UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K


                                 Current Report




                PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934



Date of Report (Date of earliest event reported)       October 27, 2004
                                                --------------------------------



                         Applebee's International, Inc.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)


            Delaware                   000-17962               43-1461763
  ------------------------------      ------------       -----------------------
 (State or other jurisdiction of      (Commission           (I.R.S. Employer
 incorporation or organization)       File Number)         Identification No.)

                4551 W. 107th Street, Overland Park, Kansas 66207
 -------------------------------------------------------------------------------
              (Address of principal executive offices and zip code)

                                 (913) 967-4000
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


                                      None
          -------------------------------------------------------------
          (Former name or former address, if changed since last report)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written  communications  pursuant  to Rule  425  under  the  Securities Act
     (17 CFR 230.425)

[ ]  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[ ]  Pre-commencement  communications   pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement  communications   pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))

<PAGE>



Item 2.02.           Results of Operations and Financial Condition

     On October 27 2004, Applebee's International, Inc. (the "Company") issued a
press release entitled "Applebee's  International  Reports Third Quarter Diluted
Earnings Per Share of $0.34 and Updates 2004 Outlook." The release contained the
following information.


                                                           FOR IMMEDIATE RELEASE

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

             Applebee's International Reports Third Quarter Diluted
              Earnings Per Share of $0.34 and Updates 2004 Outlook

Overland  Park,  Kan.,  October  27,  2004  --  Applebee's  International,  Inc.
(Nasdaq:APPB) today reported net earnings of $28.3 million, or $0.34 per diluted
share,  for the third  quarter ended  September  26, 2004.  This compares to net
earnings of $25.6 million,  or $0.30 per diluted share, for the third quarter of
2003.

System-wide  comparable  sales  for the  third  quarter  of 2004  increased  2.7
percent,  the 25th consecutive  quarter of comparable sales growth.  Company and
franchise  restaurant  comparable  sales  increased 1.1 percent and 3.1 percent,
respectively, for the quarter. System-wide comparable sales for the year-to-date
period  through  September  increased  5.6 percent,  with company and  franchise
restaurant comparable sales up 5.0 percent and 5.9 percent, respectively.

The company also  reported  comparable  sales for the September  fiscal  period,
comprised of the five weeks ended  September  26, 2004.  System-wide  comparable
sales increased 1.1 percent for the September  period,  and comparable sales for
franchise  restaurants  increased  1.5  percent.  Comparable  sales for  company
restaurants  decreased  0.1 percent,  reflecting a decrease in guest  traffic of
approximately  1.0  to  1.5  percent,  offset  by a  higher  average  check.  As
previously noted, the Olympics had a negative impact on sales for the first week
of the September period.  Several hurricanes also negatively  impacted franchise
comparable sales by approximately 0.5 percent during the month.

In  addition,  the company  reported  comparable  sales for the  October  fiscal
period,  comprised  of the  four  weeks  ended  October  24,  2004.  System-wide
comparable  sales increased 1.7 percent for the October  period,  and comparable
sales for  franchise  restaurants  increased 2.4 percent.  Comparable  sales for
company  restaurants  decreased  0.4  percent,  reflecting  a decrease  in guest
traffic of a similar  amount,  combined with a flat average  check.  The company
noted  that its  Skillet  Sensations(TM)  promotion,  which ran for three  weeks
during the October period, had lower price points than the prior year promotion,
resulting in a negative impact on the average

                                    - more -

                                       2
<PAGE>


check.  This  promotion  will run  through  the first two weeks of the  November
period.  The October  period also had one less week of advertising in comparison
to the prior  year.  In  addition,  company  restaurant  sales  were  negatively
impacted  by the  baseball  playoffs  and  World  Series  as 26  percent  of the
company-owned  restaurants  are  in  St.  Louis  and  New  England.  System-wide
comparable sales for the year-to-date  period through October have increased 5.3
percent,  with company and franchise restaurant  comparable sales up 4.5 percent
and 5.5 percent, respectively.

