DineEquity Inc. posted a better-than-expected 6.9% revenue increase and a jump in profit as the restaurant operator's IHOP and Applebee's chains continued to grow.

Since acquiring Applebee's in 2007, DineEquity largely has boosted its results by remodeling restaurants, updating the menu and improving marketing. The company's same-restaurant sales have grown since last summer after a series of declines.

That trend continued in the first quarter, with domestic systemwide same-restaurant sales growing 6.2% at IHOP. At Applebee's, comparable sales were up 1%.

DineEquity has sold nearly all of its company-owned restaurants to franchises as a way to generate more consistent revenue and insulate itself from the volatility of commodity costs and consumer spending—a strategy restaurant companies such as Wendy's Co. are also now employing.

Overall, DineEquity posted a profit of $26.5 million, or $1.40 a share, up from a profit of $18.9 million, or $1 a share, a year ago. Excluding special charges and other items, adjusted per-share earnings increased to $1.53 from $1.16 a year earlier.

Revenue grew to $171.5 million from $160.5 million a year earlier.

Analysts polled by Thomson Reuters had forecast earnings of $1.47 a share on revenue of $168 million.

Shares, inactive premarket, have fallen about 3% this year.

Write to Angela Chen at angela.chen@wsj.com

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