Dine Brands Global Inc. beat analyst estimates Wednesday, while in a separate announcement the company announced plans for nearly 100 new restaurants.
The Glendale company, which owns the IHOP and Applebee’s chains, has signed a franchise development agreement with TravelCenters of America Inc. to open 94 IHOP locations over the next five years. The restaurants will be inside TA and Petro branded travel stops along interstate freeways. The IHOP restaurants will be operated by the TA Restaurant Group, a division of TravelCenters of America.
The deal marks the single largest IHOP development agreement in the brand’s 61-year history, according to Dine Brands.
For the third quarter, the company reported adjusted net income of $23.9 million ($1.55 a share) on total revenue of $845 million. On average, analysts expected net income of $1.53, according to Thomson Financial.
“Our business model continues to deliver robust margin expansion and generate significant adjusted free cash flow,” Chief Executive Steve Joyce said in a statement.
The company announced third-quarter financial and the franchising agreement before the market opened Wednesday. Shares of Dine Brands (DIN) closed Wednesday down 4 cents, or a fraction of a percent, to $73.07 on the New York Stock Exchange.