DineEquity Profits Beat ExpectationsTuesday, July 30, 2013
Shares of DineEquity Inc. gained more than 6 percent on Tuesday after the restaurant chain announced second quarter profit and revenue that beat analyst expectations.
The Glendale parent 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.