DineEquity Inc.’s net income and revenue rose during the third quarter, which the operator attributed to strong same-store sales growth across its IHOP and Applebee’s Neighborhood Grill & Bar chains, and reduced operating expenses, the company reported Tuesday.
The Glendale, Calif.-based operator’s revenue increased 1 percent, to $162.9 million, during the third quarter ended Sept. 30, while net income increased 2.3 percent, to $21.5 million, compared with the same period last year.
Meanwhile, DineEquity reduced general and administrative operating expenses by 4.2 percent, to $33.8 million, compared with $35.3 million the previous year.
The operator also increased same-store sales across both brands. During the quarter, IHOP’s same-store sales increased 2.4 percent, its sixth consecutive quarter of same-store sales growth. Applebee’s same-store sales rose 1.7 percent.
“In addition to strong same-restaurant sales at both brands in the third quarter, DineEquity has had several recent notable achievements, including the refinancing of our long-term debt through a $1.4 billion securitization transaction, locking in a significantly lower fixed interest rate for the next seven years,” said Julia Stewart, chairman and CEO of DineEquity, in a statement. “We also announced significant increases in both our dividend and share repurchase authorization. Looking ahead, we are better positioned for long-term success and focused on the right goals to build on our momentum.”
Positive results also prompted the company to revise its year-end sales forecast across both brands. DineEquity expects IHOP same-store sales to increase to 3.5 percent, from 2.5 percent, while Applebee’s same-store sales are expected to be flat to 1 percent. The company originally predicted a decline of 2 percent to a possible growth of 1 percent for Applebee’s.
At the end of the third quarter, DineEquity operated more than 3,600 restaurants in 19 countries, including over 400 franchised units.