Shares of DineEquity Inc. rose modestly Thursday following the release of the Glendale restaurant group’s third-quarter financial results, despite the company missing Wall Street expectations for earnings and revenue.
The parent company of Applebee’s Grill & Bar and IHOP restaurants reported adjusted net income of $16.1 million and per-share earnings of 91 cents for the period ended Sept. 30. Last year, DineEquity reported earnings of $26.4 million, equivalent to $1.46 a share. The firm pinned the decline to yet another quarter of weak same-restaurant sales at Applebee’s, which fell about 7 percent year over year, as well as an increase in bad debt and restaurant closures.
Analysts on average had predicted third-quarter earnings of 96 cents a share, according to Thomson Financial.
DineEquity reported adjusted revenue of roughly $145 million, compared to $156 million for the third quarter last year. Wall Street had expected revenue of $147 million.
The company also announced the appointment of Kevin Carroll, a seasoned restaurant operator, to senior vice president and chief operating officer of Applebee’s. Carroll has been with the brand since June of this year, when he joined as senior vice president. He previously served as vice president of the Chili’s restaurant chain, a subsidiary of Brinker International.
DineEquity (DIN) rose $1.77, or about 4 percent, Thursday to close at $44.73 on the New York Stock Exchange.