DineEquity Inc. reported an unexpected decline in profit in the first quarter as revenue slid more than expected on weakness at its Applebee's chain.

Shares in the company lost 3.4% premarket to $82.74.

DineEquity, which has sold nearly all of its company-owned restaurants to franchisees as a way to generate more consistent revenue and insulate itself from the volatility of commodity costs and consumer spending, said domestic systemwide same-restaurant sales ticked up 1.5% at IHOP but fell 3.7% at the Applebee's chain.

Chief Executive Julia Stewart said the company is "aggressively executing our plan to get Applebee's back on track."

For the quarter ended March 31, DineEquity posted a profit of $25.5 million, or $1.37 a share, down from $28.4 million, or $1.47, a year before. Excluding special charges and other items, per-share earnings fell to $1.58 from $1.64 a year earlier. Revenue slipped 7% to $163.5 million.

Analysts polled by Thomson Reuters had forecast earnings of $1.69 a share on revenue of $166 million.

The company reaffirmed its guidance for the year.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

May 05, 2016 09:55 ET (13:55 GMT)