Dine Brands Global Inc. reported better-than-expected first quarter adjusted earnings of $1.11 a share, the Glendale-based company announced Wednesday.
Analysts had predicted earnings of $1.09 a share, according to Thomson Financial. Earnings per share were down 13 percent from $1.28 for the first quarter of last year, however, which the company attributed primarily to a $13.5 million increase in advertising spending. Revenue for the quarter totaled $188 million, a decline of 1.7 percent compared to the same quarter a year ago.
Encouragingly for the company, same-restaurant sales at each of its two restaurant chains, Applebee’s Grill and Bar and IHOP, increased by 3 percent and 1 percent respectively during the quarter.
In February, Dine Brands changed its name from Dine Equity and announced a comprehensive plan to return to growth after two years of declining revenues. The plan included investments in advertising, store remodels, new technology and data analysis to better understand consumers.
Wall Street has taken notice of the company’s new direction. Share of Dine Brands have risen more than 40 percent since the announcement of the plan in February.
“We are leveraging the benefit of our asset-lite business model to invest in the growth of our brands and build on recent momentum,” Chief Executive Steve Joyce said in a statement.
Shares of Dine Brands (DIN) fell 89 cents, or about 1 percent, to close at $78.73 Wednesday on the New York Stock Exchange.