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Thursday, Mar 28, 2024

DineEquity Serves Up Hard-to-Digest Earnings

DineEquity, the Glendale-based operator of Applebee’s and IHOP restaurants, on Wednesday reported a worse-than-expected dip in revenue in the second quarter amid disappointing same-restaurant sales. The company’s stock dropped 4.7 percent and closed at $76.39. DineEquity said domestic same-restaurant sales edged up 0.2 percent at IHOP but dropped 4.2 percent at Applebee’s. “While we are dissatisfied with the comparable-sales results, we are confident in our clear long-term strategies for both brands,” said Chief Executive Julia Stewart in a statement. Applebee’s has started a program to install wood-fired grills its restaurants and will offer steaks and chops that are hand cut in the restaurants. For the quarter, DineEquity posted a net profit of $26.8 million, down a tick from $26.9 million, a year ago. Per-share earnings rose to $1.45 from $1.40 because there are fewer shares outstanding. Excluding one-time charges and similar items, adjusted per-share earnings rose to $1.59 from $1.53 a year ago. That’s in line with what analysts had forecast. However, revenue slid 6.6 percent to more than $160 million. Analysts had forecast $162 million in revenue.

Charles Crumpley
Charles Crumpley
Charles Crumpley has been the editor and publisher of the San Fernando Valley Business Journal since March 2016. In June 2021, it was named the best business journal of its size in the country – the fourth time in the last 5 years it won that honor. Crumpley was named best columnist – also for the fourth time in the last 5 years. He serves on two business-supporting boards and has won awards for his civic involvement. Crumpley, a former newspaper reporter, won several national awards and fellowships for his work, and he was a Fulbright scholar to Japan.

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