DineEquity Reports Higher Profit
29 October 2015 - 2:20PM
Dow Jones News
DineEquity Inc. posted a 29% increase in profit as the
restaurant operator's IHOP chain continued to grow, though it
lowered its guidance for its Applebee's chain on lower sales
there.
Domestic systemwide same-restaurant sales increased 5.8% at
IHOP. At Applebee's, comparable sales were down 0.5%.
The company said it now expects fiscal 2015 Applebee's sales to
be flat to up 1%, down from previous expectations of 1% to 3%
growth. But DineEquity also boosted new-restaurant development at
the chain to a range of 35 to 45 restaurants, most of which are
expected to open in the U.S. Its previous estimate was 30 to 40 new
restaurants. Chief Executive Julia Stewart said in a news release
Thursday that new-restaurant development continues at a healthy
pace.
Overall, DineEquity posted a profit of $23.9 million, or $1.28 a
share, up from $18.6 million, or 99 cents a share, a year ago.
Excluding special charges and other items, adjusted per-share
earnings increased to $1.43 from $1.14 a year earlier.
Revenue edged down 0.3% to $162.4 million.
Analysts polled by Thomson Reuters had forecast earnings of
$1.43 a share on revenue of $165 million.
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. also
are employing.
Shares were inactive premarket.
Write to Anne Steele at Anne.Steele@wsj.com
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(END) Dow Jones Newswires
October 29, 2015 10:05 ET (14:05 GMT)
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