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Tuesday, May 28, 2024

Despite Profitable Year, Dine Brands’ Quarter Disappoints as Shares Fall

Dine Brands Global Inc. in Glendale reported profits of $97.8 million for last year, compared to a loss of nearly $104 million for the previous year, but shares fell more than 9 percent.

For the fourth quarter, the Glendale operator of IHOP and Applebee’s restaurant chains reported net income of $19.8 million ($1.14 a share), compared to a loss of $1.56 million (-10 cents a share) for the same quarter a year earlier. Quarterly revenue was nearly $230 million, a gain of 17 percent.

Analysts on average expected earnings of $1.27 a share on revenue of $237 million, according to Thomson Financial.

During the quarter, Applebee’s increased year-over-year comparable same-restaurant sales 34.8 percent, while IHOP’s year-over-year comparable same-restaurant sales rose 39.2 percent.

“This past year delivered strong growth for our business that can best be defined by our top-line results, Applebee’s record-setting full-year comp sales performance relative to 2019, marked improvement in gross profit, and the ability to resume returning capital to shareholders,” Chief Executive John Peyton said in a statement. 

Shares of Dine Brands (DIN) closed Wednesday down $7.22, or 9.2 percent, to $71.11 on the New York Stock Exchange, on a day when the Dow closed up nearly 1.8 percent.

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