Julia Stewart went from serving pancakes as a teenager to leading a multibillion-dollar acquisition of Applebee’s after the restaurant chain’s leadership refused to promote her to CEO despite her success in turning around its business.
Applebee’s CEO Rejection Pushed Stewart to Leave
Stewart began her career as a food server at an IHOP restaurant in San Diego at age 16, working in the industry while attending college.
She later spent 18 years in marketing before moving into operations at Taco Bell, eventually becoming its senior vice president of franchise operations.
In 1998, Applebee’s recruited Stewart as president of its domestic division and promised her the CEO position if she could turn the business around.
Stewart delivered strong results. In 1999, Applebee’s systemwide sales climbed 14% to $2.35 billion, while earnings per share rose 20%, Fortune reported.
She also said the company’s stock price doubled during her tenure.
But when she approached the company’s chairman and CEO about her promotion after roughly three and a half years, she received a blunt rejection.
"I thought he meant, ‘Not now,’" Stewart told Forbes in 2016. "But he meant, ‘No, not ever.’"
In a separate 2025 conversation on The Matthews Mentality Podcast, Stewart said she felt she was being held accountable for the company’s performance without receiving the title she believed she had been promised.
"I think you’re holding me accountable for everything, but you’re not giving me the title. So I’m gonna go ahead and leave," she recalled telling him.
How IHOP CEO Stewart Bought Applebee’s for $2.3 Billion
Stewart later became chair and CEO of IHOP, where she worked to strengthen the breakfast chain and position it for further growth.
In 2007, she led IHOP’s acquisition of Applebee’s in a deal valued at approximately $2.1 billion to $2.3 billion. The transaction brought the rival restaurant brands under one parent company, initially known as DineEquity and later renamed Dine Brands Global.
After announcing the acquisition, Stewart called Applebee’s chairman and CEO to inform him of the deal.
She recalled telling him, "We don’t need two of us, so I’m gonna have to let you go."
The former executive acknowledged the irony but rejected the idea that revenge alone motivated the acquisition.
"You don’t borrow $2.3 billion for revenge," Stewart said.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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