IHOP owner’s profit jumps due to new tax law benefit
GLENDALE, Calif. (AP) — DineEquity, the owner of the Applebee’s and IHOP restaurant chains, reported that its fourth-quarter profit soared as it benefited from the recently-changed tax law that slashed corporate tax rates.
The company also announced Tuesday that it would officially change its name to Dine Brands Global Inc. later this week.
DineEquity reported fourth-quarter net income of $85.5 million, or $4.67 per share, in the last three months of 2017, up from $21.3 million, or $1.18 per share, in the same period the year before. The company said much of that increase was due to a $66.6 million tax benefit.
Adjusted earnings came 74 cents per share, the Glendale, California-based company said. That beat the average analyst estimate of 69 cents per share, according to FactSet.
Revenue slipped 3.5 percent to $148.8 million in the period but still topped the consensus estimate of $148 million.
Sales at domestic locations open at least a year — a key metric of a retailer’s health — rose 1.3 percent at Applebee’s but slipped 0.4 percent at IHOP.
The company said its board approved a dividend of 63 cents per share for the first quarter, down from 97 cents the prior quarter. The new dividend is payable April 6 to shareholders of record March 19.
For the year, the company swung to a loss of $330.5 million, or $18.28 per share. Revenue was reported as $604.8 million.
DineEquity expects full-year 2018 earnings in the range of $4.95 to $5.25 per share, ahead of the FactSet estimate of $4.56 per share.
Shares of DineEquity Inc. soared $12.19, or 22 percent, to $66.86 in midday trading Tuesday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DIN at https://www.zacks.com/ap/DIN