By Emon Reiser
Dine Brands Global reported lower quarterly revenue and profits as sales fell at Applebee's and IHOP.
The company, which also owns the IHOP and Applebee's restaurant chains, posted a fourth-quarter profit of $5.17 million, or 34 cents a share, compared with $33 million, or $2.14 a share in the year-ago quarter. Dine Brands said taxes, along with a decrease in segment profit and an increase in closure and impairment charges, weighed on its profits.
Stripping out one-time items, Dine Brands' adjusted earnings per share was 87 cents for the period ended Dec. 31. Analysts polled by FactSet expected $1.34 a share.
Fourth-quarter revenue declined to $204.8 million, beating the $200.6 million analysts expected. The company reported $206.3 million in sales in the year-ago quarter. Negative comparable same-restaurant sales and a decrease in franchise revenues at Applebee's and IHOP were to blame for the decrease, the company said.
"For 2025, we have a clear plan that addresses both the short-term and long-term and are confident that, in partnership with our franchisees, we will elevate the guest experience and enhance our value propositions, " said Chief Executive John Peyton.
For fiscal 2025, Dine Brands expects Applebee's system-wide sales to be in the range of negative 2% to 1% growth. IHOP's same-restaurant sales are expected to be between negative 1% and 2% growth for the full year.
Shares fell 6% in pre-market trading to $22.
Write to Emon Reiser at emon.reiser@wsj.com
(END) Dow Jones Newswires
March 05, 2025 07:42 ET (12:42 GMT)
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