Applebee’s hits first major milestone since 2023 after sales declines | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

After facing ongoing challenges that began in 2023, consisting of alarming sales declines and multiple restaurant closures, things are finally starting to look up for Applebee’s.

In the first quarter of fiscal 2025, domestic same-store sales increased nearly 5% year over year, marking the restaurant chain’s first time reporting positive results in over two years and ending what felt like a curse of seven consecutive negative same-store sales quarters.

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And that’s not all. Total domestic sales also rose 2.8%, with Applebee’s crediting this rebound to a boost in customer traffic fueled by a renewed focus on value. This strategy is centered around the return of its 2 for $25 menu, which offers an appetizer and two entrées starting at $25.

“We had strong performance in both traffic and sales at Applebee’s during the first two quarters of the year, even into July, driven exactly by 2 for $25,” said Dine Brands Global (DIN) CEO and President of Applebee’s John Payne in an earnings call. “Our strategy is to lean into 2 for $25 as our consistent and primary marketing message for the year.”

Applebee’s announces the first same-store sales increase since 2023.

Image Source&colon; Rick Kern/Getty Images

Applebee’s new take on a familiar fan-favorite deal

While the 2 for $25 deal isn’t new and has been around for two decades, Applebee’s is bringing it back with a bold marketing revamp.

The company began heavily promoting the offer in-store and online, which resulted in positive monthly traffic and sales gains, with restaurant sales up 7.6% during the quarter.

Applebee’s has increased its off-premise marketing, investing more in TV advertising and making social media a central element. This has helped raise brand awareness and reach new customers, especially those who may not be regulars.

“In just the past three months, our engagement numbers are multiplying,” said Payne. “On TikTok, video views have increased over 500%, user reach has grown 760% and likes have climbed nearly 1000%. Across X and Meta, we’re seeing 215% increase in engagement.”

Applebee’s is also introducing a new entrée each quarter to keep the menu fresh and engage consumers. Recent additions include the Bourbon Street Cajun Pasta, Sizzlin’ Steak Skillet, and most recently, the Chicken Parmesan Fettuccine and Big Bangin’ Burger as part of the 2 for $25 menu.

Applebee’s is revamping its restaurants after multiple closures

To enhance the consumer experience inside its restaurants, Applebee’s is continuing its “Looking Good” remodel program, expecting to revamp over 100 locations by the end of the year, aiming to modernize and attract new guests.

The company is also expanding its dual-brand IHOP-Applebee’s concept after delivering strong performance at its second U.S. location. In the early days, sales were two to three times higher than pre-conversion, which encouraged the company to convert eight locations by 2026.

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Despite the significant milestones, the company remains cautious. Payne warned that broader economic pressures still affect consumer behavior, with guests continuing to be price-conscious, ordering fewer add-ons than before, and opting for lower-priced options.

Still, the momentum is real, proving Applebee’s is on the right track to a complete comeback.