Huffpost Business

IHOP Buys Applebees For $1.9B Cash

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IHOP Corp., best known for its chain of blue-roofed pancake restaurants, said Monday it has agreed to buy the bar-and-grill chain Applebee's International Inc. for about $1.9 billion in cash.

The move comes as Wall Street analysts are expecting a difficult second-quarter earnings season in the restaurant sector as soaring commodity costs are hurting restaurant profits and consumers facing high gas prices are thinking twice about going out for a meal.