Shares of Dine Brands Global Inc., the parent of Applebee’s Neighborhood Grill + Bar and IHOP restaurants, on Wednesday surged more than 11 percent after beating analyst expectations for its second financial quarter, despite being hard-hit by the pandemic.
Quarterly revenue for the Glendale company fell nearly 52 percent to almost $110 million, and it reported an adjusted net loss of 87 cents a share. Analysts were expecting revenue of $99.5 million and a loss of 97 cents a share, according to Yahoo Finance.
Dine Brands said its adjusted net loss of $14 million for the second quarter ended June 30 compared to net income of $30 million ($1.71 a share) for the same quarter a year ago.
“I’m confident in our long-term strategy and ability to quickly adapt to the ever-changing industry landscape,” Stephen Joyce, chief executive of Dine Brands, said in a statement. “We have strong liquidity with approximately $342 million of cash, of which $279 million is unrestricted cash. We’ve been through challenging times before, and I believe we are well-positioned to emerge from the pandemic and restore our momentum.”
Joyce also cited improved sales and traffic at Applebee’s and IHOP as some state and local governments have eased restrictions on dining room operations. Same store sales for a week in late June were down about 18 percent from the same time last year, much better than the 77 percent swoon seen in the week ended April 5.
“This, coupled with the significant growth of our brands’ off-premise business, contributed to the progress made during the quarter,” added Joyce, referring to take-out meals.
Shares of Dine Brands (DIN) gained $4.79, or 11.4 percent, to close at $46.82 on the New York Stock Exchange on Wednesday, a day when the Dow Jones industrial average was up 0.6 percent.