DineEquity Shares Climb to Five-Year HighWednesday, October 31, 2012
Shares of DineEquity Inc. hit a five-year high on Wednesday, the first day of trading following an earnings release and the market’s temporary closure due to Hurricane Sandy.
Shares closed up $5.07, or nearly 9 percent, to $62.70 in trading on the New York Stock Exchange. They last topped $60 in November 2007.
The Glendale parent of the Applebee’s and IHOP restaurant chains reported net income of $58.7 million ($3.14 a share), compared to $15.5 million (85 cents) in the same period a year earlier.
Revenue fell 18 percent to $216 million. Total debt for the company was reduced by $167 million thanks to the continuing sale of company-owned Applebee’s restaurants to franchise operators.
Applebee’s had better performance for the quarter than IHOP. Sales at stores open at least 18 months saw 2 percent sales growth, while store sales fell 2 percent at IHOP.
“We are pleased with our results for the third quarter, which was highlighted by the great progress we made against our long-term strategic goals,” said DineEquity Chief Executive Julia Stewart, in a prepared statement.