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UPDATE 1-Applebee's parent beats quarterly profit estimates
March 1, 2012 / 1:26 PM / 6 years ago

UPDATE 1-Applebee's parent beats quarterly profit estimates

 March 1 (Reuters) - Applebee's and IHOP restaurant
parent DineEquity Inc beat quarterly profit estimates,
helped by better sales at its Applebee's chain.	
DineEquity bought Applebee's in a $2 billion leveraged buyout
in 2007 and has been working to improve results at the
bar-and-grill chain ever since. The second quarter marked a full
year of same-restaurant sales growth at Applebee's, suggesting a
successful turnaround, but then the chain's same-restaurant
sales fell in the third quarter. 	
 For the fourth quarter, same store sales at Applebee's rose
1 percent, and the company forecast strong sales at the chain
for the year.	
 	
   KEY POINTS	
            Q4 2011       Estimate*     Q4 2010
 Revenue        $242.2 mln    $242.3 mln    $300 mln
 Net income    27.3 mln                    (58.1 mln)
 Adjusted EPS  $0.91          $0.85         $0.59
                                        
 	
- Sales at all domestic restaurants open at least 18 months
fell 1 percent percent at IHOP 	
 - The company said it expects Applebee's domestic
same-restaurant sales to range between 0.5-2.5 percent in 2012	
 - IHOP same store sales are expected to range between a rise
of 1.5 percent to a fall of 1.5 percent.	
	
 BACKGROUND/LINKS 	
  	
 - Mild winter weather boosted U.S. restaurant sales, as more
diners ventured out for food away from home.	
 - Prices for food and fuel have been rising, but some of
that impact has been offset by lower heating bills.	
 - Some analysts say full-service restaurants like those run
by DineEquity, Olive Garden parent Darden Restaurants Inc
 and Chili's Grill & Bar owner Brinker International Inc
 are vulnerable to rising prices at the fuel pump because
their prices are higher than those of fast-food chains like
McDonald's Corp, making them more of a splurge.	
 	
 Note: 	
 * Average analyst estimate according to Thomson Reuters
I/B/E/S.	
 	
	
 (Reporting By Lisa Baertlein in Los Angeles and Nivedita
Bhattacharjee in Chicago; Editing by Gerald E. McCormick)	
 

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