FOR IMMEDIATE RELEASE

Contact:      Carol DiRaimo, Vice President of Investor Relations
              (913) 967-4109

                        Applebee's International Reports
                   Fourth Quarter and Fiscal Year 2005 Results

OVERLAND  PARK,  KAN.,  February  8,  2006  --  Applebee's  International,  Inc.
(Nasdaq:APPB) today reported net earnings of $20.5 million, or $0.27 per diluted
share, for the fourth quarter ended December 25, 2005,  including the cumulative
effect of a change in  accounting  principle.  This  compares to net earnings of
$24.4 million, or $0.30 per diluted share, for the fourth quarter of 2004.

The company  adopted  FASB  Interpretation  No. 47 ("FIN 47"),  "Accounting  for
Conditional  Asset  Retirement  Obligations," in the fourth quarter of 2005. The
cumulative  effect of this  change in  accounting  principle  was an  expense of
$350,000 on a pre-tax basis ($225,000 after-tax or less than $0.01 per share).

For the fiscal year ended December 25, 2005,  net earnings were $101.8  million,
or $1.27 per diluted  share,  including  impairment  charges and the  cumulative
effect  of a  change  in  accounting  principle.  Excluding  impairment  charges
recorded  in the third  quarter of 2005  totaling  $3.9  million  ($2.5  million
after-tax or approximately  $0.03 per share),  net earnings were $104.3 million,
or $1.30 per diluted share, for fiscal year 2005. A  reconciliation  of non-GAAP
measurements to GAAP results is attached to this release.

As previously reported,  system-wide  comparable sales for the fourth quarter of
2005 increased 1.0 percent,  the 30th  consecutive  quarter of comparable  sales
growth.  Comparable  sales for  company  restaurants  decreased  0.9 percent and
franchise  restaurant  comparable  sales  increased 1.6 percent for the quarter.
System-wide  comparable  sales for the 2005 fiscal year  increased  1.8 percent,
with franchise restaurant comparable sales up 2.7 percent and company comparable
restaurant sales down 0.9 percent.

                                    - more -

<PAGE>



February 8, 2006
Page 2


Lloyd Hill, chairman and chief executive officer, said, "While acknowledging the
external challenges we faced, we were disappointed with our results in 2005. Our
management  team is not  making  excuses  for our  performance  and is even more
focused on improving  the things that are within our control to make  Applebee's
more  relevant  to all of our  guests.  We  remain  committed  to our  long-term
strategies,   including  our  emphasis  on  disciplined   growth  and  enhancing
shareholder value. We have recently begun to implement our leadership succession
plan,  and I am  confident  that the future  direction  of the company is in the
right hands."

Dave Goebel,  president and chief operating  officer,  added, "Our key strategic
initiatives in 2006 include more rapid innovation of our food,  evolution of our
advertising  message,  and  leveraging  our key points of  differentiation  with
consumers.  While we were pleased with our strong January sales performance,  we
recognize  that a four-week  period is not long enough to declare a  sustainable
improvement   in  trends,   and  that  our   results  do  not  yet  reflect  the
implementation of those initiatives."

Other results for the fiscal year ended December 25, 2005 included:

o    Total  system-wide  sales for the 2005 fiscal year increased by 8.2 percent
     over 2004. System-wide sales are a non-GAAP financial measure that includes
     sales at all company and franchise Applebee's  restaurants,  as reported by
     franchisees.  The company  believes that system-wide  sales  information is
     useful in  analyzing  Applebee's  market  share  and  growth,  and  because
     franchisees pay royalties and contribute to the national  advertising  pool
     based on a percentage of their sales.

o    Applebee's ended the year with 1,804  restaurants  system-wide (486 company
     and 1,318 franchise restaurants). There were 144 new Applebee's restaurants
     opened system-wide during fiscal year 2005, the 13th consecutive year of at
     least 100 new restaurant  openings,  including 52 company and 92 franchised
     restaurants.

o    During 2005, the company repurchased 8,288,100 shares of common stock at an
     average  price of $23.66 for an  aggregate  cost of $196.1  million.  As of
     December 25, 2005,  $129.0 million  remained  available under the company's
     previous stock repurchase authorization.

o    As of December 25, 2005,  the company had total debt  outstanding of $188.4
     million, with $58 million available under its revolving credit facility.


