STOCKS | Dine Brands Revenue Rises 15%, but Profit Falls on Higher Costs

Dine Brands reported a 15% increase in third-quarter revenue, while profit declined amid higher costs. According to Sina Finance, net income was $4.6 million, or $0.37 per share, compared with $7.3 million, or $0.48 per share, in the same period last year. Adjusted earnings per share, excluding one-time items, were $0.82, below FactSet-surveyed analysts’ expectation of $1.01. Revenue reached $248.9 million, exceeding Wall Street’s estimate of $239.7 million. The company said growth mainly came from acquisitions and newly opened company-operated restaurants over the past year. Total operating costs rose 25%, while general and administrative expenses increased 2.8%, partly because of higher professional services and labor-related costs. Applebee’s comparable sales rose 0.9%, with off-premises sales accounting for 23% of total sales. IHOP comparable sales increased 0.8%, and off-premises sales made up 21%. CEO John Peyton said both brands recorded positive comparable sales, citing the company’s focus on value offerings, menu innovation, pop-culture marketing and improved operational execution. He said Dine Brands is pursuing long-term brand growth through dual-brand operations, optimization of its company-operated restaurant portfolio and accelerated restaurant renovations, and remains confident in its strategy.