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former IHOP CEO Julia Stewart Reveals She Purchased Applebee’s After Being Denied the Top Role at the Resturant Chain
Julia Stewart, the former CEO of IHOP, detailed a surprising turn of events in a recent interview: she ultimately acquired Applebee’s after being passed over for the CEO position years prior. Stewart recounted a contentious departure from her previous role,leading her to IHOP and,eventually,to a $2.3 billion acquisition that reshaped the restaurant landscape.According to stewart, she initially resigned from a previous position after feeling unfairly held accountable without being granted the authority of a formal title. “I’m going to excuse myself. I’m going to go home early, and I’m going to reflect on this conversation,” she stated she told her superior. Upon returning the next day, she informed him of her decision to leave, to which he allegedly responded, “Well, no. You can’t leave. If you leave the stock will tank.”
The situation was temporarily resolved with an agreement for Stewart to remain for “a couple months” to ensure a smooth transition. She then accepted the role of CEO at IHOP, where she spent “a good five years” revitalizing the brand, which she described as “really struggling” and lacking “brand image” when she arrived. Following IHOP’s success, Stewart spearheaded a search for acquisition opportunities, warning the board of directors that failure to do so could leave the company vulnerable to a takeover.
During this research, Applebee’s emerged as a potential target. “I went to the board of directors and said, ’We probably need to look for an acquisition becuase if we don’t find one, we’re going to be ripe for takeover. But I promise you, I will be thorough and thoughtful, myself and the team, about looking for something that’s going to be a wow,'” Stewart explained. Ultimately, her company borrowed $2.3 billion to purchase Applebee’s.
In a final twist, Stewart revealed that after the acquisition was finalized, she informed the CEO and chair of Applebee’s that “we had purchased the company” and that “they didn’t need two of us” in leadership, resulting in their dismissal. “Now, obviously, ultimately, you don’t borrow $2.3 billion for revenge. You just don’t do that,” Stewart said, acknowledging the unusual circumstances surrounding the deal.