                                    - more -
<PAGE>


February 8, 2006
Page 3


BUSINESS OUTLOOK

The company  reiterated  its  previously  stated  guidance  with  respect to its
business outlook for fiscal year 2006.

o    Over 120 new restaurants  are expected to open in 2006,  including at least
     40 company restaurants and at least 80 franchise restaurants. Approximately
     15 company  restaurants are currently expected to open in the first half of
     the  year,  with  the  balance  opening  in the  second  half of the  year.
     Approximately  20 to 25 franchise  restaurants  are expected to open in the
     first half of the year,  with the  remainder  opening in the second half of
     the year.

o    System-wide comparable sales are expected to increase by 2 to 3 percent for
     the full year,  with results  expected to be lower during the first part of
     the year and accelerate throughout the year.

o    Overall restaurant margins before pre-opening  expense for the full year of
     2006 are  expected  to be similar to fiscal  year 2005  results and will be
     dependent  on  comparable  sales  performance  at company  restaurants.  In
     addition,  higher energy costs,  including  utilities,  fuel surcharges and
     packaging  costs,  will have a negative impact on margins,  particularly in
     the first quarter.

o    General  and  administrative  expenses,   excluding  the  impact  of  stock
     compensation  expense, as a percentage of operating revenues,  are expected
     to be in the high-8 percent range.

o    The  effective  income tax rate is expected to be 35.5 to 36.0  percent for
     the year.

o    Excluding  the cost of franchise  acquisitions,  capital  expenditures  are
     expected  to be  between  $140 and $150  million in 2006,  including  costs
     relating to the construction of a new corporate headquarters.

o    In  addition,  the company  completed  the  acquisition  of four  franchise
     restaurants  in the Houston  area in late  January for  approximately  $8.2
     million in cash.

o    The impact of the  implementation  of  Statement  of  Financial  Accounting
     Standards No. 123R, "Share-Based Payment," is estimated to be approximately
     $0.17 per diluted share for the year, with a slightly higher  proportion to
     be recognized in the first quarter.
                                    - more -
<PAGE>


February 8, 2006
Page 4


o    Based on the foregoing  assumptions,  diluted earnings per share for fiscal
     year 2006 are expected to be in the range of $1.43 to $1.47,  excluding the
     impact of stock  compensation  expense,  and $1.26 to $1.30  including  the
     impact of stock compensation expense.

A conference  call to review the fourth quarter and fiscal year 2005 results and
the current business outlook will be held on Thursday morning, February 9, 2006,
at 10:00 a.m.  Central Time (11:00 a.m.  Eastern Time). The conference call will
be broadcast live over the Internet and a replay will be available shortly after
the call on the Investors section of the company's website (www.applebees.com).

Applebee's International,  Inc., headquartered in Overland Park, Kan., develops,
franchises and operates  restaurants under the Applebee's  Neighborhood  Grill &
Bar brand,  the largest casual dining concept in the world.  There are currently
1,813  Applebee's   restaurants  operating  system-wide  in  49  states  and  14
international countries.  Additional information on Applebee's International can
be found at the company's website (www.applebees.com).

Certain  statements  contained  in this  release,  including  fiscal  year  2006
guidance as set forth in the Business Outlook section,  are  forward-looking and
based on current  expectations.  There are several risks and uncertainties  that
could cause actual results to differ materially from those described,  including
but not limited to the ability of the  company and its  franchisees  to open and
operate  additional  restaurants  profitably,  the ability of its franchisees to
obtain  financing,  the continued growth of its franchisees,  and its ability to
attract and retain qualified  franchisees,  the impact of intense competition in
the casual dining  segment of the  restaurant  industry,  the impact of economic
factors on consumer spending,  and its ability to control  restaurant  operating
costs which are impacted by market  changes,  minimum wage and other  employment
laws,  food costs and  inflation.  For  additional  discussion  of the principal
factors that could cause actual results to be materially  different,  the reader
is  referred  to the  company's  current  report  on Form  8-K  filed  with  the
Securities and Exchange  Commission on February 9, 2005.  The company  disclaims
any obligation to update these forward-looking statements.


