DineEquity Moves To 3Q Profit Despite Sales Drop

GLENDALE, Calif. (AP) — Applebee's and IHOP restaurant owner DineEquity Inc. on Tuesday said it moved to a third-quarter profit even as sales fell.

DineEquity earned $7.9 million, or 46 cents per share, compared with a loss of $16.4 million, or 98 cents per share, in the third quarter a year earlier.

The latest quarter's results reflected fewer writedowns, lower interest as the company paid off debt, lower operating expenses and better margins. DineEquity also reduced its company restaurant expenses to $179.3 million from $236.4 million.

Excluding special items, the company reported income of 55 cents per share. Analysts polled by Thomson Reuters expected profit of 30 cents per share. Analyst estimates typically exclude one-time items.

Revenue fell 15 percent to $333.6 million. Analysts forecast revenue of $337.2 million.

Sales at stores open at least a year — a key performance metric — fell 1.1 percent in the third quarter. The company said the result reflected a higher average total for checks but a decline in customer traffic.

DineEquity is based in Glendale, Calif. Its shares climbed $1.12, or 5.2 percent, to $22.73 in afternoon trading. The stock has ranged from $5.24 to $34.71 over the past year.