Lloyd L. Hill, chairman and chief executive officer, said, "Consistent with what
we've seen  throughout  the casual  dining  segment,  our  comparable  sales and
traffic  growth  slowed  toward  the end of the  summer.  Whether  due to rising
gasoline  prices,  economic  uncertainty,  or the  upcoming  election,  consumer
spending appears to have been more restrained recently.  While we are not immune
to these forces,  we believe that our long-term  strategies for continued growth
are the right ones. We remain  focused on improving  operations  throughout  the
system, as well as optimizing our key strategies for the remainder of the year."

Other results for the third quarter and year-to-date periods ended September 26,
2004 included:

     o   Net earnings for the 39-week period ended September 26, 2004 were $86.0
         million,  or $1.02 per diluted share.  This compares to net earnings in
         the same period of 2003 of $70.4  million,  or $0.82 per diluted share,
         including an impairment  charge of $5.6 million or approximately  $0.06
         per share in 2003.

     o   Total  system-wide  sales for the quarter  increased 9 percent over the
         prior year.  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 quarter with 1,637  restaurants  open system-wide
         (413 company and 1,224 franchise restaurants). During the third quarter
         of 2004, there were 30 new Applebee's  restaurants opened  system-wide,
         including 9 company and 21 franchised restaurants.

     o   The company  repurchased  1,407,520 shares of common stock in the third
         quarter at an average  price of $24.87 for an  aggregate  cost of $35.0
         million.  Year-to-date, the company has repurchased 3,504,970 shares of
         common  stock at an average  price of $25.17 for an  aggregate  cost of
         $88.2  million.  As  of  September  26,  2004,  $11.5  million  remains
         available under the company's current stock repurchase authorization.


                                    - more -

                                       3
<PAGE>


     o   As of September  26, 2004,  the company had total debt  outstanding  of
         $46.7 million,  with $97 million  available under its revolving  credit
         facility.

BUSINESS OUTLOOK

The company  updated its guidance  with respect to its business  outlook for the
remainder of fiscal year 2004:

     o   More than 100 new restaurants  are expected to open in 2004,  including
         at least 32 company restaurants and 70 to 80 franchise restaurants.  At
         least 11 company  restaurants  and 30 to 40 franchise  restaurants  are
         expected to open in the fourth quarter.

     o   Comparable sales for the fourth quarter are now expected to increase by
         zero to two percent for company restaurants and by two to three percent
         for franchise  restaurants,  including the estimated negative impact of
         the timing of both  Christmas Eve and Christmas Day on December  sales.
         Company  restaurants  have implemented an approximate one percent price
         increase  in  conjunction  with a new fall  menu  which  rolled  out on
         October 25, 2004.

     o   As a result of lower company sales than previously expected, restaurant
         margins before pre-opening  expense for the fourth quarter are expected
         to be  approximately  150 to 200 basis  points  lower  than the  fourth
         quarter of 2003.

     o   General and  administrative  expenses,  as a  percentage  of  operating
         revenues,  are expected to be in the low to mid-9 percent range for the
         fourth quarter.

     o   The effective income tax rate is currently expected to continue at 35.0
         percent for the remainder of the year.

     o   Excluding the cost of franchise acquisitions,  capital expenditures are
         expected to be between $95 and $105 million in 2004.

     o   Based on the foregoing assumptions,  diluted earnings per share for the
         fourth quarter of 2004 are expected to be $0.28 to $0.30.  Accordingly,
         fiscal  year 2004  diluted  earnings  per share are now  expected to be
         $1.30 to $1.32,  an increase of 12 to 14 percent  over fiscal year 2003
         earnings per share  (excluding  an impairment  charge of  approximately
         $0.06 per share in 2003).

                                    - more -

                                       4
<PAGE>


The company also announced that its Board of Directors has authorized additional
stock  repurchases  of up to  $150,000,000  beginning in 2005 and has approved a
written plan for  repurchases  of common stock in the open market in  accordance
with Rule 10b5-1 of the Securities Exchange Act of 1934.

