GLENDALE, Calif., April 30, 2015 /PRNewswire/ -- DineEquity, Inc.
(NYSE: DIN), the parent company of Applebee's Neighborhood Grill
& Bar ® and IHOP® restaurants, today
announced financial results for the first quarter of fiscal
2015.
"DineEquity started the year with continued strong momentum,
delivering a 30% increase in first quarter adjusted earnings per
diluted share. Our focus on enhancing our iconic brands and
guests' experiences is yielding positive results. Both
Applebee's and IHOP continued to outpace industry sales for their
respective categories," said Julia A.
Stewart, Chairman and Chief Executive Officer of DineEquity,
Inc.
Ms. Stewart continued, "Our strong performance continued to
generate robust free cash flow, the majority of which was returned
to shareholders. Looking ahead, we will continue to deliver
on our brand-building strategies and remain focused on innovation
and operations excellence to drive the business."
First Quarter 2015 Financial Highlights
- Adjusted net income available to common stockholders was
$31.1 million, representing adjusted
earnings per diluted share of $1.64,
for the first quarter of 2015. This compares to $24.0 million, representing adjusted earnings per
diluted share of $1.26, for the first
quarter of 2014. The increase in adjusted net income was mainly due
to a decline in cash interest expense and higher gross profit from
strong same-restaurant sales growth across both brands. (See
"Non-GAAP Financial Measures" below.)
- GAAP net income available to common stockholders was
$28.0 million for the first quarter
of 2015, representing earnings per diluted share of $1.47. This compares to net income available to
common stockholders of $20.5 million,
representing earnings per diluted share of $1.08, for the first quarter of 2014. The
increase was mainly due to a decline in interest expense and higher
gross profit from strong same-restaurant sales growth across both
brands.
- For the first quarter of 2015, cash flows from operating
activities and free cash flow both were $41.1 million. (See "Non-GAAP Financial Measures"
below.)
Same-Restaurant Sales Performance
First Quarter 2015
- IHOP's domestic system-wide same restaurant sales increased
4.8% for the first quarter of 2015 compared to the same period in
2014.
- Applebee's domestic system-wide same-restaurant sales increased
2.9% for the first quarter of 2015 compared to the first quarter of
2014.
Financial Performance Guidance for Fiscal 2015
DineEquity reiterates its financial performance guidance
for fiscal 2015 contained in the press release issued
on February 25, 2015. The Company's financial
performance guidance reflects the impact of a 53rd
operating week in fiscal 2015, in which the last month of the
fiscal fourth quarter contains six weeks.
Investor Conference Call Today
The Company will host a conference call to discuss its results
on the same day at 11:00 a.m. Eastern
Time / 8:00 a.m. Pacific
Time. To participate on the call, please dial (800)
708-4539 and reference pass code 39398238. International callers,
please dial (847) 619-6396 and reference pass code 39398238.
A live webcast of the call will be available on DineEquity's Web
site at www.dineequity.com, and may be accessed by visiting Calls
& Presentations under the site's Investors section.
Participants should allow approximately ten minutes prior to the
call's start time to visit the site and download any streaming
media software needed to listen to the webcast. A telephonic
replay of the call may be accessed from 10:30 a.m. Pacific Time on April 30, 2015 through 11:59 p.m. Pacific Time on May 5, 2015 by dialing (888) 843-7419 and
referencing pass code 39398238#. International callers, please dial
(630) 652-3042 and reference pass code 39398238#. An online archive
of the webcast will also be available on the Investors section of
DineEquity's Web site.
About DineEquity, Inc.
Based in Glendale, California,
DineEquity, Inc., through its subsidiaries, franchises and operates
restaurants under the Applebee's Neighborhood Grill & Bar and
IHOP brands. With more than 3,600 restaurants combined in 18
countries, over 400 franchisees and approximately 200,000 team
members (including franchisee- and company-operated restaurant
employees), DineEquity is one of the largest full-service
restaurant companies in the world. For more information on
DineEquity, visit the Company's Web site located at
www.dineequity.com.
