DineEquity Profit, Revenue Miss on Weakness at Applebee's
05 May 2016 - 3:10PM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.