Julia Stewart Acquires Applebee’s for $2.3 Billion, Fires Ex-Boss

Julia Stewart, the former head of IHOP, made headlines with her recent acquisition of Applebee’s for a staggering $2.3 billion. This bold move comes after she was denied the CEO position within the company, despite her successful efforts to revive its fortunes. Stewart shared insights into this remarkable turnaround during a recent appearance on the Matthews Mentality Podcast.

In her interview, Stewart reflected on her prior role as president of Applebee’s, where she was promised the CEO title contingent on her ability to return the company to profitability. Over approximately three years, she successfully reshaped Applebee’s, doubling its stock value and improving its overall performance. However, a meeting with the then-CEO and chair of Applebee’s left her devastated.

Recalling the moment, Stewart said, “I go in with my little graph, right? And I’ve got the chart going in the right direction. The stock has doubled. Life is good.” Yet, she was met with unexpected news. “I said, ‘So I’m thinking it’s about time to be CEO.’ And he says, ‘No, not ever,'” she added. When she pressed for an explanation, he told her he “didn’t have to have an answer.”

Stewart’s reaction was one of disbelief. After excusing herself to reflect on the conversation, she returned the next day to inform the CEO of her decision to leave the company. He cautioned her, stating, “If you leave, the stock will tank.” Despite this, Stewart felt compelled to move on.

Following her departure from Applebee’s, Stewart joined IHOP, where she spent five years revitalizing the brand. She noted that when she arrived, IHOP was struggling with a lack of growth and brand image. Her successful tenure at IHOP positioned her to consider further expansion opportunities.

Determined to continue IHOP’s growth trajectory, Stewart approached the board of directors about acquiring another brand. “I went to the board and said, ‘We probably need to look for an acquisition,'” she recounted. During her research, she identified Applebee’s as a potential target for acquisition.

Stewart asserted, “You don’t borrow $2.3 billion for revenge. You just don’t do that. But we did borrow $2.3 billion. We did buy Applebee’s.” Following the acquisition, she reached out to Applebee’s former CEO to inform him of the change in leadership, stating, “We didn’t need two of us in leadership, and I’m going to have to let you go.”

This acquisition marks a significant chapter in Stewart’s career, showcasing her resilience and strategic vision within the competitive restaurant industry. It also highlights a dramatic shift in power dynamics, as she not only reclaimed a brand she once helped to turn around but also reshaped its leadership structure in the process.