Forward-Looking Statements
Statements contained in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify these
forward-looking statements by words such as "may," "will,"
"should," "expect," "anticipate," "believe," "estimate," "intend,"
"plan" and other similar expressions. These statements involve
known and unknown risks, uncertainties and other factors, which may
cause actual results to be materially different from those
expressed or implied in such statements. These factors include, but
are not limited to: the effect of general economic conditions; the
Company's indebtedness ; risk of future impairment charges; trading
volatility and the price of the Company's common stock; the
Company's results in any given period differing from guidance
provided to the public; the highly competitive nature of the
restaurant business; the Company's business strategy failing to
achieve anticipated results; risks associated with the restaurant
industry; risks associated with locations of current and future
restaurants; rising costs for food commodities and utilities;
shortages or interruptions in the supply or delivery of food;
ineffective marketing and guest relationship initiatives and use of
social media; changing health or dietary preferences; our
engagement in business in foreign markets; harm to our brands'
reputation; litigation; fourth-party claims with respect to
intellectual property assets; environmental liability; liability
relating to employees; failure to comply with applicable laws and
regulations; failure to effectively implement restaurant
development plans; our dependence upon our franchisees;
concentration of Applebee's franchised restaurants in a limited
number of franchisees; credit risk from IHOP franchisees operating
under our previous business model; termination or non-renewal of
franchise agreements; franchisees breaching their franchise
agreements; insolvency proceedings involving franchisees; changes
in the number and quality of franchisees; inability of franchisees
to fund capital expenditures; heavy dependence on information
technology; the occurrence of cyber incidents or a deficiency in
our cybersecurity; failure to execute on a business continuity
plan; inability to attract and retain talented employees; risks
associated with retail brand initiatives; failure of our internal
controls; and other factors discussed from time to time in the
Company's Annual and Quarterly Reports on Forms 10-K and 10-Q and
in the Company's other filings with the Securities and Exchange
Commission. The forward-looking statements contained in this
release are made as of the date hereof and the Company assumes no
obligation to update or supplement any forward-looking
statements.
Non-GAAP Financial Measures
This news release includes references to the Company's non-GAAP
financial measures "adjusted net income available to common
stockholders (adjusted EPS)," "free cash flow," and "segment
EBITDA." "Adjusted EPS" is computed for a given period by
deducting from net income or loss available to common stockholders
for such period the effect of any closure and impairment charges,
any gain or loss related to debt extinguishment, any intangible
asset amortization, any non-cash interest expense, and any gain or
loss related to the disposition of assets. This is presented
on an aggregate basis and a per share (diluted) basis. For
fiscal 2015, "Free cash flow" for a given period is defined as cash
provided by operating activities, plus receipts from notes and
equipment contracts receivable, excluding direct financing lease
receivables ("receipts from notes and equipment contracts
receivable"), less capital expenditures. "Segment EBITDA" for
a given period is defined as gross profit plus depreciation and
amortization as well as interest charges related to the segment.
Management utilizes free cash flow to determine the amount of cash
remaining for general corporate and strategic purposes and for the
return of cash to stockholders pursuant to our capital allocation
strategy, after the receipts from notes and equipment contracts
receivable, and the funding of operating activities, capital
expenditures and debt service. Management believes this information
is helpful to investors to determine the Company's adherence to
debt covenants and the Company's cash available for these purposes.
Adjusted EPS, free cash flow and segment EBITDA are supplemental
non-GAAP financial measures and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with United States
generally accepted accounting principles.
DineEquity, Inc.
