FOR IMMEDIATE RELEASE

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

           Applebee's International Reports December Comparable Sales;
            Updates 2004 Earnings Guidance and Provides 2005 Outlook

Overland  Park,  Kan.,  January  10,  2005  --  Applebee's  International,  Inc.
(Nasdaq:APPB)  today reported  comparable  sales for the five-week  period ended
December 26, 2004.

System-wide  comparable sales increased 1.3 percent for the December period, and
comparable  sales for franchise  restaurants  increased 2.0 percent.  Comparable
sales for company  restaurants  decreased 0.9 percent,  reflecting a decrease in
guest traffic of  approximately  3.0 percent,  offset by a higher average check.
The timing of both  Christmas  Eve and  Christmas  Day had a negative  impact on
December sales of approximately 2 percent.

System-wide  comparable  sales for the  fourth  quarter  of 2004  increased  2.3
percent,  the 26th consecutive  quarter of comparable sales growth.  Company and
franchise  restaurant  comparable  sales  increased 0.1 percent and 3.0 percent,
respectively,  for the quarter. System-wide comparable sales for the 2004 fiscal
year increased 4.8 percent.  Company and franchise  restaurant  comparable sales
increased 3.8 percent and 5.2 percent, respectively, for the year.

Total  system-wide sales for the 2004 fiscal year increased by 10.7 percent over
2003. For the 12th consecutive  year, the Applebee's  system opened at least 100
new restaurants, including 32 company and 77 franchise restaurants.

Diluted earnings per share for the fourth quarter of 2004 are now expected to be
$0.29, in the middle of the company's previously stated range of guidance,  with
fiscal year 2004 diluted earnings per share expected to be $1.31, an increase of
13 percent  over fiscal  year 2003  diluted  earnings  per share  (excluding  an
impairment charge of approximately  $0.06 per share in 2003). These earnings per
share estimates exclude the potential impact of any adjustments to the company's
accounting for rent and/or  depreciation of leasehold  improvements as discussed
below.

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January 10, 2005
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The company  leases a  substantial  number of  properties  on which  significant
improvements  have been  constructed.  Several other  restaurant  companies have
recently  announced  their  intention  to restate  previously  issued  financial
statements  as a result  of  their  new  interpretation  of  generally  accepted
accounting  principles  ("GAAP")  applicable  to  certain  leases  or  leasehold
improvements.  The  restatements  generally arise from changes to the accounting
for lease renewal options and/or rent  escalations in computing rent expense for
operating  leases by requiring the use of the same lease term in determining the
operating or capital  classification  of a lease, rent expense  thereunder,  and
depreciable lives of related leasehold  improvements.  Based on reports filed by
certain other restaurant companies,  it appears such restatements generally will
reflect increased  depreciation  and/or rent expense compared to that previously
reported. The company currently is reviewing its accounting treatment for leases
and   depreciation  of  related   leasehold   improvements  in  light  of  these
developments in industry accounting practice. If the company determines that its
historical  accounting  treatment requires  modification,  adjustments to fiscal
2004 or financial  statements  for one or more fiscal years prior to fiscal 2004
may be required,  depending on materiality.  The company expects to complete its
review of this matter prior to releasing complete fourth quarter and fiscal year
2004 results on February 9, 2005.

BUSINESS OUTLOOK

The company also  provided  guidance as to its business  outlook for fiscal year
2005.

     o         Over 125 new restaurants are expected to open in 2005,  including
               at  least  40  company  restaurants  and at  least  85  franchise
               restaurants.  Approximately 25 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 at least
               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 2005 are  expected to be similar to fiscal year 2004
               results.

     o         General and administrative expenses, 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 34.6 percent for
               the year.

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January 10, 2005
Page 3

     o         Excluding   the   cost   of   franchise   acquisitions,   capital
               expenditures  are expected to be between $130 and $140 million in
               2005.

     o         The company  repurchased  3,993,670 shares of common stock during
               fiscal year 2004 at an average  price of $24.97 for an  aggregate
               cost of $99.7  million.  As previously  announced,  the company's
               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.

     o         Based on the foregoing  assumptions,  diluted  earnings per share
               for fiscal year 2005 are  expected to be in the range of $1.48 to
               $1.51,  with  diluted  earnings  per share for the first  quarter
               expected to be slightly less than the prior year.  These earnings
               per  share  estimates   exclude  the  potential   impact  of  any
               adjustments   to  the  company's   accounting   for  rent  and/or
               depreciation of leasehold improvements as discussed above as well
               as the impact of expensing  stock options  beginning in the third
               quarter of 2005.

The company will release  complete  fourth  quarter and fiscal year 2004 results
after the market closes on February 9, 2005, and a conference  call will be held
on Thursday  morning,  February 10, 2005, 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 December 26,
2004, there were 1,671 Applebee's restaurants operating system-wide in 49 states
and  12   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 expected results for the
fourth  quarter  of 2004 and  fiscal  year  2005  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.

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