By Dean Seal
Dine Brands Global recorded a smaller profit in the first quarter as comparable sales declined at its Applebee's and IHOP chains.
The restaurant operator posted a profit of $7.8 million, or 53 cents a share, compared with $17 million, or $1.13 a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings were $1.03 a share. Analysts polled by FactSet had been expecting $1.23 a share.
Revenue rose 4.1% to $214.8 million, just under analyst estimates for $215.1 million, according to FactSet.
The gain was driven by the acquisition of 47 restaurants in the final quarter of last year, which offset a 2.2% decline in same-restaurant sales for the Appleebee's brand and a 2.7% decline at IHOP.
A surge in company restaurant expenses as well as closure and impairment charges, meanwhile, ate into the bottom line.
Chief Executive John Peyton said the company has started seeing steady improvements in sales and traffic in the second half of the quarter.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 07, 2025 07:56 ET (11:56 GMT)
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