and Subsidiaries
Consolidated
Statements of Income
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
Franchise and restaurant revenues
|
|
$
|
141,818
|
|
$
|
131,795
|
Rental
revenues
|
|
31,402
|
|
30,753
|
Financing revenues
|
|
2,594
|
|
4,653
|
Total
revenues
|
|
175,814
|
|
167,201
|
Cost of
revenues:
|
|
|
|
|
Franchise and restaurant expenses
|
|
52,026
|
|
45,678
|
Rental
expenses
|
|
23,490
|
|
23,866
|
Financing expenses
|
|
12
|
|
585
|
Total
cost of revenues
|
|
75,528
|
|
70,129
|
Gross
profit
|
|
100,286
|
|
97,072
|
General and
administrative expenses
|
|
34,230
|
|
34,185
|
Interest
expense
|
|
15,646
|
|
24,969
|
Amortization of
intangible assets
|
|
2,500
|
|
3,071
|
Closure
and impairment charges, net
|
|
1,827
|
|
200
|
Loss on
extinguishment of debt
|
|
—
|
|
6
|
(Gain) loss on
disposition of assets
|
|
(9)
|
|
927
|
Income before income
tax provision
|
|
46,092
|
|
33,714
|
Income tax
provision
|
|
(17,680)
|
|
(12,890)
|
Net
income
|
|
$
|
28,412
|
|
$
|
20,824
|
Net income
available to common stockholders:
|
|
|
|
|
Net income
|
|
$
|
28,412
|
|
$
|
20,824
|
Less:
Net income allocated to unvested participating restricted
stock
|
|
(372)
|
|
(343)
|
Net income available
to common stockholders
|
|
$
|
28,040
|
|
$
|
20,481
|
Net income
available to common stockholders per share:
|
|
|
|
|
Basic
|
|
$
|
1.49
|
|
$
|
1.09
|
Diluted
|
|
$
|
1.47
|
|
$
|
1.08
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
|
18,870
|
|
18,794
|
Diluted
|
|
19,019
|
|
19,054
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.875
|
|
$
|
0.75
|
Dividends paid per
common share
|
|
$
|
0.875
|
|
$
|
0.75
|
DineEquity, Inc.
and Subsidiaries
Consolidated
Balance Sheets
(In thousands,
except share and per share amounts)
|
|
|
|
March
31, 2015
|
|
December 31,
2014
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
133,470
|
|
$
|
104,004
|
Receivables, net
|
|
93,532
|
|
153,498
|
Restricted cash
|
|
40,701
|
|
52,262
|
Prepaid
gift cards
|
|
41,208
|
|
51,268
|
Prepaid
income taxes
|
|
—
|
|
11,753
|
Deferred
income taxes
|
|
34,743
|
|
30,860
|
Other
current assets
|
|
12,905
|
|
9,239
|
Total
current assets
|
|
356,559
|
|
412,884
|
Long-term
receivables, net
|
|
175,579
|
|
180,856
|
Property and
equipment, net
|
|
235,355
|
|
241,229
|
Goodwill
|
|
697,470
|
|
697,470
|
Other intangible
assets, net
|
|
779,878
|
|
782,336
|
Deferred rent
receivable
|
|
90,920
|
|
91,117
|
Other non-current
assets, net
|
|
41,553
|
|
42,216
|
Total
assets
|
|
$
|
2,377,314
|
|
$
|
2,448,108
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
34,781
|
|
$
|
41,771
|
Gift
card liability
|
|
119,072
|
|
179,760
|
Accrued
advertising
|
|
22,807
|
|
10,150
|
Accrued
employee compensation and benefits
|
|
10,913
|
|
25,722
|
Dividends payable
|
|
16,704
|
|
16,635
|
Accrued
interest payable
|
|
3,897
|
|
14,126
|
Income
taxes payable
|
|
11,820
|
|
—
|
Current
maturities of capital lease and financing obligations
|
|
15,125
|
|
14,852
|
Other
accrued expenses
|
|
7,425
|
|
10,033
|
Total
current liabilities
|
|
242,544
|
|
313,049
|
Long-term
debt
|
|
1,300,000
|
|
1,300,000
|
Capital lease
obligations, less current maturities
|
|
94,584
|
|
98,119
|
Financing
obligations, less current maturities
|
|
42,493
|
|
42,524
|
Deferred income
taxes
|
|
311,827
|
|
319,111
|
Deferred rent
payable
|
|
75,096
|
|
75,375
|
Other non-current
liabilities
|
|
22,576
|
|
20,857
|
Total
liabilities
|
|
2,089,120
|
|
2,169,035
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock, $0.01 par value, shares: 40,000,000 authorized;
March 31, 2015 - 25,219,105 issued, 19,050,897 outstanding;
December 31, 2014 - 25,240,055 issued, 18,953,567
outstanding
|
|
252
|
|
252
|
Additional paid-in-capital
|
|
283,000
|
|
279,946
|
Retained
earnings
|
|
325,374
|
|
313,644
|
Accumulated other comprehensive loss
|
|
(88)
|
|
(73)
|
Treasury
stock, at cost; shares: March 31, 2015 - 6,168,208;
December 31, 2014 - 6,286,488
|
|
(320,344)
|
|
(314,696)
|
Total stockholders'
equity
|
|
288,194
|
|
279,073
|
Total
liabilities and stockholders' equity
|
|
$
|
2,377,314
|
|
$
|
2,448,108
|
DineEquity, Inc.
