Casual dining restaurant operator DineEquity Inc. on Tuesday reported a better-than-expected third quarter profit, but sales were below analysts’ predictions.

The Glendale parent of the IHOP and Applebee's chains reported net income of $7.9 million (46 cents per share), compared with a loss of $16.4 million (-98 cents) a year earlier.

Revenue fell about 15 percent to less than $334 million, with same-store sales down 6.5 percent at Applebee's and 1.1 percent at IHOP. The company bought Applebee's in 2007. General and administrative costs fell 14 percent as the company benefited from selling 110 company-operated Applebee's restaurants over the past year and better integrated the back-end operations of the two chains. The company also benefited from lower food costs.

Excluding impairment charges and other items, net income was 55 cents a share. Analysts surveyed by Thomson Reuters on average expected adjusted net income of 30 cents a share on revenue of more than $337 million.

Chief Executive Officer Julia Stewart said the company was confident it would make its full year same-store sales targets and meet goals to pay down debt.

"We are making meaningful progress in energizing the Applebee's brand, with numerous marketing, menu and operational improvements achieved since we completed the acquisition nearly two years ago,” Stewart said in a statement. "We are not simply focused on surviving the current economy, but are positioning both brands for sustained leadership over the long term,"

Shares closed up $1, or 4.6 percent, to $22.61 on the New York Stock Exchange.