DineEquity, Inc. Reports 30% Growth in Adjusted Earnings per Share for the First Quarter 2015
First Quarter 2015 Highlights
- First quarter 2015 adjusted EPS (Non-GAAP) of $1.64
- First quarter 2015 GAAP EPS of $1.47, a 36% increase over first quarter 2014
- First quarter domestic system wide same-restaurant sales increased 4.8% at IHOP and 2.9% at Applebee's
- Generated free cash flow of $41 million
- Approximately $32 million returned to shareholders in the form of cash dividends and share repurchases, representing an 8% increase compared to the first quarter 2014
GLENDALE, Calif., April 30, 2015 /PRNewswire/ -- DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar ® and IHOP® restaurants, today announced financial results for the first quarter of fiscal 2015.
"DineEquity started the year with continued strong momentum, delivering a 30% increase in first quarter adjusted earnings per diluted share. Our focus on enhancing our iconic brands and guests' experiences is yielding positive results. Both Applebee's and IHOP continued to outpace industry sales for their respective categories," said Julia A. Stewart, Chairman and Chief Executive Officer of DineEquity, Inc.
Ms. Stewart continued, "Our strong performance continued to generate robust free cash flow, the majority of which was returned to shareholders. Looking ahead, we will continue to deliver on our brand-building strategies and remain focused on innovation and operations excellence to drive the business."
First Quarter 2015 Financial Highlights
- Adjusted net income available to common stockholders was $31.1 million, representing adjusted earnings per diluted share of $1.64, for the first quarter of 2015. This compares to $24.0 million, representing adjusted earnings per diluted share of $1.26, for the first quarter of 2014. The increase in adjusted net income was mainly due to a decline in cash interest expense and higher gross profit from strong same-restaurant sales growth across both brands. (See "Non-GAAP Financial Measures" below.)
- GAAP net income available to common stockholders was $28.0 million for the first quarter of 2015, representing earnings per diluted share of $1.47. This compares to net income available to common stockholders of $20.5 million, representing earnings per diluted share of $1.08, for the first quarter of 2014. The increase was mainly due to a decline in interest expense and higher gross profit from strong same-restaurant sales growth across both brands.
- For the first quarter of 2015, cash flows from operating activities and free cash flow both were $41.1 million. (See "Non-GAAP Financial Measures" below.)
Same-Restaurant Sales Performance
First Quarter 2015
- IHOP's domestic system-wide same restaurant sales increased 4.8% for the first quarter of 2015 compared to the same period in 2014.
- Applebee's domestic system-wide same-restaurant sales increased 2.9% for the first quarter of 2015 compared to the first quarter of 2014.
Financial Performance Guidance for Fiscal 2015
DineEquity reiterates its financial performance guidance for fiscal 2015 contained in the press release issued on February 25, 2015. The Company's financial performance guidance reflects the impact of a 53rd operating week in fiscal 2015, in which the last month of the fiscal fourth quarter contains six weeks.
Investor Conference Call Today
The Company will host a conference call to discuss its results on the same day at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To participate on the call, please dial (800) 708-4539 and reference pass code 39398238. International callers, please dial (847) 619-6396 and reference pass code 39398238.
A live webcast of the call will be available on DineEquity's Web site at www.dineequity.com, and may be accessed by visiting Calls & Presentations under the site's Investors section. Participants should allow approximately ten minutes prior to the call's start time to visit the site and download any streaming media software needed to listen to the webcast. A telephonic replay of the call may be accessed from 10:30 a.m. Pacific Time on April 30, 2015 through 11:59 p.m. Pacific Time on May 5, 2015 by dialing (888) 843-7419 and referencing pass code 39398238#. International callers, please dial (630) 652-3042 and reference pass code 39398238#. An online archive of the webcast will also be available on the Investors section of DineEquity's Web site.
About DineEquity, Inc.
Based in Glendale, California, DineEquity, Inc., through its subsidiaries, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. With more than 3,600 restaurants combined in 18 countries, over 400 franchisees and approximately 200,000 team members (including franchisee- and company-operated restaurant employees), DineEquity is one of the largest full-service restaurant companies in the world. For more information on DineEquity, visit the Company's Web site located at www.dineequity.com.
