DineEquity profit tops Street on lower costs, to cut jobs
July 31 - Restaurant chain operator DineEquity Inc reported a better-than-expected quarterly profit on Tuesday, helped by lower costs and strength in its Applebee's business.
The company said it plans to cut costs further by eliminating 100 jobs. The action is expected to generate about $10 million to $12 million in savings on an annual basis.
DineEquity, which also runs the IHOP restaurant chain, said Jean Birch, president of its IHOP business, will leave the company effective Aug. 27. DineEquity Chief Executive Officer Julia Stewart will assume day-to-day leadership of the brand until a successor is found, the company said.
Systemwide sales at established U.S. restaurants were up 0.7 percent at Applebee's and down 1.4 percent at IHOP.
Net income in the second quarter was $15.9 million, or 88 cents a share, compared with a net loss of $284,000, or 2 cents a share, a year earlier. Excluding items, the company earned $1.06 a share, beating analysts' average estimate of $1.01 a share, according to Thomson Reuters I/B/E/S.
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