A  conference  call to review the third  quarter  2004  results  and the current
business  outlook will be held on Thursday  morning,  October 28, 2004, 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  Investor   Relations   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.  As of October 24,
2004, there were 1,633 Applebee's restaurants operating system-wide in 49 states
and  ten   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  2004
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, 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 11, 2004.  The
company disclaims any obligation to update these forward-looking statements.


                                      # # #

                                       5
<PAGE>


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


                                                                    13 Weeks Ended                         39 Weeks Ended
                                                          -----------------------------------    -----------------------------------
                                                           September 26,       September 28,       September 26,      September 28,
                                                               2004               2003                2004                2003
                                                          ---------------    ----------------    ----------------    ---------------
<S>                                                       <C>                <C>                 <C>                 <C>
Revenues:
     Company restaurant sales .......................      $    247,173       $    222,429        $    738,502        $    650,946
     Franchise royalties and fees....................            30,105             27,594              91,656              82,088
     Other franchise income..........................             3,913              2,972              10,427               8,881
                                                          ---------------    ----------------    ----------------    ---------------
         Total operating revenues....................           281,191            252,995             840,585             741,915
                                                          ---------------    ----------------    ----------------    ---------------
Cost of company restaurant sales:
     Food and beverage...............................            65,115             57,200             195,277             169,086
     Labor...........................................            79,599             73,018             240,344             213,186
     Direct and occupancy............................            61,642             55,869             180,951             160,816
     Pre-opening expense.............................               998                576               1,939               1,131
                                                          ---------------    ----------------    ----------------    ---------------
         Total cost of company restaurant sales......           207,354            186,663             618,511             544,219
                                                          ---------------    ----------------    ----------------    ---------------
Cost of other franchise income.......................             3,521              2,837              11,493               8,510
General and administrative expenses..................            26,669             23,589              77,118              69,096
Amortization of intangible assets....................               199                 87                 443                 278
Loss on disposition of restaurants and equipment.....               441                116               1,520               1,314
                                                          ---------------    ----------------    ----------------    ---------------
Operating earnings...................................            43,007             39,703             131,500             118,498
                                                          ---------------    ----------------    ----------------    ---------------
Other income (expense):
     Investment income...............................               325                227                 566               1,048
     Interest expense................................              (379)              (330)             (1,139)             (1,369)
     Impairment of Chevys note receivable............               --                  --                  --              (8,803)
     Other income....................................               568                395               1,410                 601
                                                          ---------------    ----------------    ----------------    ---------------
         Total other income (expense)................               514                292                 837              (8,523)
                                                          ---------------    ----------------    ----------------    ---------------
Earnings before income taxes.........................            43,521             39,995             132,337             109,975
Income taxes.........................................            15,232             14,398              46,318              39,591
                                                          ---------------    ----------------    ----------------    ---------------
Net earnings.........................................      $     28,289       $     25,597        $     86,019        $     70,384
                                                          ===============    ================    ================    ===============

Basic net earnings per common share (a)..............      $       0.35       $       0.31        $       1.05        $       0.85
                                                          ===============    ================    ================    ===============
Diluted net earnings per common share (a)............      $       0.34       $       0.30        $       1.02        $       0.82
                                                          ===============    ================    ================    ===============

Basic weighted average shares outstanding (a)........            81,511             83,334              81,759              83,132
                                                          ===============    ================    ================    ===============
Diluted weighted average shares outstanding (a)......            83,503             85,777              84,079              85,482
                                                          ===============    ================    ================    ===============

<FN>

(a) All earnings per share and weighted  average  share  information  reflects a
    three-for-two  stock  split effective  at the close of  business on June 15,
    2004.
</FN>


