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Tuesday, Sep 26, 2023

DineEquity Reports Strong Quarter

Shares of DineEquity Inc. jumped more than 10 percent in early trading Tuesday after the company announced profit and revenue that beat analyst expectations. The Glendale parent company of Applebee’s Neighborhood Grill & Bar and IHOP Restaurants reported a net income of $19.7 million ($1.02 a share) for the quarter ended June 30, compared to $19.1 million ($1.06) a year earlier. Revenue fell 31 percent to $158.1 million. Analysts on average expected earnings of 92 cents a share on revenue of $156.8 million, according to Thomson Financial. “We are very pleased with the results and will continue our efforts to build momentum,” said Julia A. Stewart, chairman and chief executive, in a statement. “Same-restaurant sales were positive for both brands. The company said restaurant sales at IHOP rose almost 2 percent, with an increase in guest traffic. It was the first time since the fourth quarter of 2010 that IHOP posted positive same-restaurant sales and guest traffic. Applebee’s same-restaurant sales increased 1.3 percent over the second quarter last year. What’s more, the company has announced a second quarter cash dividend of 75 cents a share, and the repurchasing of $14.5 million in common stock. Shares closed up $4.25, or 6.5 percent, to $69.63 on the New York Stock Exchange.

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