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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