a favorable public view of the Applebee's, IHOP and Fuzzy's brands.
Negative publicity (e.g., crime, scandal, litigation, on-site accidents and injuries or other harm to customers, social issues and food-borne illness) at a single Applebee's, IHOP or Fuzzy's location can have a substantial negative impact on all restaurants within their respective system.
Any outbreak of food-borne illness or other food-related incidents attributed to Applebee's, IHOP or Fuzzy's restaurants or within the food service industry or any widespread negative publicity regarding the Applebee's, IHOP or Fuzzy's brands or the restaurant industry in general could harm our reputation.
Our company restaurants and our franchisees may produce or receive through the supply chain sub-standard or non-compliant food or beverage products.
Although we maintain liability insurance, and each franchisee is required to maintain liability insurance pursuant to its franchise agreements, a liability claim could injure the reputation of all Applebee's, IHOP or Fuzzy's restaurants, whether or not it is ultimately successful.
Disruptions in our relationships with suppliers and distributors may reduce the payments we receive from our franchisees or our pancake and waffle dry mix distributors or the profits generated by our company-operated restaurants.
Changing health or dietary preferences may cause consumers to avoid Applebee's, IHOP and Fuzzy's restaurants in favor of alternative options.
Various additional factors such as: (i) the Food and Drug Administration’s menu labeling rules; (ii) nutritional guidelines issued by the United States Department of Agriculture and issuance of similar guidelines or statistical information by state or local municipalities; (iii) academic studies; or (iv) efforts by environmental, animal health and welfare and sustainability advocacy groups, may impact consumer choice and cause consumers to select foods other than those that are offered by Applebee's, IHOP or Fuzzy's restaurants.
We may not be able to adequately adapt Applebee's, IHOP or Fuzzy's restaurants' menu offerings to keep pace with developments in consumer preferences, which may result in reduced royalty revenues from a decline in demand for our food and fewer guests visiting our restaurants.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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