FOR IMMEDIATE RELEASE

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

                 Applebee's International Announces Restatement
           of Historical Financial Statements Related to Industry-Wide
             Lease Accounting Issues; Update on Filing of Form 10-K

Overland  Park,  Kan.,  March  28,  2005  --  Applebee's   International,   Inc.
(Nasdaq:APPB)  today  announced  that the  company's  management  and its  audit
committee  have  determined  that  certain of the  company's  previously  issued
consolidated financial statements will be restated.

The company had  previously  announced  that,  like many other  companies in the
restaurant, retail and other industries, it had determined that it would correct
its accounting  treatment for leases.  Historically,  when accounting for leases
with renewal options, the company recorded rent expense on a straight-line basis
over the initial non-cancelable lease term, with the term commencing when actual
rent payments began.  The company  depreciated  leasehold  improvements on those
properties over a maximum period of 20 years which, in certain cases, would have
included a portion of the renewal option periods.

The primary result of this  correction  will be to accelerate the recognition of
rent  expense  under  certain  leases that  include  fixed-rent  escalations  by
revising the computation of straight-line rent expense to include certain option
periods,  where  failure to exercise  such  options  would result in an economic
penalty such that the renewal appears reasonably assured. The lease term will be
deemed to commence on the date when the company  becomes  legally  obligated for
the rent  payments.  In connection  with the  restatement  for lease  accounting
matters,  the  company  will  also  correct  for  other  previously   identified
immaterial errors in its financial statements, primarily related to vacation and
workers' compensation  expense.  These corrections will not affect the company's
previously  reported or future cash flows,  sales,  the timing of payments under
the related leases, or compliance with any debt covenants.

In establishing its accounting  policy for  straight-line  rent allocated to the
construction period included in the lease term, the company determined such rent
should be recognized as a cost of  construction  of leasehold  improvements  and
capitalized.  As a result of adopting this policy, the company  anticipates that
the impact of lease accounting matters will reduce diluted earnings per share by
less than $0.01 in fiscal year 2005.

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March 28, 2005
Page 2


As a result of the restatement,  the consolidated  financial statements included
in the company's Annual Reports on Form 10-K ("10-K") for the fiscal years ended
December 28, 2003 and December 29, 2002, the company's Quarterly Reports on Form
10-Q for the quarters  ended March 28,  2004,  June 27, 2004 and  September  26,
2004, and the preliminary  unaudited financial results included in the company's
press  release  issued on February 9, 2005 should no longer be relied upon.  The
company's  10-K for the fiscal year ended December 26, 2004 to be filed with the
SEC will include  disclosure of the effects of the  adjustments on the financial
statements of each of the periods included in the audited  financial  statements
for the fiscal  years ended  December  28, 2003 and December 29, 2002 and on the
unaudited  quarterly  results of operations for fiscal year 2004 and fiscal year
2003.

The  restatement   adjustments  will  increase  net  earnings  by  approximately
$1,300,000 ($0.02 per share) and $800,000 ($0.01 per share) for the fiscal years
ended December 26, 2004 and December 28, 2003,  respectively,  and will decrease
net earnings by approximately  $2,500,000  ($0.03 per share) for the fiscal year
ended December 29, 2002. The cumulative effect of these restatement  adjustments
is a  reduction  to  retained  earnings of  approximately  $4,900,000  as of the
beginning of fiscal year 2002.

Although  the  company  does not  believe  these  errors  resulted in a material
misstatement of the company's  consolidated  financial statements for any annual
or interim period previously reported, the effects of correcting these errors in
the fourth quarter of 2004 would have been material to that period. Management's
Report on  Internal  Controls  over  Financial  Reporting  to be included in the
company's  10-K will contain an  assessment  by  management  that the  company's
internal control over financial reporting was effective as of December 26, 2004.

The company previously  announced that it had filed Form 12b-25 with the SEC. If
a completed  10-K is filed within 15 days after  filing a Form 12b-25,  then the
10-K is deemed timely filed.  However,  because of the additional work necessary
to implement the construction  period lease accounting  policy, the company does
not expect that it will be able to file its 10-K by March 28,  2005.  Therefore,
notwithstanding  the Form 12b-25  filing,  the  company  expects it will be late
filing its 10-K, but expects to be able to file its 10-K by March 31, 2005.

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 nearly
1,700  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).

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