|Stephen Joyce, CEO of Dine Brands|
“Our new company name reflects a shift in strategy and a values-based performance culture with greater autonomy and accountability at the brand level,” said Stephen P. Joyce, CEO of Dine Brands. “We continue to make excellent progress against our plan to stabilize and grow performance at both brands. We are working on several exciting initiatives to expand our revenue channels, continually enhance the guest experience, improve operations and grow our global presence while investing in the long-term health of our two strong brands.”
Dine Brands announced its plan to close 60 to 80 Applebee’s restaurants and 30 to 40 IHOP locations during its fourth-quarter earnings call on Feb. 20. However, Applebee’s franchisees are expected to develop 10 to 15 new restaurants worldwide, the company said, with most being international openings. IHOP franchisees plan to develop 85 to 100 restaurants worldwide, the majority of which will be in the United States.
Fourth-quarter net income advanced sharply to $85,536,000, equal to $4.68 per share on the common stock, up from $21,347,000, or $1.18, in the comparable period. Revenues for the quarter declined to $148,775,000 from $154,174,000.
Applebee’s domestic same-restaurant sales declined 5.3 percent in the full year but increased 1.3 percent in the quarter, while IHOP’s domestic same-restaurant sales decreased 1.9 percent for the year and 0.4 percent for the quarter.
“We are focused on returning to a growth company and delivering strong returns to our shareholders,” Joyce said. “We believe the change in our quarterly dividend to a more appropriate dividend yield will result in a favorable capital allocation framework and provide us the opportunity for meaningful share repurchases, investments in our brands as well as opportunities to scale our business. I am very confident that the steps we are taking will drive sustainable results as we continue to build on the encouraging positive same-restaurant sales and traffic performance of both brands in January.”