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DineEquity (DIN) Q1 Earnings Top, Revenues Miss Estimates

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DineEquity, Inc. (DIN - Free Report) 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 company has been focusing on brand innovation, menu improvement and breakfast inspired food offered throughout the day to boost comps at the IHOP segment. Meanwhile, renewed steps taken to revitalize the Applebee’s brand via increased focus on food and menu innovation, guest satisfaction and marketing bodes well.

However, an increase in expenses related to sales initiatives, incremental investments in marketing programs and promotional activity to combat competition are weighing on margins.

Investors should note that the consensus estimate for DIN has been moving slightly downwards over the last 60 days. Nevertheless, DIN’s earnings performance has been mixed over the past few quarters with the trailing four-quarter average earnings surprise coming in at a negative 0.23%. Meanwhile, revenues lagged the Zacks Consensus Estimate in each of the trailing four quarters.

DineEquity, Inc Price and EPS Surprise

 

DineEquity, Inc Price and EPS Surprise | DineEquity, Inc Quote

DIN currently has a Zacks Rank #3 (Hold) but that could change following DineEquity’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

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 earnings per share of $1.20, and the company reported earnings of $1.22 per share. Investors should note that these figures take out stock option expenses.

Revenues: DIN reported revenues of $156.2 million. This missed our consensus estimate of $159 million.

Key Stats to Note: IHOP's domestic system-wide comps decreased 1.7% while Applebee's domestic system-wide comps declined 7.9% for the first quarter of 2017.

Stock Price Impact: Inactive in pre-market trading.

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

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