Pepsi Goes Flat On IHOP Deal
Restaurant company DineEquity Inc (NYSE:DIN), owner of the Applebee’s Neighborhood Grill & Bar and IHOP restaurants, extended its beverage supply relationship with PepsiCo Inc. (NYSE:PEP) to include the IHOP chain. Pepsi has been partnering Applebee’s since 2003.
DineEquity signed a 10-year agreement with Pepsi appointing it as the exclusive non-alcoholic beverage supplier for most of the soft-drink categories for its Applebee’s and IHOP restaurants across the U.S. — the first time Pepsi will be the exclusive provider for the IHOP chain.
Julia Stewart, chairman and CEO of DineEquity said, “By consolidating our business with PepsiCo, we achieved more advantageous terms for our franchisees than ever before, while securing the widest variety of beverage options for our guests. We have enjoyed the strong partnership with PepsiCo at Applebee’s and now look forward to a similarly successful relationship encompassing IHOP.”
Indra Nooyi, chairman and CEO of PepsiCo said, “Applebee’s has been a valued, long-standing customer of ours and we’re looking forward to growing our relationship with IHOP. We appreciate the opportunity to serve our great-tasting, top-quality beverages to all DineEquity guests.”
DineEquity, Inc., through its subsidiaries, franchises and operates more than 3,500 restaurants combined in 18 countries, over 400 franchisees and approximately 200,000 team members.
PepsiCo shares were trading relatively flat today on the news, down 0.17 percent at 11:19 a.m. EDT.