Applebee’s and IHOP parent company Dine Brands Global Inc. beat Wall Street estimates for its fourth quarter revenue but missed on earnings.The Glendale restaurant franchisor on Tuesday reported an adjusted net loss of $1.6 million (-10 cents a share) for the quarter ended Dec. 31, down from net income of $27 million ($1.61 a share) for the same period in 2019. Revenue was $196 million, down from about $228 million in the fourth quarter last year.
Analysts expected net income of 67 cents a share on revenue of $193 million, according to Yahoo Finance.As for same-restaurant sales, Applebee’s recorded a decline of 18 percent for the fourth quarter while IHOP saw a drop of 30 percent, which the company attributed to COVID-19 and the resulting business restrictions. Off-premise sales, however, were up more than 130 percent for both brands in the quarter.Chief Executive John Payton said in a statement Dine is positioned for improved sales and robust off-premise growth in 2021.“In 2020, Dine moved swiftly to right-size our business and brands in response to the precipitous decline in revenue by reducing costs, strengthening our balance sheet and lowering capital spending. While the current environment remains challenging, we believe our financial condition is strong and we look ahead to the rest of 2021 with optimism,” Payton said.In its quarterly report, Dine said about 70 percent of its IHOP locations and 80 percent of its Applebee’s locations are operating with indoor dining rooms at limited capacity. In the fourth quarter, 14 Applebee’s and 13 IHOP restaurants closed permanently.Shares of Dine Brands (DIN) closed Tuesday down $2.73, or about 3 percent, to $78.77 on the New York Stock Exchange, on a day when the market closed down a fraction of a percent.