Investors are dining out on Dine Brands Global Inc. (DIN - Get Report) Thursday as the stock rises 8% after the company reported a 21% jump in fourth quarter revenue en route to a beat in the fourth quarter.
The Applebee's and IHOP parent company did record a decline in profits due to an income tax provision that raised its payout from the year before, but the company was still able to easily top estimates.
The Glendale, CA-based company reported fourth quarter earnings of $1.70 per share on revenue of $214.2 million. Analysts were expecting the company to report earnings of $1.57 per share on revenue of $197.3 million.
"Dine Brand's strong performance in the fourth quarter and throughout 2018 is the result of a clear strategic vision and unwavering commitment to sustainable growth. Both Applebee's and IHOP have outperformed their respective categories by delivering on comprehensive efforts to drive their businesses and delight guests," said CEO Steve Joyce.
The company also reported a 3.5% increase in comparable store sales at Applebee's and 3% comp growth at IHOP.
Separately, the company also announced that its board approved a 10% increase to its quarterly cash dividend to 60 cents per share.
"As we head into 2019, we are very encouraged by our outlook and growth opportunities. We have the right strategies in place to drive long-term momentum and create additional value for our shareholders," Joyce said.