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GLENDALE, Calif. - DineEquity Inc., which owns the Applebee's and IHOP restaurant chains, said Wednesday that Desmond Hague will resign as president of IHOP Restaurants on Feb. 20 in order to pursue a CEO position at an unnamed company.
DineEquity said Jim Peros, IHOP senior vice president of operations, will serve as interim president until a successor is identified. Julia Stewart, DineEquity's chairman and chief executive, will collaborate with IHOP's leadership team. Until Hague took on the role last summer, Stewart had served as IHOP president going back to December 2001.
Hague's departure comes as DineEquity is still searching for a permanent chief financial officer, after Thomas G. Conforti resigned in September to pursue other opportunities. Greggory Kalvin, vice president and controller, has been serving as interim CFO.
DineEquity, which franchises and operates around 3,400 restaurants nationwide, has struggled after taking on large amounts of debt to purchase Applebee's. The company has been hit hard by the tightening credit markets, which have made it harder for restaurant companies to secure credit for franchisees looking to buy locations.
DineEquity has been selling Applebee's locations to franchisees and using the profits to pay down debt from acquiring the chain. It also in December suspended its quarterly cash dividend for the foreseeable future in a move to save cash and pay down debt.
But if fewer franchisees can get credit to buy the locations, the company may have a difficult time paying off very much of its debt. That, combined with the slower consumer spending affecting the entire restaurant industry, has spooked investors.
Large shareholders Southeastern Asset Management Inc. and MSD Capital — the investment arm of Dell Inc. founder Michael Dell — have recently filed to take a more active role in the company.
Shares fell 49 cents, or nearly 6 percent, to close earlier at $7.84. The stock, which traded last spring at $53.50, was hit hard by the global market meltdown, bottoming at $5.65 in late October.
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