Up to 120 more Applebee's and IHOP restaurants will close, signaling a big shift

Zlati Meyer | USA TODAY

Show Caption Hide Caption Millennials found something else to kill: iHop and Applebee’s Both chains will shutter stores in 2018.

When it comes to retooling the parent company of two of nation's best-known restaurant chains, the recipe couldn't be more simple.

Fewer conventional comfort-food restaurants. More fast-casual ethnic and healthy restaurants.

Some 60 to 80 more Applebee's Neighborhood Grill & Bar and 30 to 40 more IHOP restaurants will be closed. The parent, Dine Brands Global, looks to acquire and grow small chains in the hot fast-casual segments that offer ethnic and healthy food.

Signaling change is in the air, Dine Brands Global just changed its name from DineEquity. It hopes the change signals a new chapter for the company is coming and how it is attempting to broaden its scope.

As part of an ongoing attempt to fine-tune both of its brands, the Glendale, Calif.-based business is closing some Applebee's and IHOP locations while opening some others, though the company declined to release a list.

At the same time, Applebee's will open 10 to 15 new locations and IHOP will open 55 to 70 of its own.

The latest closings this year follow a steady stream in 2017 when 99 Applebee's restaurants were shuttered. IHOP, formerly known as the International House of Pancakes, closed 23 last year.

The company is looking to buy small, regional fast-casual chains that feature healthy or ethnic food, CEO Stephen Joyce said Wednesday. Dine Brands plans to spend as much as $100 million on its first acquisition near the end of 2018 or in early 2019. The chains it's considering have 100 or fewer locations.

He'd previously explained that expansion would enable Dine Brands to get into high-traffic markets, like airports and travel centers, and that the company's scalable business model is why such acquisitions would work well for it.

The company's five-year growth plan, unveiled during its investor day on Wednesday, also includes using technology and analytics to increase the frequency of customer visits and check sizes.

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Joyce, the former CEO of Choice Hotels, replaced Julia Stewart as CEO of the restaurant brand in September.

On Tuesday, the company reported fourth-quarter net income of $13.1 million with adjusted earnings per diluted share of 74 cents on total revenues of close to $148.8 million. For the same period the previous year, net income was $24.5 million with EPS of $1.37 on total revenues of $154.1 million.

Dine Brands beat Thomson Reuters I/B/E/S expectations of net income of $12.2 million, EPS of 69 and revenues of $148 million.

Dine Brands stock closed at $63.03, up $3.59 or 5.7% Wednesday.

As many as 160 Applebee’s and IHOP locations to close If you’re an Applebee’s or IHOP fan you better get your pancake fix stat.

Follow USA TODAY reporter Zlati Meyer on Twitter: @ZlatiMeyer