                                      # # #
<PAGE>

<TABLE>
<CAPTION>

                 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF EARNINGS
                                  (Unaudited)
                    (in thousands, except per share amounts)

                                                              13 Weeks Ended                    52 Weeks Ended
                                                       ------------------------------   ------------------------------
                                                        December 25,    December 26,     December 25,    December 26,
                                                           2005            2004              2005            2004
                                                       -------------   --------------   -------------   --------------
<S>                                                     <C>             <C>             <C>               <C>
Revenues:
     Company restaurant sales......................      $266,807        $ 238,296       $1,082,641        $ 976,798
     Franchise royalties and fees..................        31,723           29,736          128,813          121,221
     Other franchise income........................         1,643            3,188            5,196           13,615
                                                       -------------   --------------   -------------    -------------
        Total operating revenues...................       300,173          271,220        1,216,650        1,111,634
                                                       -------------   --------------   -------------    -------------
Cost of company restaurant sales:
     Food and beverage.............................        70,767           63,857          286,522          259,134
     Labor.........................................        89,493           78,126          358,563          317,659
     Direct and occupancy..........................        75,545           62,938          287,656          244,707
     Pre-opening expense...........................         1,243            1,013            4,767            3,025
                                                       -------------   --------------   -------------    -------------
        Total cost of company restaurant sales.....       237,048          205,934          937,508          824,525
                                                       -------------   --------------   -------------    -------------
Cost of other franchise income(a)..................         2,054            2,908            4,892           14,401
General and administrative expenses................        28,513           27,676          109,768          104,810
Amortization of intangible assets..................           220              220              878              663
Impairment of long-lived assets....................           --               --             3,900              --
Loss on disposition of restaurants and equipment...           726              435            2,067            1,955
                                                       -------------   --------------   -------------    -------------
Operating earnings.................................        31,612           34,047          157,637          165,280
                                                       -------------   --------------   -------------    -------------
Other income (expense):
     Investment income.............................           719              718            1,695            1,284
     Interest expense..............................        (2,162)            (487)          (4,365)          (1,626)
     Other income..................................           150            1,780            1,762            3,557
                                                       -------------   --------------   -------------    -------------
        Total other income (expense)...............        (1,293)           2,011             (908)           3,215
                                                       -------------   --------------   -------------    -------------
Earnings before income taxes and cumulative effect
     of change in accounting principle.............        30,319           36,058          156,729          168,495
Income taxes(b)....................................         9,574           11,656           54,702           57,630
                                                       -------------   --------------   -------------    -------------
Earnings before cumulative effect of change in
     accounting principle..........................        20,745           24,402          102,027          110,865
Cumulative effect of change in accounting
     principle, net of tax.........................          (225)             --              (225)             --
                                                       -------------   --------------   -------------    -------------
Net earnings.......................................      $ 20,520        $  24,402       $  101,802        $ 110,865
                                                       =============   ==============   =============    =============

Basic net earnings per common share:
      Basic earnings before cumulative effect of
          change in accounting principle ..........      $   0.27        $    0.30       $     1.30        $    1.36
      Cumulative effect of change in accounting
          principle, net of tax....................           --               --               --               --
                                                       -------------   --------------   -------------    -------------
Basic net earnings per common share................      $   0.27        $    0.30       $     1.29        $    1.36
                                                       =============   ==============   =============    =============
Diluted net earnings per common share:
      Diluted earnings before cumulative effect of
          change in accounting principle ..........      $   0.27        $    0.30       $     1.28        $    1.33
      Cumulative effect of change in accounting
          principle, net of tax....................           --               --               --               --
                                                       -------------   --------------   -------------    -------------
Diluted net earnings per common share..............      $   0.27        $    0.30       $     1.27        $    1.33
                                                       =============   ==============   =============    =============

Basic weighted average shares outstanding..........        75,525           80,835           78,650           81,528
                                                       =============   ==============   =============    =============
Diluted weighted average shares outstanding........        76,542           82,518           80,010           83,600
                                                       =============   ==============   =============    =============

<FN>

(a)  The company  recorded an expense of $0.5  million in the fourth  quarter of
     2005 to  increase  reserves  for  estimated  insurance  losses  incurred by
     franchise  participants of its captive insurance subsidiary that may not be
     recovered.
(b)  Fourth  quarter 2005 net earnings  reflect a decrease in income tax expense
     of $1.1 million due to the resolution of a state income tax matter.