Forward-Looking Statements
Statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words such as "may," "will," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: the effect of general economic conditions; the Company's indebtedness ; risk of future impairment charges; trading volatility and the price of the Company's common stock; the Company's results in any given period differing from guidance provided to the public; the highly competitive nature of the restaurant business; the Company's business strategy failing to achieve anticipated results; risks associated with the restaurant industry; risks associated with locations of current and future restaurants; rising costs for food commodities and utilities; shortages or interruptions in the supply or delivery of food; ineffective marketing and guest relationship initiatives and use of social media; changing health or dietary preferences; our engagement in business in foreign markets; harm to our brands' reputation; litigation; fourth-party claims with respect to intellectual property assets; environmental liability; liability relating to employees; failure to comply with applicable laws and regulations; failure to effectively implement restaurant development plans; our dependence upon our franchisees; concentration of Applebee's franchised restaurants in a limited number of franchisees; credit risk from IHOP franchisees operating under our previous business model; termination or non-renewal of franchise agreements; franchisees breaching their franchise agreements; insolvency proceedings involving franchisees; changes in the number and quality of franchisees; inability of franchisees to fund capital expenditures; heavy dependence on information technology; the occurrence of cyber incidents or a deficiency in our cybersecurity; failure to execute on a business continuity plan; inability to attract and retain talented employees; risks associated with retail brand initiatives; failure of our internal controls; and other factors discussed from time to time in the Company's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company's other filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof and the Company assumes no obligation to update or supplement any forward-looking statements.
Non-GAAP Financial Measures
This news release includes references to the Company's non-GAAP financial measures "adjusted net income available to common stockholders (adjusted EPS)," "free cash flow," and "segment EBITDA." "Adjusted EPS" is computed for a given period by deducting from net income or loss available to common stockholders for such period the effect of any closure and impairment charges, any gain or loss related to debt extinguishment, any intangible asset amortization, any non-cash interest expense, and any gain or loss related to the disposition of assets. This is presented on an aggregate basis and a per share (diluted) basis. For fiscal 2015, "Free cash flow" for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, excluding direct financing lease receivables ("receipts from notes and equipment contracts receivable"), less capital expenditures. "Segment EBITDA" for a given period is defined as gross profit plus depreciation and amortization as well as interest charges related to the segment. Management utilizes free cash flow to determine the amount of cash remaining for general corporate and strategic purposes and for the return of cash to stockholders pursuant to our capital allocation strategy, after the receipts from notes and equipment contracts receivable, and the funding of operating activities, capital expenditures and debt service. Management believes this information is helpful to investors to determine the Company's adherence to debt covenants and the Company's cash available for these purposes. Adjusted EPS, free cash flow and segment EBITDA are supplemental non-GAAP financial measures and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with United States generally accepted accounting principles.
| DineEquity, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) |
||||||||
| Three Months Ended |
||||||||
| March 31, |
||||||||
| 2015 |
2014 |
|||||||
| Revenues: |
||||||||
| Franchise and restaurant revenues |
$ |
141,818 |
$ |
131,795 |
||||
| Rental revenues |
31,402 |
30,753 |
||||||
| Financing revenues |
2,594 |
4,653 |
||||||
| Total revenues |
175,814 |
167,201 |
||||||
| Cost of revenues: |
||||||||
| Franchise and restaurant expenses |
