Company Press Release – Dine Brands Global, Inc., the parent company of Applebee’s Neighborhood Grill & Bar® and IHOP® restaurants, announced financial results for the third quarter of fiscal 2018.
“Dine Brands continues to make strong progress in its transition to a growth company. We are very pleased with our third quarter performance, as we achieved double-digit growth across key metrics and margin expansion. Applebee’s and IHOP continued to build on their positive sales momentum, outperforming their respective categories. Both brands made considerable strides in their off-premise platforms with the launch of nationwide delivery programs with DoorDash, which we believe will drive sustainable positive sales and traffic,” said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc.
Mr. Joyce continued, “To remain the leaders in our categories, we are executing on a data-driven enhanced guest-centric strategy. We remain focused on investing in our brands, providing our guests with traffic-driving culinary innovation and exploiting new opportunities to increase market share.”
Third Quarter of Fiscal 2018 Financial Highlights
• GAAP net income available to common stockholders was $22.8 million, or earnings per diluted share of $1.29, for the third quarter of 2018. This compares to a net loss available to common stockholders of $441.9 million, or a net loss per diluted share of $24.91, for the third quarter of fiscal 2017. The increase in net income was primarily due to non-cash impairment charges totaling $531.6 million in the third quarter of fiscal 2017 related to the write-downs of Applebee’s goodwill and other intangible assets. There was no impairment of goodwill and intangible assets in the third quarter of fiscal 2018.
• Adjusted net income available to common stockholders was $27.2 million, or adjusted earnings per diluted share of $1.53, for the third quarter of fiscal 2018. This compares to adjusted net income available to common stockholders of $17.5 million, or adjusted earnings per diluted share of $0.98, for the third quarter of fiscal 2017. The increase in adjusted net income was mainly due to higher segment profit as the result of a 7.7% increase in Applebee’s domestic system-wide comparable same-restaurant sales and a decline in income taxes due to a lower corporate tax rate. These items were partially offset by an increase in general and administrative expenses.
• General and administrative expenses were $40.8 million for the third quarter of fiscal 2018 compared to $38.0 million for the third quarter of fiscal 2017. The increase was primarily due to higher personnel-related costs, partially offset by a decline in relocation and recruiting expenses.
INVESTOR CONTACT: Ken Diptee, Executive Director, Investor Relations, 818-637-3632
MEDIA CONTACT: Thien Ho, Executive Director, Communications, 818-549-4238
SOURCE: Dine Brands Global, Inc.