</FN>
</TABLE>



                 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
             RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
                                   (Unaudited)
                    (in thousands, except per share amounts)

In addition  to the  results  provided in  accordance  with  Generally  Accepted
Accounting  Principles  ("GAAP")  throughout  this  document,  the  company  has
provided non-GAAP measurements which present operating results on a basis before
impairment  charges.  Impairment  charges reflect the write-down of the carrying
value of the property and equipment of four restaurants and one other long-lived
asset.  The  company  is  using  earnings  before  impairment  charges  as a key
performance  measure  of  results  of  operations  for  purposes  of  evaluating
performance internally. This non-GAAP measurement is not intended to replace the
presentation  of our financial  results in  accordance  with GAAP.  Rather,  the
company  believes that the  presentation of earnings before  impairment  charges
provides additional information to facilitate the comparison of past and present
operations,  excluding items that the company does not believe are indicative of
our ongoing operations.


<TABLE>
<CAPTION>

                                                              13 Weeks Ended                    52 Weeks Ended
                                                       ------------------------------   ------------------------------
                                                        December 25,    December 26,     December 25,    December 26,
                                                           2005            2004              2005            2004
                                                       -------------   --------------   -------------   --------------
<S>                                                      <C>           <C>              <C>             <C>
Impairment of long-lived assets....................          --                --         $ (3,900)             --
Income taxes.......................................          --                --            1,392              --
                                                       -------------   --------------   -------------   --------------
  Impairment charges, net of tax...................          --                --         $ (2,508)             --
                                                       =============   ==============   =============   ==============

Diluted weighted average shares outstanding........        76,542           82,518          80,010            83,600
                                                       =============   ==============   =============   ==============

Diluted earnings per share impact of
 impairment charges................................          --                --         $  (0.03)             --
                                                       =============   ==============   =============   ==============

Reconciliation of earnings before impairment
  charges to net earnings:
    Earnings before impairment charges.............      $ 20,520        $  24,402       $ 104,310         $ 110,865
    Impairment charges, net of tax.................          --                --           (2,508)             --
                                                       -------------   --------------   -------------   --------------
    Net earnings...................................      $ 20,520        $  24,402       $ 101,802         $ 110,865
                                                       =============   ==============   =============   ==============

Reconciliation of earnings per share before
 impairment charges to reported earnings per share:
    Diluted earnings per share before
      impairment charges...........................      $   0.27        $    0.30       $    1.30         $    1.33
    Diluted earnings per share impact of
      of impairment charges........................          --                --            (0.03)             --
                                                       -------------   --------------   -------------   --------------
    Reported diluted earnings per share............      $   0.27        $    0.30       $    1.27         $    1.33
                                                       =============   ==============   =============   ==============


</TABLE>


<PAGE>

The following table sets forth, for the periods indicated,  information  derived
from the Company's  preliminary  unaudited  consolidated  statements of earnings
expressed as a percentage of total  operating  revenues,  except where otherwise
noted. Percentages may not add due to rounding.


