Breeden Partners Acquires 5.24% Stake In Applebee's International, Inc.

GREENWICH, Conn. -- Breeden Partners, LP, a private investment partnership, today announced that it has today filed a schedule 13D with the Securities and Exchange Commission disclosing that it has acquired 3.9 million shares, or approximately 5.2% of Applebee's International,

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Breeden Partners' investment in Applebee's

Breeden Partners believes that Applebee's is a fundamentally strong and vibrant business that is currently valued significantly below its potential. The Company operates successful restaurants and has a superb network of franchise owners. Breeden Partners is very pleased to join the Applebee's Neighborhood. However, Breeden Partners also believes that Applebee's has not paid adequate attention to shareholder interests in recent years, and that its share price suffers from poor decisions on allocation of capital to company-owned restaurants and real estate holdings with low returns, as well as from high corporate general and administrative costs and certain undesirable governance and compensation practices.

We hope to assist the company in understanding the imperative to reduce corporate overhead and to use capital that can be freed up by the sale of non-earning assets like real estate and by refranchising company-owned restaurants to repurchase shares at today's low values. Now that the company has finally put in place a new management team, we believe that it needs to move with a sense of urgency to take advantage of opportunities for improving its return to shareholders. The reforms we suggest will help Applebee's become as good at delivering value to its shareholders as it already is in delivering great value to its casual dining customers. The goal of all concerned should be to build a great company, not just great restaurants.

About Breeden Partners, LP

Breeden Partners (the "Fund") is a private investment partnership headquartered in Greenwich, Connecticut that was formed for purposes of investing in companies that it believes are underperforming in terms of earnings and share price. Breeden Partners seeks to invest in companies with strong cash flows and underlying asset values where it can be a catalyst for change that will unlock or restore market value. In each case Breeden Partners seeks an active dialogue with management and the board of directors of portfolio companies to identify and then implement policies or practices designed to, among other things, increase earnings, improve transparency, strengthen accountability for performance or improve corporate compensation and governance practices. Breeden Partners believes that implementing improved management and governance practices will help portfolio companies achieve higher earnings and command a higher multiple on such earnings in the marketplace.