After pressure from activist investors to increase shareholder value, Applebee's International said it's received several preliminary takeover proposals.

The Casual-dining restaurant chain said it's reviewing its overhead costs, returns, the mix of company-owned versus franchised restaurants, and strategies for improving same-store sales, but it plans to begin a second round of due diligence with bidders, before taking final offers.

The company has taken a hit by lowered consumer spending and increased competition among bar-and-grill type restaurants. Applebee's says it's too early to comment on the likelihood or value of a recapitalization or a sale, and that there's no guarantee a transaction will occur.

Applebee's has been looking into strategic alternatives including a possible sale since February, after pressure from former Securities and Exchange Commission Chairman Richard Breede, who, along with another Breeden Capital Management nominee, has been appointed to the company's board of directors in a settlement of a proxy fight over board seats.

Casual-dining restaurant chain Applebee's International Inc., which has been under pressure from activist investors to increase shareholder value, said on Thursday it has received several preliminary nonbinding takeover proposals.

The company also said it has agreed to appoint former Securities and Exchange Commission Chairman Richard Breeden and another Breeden Capital Management LLC nominee to its board of directors in a settlement of a proxy fight over board seats.

(Continue reading this story on Reuters)

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