DineEquity, the Glendale-based operator of Applebee’s and IHOP restaurants, on Wednesday reported a worse-than-expected dip in revenue in the second quarter amid disappointing same-restaurant sales. The company’s stock dropped 4.7 percent and closed at $76.39.
DineEquity said domestic same-restaurant sales edged up 0.2 percent at IHOP but dropped 4.2 percent at Applebee’s.
“While we are dissatisfied with the comparable-sales results, we are confident in our clear long-term strategies for both brands,” said Chief Executive Julia Stewart in a statement. Applebee’s has started a program to install wood-fired grills its restaurants and will offer steaks and chops that are hand cut in the restaurants.
For the quarter, DineEquity posted a net profit of $26.8 million, down a tick from $26.9 million, a year ago. Per-share earnings rose to $1.45 from $1.40 because there are fewer shares outstanding.
Excluding one-time charges and similar items, adjusted per-share earnings rose to $1.59 from $1.53 a year ago. That’s in line with what analysts had forecast. However, revenue slid 6.6 percent to more than $160 million. Analysts had forecast $162 million in revenue.