</TABLE>

                                       6
<PAGE>


The following table contains information derived from the Company's 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                       39 Weeks Ended
                                                      ------------------------------------  ----------------------------------
                                                        September 26,       September 28,     September 26,    September 28,
                                                            2004                2003              2004              2003
                                                      -----------------   ----------------  ---------------- -----------------
<S>                                                        <C>                 <C>               <C>              <C>
 Revenues:
      Company restaurant sales.......................        87.9%               87.9%             87.9%            87.7%
      Franchise royalties and fees...................        10.7                10.9              10.9             11.1
      Other franchise income.........................         1.4                 1.2               1.2              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..............................        26.3%               25.7%             26.4%            26.0%
      Labor..........................................        32.2                32.8              32.5             32.8
      Direct and occupancy...........................        24.9                25.1              24.5             24.7
      Pre-opening expense............................         0.4                 0.3               0.3              0.2
                                                      -----------------   ----------------  ---------------- -----------------
         Total cost of sales.........................        83.9%               83.9%             83.8%            83.6%
                                                      =================   ================  ================ =================

 Cost of other franchise income (as a percentage
    of other franchise income).......................        90.0%               95.5%            110.2%            95.8%
 General and administrative expenses.................         9.5                 9.3               9.2              9.3
 Amortization of intangible assets...................         0.1                  --               0.1               --
 Loss on disposition of restaurants and equipment....         0.2                  --               0.2              0.2
                                                      -----------------   ----------------  ---------------- -----------------
 Operating earnings..................................        15.3                15.7              15.6             16.0
                                                      -----------------   ----------------  ---------------- -----------------
 Other income (expense):
      Investment income..............................         0.1                 0.1               0.1              0.1
      Interest expense...............................        (0.1)               (0.1)             (0.1)            (0.2)
      Impairment of Chevys note receivable...........          --                  --                --             (1.2)
      Other income...................................         0.2                 0.2               0.2              0.1
                                                      -----------------   ----------------  ---------------- -----------------
         Total other income (expense)................         0.2                 0.1               0.1             (1.1)
                                                      -----------------   ----------------  ---------------- -----------------
 Earnings before income taxes........................        15.5                15.8              15.7             14.8
 Income taxes........................................         5.4                 5.7               5.5              5.3
                                                      -----------------   ----------------  ---------------- -----------------
 Net earnings........................................        10.1%               10.1%             10.2%             9.5%
                                                      =================   ================  ================ =================
</TABLE>


                                       7
<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                     39 Weeks Ended
                                                       -------------------------------    -------------------------------
                                                       September 26,     September 28,    September 26,     September 28,
                                                           2004              2003              2004             2003
                                                       -------------     -------------    --------------    -------------
<S>                                                    <C>                <C>              <C>               <C>
Number of restaurants:
     Company:
         Beginning of period.......................            405               373              383               357
         Restaurant openings.......................              9                 8               21                15
         Restaurants closed........................             (1)               --               (1)               (2)
         Restaurants acquired from franchisees.....             --                --               10                11
         Restaurants acquired by franchisees.......             --                (9)              --                (9)
                                                       -------------     -------------    --------------    -------------
         End of period.............................            413               372              413               372
                                                       -------------     -------------    --------------    -------------
     Franchise:
         Beginning of period.......................          1,207             1,155            1,202             1,139
         Restaurant openings.......................             21                12               40                41
         Restaurants closed........................             (4)               (5)              (8)               (7)
         Restaurants acquired from franchisees.....             --                --              (10)              (11)
         Restaurants acquired by franchisees.......             --                 9               --                 9
                                                       -------------     -------------    --------------    -------------
         End of period.............................          1,224             1,171            1,224             1,171
                                                       -------------     -------------    --------------    -------------
     Total:
         Beginning of period.......................          1,612             1,528            1,585             1,496
         Restaurant openings.......................             30                20               61                56
         Restaurants closed........................             (5)               (5)              (9)               (9)
                                                       -------------     -------------    --------------    -------------
         End of period.............................          1,637             1,543            1,637             1,543
                                                       =============     =============    ==============    =============