<TABLE>
<CAPTION>

                                                              13 Weeks Ended                    52 Weeks Ended
                                                       ------------------------------   -------------------------------
                                                        December 25,    December 26,     December 25,    December 26,
                                                           2005            2004              2005            2004
                                                       -------------   --------------   -------------   --------------
<S>                                                      <C>           <C>              <C>             <C>
Revenues:
     Company restaurant sales......................          88.9%           87.9%            89.0%           87.9%
     Franchise royalties and fees..................          10.6            11.0             10.6            10.9
     Other franchise income........................           0.5             1.2              0.4             1.2
                                                       -------------   --------------   -------------   -------------
        Total operating revenues...................         100.0%          100.0%           100.0%          100.0%
                                                       =============   ==============   =============   =============
Cost of sales (as a percentage of
   company restaurant sales):
     Food and beverage.............................          26.5%           26.8%            26.5%           26.5%
     Labor.........................................          33.5            32.8             33.1            32.5
     Direct and occupancy..........................          28.3            26.4             26.6            25.1
     Pre-opening expense...........................           0.5             0.4              0.4             0.3
                                                       -------------   --------------   -------------   -------------
        Total cost of sales........................          88.8%           86.4%            86.6%           84.4%
                                                       =============   ==============   =============   =============
Cost of other franchise income (as a percentage
     of other franchise income)(a).................         125.0%           91.2%            94.1%          105.8%
General and administrative expenses................           9.5            10.2              9.0             9.4
Amortization of intangible assets..................           0.1             0.1              0.1             0.1
Impairment on long-lived assets....................            --              --              0.3              --
Loss on disposition of restaurants
   and equipment...................................           0.2             0.2              0.2             0.2
                                                       -------------   --------------   -------------   -------------
Operating earnings.................................          10.5            12.6             13.0            14.9
                                                       -------------   --------------   -------------   -------------
Other income (expense):
     Investment income.............................           0.2             0.3              0.1             0.1
     Interest expense..............................          (0.7)           (0.2)            (0.4)           (0.1)
     Other income..................................           0.0             0.7              0.1             0.3
                                                       -------------   --------------   -------------   -------------
        Total other income (expense)...............          (0.4)            0.7             (0.1)            0.3
                                                       -------------   --------------   -------------   -------------
Earnings before income taxes and cumulative effect
     of change in accounting principle.............          10.1            13.3             12.9            15.2
Income taxes(b)....................................           3.2             4.3              4.5             5.2
                                                       -------------   --------------   -------------   -------------
Earnings before cumulative effect of change in
     accounting principle..........................           6.9             9.0              8.4            10.0
Cumulative effect of change in accounting principle
     net of tax....................................          (0.1)             --               --              --
                                                       -------------   --------------   -------------   -------------
Net earnings.......................................           6.8%            9.0%             8.4%           10.0%
                                                       =============   ==============   =============   =============


<FN>

(a)  The company  recorded an expense of $0.5  million in the fourth  quarter of
     2005 to  increase  reserves  for  estimated  insurance  losses  incurred by
     franchise  participants of its captive insurance subsidiary that may not be
     recovered.
(b)  Fourth  quarter 2005 net earnings  reflect a decrease in income tax expense
     of $1.1 million due to the resolution of a state income tax matter.
</FN>

</TABLE>
<PAGE>
The following table sets forth certain unaudited financial information and other
restaurant data relating to company and franchise restaurants, as reported to us
by franchisees:
<TABLE>
<CAPTION>

                                                              13 Weeks Ended                    52 Weeks Ended
                                                       ------------------------------   ---------------------------------
                                                        December 25,    December 26,     December 25,    December 26,
                                                           2005            2004              2005            2004
                                                       -------------     ------------   ---------------   ---------------
<S>                                                    <C>             <C>              <C>             <C>
Number of restaurants:
     Company:
         Beginning of period.......................           473               413                424              383
         Restaurant openings.......................            13                11                 52               32
         Restaurants closed........................           --                 --                 (1)              (1)
         Restaurants acquired from franchisees.....           --                 --                 11               10
                                                       -------------     ------------   ---------------    --------------
         End of period.............................           486               424                486              424
                                                       -------------     ------------   ---------------    --------------
     Franchise:
         Beginning of period.......................         1,282             1,224              1,247            1,202
         Restaurant openings.......................            40                37                 92               77
         Restaurants closed........................            (4)              (14)               (10)             (22)
         Restaurants acquired from franchisees.....           --                 --                (11)             (10)
                                                       -------------     ------------   ---------------    --------------
         End of period.............................         1,318             1,247              1,318            1,247
                                                       -------------     ------------   ---------------    --------------
     Total:
         Beginning of period.......................         1,755             1,637              1,671            1,585
         Restaurant openings.......................            53                48                144              109
         Restaurants closed........................            (4)              (14)               (11)             (23)
                                                       -------------     ------------    --------------    --------------
         End of period.............................         1,804             1,671              1,804            1,671
                                                       =============     ============    ==============    ==============

