logo
Share SHARE
FONT-SIZE Plus   Neg

DineEquity Profit Down, Buts Beats View

DineEquity Inc. (DIN), the owner of the Applebee's and IHOP restaurant chains, Thursday reported a drop in profit for the fourth quarter, hurt mainly by the sale of Applebee's company-operated restaurants and higher income taxes.

Earnings for the three-month period beat analysts' expectations, but revenues fell short of estimates.

Glendale, California-based DineEquity's fourth-quarter profit dropped to $18.0 million or $0.97 per share from $27.3 million or $1.51 per share last year.

DineEquity blamed a lower gain on the disposition of assets, lower segment profit due to the refranchise and sale of Applebee's company-operated restaurants and higher income taxes as the primary reasons for the decline in profit.

Excluding special items, earnings for the quarter dropped to $0.83 per share from $0.91 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.82 per share for the quarter. Analysts' estimates typically exclude special items.

Total segment revenues for the quarter declined to $158.6 million from $242.2 million last year. Five analysts had a consensus revenue estimate of $161.87 million for the quarter.

Applebee's domestic system-wide same-restaurant sales increased 0.9 percent, while IHOP's domestic system-wide same restaurant sales decreased 2.6 percent.

Chief Executive Julia Stewart said, "For DineEquity, 2012 was a year of milestones. The year was marked by accomplishing what we set out to do when we acquired Applebee's, completing the transition to a 99% franchised restaurant system. In addition, we reduced total debt by over $1.0 billion since the acquisition in 2007."

DineEquity also approved a first quarter dividend of $0.75 per share, payable on March 29 record as of March 15. The board also approved a $100 million share repurchase authorization, effective immediately.

DIN is currently trading at $75.84, up $3.56 or 4.93%, on the NYSE.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Delta Air Lines Inc. (DAL) pilots, represented by the Air Line Pilots Association International, are picketing on Friday at several airports across the country. The pilots said the picketing was to raise the sense of urgency in ongoing contract negotiations. The negotiations between the pilots... Charter Communications, and its recently acquired subsidiary Time Warner Cable, have been regularly overcharging its consumers to a tune of $7.2 million per year, according to a report from the U.S. Senate's Permanent Subcommittee on Investigations. According to the report, Time Warner Cable over-billed... Popular photo sharing network Instagram is adding a new translation button on its pages, so that the global crowd can read and enjoy the captions and comments given for the photographs uploaded. The new update will be available from next month onward.
comments powered by Disqus
Follow RTT