and Subsidiaries
Consolidated
Statements of Cash Flows
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
|
28,412
|
|
$
|
20,824
|
Adjustments to
reconcile net income to cash flows provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
7,815
|
|
8,783
|
Non-cash interest
expense
|
|
755
|
|
1,642
|
Deferred income
taxes
|
|
(10,378)
|
|
(10,031)
|
Non-cash stock-based
compensation expense
|
|
2,432
|
|
3,143
|
Tax benefit from
stock-based compensation
|
|
4,696
|
|
3,524
|
Excess tax benefit
from stock-based compensation
|
|
(4,526)
|
|
(4,455)
|
Closure and
impairment charges
|
|
1,827
|
|
200
|
(Gain) loss on
disposition of assets
|
|
(9)
|
|
927
|
Other
|
|
31
|
|
(396)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
|
(2,742)
|
|
(9,767)
|
Current income tax
receivables and payables
|
|
22,341
|
|
18,020
|
Gift card receivables
and payables
|
|
5,623
|
|
2,982
|
Prepaid expenses and
other current assets
|
|
(1,638)
|
|
(751)
|
Accounts
payable
|
|
1,034
|
|
9,175
|
Accrued employee
compensation and benefits
|
|
(14,810)
|
|
(14,857)
|
Other accrued
expenses
|
|
267
|
|
23,877
|
Cash flows provided
by operating activities
|
|
41,130
|
|
52,840
|
Cash flows from
investing activities:
|
|
|
|
|
Additions to property
and equipment
|
|
(2,617)
|
|
(2,039)
|
Proceeds from sale of
property and equipment
|
|
—
|
|
681
|
Principal receipts
from notes, equipment contracts and other long-term
receivables
|
|
4,442
|
|
3,415
|
Other
|
|
(40)
|
|
(55)
|
Cash flows provided
by investing activities
|
|
1,785
|
|
2,002
|
Cash flows from
financing activities:
|
|
|
|
|
Repayment of
long-term debt
|
|
—
|
|
(1,200)
|
Principal payments on
capital lease and financing obligations
|
|
(3,165)
|
|
(2,695)
|
Repurchase of
DineEquity common stock
|
|
(15,003)
|
|
(15,002)
|
Dividends paid on
common stock
|
|
(16,598)
|
|
(14,293)
|
Repurchase of
restricted stock
|
|
(2,961)
|
|
(1,831)
|
Proceeds from stock
options exercised
|
|
8,206
|
|
6,623
|
Excess tax benefit
from stock-based compensation
|
|
4,526
|
|
4,455
|
Change in restricted
cash
|
|
11,561
|
|
(3,692)
|
Other
|
|
(15)
|
|
—
|
Cash flows used in
financing activities
|
|
(13,449)
|
|
(27,635)
|
Net change in cash
and cash equivalents
|
|
29,466
|
|
27,207
|
Cash and cash
equivalents at beginning of period
|
|
104,004
|
|
106,011
|
Cash and cash
equivalents at end of period
|
|
$
|
133,470
|
|
$
|
133,218
|
NON-GAAP FINANCIAL
MEASURES
(In thousands,
except per share amounts)
(Unaudited)
|
|
Reconciliation of (i)
net income available to common stockholders to (ii) net income
available to common stockholders excluding closure and impairment
charges; loss on extinguishment of debt; amortization of intangible
assets; non-cash interest expense; and gain or loss on disposition
of assets, all items net of taxes, and related per share
data:
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Net income available
to common stockholders, as reported
|
|
$
|
28,040
|
|
$
|
20,481
|
Closure and
impairment charges
|
|
1,827
|
|
200
|
Loss on
extinguishment of debt
|
|
—
|
|
6
|
Amortization of
intangible assets
|
|
2,500
|
|
3,071
|
Non-cash interest
expense
|
|
755
|
|
1,642
|
(Gain) loss on
disposition of assets
|
|
(9)
|
|
927
|
Income tax
provision
|
