Shares of DineEquity Inc. rose 6 percent on Tuesday after the restaurant company reported growing second-quarter sales and plans to refinance more than $1 billion in debt and credit.
The Glendale operator of the Applebee’s and IHOP restaurant chains posted net income of $18.9 million ($1.00 a share) for the quarter ended June 30, compared to $16.6 million (87 cents) for the same period a year earlier. Revenue rose 1.5 percent to $160.5 million.
Eight analysts surveyed by Thomson Financial estimated net income of $1.05 a share on revenue of $159.5 million.
Same-store sales at IHOP restaurants increased 3.6 percent, which marked the chain’s fifth consecutive quarter of positive same-restaurant sales. Applebee’s same-store sales increased slightly by 0.6 percent for the second quarter.
“We delivered successful results for the second quarter, driven by the continued focus on our strategic objectives,” said Chief Executive Julia Stewart. “We continue to generate substantial free cash flow, tightly manage our general and administrative expenses and return significant cash to shareholders.”
The company also announced its intent to refinance its 3.75-percent credit facility and its 9.5-percent senior notes. As of last month, DineEquity’s senior secured credit facility and senior notes were $465 million and $761 million, respectively.
Shares closed up $4.74 to $83.50 on the New York Stock Exchange.
Avery Dennison Corp. announced on Monday it will distribute a quarterly cash dividend despite reporting slipping second quarter earnings.
The company’s board declared a dividend of 35 cents a share, the same as the previous quarterly dividend. The dividend is payable on Sept. 17 to shareholders of record on Sept. 3.
The Glendale label maker last week reported a 38 percent decline in net income to $42.5 million and a fall in revenue of 4 percent to $1.62 billion in the second quarter.
Shares closed up 92 cents, or nearly 2 percent, to $48.03 on the New York Stock Exchange.
The Glendale Financial Center, a Class A office property adjacent to the Americans at Brand mall, has sold to a foreign investor for an undisclosed price.
The six-story building at 225 W. Broadway was purchased by Hyun 1996-2 Family Lp from Ag/cambra 225 Broadway LLC. Its 122,000 square feet of offices are about 95 percent leased mostly to health-care related tenants, including the California Nurses Association and HealthCare Partners.
“The buyer was attracted to the property by the stabilized income and long term of occupancy by the tenants, as well as the current upswing in Glendale’s economy,” said Lynwood Fields, co-founder of Madison Partners in L.A., which represented the seller.
Hyun 1996-2 Family Lp is registered at Wilshire Boulevard in Los Angeles, according to real estate data firm CoStar Group Inc., but Fields described the buyer as a foreign investor.
Bob Safai and Matt Case of Madison Partners shared the listing.