Weighted average weekly sales per restaurant:
     Company.......................................     $   46,365         $  45,976        $  47,489         $  45,356
     Franchise.....................................     $   47,253         $  45,760        $  48,258         $  45,637
     Total.........................................     $   47,027         $  45,812        $  48,067         $  45,569

Change in comparable restaurant sales:(1)
     Company.......................................           1.1%              5.9%             5.0%              5.2%
     Franchise.....................................           3.1%              4.4%             5.9%              3.5%
     Total.........................................           2.7%              4.8%             5.6%              3.9%

Total operating revenues (in thousands):
     Company restaurant sales......................     $  247,173         $ 222,429        $ 738,502         $ 650,946
     Franchise royalties and fees(2)...............         30,105            27,594           91,656            82,088
     Other franchise income(3).....................          3,913             2,972           10,427             8,881
                                                       -------------     -------------    --------------    -------------
     Total.........................................     $  281,191         $ 252,995        $ 840,585         $ 741,915
                                                       =============     =============    ==============    =============

<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 $746,239
    and $687,292 in the 2004  quarter and the 2003  quarter,  respectively,  and
    $2,274,777 and  $2,047,735 in the 2004  year-to-date  and 2003  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>


                                       8
<PAGE>



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

                                                                                       September 26,        December 28,
                                                                                           2004                 2003
                                                                                      ----------------     ---------------
                                       ASSETS
<S>                                                                                    <C>                  <C>
Current assets:
     Cash and cash equivalents......................................................    $       441          $    17,867
     Short-term investments, at market value........................................            281                   27
     Receivables, net of allowance..................................................         37,079               31,950
     Receivables related to captive insurance subsidiary............................          3,107                  450
     Inventories....................................................................         33,950               20,799
     Prepaid income taxes...........................................................          7,704                5,800
     Other current assets related to captive insurance subsidiary...................            850                  657
     Prepaid and other current assets...............................................          9,943                9,072
                                                                                      ----------------     ---------------
         Total current assets.......................................................         93,355               86,622
Property and equipment, net.........................................................        457,071              421,536
Goodwill............................................................................        116,344              105,326
Restricted assets related to captive insurance subsidiary...........................         18,311               10,763
Other intangible assets, net .......................................................          5,564                1,137
Other assets .......................................................................         23,403               18,617
                                                                                      ----------------     ---------------
                                                                                        $   714,048          $   644,001
                                                                                      ================     ===============

                        LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Current portion of long-term debt..............................................    $       213          $       192
     Notes payable .................................................................          3,000                  --
     Accounts payable...............................................................         36,870               37,633
     Accrued expenses and other current liabilities.................................         81,678               96,637
     Loss reserve and unearned premiums related to captive insurance subsidiary.....         20,864               11,007
     Accrued dividends .............................................................            --                 3,863
                                                                                      ----------------     ---------------
         Total current liabilities..................................................        142,625              149,332
                                                                                      ----------------     ---------------
Non-current liabilities:
     Long-term debt - less current portion..........................................         43,529               20,670
     Deferred income taxes .........................................................         32,141                5,880
     Other non-current liabilities..................................................         11,286                8,387
                                                                                      ----------------     ---------------
         Total non-current liabilities..............................................         86,956               34,937
                                                                                      ----------------     ---------------
         Total liabilities..........................................................        229,581              184,269
                                                                                      ----------------     ---------------
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.....................................................        213,928              200,574
     Retained earnings..............................................................        609,925              523,954
                                                                                      ----------------     ---------------
                                                                                            824,938              725,613
     Treasury stock - 27,514,031 shares in 2004 and 25,715,767 shares in 2003, at
       cost.........................................................................       (340,471)            (265,881)
                                                                                      ----------------     ---------------
         Total stockholders' equity.................................................        484,467              459,732
                                                                                      ----------------     ---------------
                                                                                        $   714,048          $   644,001
                                                                                      ================     ===============


