Dine Brands shares rise as Applebee’s and IHOP sales turn positive

Dine Brands Global Inc. shares rose 1% in Wednesday premarket trading as the restaurant company’s March and April numbers show signs of recovery from the pandemic. First-quarter net income totaled $25.1 million, or $1.51 per share, up from $21.6 million, or $1.31 per share, last year. Adjusted EPS was $1.75, up from $1.45 last year and ahead of the FactSet consensus for 87 cents. Revenue of $204.2 million was down from $206.9 million last year and ahead of the FactSet consensus for $200.0 million. Domestic same-restaurant sales at Applebee’s rose 11.9% for the quarter with results turning positive in March (up 103.3%) and April (up 237.4% on a preliminary basis). IHOP domestic same-restaurant sales were down 0.9% for the quarter, with March up 81.2% and preliminary April same-restaurant sales up 297.4%. Nearly all, 99%, of Dine Brands domestic restaurants are operating. Compared with fiscal 2019, same-restaurant sales at both chains were down for the quarter, Applebee’s by 6.2% and IHOP by 21.2%. Dine Brands stock has gained 67.2% for the year to date while the S&P 500 index is up 10.9% for the period.

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