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A CEO's Revenge
What do you do when your employer lies to you after you double his stock? Julia Stewart spent $ 2.3B answering that question.
Jordan Belfort
January 16, 2026
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👋 Good Morning. What do you do when your boss breaks a promise after you double his stock price? Julia Stewart spent $2.3 billion answering that question.
Read time: 3 minutes | 580 words
STORY
Julia Stewart's $2.3 Billion Revenge
In 1998, Julia Stewart joined Applebee's as president after the CEO promised: "When you and the team turned this company around, we'll make you CEO".
She delivered beyond expectations:
Doubled the stock price in three years
Grew the chain from 1,000 to 1,400 units
System sales skyrocketed 14% to $2.35 billion in 1999
When Stewart asked for her promised promotion, the CEO stopped and said: "No, not ever." He refused to explain why.
Stewart walked. "You're holding me accountable for everything, but you're not giving me the title. So I'm gonna go ahead and leave", she told him.
@ken How to be petty 101 ✍️: Julia Stewart’s Applebee’s masterclass 🍎📈 Don’t get the promotion? Come back in 3 years, BUY the company, and fir... See more
In 2001, Stewart joined IHOP as chair and CEO when the brand was faltering. She revitalized the chain with 18 consecutive quarters of growth.
Then came the power move. Stewart convinced IHOP's board to acquire Applebee's for $2.3 billion in 2007, creating what became Dine Brands Global.
After the deal closed, Stewart called her former boss and delivered one line: "We don't need two of us, so I'm gonna have to let you go."
Business circles called her a "stone-cold killer." Stewart led the combined company for over a decade, cementing her legacy in casual dining history.
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INSIGHT
🚫 Don't Break Promises to People Who Deliver Results
Lloyd Hill promised Julia Stewart the CEO role if she turned Applebee's around. She doubled the stock, grew 400 units, drove $2.35B in sales. He said "No, not ever" with no explanation. Seven years later, she bought his company for $2.3 billion and fired him.
1. Your Word Is Your Only Real Asset in Leadership
Hill had all the institutional power. Stewart had performance. He thought titles protected him. They didn't. When you promise someone a role for hitting targets, then move the goalposts, you create an enemy with proof you can't be trusted.
Action: If you promise a promotion for specific results, put it in writing with clear metrics. If circumstances change and you can't deliver, explain why immediately and offer alternatives. Never say "not ever" to someone who just made you rich.
2. High Performers Remember. And They Multiply.
Stewart didn't just leave. She went to a competitor, turned them around, gave them 18 consecutive quarters of growth, then used that success to acquire the company that rejected her. The person you underestimate today becomes the buyer tomorrow.
Action: When top talent leaves, assume they'll be back in a position of power. Maintain the relationship even if they're upset. The bridge you burn might be owned by them in 10 years, and they'll remember exactly how you treated them.
3. "No" Without Explanation Creates Legendary Grudges
Hill didn't say "not yet" or "here's what needs to happen." He said "not ever" and refused to explain. That turned a business decision into a personal insult. Stewart spent $2.3 billion partly because that moment never left her mind.
Action: When denying someone something they earned, give them the real reason. If it's politics, say so. If it's bias, examine it. Vague rejections after proven performance don't create acceptance, they create motivation for revenge.
Lloyd Hill had Julia Stewart beaten on paper. She had the last word on the org chart.
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