Julia Stewart Was Denied CEO Job; 7 Years Later, She Bought The Company For $2.3B

In corporate boardrooms, rejection often signals the end of a career chapter. For Julia Stewart, it marked the beginning of her most defining move.

In the late 1990s, Stewart was president of the restaurant chain Applebee’s domestic division. Her leadership helped double the company’s stock price and drive sales growth, making her a leading candidate for the CEO position. Confident that she had earned the role, she asked the board to consider her.

The response was blunt: “No, not ever.” Yet, Stewart knew this was not the end, because just seven years later, she acquired the company for $2.3 billion.

From Setback to Strategy: Julia Stewart's Story

In 2001, Stewart accepted the role of CEO at IHOP, a rival chain facing its own challenges. At the time, IHOP was struggling to modernise and compete in a crowded casual dining market. Stewart reshaped its business model, strengthening the franchise system and reviving sales. Within a few years, the chain was growing steadily and returning consistent profits.

Then came the boldest decision of her career. In 2007, Stewart announced that IHOP would acquire Applebee’s in a deal valued at between $2.1 billion and $2.3 billion. The transaction created the largest full-service restaurant company in the world, bringing more than 3,250 locations under one parent company, DineEquity (later renamed Dine Brands Global).

The financial results underscored the magnitude of the move. That year, consolidated franchise revenues at IHOP rose by nearly 15 percent, fueled in part by the newly acquired Applebee’s operations. Company restaurant sales surged by over $112 million, $108.8 million of which came directly from Applebee’s. Even with higher administrative costs tied to the acquisition, IHOP reported an increase in franchise profits and positioned itself as a global industry leader.

For Stewart, the acquisition was more than a business transaction; it was a personal full-circle moment. In interviews, she recalled calling the Applebee’s CEO, who once denied her the top job and saying simply: “We have purchased the company, and we don’t need two of us, so I’m going to have to let you go.”

Her story has since become a case study in resilience and vision. What began as a professional rejection turned into one of the most dramatic corporate turnarounds in the restaurant industry. Stewart not only proved her critics wrong, she redefined the scale of what a so-called setback could lead to.