|
(1,928)
|
|
(2,221)
|
Net income allocated
to unvested participating restricted stock
|
|
(43)
|
|
(61)
|
Net income available
to common stockholders, as adjusted
|
|
$
|
31,142
|
|
$
|
24,045
|
|
|
|
|
|
Diluted net income
available to common stockholders per share:
|
|
|
|
|
Net income available
to common stockholders, as reported
|
|
$
|
1.47
|
|
$
|
1.08
|
Closure and
impairment charges
|
|
0.06
|
|
0.01
|
Loss on
extinguishment of debt
|
|
—
|
|
0.00
|
Amortization of
intangible assets
|
|
0.08
|
|
0.10
|
Non-cash interest
expense
|
|
0.02
|
|
0.06
|
(Gain) loss on
disposition of assets
|
|
(0.00)
|
|
0.03
|
Net income allocated
to unvested participating restricted stock
|
|
(0.00)
|
|
(0.00)
|
Rounding
|
|
0.01
|
|
(0.02)
|
Diluted net income
available to common stockholders per share, as adjusted
|
|
$
|
1.64
|
|
$
|
1.26
|
|
|
|
|
|
Numerator for basic
EPS-income available to common stockholders, as adjusted
|
|
$
|
31,142
|
|
$
|
24,045
|
Effect of unvested
participating restricted stock using the two-class
method
|
|
—
|
|
3
|
Numerator for diluted
EPS-income available to common stockholders after assumed
conversions, as adjusted
|
|
$
|
31,142
|
|
$
|
24,048
|
|
|
|
|
|
Denominator for basic
EPS-weighted-average shares
|
|
18,870
|
|
18,794
|
Dilutive effect of
stock options
|
|
149
|
|
260
|
Denominator for
diluted EPS-weighted-average shares and assumed
conversions
|
|
19,019
|
|
19,054
|
DineEquity, Inc.
and Subsidiaries Non-GAAP Financial Measures (Unaudited)
|
|
Reconciliation of the
Company's cash provided by operating activities to "free cash flow"
(cash provided by operating activities, plus receipts from notes
and equipment contracts receivable, less additions to property and
equipment). We believe this information is helpful to investors to
determine our cash available for general corporate purposes and for
the return of cash to stockholders pursuant to our capital
allocation strategy.
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(In
millions)
|
Cash flows provided
by operating activities
|
|
$
|
41.1
|
|
$
|
52.8
|
Receipts from notes
and equipment contracts receivable
|
|
2.6
|
|
1.8
|
Additions to property
and equipment
|
|
(2.6)
|
|
(2.0)
|
Free cash
flow
|
|
41.1
|
|
52.6
|
Dividends paid on
common stock
|
|
(16.6)
|
|
(14.3)
|
Repurchase of
DineEquity common stock
|
|
(15.0)
|
|
(15.0)
|
|
|
$
|
9.5
|
|
$
|
23.3
|
DineEquity, Inc.
and Subsidiaries
Non-GAAP Financial
Measures
(In
thousands)
(Unaudited)
|
|
Reconciliation of
U.S. GAAP gross profit to segment EBITDA:
|
|
|
Three months ended
March 31, 2015
|
|
Franchise -
Applebee's
|
|
Franchise -
IHOP
|
|
Company
Restaurants
|
|
Rental
Operations
|
|
Financing
Operations
|
|
Total
|
Revenue
|
$
|
52,431
|
|
$
|
72,111
|
|
$
|
17,276
|
|
$
|
31,402
|
|
$
|
2,594
|
|
$
|
175,814
|
Expense
|
1,596
|
|
33,921
|
|
16,509
|
|
23,490
|
|
12
|
|
75,528
|
Gross
profit
|
50,835
|
|
38,190
|
|
767
|
|
7,912
|
|
2,582
|
|
100,286
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
2,592
|
|
—
|
|
189
|
|
3,224
|
|
—
|
|
6,005
|
Interest
charges
|
—
|
|
—
|
|
99
|
|
3,501
|
|
—
|
|
3,600
|
Segment
EBITDA
|
$
|
53,427
|
|
$
|
38,190
|
|
$
|
1,055
|
|
$
|
14,637
|
|
$
|
2,582
|
|
$
|
109,891
|
|
|
|
Three months ended
