From Barron's 7-23-07:

Market Perform - Price 24.91 on July 18
by Friedman Billings Ramsey
"IHOP [International House of Pancakes] announced plans to acquire Applebee's for 25.50 per share in a $2.1 billion transaction. This indicates a modestly lower buyout multiple for Applebee's of 9.6 times, relative to the recent average for larger public restaurant company buyouts of 10 times-11 times. Although IHOP is a "strategic" buyer, there are few synergies involved in the transaction, so most of the changes that IHOP plans to make could be done by Applebee's or a private-equity buyer...[but] we think another buyer is unlikely to emerge. We are lowering our price target to 25.50 from 27 to reflect the announced deal price...and reiterate Market Perform."

Was part of my ESPP, I bought at 16.42

I also get a discount on this for working there

Possible takeover target.

Downgraded by UBS from Buy to Neutral

Upgraded by Jefferies & Co from Hold to Buy

Upgraded by Bear Stearns from Underperform to Peer Perform

Cheap, well performing stock

Despite near-term pressures, Morningstar analyst John Owens is confident about Applebee's (APPB) prospects over the long run. Owens believes that the company is well positioned to capitalize on long-term trends such as the increasing affluence of baby boomers, the rise of dual income families, and a yearning for convenience in a time-pressed society. Owens also thinks Applebee's should reap economies of scale from its roughly 1,800 domestic units. A promising exclusive alliance with Weight Watchers (WTW) and a brisk carryout business also lend support to Owens' belief that the chain has plenty of room for growth.

Downgraded by Bear Stearns from Peer Perform to Underperform

The stock is cheap so the value players might be interested. However, all cheap stocks are not equally valuable. Underappreciated stocks are great companies snubbed by the street. Dogs are underperforming companies which are cheap for a reason. For instance: Applebees does not offer baked potatoes, one of my favorites. I mentioned this to the waitress. She gave me a number. Apple South listened to the request. Nothing. Haven't been back. Too little interest in quality food offerings which meet or beats the competitors in casual dining.

poor turnaround

Modern Graham: After reviewing Applebee’s we find that the company is currently overpriced significantly and is unsuitable for either the defensive or enterprising investor.
http://thevalueblogs.com/modern-graham/overvalued-company-of-the-week-applebees-inc-appb

Modern Graham: After reviewing Applebee’s we find that the company is currently overpriced significantly and is unsuitable for either the defensive or enterprising investor.
http://thevalueblogs.com/modern-graham/overvalued-company-of-the-week-applebees-inc-appb