Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0777
    -0.0016 (-0.15%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2624
    +0.0001 (+0.01%)
     
  • USD/JPY

    151.3590
    -0.0130 (-0.01%)
     
  • Bitcoin USD

    69,916.19
    -476.41 (-0.68%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

DineEquity (DIN) Beats Q4 Earnings and Revenues

DineEquity, Inc. DIN operates full-service restaurants in the United States and in other countries around the globe. The company owns and operates two restaurant concepts, which includes Applebee’s Neighborhood Grill & Bar (Applebee's) – a bar and grill concept of the casual dining restaurant industry; and International House of Pancakes (IHOP), which primarily caters to the family dining segment.

The upside reflects sales initiatives (the three pillar strategy) taken by the company. The company focuses on food and menu (the first pillar), guest satisfaction (the second pillar) and marketing (the third pillar), which is expected to continue to aid comps growth in the upcoming period. In fact, owning to this three pillar strategy, both of the brands have been posting positive comps consistently over the past few quarters. While Applebee’s has posted positive comps for five of the last six quarters, IHOP has posted positive comps for ten consecutive quarters.

Investors should also note the recent earnings estimate revisions for DIN, as the consensus estimate has been quite stable. However, DIN has a strong history in earnings season. DineEquity has delivered positive earnings surprises for the trailing four quarters in a row, making for an average earnings surprise of almost 2.42%. Revenues have also posted positive surprises in three out of the trailing four quarters.

Currently, DIN has a Zacks Rank #2 (Buy) but that could change following DineEquity’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: DIN beats on earnings. Our consensus earnings estimate called for EPS of $1.34 per share, and the company reported EPS of $1.59 instead. Investors should note that these figures take out stock option expenses.

Revenues: DIN reported revenues of $171.3 billion. This beat our consensus estimate of $168 million.

Key Stats to Note: IHOP's domestic system-wide comps increased 1.4% for the fourth quarter of 2015. Applebee's domestic system-wide comps declined 2.5% for the fourth quarter of 2015.

Management guided Applebee's comps guidance to range between a decline of 2% and growth of 2% in 2016.  IHOP's domestic system-wide comps growth is expected to range between 1% and 4%. General and administrative expenses are expected to range between $154 million and $158 million in 2016.

Check back later for our full write up on this DIN earnings report later!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DINEEQUITY INC (DIN): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement