US-based restaurant operator Dine Brands Global has reported a 68.3% year-over-year increase in net income to $21.4m for the second quarter (Q2 2019).
Total revenues for the quarter, excluding advertising revenues, increased by 24.3% year-over-year to $156.3m.
The parent company of Applebee’s Neighborhood Grill & Bar and IHOP brands, Dine Brands Global reported gross profits increased year-over-year by 20.7% to $94.9m.
Dine Brands Global CEO Steve Joyce said: “Our strategy continues to drive significant improvements across key metrics. We have made important decisions over the last two years that have improved our fundamentals and enhanced our ability to deliver sustainable growth.
“We successfully completed a $1.3bn refinancing of our securitised debt, replacing our 2014 fixed rate senior secured notes.
“We are also pleased to announce that Applebee’s franchisees agreed to extend the increase in the advertising contribution rate to 4.25% through the end of next year.”
Applebee brand of the company reported a 0.5% decrease in domestic system-wide comparable same-restaurant sales, while its IHOP brand reported a 2.0% increase for the quarter.
In the first six months of fiscal 2019, Applebee’s domestic system-wide comparable same-restaurant sales increased by 0.6% and IHOP’s rose by 1.7%.
Joyce added: “Our performance reflects the strength and stability of our highly franchised business model. While comparable same-restaurant sales at Applebee’s were lower than expected, these results are not indicative of a shift in Applebee’s fundamentals or brand relevance, both of which remain intact.
“As we enter the back half of the year, we are executing against our plan with a sharpened focus on operating fundamentals, which will help us continue to grow and create shareholder value.”