March 31, 2014
|
|
Franchise -
Applebee's
|
|
Franchise -
IHOP
|
|
Company
Restaurants
|
|
Rental
Operations
|
|
Financing
Operations
|
|
Total
|
Revenue
|
$
|
50,753
|
|
$
|
64,741
|
|
$
|
16,301
|
|
$
|
30,753
|
|
$
|
4,653
|
|
$
|
167,201
|
Expense
|
1,400
|
|
27,973
|
|
16,305
|
|
23,866
|
|
585
|
|
70,129
|
Gross
profit
|
49,353
|
|
36,768
|
|
(4)
|
|
6,887
|
|
4,068
|
|
97,072
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
2,621
|
|
—
|
|
524
|
|
3,344
|
|
—
|
|
6,489
|
Interest
charges
|
—
|
|
—
|
|
100
|
|
3,860
|
|
—
|
|
3,960
|
Segment
EBITDA
|
$
|
51,974
|
|
$
|
36,768
|
|
$
|
620
|
|
$
|
14,091
|
|
$
|
4,068
|
|
$
|
107,521
|
Restaurant Data
The following table sets forth, for the three months ended
March 31, 2015 and 2014, the number
of "Effective Restaurants" in the Applebee's and IHOP systems and
information regarding the percentage change in sales at those
restaurants compared to the same periods in the prior year. Sales
at restaurants that are owned by franchisees and area licensees are
not attributable to the Company. However, we believe that
presentation of this information is useful in analyzing our
revenues because franchisees and area licensees pay us royalties
and advertising fees that are generally based on a percentage of
their sales, and, where applicable, rental payments under leases
that may be partially based on a percentage of their sales.
Management also uses this information to make decisions about
future plans for the development of additional restaurants as well
as evaluation of current operations.
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
Applebee's
Restaurant Data
|
|
|
|
|
Effective
Restaurants(a)
|
|
|
|
|
Franchise
|
|
1,992
|
|
1,985
|
Company
|
|
23
|
|
23
|
Total
|
|
2,015
|
|
2,008
|
|
|
|
|
|
System-wide(b)
|
|
|
|
|
Sales
percentage change(c)
|
|
3.6%
|
|
(0.7)%
|
Domestic
same-restaurant sales percentage change(d)
|
|
2.9%
|
|
(0.5)%
|
|
|
|
|
|
Franchise(b)
|
|
|
|
|
Sales
percentage change(c)
|
|
3.6%
|
|
(0.7)%
|
Domestic
same-restaurant sales percentage change(d)
|
|
2.9%
|
|
(0.5)%
|
Average
weekly domestic unit sales (in thousands)
|
|
$
|
51.1
|
|
$
|
49.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
IHOP Restaurant
Data
|
|
|
|
|
Effective
Restaurants(a)
|
|
|
|
|
Franchise
|
|
1,470
|
|
1,439
|
Area
license
|
|
167
|
|
169
|
Company
|
|
12
|
|
11
|
Total
|
|
1,649
|
|
1,619
|
|
|
|
|
|
System-wide(b)
|
|
|
|
|
Sales
percentage change(c)
|
|
6.2%
|
|
6.5%
|
Domestic
same-restaurant sales percentage change(d)
|
|
4.8%
|
|
3.9%
|
|
|
|
|
|
Franchise(b)
|
|
|
|
|
Sales
percentage change(c)
|
|
6.0%
|
|
6.4%
|
Domestic
same-restaurant sales percentage change(d)
|
|
4.8%
|
|
3.9%
|
Average
weekly domestic unit sales (in thousands)
|
|
$
|
37.7
|
|
$
|
36.4
|
|
|
|
|
|
Area License
(b)
|
|
|
|
|
Sales
percentage change(c)
|
|
7.0%
|
|
8.0%
|
|
|
|
|
|
|
|
(a)
|
"Effective
Restaurants" are the weighted average number of restaurants open in
a given fiscal period, adjusted to account for restaurants open for
only a portion of the period. Information is presented for all
Effective Restaurants in the Applebee's and IHOP systems, which
includes restaurants owned by the Company as well as those owned by
franchisees and area licensees.
