Thanks to the power of dual-branded restaurants, Applebee’s and IHOP parent Dine Brands is on pace to reach combined net positive unit growth within the next one to two years.
There are 32 dual-branded stores in the U.S., including three company-owned restaurants. These stores achieve 1.5 to 2.5 times higher revenue than single-brand locations and come with payback periods of less than three years. Dine expects to open at least 50 domestic dual-branded stores in 2026.
“We continue to see evidence that the dual-brand concept is highly complementary with balanced performance by both brands across all four dayparts,” CEO John Peyton said during Dine’s Q4 earnings call. “At the same time, we are identifying opportunities to streamline operations, including reducing table turn times and refining kitchen layouts that improve throughput and efficiency.”
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Dine also finished 2025 with 32 international dual-branded locations, an increase of 14 year-over-year. Peyton described the format as an “effective, capital-efficient way to expand our footprint and introduce our brand into new markets.” The chain sees “meaningful whitespace” across core international markets Canada, Mexico, Latin America, and the Middle East.
A majority of these openings involve an existing Applebee’s or IHOP adding the other brand. In some cases, however, there are brand new builds.
Peyton noted that closures should decline going forward because the dual-branded concept saves lower-revenue Applebee’s or IHOP restaurants that may have closed otherwise. He added that “Now that they can add the second brand, it puts them back into a healthy space.”
“As we move into 2026, our focus with dual brands is on disciplined expansion, scaling thoughtfully, applying what we have learned, and ensuring we can deliver consistent results as the concept grows,” Peyton said. “Dual brands are not the right solution for every market, but where they make sense, they are powerful incremental unit growth and profit drivers for us as well as the franchisees.”
Applebee’s and IHOP’s growth curve also includes single-brand expansion and refinement. For instance, Applebee’s has completed 103 remodels, which have come with a mid-single digit sales lift when paired with marketing and operational improvements. The chain hopes to remodel 100 more units in 2026.
Meanwhile, IHOP continues to be advantageous with real estate, with more than 80 percent of new restaurants opening in second-generation sites.
Applebee’s expects to finish 2026 with five to 15 net fewer U.S. restaurants, fueled by an increase in gross openings from standalone and dual-branded stores, offset by a similar amount of closures from prior years. IHOP projects between 10 net fewer and 10 new domestic openings, driven by expansion of standalone, nontraditional, and dual-branded restaurants, offset by closures from natural expirations of franchise agreements.
“Development is an increasingly important part of our growth story,” Peyton said. “The progress we made in 2025 strengthens our foundation and positions us well to drive steady, disciplined growth in 2026 and beyond.”
At the same time, both concepts are experiencing top line momentum. Applebee’s same-store sales lifted 1.3 percent in 2025 after dropping 4.2 percent in 2024. In the fourth quarter, comps slid 0.4 percent.
Peyton credited Applebee’s performance to a better focus on value, marketing, and the guest experience. The chain’s 2 for $25 platform represented 22 percent of transactions, helping average check growth and fulfilling off-premises demand.
Additionally, the new Grilled Cheese Cheeseburger launched in Q4 became the brand’s highest-selling standalone burger and its highest-selling 2 for $25 burger ever. However, the 2 for $25 record didn’t stand for long. In 2026, Applebee’s rolled out the O-M-Cheese Burger, which became the new highest-selling burger of all time on the 2 for $25 platform.
The Ultimate Trio, launched in August, was the best-selling appetizer in Q4 and accounted for 11.5 percent of transactions.
Applebee’s off-premises comps rose 6.2 percent in Q4 and 6.5 percent in fiscal 2025. Delivery rose 10.5 percent last year. In terms of digital marketing and social media, the casual giant saw year-over-year increases and outperformed organic social growth targets. The brand experienced an 84 percent increase in social media posting cadence and a 107 percent lift in engagement in the back half of 2026 compared to the first half. Meanwhile, Club Applebee’s continues to drive higher engagement among members, Peyton said.
In 2026, Applebee’s looks to elevate customer experience value by emphasizing managers in the dining room, a move leading to higher guest satisfaction, more consistent execution, and improved off-premises order accuracy.
Applebee’s has experienced positive sales trends since the start of 2026, despite winter storms.
“We are confident that the Applebee’s strategy is working, and we will continue to build on this progress,” Peyton said.
IHOP’s same-store sales fell 1.5 percent in 2025, versus a drop of 2 percent in 2024. Comps rose 0.3 percent in Q4, fueled by positive traffic. The family-dining chain outperformed its category in traffic every month of 2025, and that gap “accelerated meaningfully” in the fourth quarter, according to Peyton.
In September, IHOP announced that its House Faves value menu would be available seven days per week—up from the previous five days per week. Peyton said that while this platform is drawing customers into restaurants, once they are there, they’re choosing higher-priced breakfast combos and LTOs like the Pumpkin Spice and Coffee Cake pancakes. Because of this dynamic, average check comp improved 1.5 percent between Q3 and Q4.
Off-premises comps rose 4.5 percent in Q4. Thanks to targeted promotions, delivery comps reached low double digits in much of the fourth quarter. Similar to Applebee’s, IHOP made a big impact with its online audience. Social impressions and views increased significantly, Peyton said, and engagement grew over 300 percent year-over-year.
Operationally, the chain’s new POS and handheld technology—combined with streamlined workflows—generated a seven-minute improvement in table turns last year compared to 2024. Also, guest complaints declined for the second straight year.
The positivity IHOP felt in Q4 continued into January.
“As we move into 2026, our focus at IHOP is on disciplined, consistent execution: driving traffic through accessible value and culture-driven marketing, protecting margins through balanced menu mix, and continuing to improve restaurant operations to deliver an incredible guest experience every day,” Peyton said.
Same-store sales at Fuzzy’s Taco Shop fell 7 percent in 2025, a slight improvement from the 9.3 percent decline in 2024. Peyton said a variety of initiatives have taken shape, including enhancing technology, creating a more profitable menu, and boosting the in-restaurant experience. Changes to off-premises offerings, a revitalized online ordering platform, and expanded third-party delivery partnerships led to modest gains in sales and traffic. Fuzzy’s outperformed its category every month of Q4.
Fuzzy’s debuted two fast-casual-plus prototypes, a new model seeing higher beverage attachment and more premium taco orders. The chain ended 2025 with 105 restaurants systemwide.
