Applebee's, IHOP parent DineEquity results beat; shares soar
(Reuters) - DineEquity Inc (DIN.N), the owner of Applebee's and IHOP restaurants, reported second-quarter profit on Tuesday that handily beat Wall Street estimates on better-than-expected sales at established restaurants.
Shares jumped 10.5 percent on the heels of the results, which were boosted by menu changes, new advertising, more efficient restaurant operations and the sale of restaurants to franchisees.
Net income was $16.6 million, or 87 cents per share, compared with $15.9 million, or 88 cents per share, a year earlier.
Excluding items, the company earned $1.02 per share, topping analysts' average estimate by 10 cents per share, according to Thomson Reuters I/B/E/S.
Closely watched same-restaurant sales were up 1.9 percent at IHOP and rose 1.3 percent at Applebee's. Eight analysts polled by Consensus Metrix had expected a 0.8 percent fall at IHOP and a 0.5 percent rise at Applebees.
Executives said an easier-to-navigate menu helped drive business to IHOP, while Applebees saw good results for its lunch, dinner and late-night business due to value-priced menus and more focused advertising.
Shares in DineEquity were up $6.87 to $72.25 in midday trading on the Nasdaq.
- Man called Bitcoin's father denies ties, leads LA car chase
- Apple loses bid for U.S. ban on Samsung smartphone sales
- Putin rebuffs Obama as Ukraine crisis escalates |
- Florida mayor fights backyard gun ranges in 'Gunshine State'
- UPDATE 6-Obama warns on Crimea, orders sanctions over Russian moves in Ukraine