Weighted average weekly sales per restaurant:
     Company.......................................     $  42,723         $  43,812        $    45,552       $   46,536
     Franchise.....................................     $  46,254         $  45,695        $    48,908       $   47,613
     Total.........................................     $  45,297         $  45,215        $    48,019       $   47,345

Change in comparable restaurant sales:(1)
     Company.......................................         (0.9)%             0.1%             (0.9)%             3.8%
     Franchise.....................................          1.6 %             3.0%              2.7 %             5.2%
     Total.........................................          1.0 %             2.3%              1.8 %             4.8%

Total operating revenues (in thousands):
     Company restaurant sales......................     $ 266,807         $ 238,296        $1,082,641        $  976,798
     Franchise royalties and fees(2)...............        31,723            29,736           128,813           121,221
     Other franchise income(3).....................         1,643             3,188             5,196            13,615
                                                       -------------     ------------    --------------    --------------
     Total.........................................     $ 300,173         $ 271,220        $1,216,650        $1,111,634
                                                       =============     ============    ==============    ==============




<FN>

(1)  When computing comparable  restaurant sales,  restaurants open for at least
     18 months are compared from period to period.
(2)  Franchise  royalties  are  generally  4%  of  each  franchise  restaurant's
     reported monthly gross sales. Reported franchise sales, in thousands,  were
     $779,076  and   $726,510  in  the  2005  quarter  and  the  2004   quarter,
     respectively,  and $3,223,505 and $3,001,287 in the 2005  year-to-date  and
     2004 year-to-date period, respectively. Franchise fees typically range from
     $30,000 to $35,000 for each restaurant opened.
(3)  Other  franchise  income  includes   insurance   premiums  from  franchisee
     participation in our captive insurance company and revenue from information
     technology products and services provided to certain franchisees.


</FN>
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                      (in thousands, except share amounts)


                                                                                       December 25,         December 26,
                                                                                           2005                 2004
                                                                                      ----------------     ---------------
<S>                                                                                   <C>                  <C>
                                       ASSETS
Current assets:
     Cash and cash equivalents...................................................     $      13,040        $      10,642
     Short-term investments, at market value.....................................               286                  282
     Receivables, net of allowance...............................................            37,857               39,152
     Receivables related to captive insurance subsidiary.........................             1,712                1,866
     Inventories.................................................................            20,373               35,936
     Prepaid income taxes........................................................             3,488                  --
     Prepaid and other current assets............................................            13,518               12,079
                                                                                      ----------------     ---------------
          Total current assets...................................................            90,274               99,957
Property and equipment, net......................................................           587,493              486,548
Goodwill.........................................................................           138,443              116,344
Restricted assets related to captive insurance subsidiary........................            19,329               17,386
Other intangible assets, net.....................................................             8,050                8,524
Other assets, net................................................................            31,899               25,672
                                                                                      ----------------     ---------------
                                                                                      $     875,488        $     754,431
                                                                                      ================     ===============

                        LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Current portion of long-term debt...........................................     $         259        $         222
     Notes payable...............................................................             7,900                  --
     Accounts payable............................................................            60,345               42,830
     Accrued expenses and other current liabilities..............................           100,995               89,064
     Loss reserve and unearned premiums related to captive insurance subsidiary..            10,235               12,137
     Accrued dividends...........................................................            14,840                4,867
     Accrued income taxes........................................................               --                 2,578
                                                                                      ----------------     ---------------
         Total current liabilities...............................................           194,574              151,698
                                                                                      ----------------     ---------------
Non-current liabilities:
     Long-term debt - less current portion.......................................           180,208               35,472
     Deferred income taxes.......................................................            37,722               28,995
     Other non-current liabilities...............................................            50,374               41,539
                                                                                      ----------------     ---------------
         Total non-current liabilities...........................................           268,304              106,006
                                                                                      ----------------     ---------------
         Total liabilities.......................................................           462,878              257,704
                                                                                      ----------------     ---------------
Stockholders' equity:
     Preferred stock - par value $0.01 per share:  authorized - 1,000,000 shares;
       no shares issued..........................................................               --                   --
     Common stock - par value $0.01 per share:  authorized - 125,000,000 shares;
       issued -108,503,243 shares................................................             1,085                1,085
     Additional paid-in capital..................................................           234,988              220,897
     Unearned compensation.......................................................            (2,614)              (1,924)
     Retained earnings...........................................................           710,277              623,315
                                                                                      ----------------     ---------------
                                                                                            943,736              843,373
     Treasury stock - 34,304,693 shares in 2005 and 27,375,044 shares in 2004, at
     cost........................................................................          (531,126)            (346,646)
                                                                                      ----------------     ---------------
         Total stockholders' equity..............................................           412,610              496,727
                                                                                      ----------------     ---------------
                                                                                      $     875,488        $     754,431
                                                                                      ================     ===============

