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Tuesday, Jul 23, 2024

DineEquity Changes Name, Beats Street

DineEquity Inc. in Glendale is now Dine Brands Global Inc., the company announced with the release of its full-year and fourth-quarter financial results on Tuesday. The firm reported better-than-expected earnings and revenue for Q4, sending its stock up more than 15 percent to its highest price in a year. The parent company of Applebee’s Bar and Grill and Ihop restaurants saw adjusted net profits of around $13 million (74 cents a share) for the quarter ended Dec. 31, according to its filings with the Securities and Exchange Commission. In the same quarter a year prior, the company reported net income of $24.6 million ($1.37 a share). The company pegged the decline in earnings to a decrease in gross profit, noting that the losses were partially offset by fewer outstanding shares. Revenue for the quarter was around $149 million, compared to $154 million in the prior year. Analysts on average had predicted earnings of 69 cents on revenue of $148 million for the quarter, according to Thomson Financial. Same-restaurant sales at Applebee’s increased 1.3 percent in the fourth quarter. Comparable sales at Ihop fell less than 1 percent during the same period. Full-year earnings for fiscal 2017 were $74 million, or $4.15 a share, on revenue of $605 million. Analysts had expected earnings of $4.12 a share on revenue of $604 million. As for its updated moniker, the new name “reflects a shift in our culture, our way of thinking and a new strategy,” Chief Executive Stephen Joyce, who joined the company in September, said Tuesday in a conference call with investors. In addition to marketing initiatives focused on customer engagement, the firm is considering new restaurant formats for high-traffic areas like airports and is leveraging the popularity of its brands overseas with more international openings, he added. Joyce also hinted at the possibility of joint ventures and acquisitions. “We have an extremely scalable business model,” Joyce said in the conference call. “We will continue to evaluate all growth opportunities as we move forward.” Dine Brands stock (DIN) rose $8.77, or 16 percent, on Tuesday to close at $63.44 on the Nasdaq.

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