|
|
|
(b)
|
"System-wide" sales
are retail sales at Applebee's restaurants operated by franchisees
and IHOP restaurants operated by franchisees and area licensees, as
reported to the Company, in addition to retail sales at
company-operated restaurants. Sales at restaurants that are
owned by franchisees and area licensees are not attributable to the
Company. Unaudited reported sales for Applebee's domestic franchise
restaurants, IHOP franchise restaurants and IHOP area license
restaurants for the three months ended March 31, 2015 and 2014 were
as follows:
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
(In
millions)
|
Reported sales
(unaudited)
|
|
|
|
|
Applebee's franchise
restaurant sales
|
|
$
|
1,226.0
|
|
$
|
1,183.1
|
IHOP franchise
restaurant sales
|
|
$
|
721.2
|
|
$
|
680.3
|
IHOP area license
restaurant sales
|
|
$
|
75.0
|
|
$
|
70.1
|
|
|
(c)
|
"Sales percentage
change" reflects, for each category of restaurants, the percentage
change in sales in any given fiscal period compared to the prior
fiscal period for all restaurants in that category.
|
|
|
(d)
|
"Domestic
same-restaurant sales percentage change" reflects the percentage
change in sales, in any given fiscal period, compared to the same
weeks in the prior year for domestic restaurants that have been
operated throughout both fiscal periods that are being compared and
have been open for at least 18 months. Because of new unit
openings and restaurant closures, the domestic restaurants open
throughout both fiscal periods being compared may be different from
period to period. Same-restaurant sales percentage change does not
include data on IHOP area license restaurants located in
Florida.
|
DineEquity, Inc.
and Subsidiaries
Restaurant Data
(unaudited)
|
|
|
|
|
|
|
The following table
summarizes our restaurant development activity:
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Applebee's
Restaurant Development Activity
|
|
|
|
|
Summary -
beginning of period:
|
|
|
|
|
Franchise
|
|
1,994
|
|
1,988
|
Company
restaurants
|
|
23
|
|
23
|
Total Applebee's restaurants, beginning of period
|
|
2,017
|
|
2,011
|
Franchise restaurants
opened:
|
|
|
|
|
Domestic
|
|
4
|
|
8
|
International
|
|
2
|
|
—
|
Total franchise
restaurants opened
|
|
6
|
|
8
|
Franchise restaurants
closed:
|
|
|
|
|
Domestic
|
|
(4)
|
|
(5)
|
International
|
|
(5)
|
|
(3)
|
Total franchise
restaurants closed
|
|
(9)
|
|
(8)
|
Net franchise
restaurant (reduction) development
|
|
(3)
|
|
—
|
Summary - end of
period:
|
|
|
|
|
Franchise
|
|
1,991
|
|
1,988
|
Company
restaurants
|
|
23
|
|
23
|
Total Applebee's
restaurants, end of period
|
|
2,014
|
|
2,011
|
|
|
|
|
|
IHOP Restaurant
Development Activity
|
|
|
|
|
Summary -
beginning of period:
|
|
|
|
|
Franchise
|
|
1,472
|
|
1,439
|
Area
license
|
|
167
|
|
168
|
Company
|
|
11
|
|
13
|
Total
IHOP restaurants, beginning of period
|
|
1,650
|
|
1,620
|
Franchise/area
license restaurants opened:
|
|
|
|
|
Domestic
franchise
|
|
6
|
|
9
|
Domestic area
license
|
|
1
|
|
1
|
International
franchise
|
|
—
|
|
4
|
Total franchise/area
license restaurants opened
|
|
7
|
|
14
|
Franchise/area
license restaurants closed:
|
|
|
|
|
Domestic
franchise
|
|
(6)
|
|
(5)
|
Domestic area
license
|
|
(1)
|
|
—
|
International
franchise
|
|
—
|
|
(1)
|
International area
license
|
|
—
|
|
(1)
|
Total franchise/area
license restaurants closed
|
|
(7)
|
|
(7)
|
Net franchise/area
license restaurant development
|
|
—
|
|
7
|
Refranchised from
Company restaurants
|
|
1
|
|
3
|
Franchise restaurants
reacquired by the Company
|
|
(3)
|
|
—
|
Net
franchise/area license restaurant additions
|
|
(2)
|
|
10
|
Summary - end of
period
|
|
|
|
|
Franchise
|
|
1,470
|
|
1,449
|
Area
license
|
|
167
|
|
168
|
Company
|
|
13
|
|
10
|
Total IHOP
restaurants, end of period
|
|
1,650
|
|
1,627
|
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SOURCE DineEquity, Inc.