DineEquity Reports Drop in Q4 Profit, but Beats Estimates; Dividend Reinstated (DIN)
Restaurant operator, DineEquity Inc(DIN) reported a drop in earnings on Wednesday, but beat analysts estimates for the fourth quarter.
The Glendale, CA based company reported fourth quarter adjusted earnings of $15.5 million, or 83 cents per share, down -5% from $16.4 million, or 91 cents per share last year. Analysts expected the company the earn 82 cents per share.
Revenue for the quarter was $158.64 million, down -34% from $242.18 million last year. Analysts expected the company to see $161.87 million in revenue.
The company said the decline was primarily due to the refranchise and sale of Applebee’s restaurants and higher income taxes. Although these expenses were slightly offset by lower cash interest expense and lower general and administrative costs, DIN’s fourth quarter results took a hit.
During the quarter, Applebee’s domestic system wide same restaurant sales dropped by -0.9% and IHOP’s domestic system wide same restaurant sales declined -2.6%.
For FY2013, both Applebee’s and IHOP’s domestic system-wide same restaurant sales are expected preform between -1.5% and 1.5%.
Dividend, Buyback Announced
After a four-year hiatus on dividend payouts, DIN reinstated its dividend program. The company announced a first quarter dividend of 75 cents per share, or $3 per share annualized. Additionally, the company announced a plan to repurchase $100 million worth of shares. This plan will replace the current $45 million share repurchase plan.
DineEquity shares were mostly flat during premarket trading Wednesday. The stock has increased 39% in the past year.
The Bottom Line
Shares of DineEquity Inc(DIN) have a 4.15% yield, based on Tuesday’s closing price of $72.28.
DineEquity Inc(DIN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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