</TABLE>

                                       9
<PAGE>


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

                                                                                               39 Weeks Ended
                                                                                     -----------------------------------
                                                                                     September 26,       September 28,
                                                                                          2004                2003
                                                                                     ---------------     ---------------
<S>                                                                                   <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net earnings...................................................................   $    86,019         $    70,384
     Adjustments to reconcile net earnings to net cash provided by operating
        activities:
        Depreciation and amortization...............................................        33,708              30,091
        Amortization of intangible assets...........................................           443                 278
        Amortization of unearned compensation ......................................         1,073                 785
        Other amortization .........................................................           242                 146
        Inventory impairment .......................................................         2,100                 --
        Deferred income tax provision (benefit).....................................        26,638                (541)
        Gain on sale of investments.................................................           --                  (24)
        Loss on disposition of restaurants and equipment............................         1,520               1,314
        Impairment of Chevys note receivable........................................           --                8,803
        Income tax benefit from exercise of options.................................         7,610               5,536
     Changes in assets and liabilities (exclusive of effects of acquisitions or
        dispositions):
        Receivables.................................................................        (4,916)             (5,890)
        Receivables related to captive insurance subsidiary.........................        (2,657)               (290)
        Inventories.................................................................       (15,039)             (2,454)
        Prepaid income taxes........................................................        (1,904)              5,002
        Other current assets related to captive insurance subsidiary ...............          (193)             (1,134)
        Prepaid and other current assets............................................        (1,185)              1,554
        Accounts payable............................................................          (763)              7,300
        Accrued expenses and other current liabilities..............................       (15,275)             (1,798)
        Loss reserve and unearned premiums related to captive insurance subsidiary..         9,857              10,073
        Accrued income taxes........................................................           --                  457
        Other.......................................................................        (1,010)                 68
                                                                                     ---------------     ---------------
        NET CASH PROVIDED BY OPERATING ACTIVITIES...................................       126,268             129,660
                                                                                     ---------------     ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property and equipment............................................       (68,224)            (54,893)
     Restricted assets related to captive insurance subsidiary .....................        (7,548)             (8,830)
     Acquisition of restaurants.....................................................       (13,817)            (21,557)
     Lease acquisition costs .......................................................        (4,857)                --
     Purchases of short-term investments ...........................................          (253)                --
     Proceeds from sale of restaurants and equipment................................           --                8,579
     Maturities and sales of short-term investments.................................           --                  480
     Other investing activities ....................................................        (1,045)                --
                                                                                     ---------------     ---------------
        NET CASH USED BY INVESTING ACTIVITIES.......................................       (95,744)            (76,221)
                                                                                     ---------------     ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Purchases of treasury stock....................................................       (88,224)            (49,757)
     Dividends paid.................................................................        (3,911)             (3,323)
     Issuance of common stock upon exercise of stock options........................        13,371              11,269
     Shares issued under employee benefit plans ....................................         4,934               2,134
     Proceeds from issuance of notes payable........................................         3,000               4,800
     Net long-term debt proceeds (payments).........................................        22,880             (30,372)
                                                                                     ---------------     ---------------
        NET CASH USED BY FINANCING ACTIVITIES.......................................       (47,950)            (65,249)
                                                                                     ---------------     ---------------
NET DECREASE IN CASH AND CASH EQUIVALENTS...........................................       (17,426)            (11,810)
CASH AND CASH EQUIVALENTS, beginning of period......................................        17,867              15,169
                                                                                     ---------------     ---------------
CASH AND CASH EQUIVALENTS, end of period............................................   $       441         $     3,359
                                                                                     ===============     ===============

</TABLE>

                                                       # # #

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<PAGE>




                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                              APPLEBEE'S INTERNATIONAL, INC.
                                              (Registrant)


Date:     October 27, 2004                 By: /s/  Steven K. Lumpkin
         ---------------------                 ------------------------
                                               Steven K. Lumpkin
                                               Executive Vice President and
                                               Chief Financial Officer



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