</TABLE>




<PAGE>

<TABLE>
<CAPTION>

                 APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)

                                                                                                52 Weeks Ended
                                                                                      ------------------------------------

                                                                                       December 25,         December 26,
                                                                                           2005                 2004
                                                                                      ----------------     ---------------
<S>                                                                                     <C>                  <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net earnings................................................................        $ 101,802           $ 110,865
     Adjustments to reconcile net earnings to net cash provided by operating
     activities:
         Cumulative effect of change in accounting principle, net of tax.........              225                --
         Depreciation and amortization...........................................           54,580              46,051
         Amortization of intangible assets.......................................              878                 663
         Amortization of unearned compensation...................................            2,231               1,422
         Other amortization......................................................              246                 309
         Inventory impairment....................................................              --                2,000
         Deferred income tax provision ..........................................            9,871              25,313
         Impairment of long-lived assets.........................................            3,900                 --
         Loss on disposition of restaurants and equipment........................            2,067               1,955
         Income tax benefit from exercise of stock options.......................            5,370              10,459
     Changes in assets and liabilities (exclusive of effects of acquisitions or..
         dispositions):
         Receivables.............................................................            1,371              (7,218)
         Receivables related to captive insurance subsidiary.....................              154              (2,116)
         Inventories.............................................................           15,753             (16,925)
         Income taxes............................................................           (5,941)              8,378
         Prepaid and other current assets........................................           (2,583)               (665)
         Accounts payable........................................................           18,757               5,197
         Accrued expenses and other current liabilities..........................           11,842              (3,542)
         Loss reserve and unearned premiums related to captive insurance
            subsidiary...........................................................           (1,202)              6,880
         Other non-current liabilities...........................................            4,866               3,418
         Other...................................................................           (2,984)             (1,839)
                                                                                      ----------------     ---------------
         NET CASH PROVIDED BY OPERATING ACTIVITIES...............................          221,203             190,605
                                                                                      ----------------     ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property and equipment.........................................         (138,602)           (104,620)
     Restricted assets related to captive insurance subsidiary...................           (1,943)             (6,623)
     Acquisitions of restaurants.................................................          (48,410)            (13,817)
     Lease acquisition costs.....................................................             --                (4,875)
     Acquisition of other intangible asset.......................................             --                (2,809)
     Proceeds from the sale of restaurants and equipment.........................            1,237                  66
     Maturities and sales of short-term investments..............................             --                  (253)
     Other investing activities..................................................             --                (1,124)
                                                                                      ----------------     ---------------
         NET CASH USED BY INVESTING ACTIVITIES...................................         (187,718)           (134,055)
                                                                                      ----------------     ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Purchases of treasury stock.................................................         (196,066)            (99,723)
     Dividends paid..............................................................           (4,867)             (3,911)
     Issuance of common stock upon exercise of stock options.....................           12,984              19,497
     Shares issued under employee benefit plans..................................            4,402               5,979
     Net debt proceeds...........................................................          152,673              14,832
     Deferred financing costs relating to issuance of long-term debt.............             (213)               (449)
                                                                                      ----------------     ---------------
         NET CASH USED BY FINANCING ACTIVITIES...................................          (31,087)            (63,775)
                                                                                      ----------------     ---------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.............................            2,398              (7,225)
CASH AND CASH EQUIVALENTS, beginning of period...................................           10,642              17,867
                                                                                      ----------------     ---------------
CASH AND CASH EQUIVALENTS, end of period.........................................        $  13,040            $ 10,642
                                                                                      ================     ===============

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