52,026 |
45,678 |
||||||
| Rental expenses |
23,490 |
23,866 |
||||||
| Financing expenses |
12 |
585 |
||||||
| Total cost of revenues |
75,528 |
70,129 |
||||||
| Gross profit |
100,286 |
97,072 |
||||||
| General and administrative expenses |
34,230 |
34,185 |
||||||
| Interest expense |
15,646 |
24,969 |
||||||
| Amortization of intangible assets |
2,500 |
3,071 |
||||||
| Closure and impairment charges, net |
1,827 |
200 |
||||||
| Loss on extinguishment of debt |
— |
6 |
||||||
| (Gain) loss on disposition of assets |
(9) |
927 |
||||||
| Income before income tax provision |
46,092 |
33,714 |
||||||
| Income tax provision |
(17,680) |
(12,890) |
||||||
| Net income |
$ |
28,412 |
$ |
20,824 |
||||
| Net income available to common stockholders: |
||||||||
| Net income |
$ |
28,412 |
$ |
20,824 |
||||
| Less: Net income allocated to unvested participating restricted stock |
(372) |
(343) |
||||||
| Net income available to common stockholders |
$ |
28,040 |
$ |
20,481 |
||||
| Net income available to common stockholders per share: |
||||||||
| Basic |
$ |
1.49 |
$ |
1.09 |
||||
| Diluted |
$ |
1.47 |
$ |
1.08 |
||||
| Weighted average shares outstanding: |
||||||||
| Basic |
18,870 |
18,794 |
||||||
| Diluted |
19,019 |
19,054 |
||||||
| Dividends declared per common share |
$ |
0.875 |
$ |
0.75 |
||||
| Dividends paid per common share |
$ |
0.875 |
$ |
0.75 |
||||
| DineEquity, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share amounts) |
||||||
| March 31, |
December 31, |
|||||
| (Unaudited) |
||||||
| Assets |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ |
133,470 |
$ |
104,004 |
||
| Receivables, net |
93,532 |
153,498 |
||||
| Restricted cash |
40,701 |
52,262 |
||||
| Prepaid gift cards |
41,208 |
51,268 |
||||
| Prepaid income taxes |
— |
11,753 |
||||
| Deferred income taxes |
34,743 |
30,860 |
||||
| Other current assets |
12,905 |
9,239 |
||||
| Total current assets |
356,559 |
412,884 |
||||
| Long-term receivables, net |
175,579 |
180,856 |
||||
| Property and equipment, net |
235,355 |
241,229 |
||||
| Goodwill |
697,470 |
697,470 |
||||
| Other intangible assets, net |
779,878 |
782,336 |
||||
| Deferred rent receivable |
90,920 |
91,117 |
||||
| Other non-current assets, net |
41,553 |
42,216 |
||||
| Total assets |
$ |
2,377,314 |
$ |
2,448,108 |
||
| Liabilities and Stockholders' Equity |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ |
34,781 |
$ |
41,771 |
||
| Gift card liability |
119,072 |
179,760 |
||||
| Accrued advertising |
22,807 |
10,150 |
||||
| Accrued employee compensation and benefits |
10,913 |
25,722 |
||||
| Dividends payable |
16,704 |
16,635 |
||||
| Accrued interest payable |
3,897 |
14,126 |
||||
| Income taxes payable |
11,820 |
— |
||||
| Current maturities of capital lease and financing obligations |
15,125 |
14,852 |
||||
| Other accrued expenses |
7,425 |
10,033 |
||||
| Total current liabilities |
242,544 |
313,049 |
||||
| Long-term debt |
1,300,000 |
1,300,000 |
||||
| Capital lease obligations, less current maturities |
94,584 |
98,119 |
||||
| Financing obligations, less current maturities |
42,493 |
42,524 |
||||
| Deferred income taxes |
311,827 |
319,111 |
||||
| Deferred rent payable |
75,096 |
75,375 |
||||
| Other non-current liabilities |
22,576 |
20,857 |
||||
| Total liabilities |
2,089,120 |
2,169,035 |
||||
| Commitments and contingencies |
||||||
| Stockholders' equity: |
||||||
| Common stock, $0.01 par value, shares: 40,000,000 authorized; March 31, 2015 - 25,219,105 issued, 19,050,897 outstanding; December 31, 2014 - 25,240,055 issued, 18,953,567 outstanding |
252 |
252 |
||||
| Additional paid-in-capital |
283,000 |
279,946 |
||||
| Retained earnings |
325,374 |
313,644 |
||||
| Accumulated other comprehensive loss |
(88) |
(73) |
||||
| Treasury stock, at cost; shares: March 31, 2015 - 6,168,208; December 31, 2014 - 6,286,488 |
(320,344) |
(314,696) |
||||
| Total stockholders' equity |
288,194 |
279,073 |
||||
| Total liabilities and stockholders' equity |
$ |
2,377,314 |
$ |
2,448,108 |
||
| DineEquity, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||
| Three Months Ended |
||||||
| March 31, |
||||||
| 2015 |
2014 |
|||||
| Cash flows from operating activities: |
||||||
| Net income |
$ |
28,412 |
$ |
20,824 |
||
| Adjustments to reconcile net income to cash flows provided by operating activities: |
||||||
| Depreciation and amortization |
7,815 |
8,783 |
||||
| Non-cash interest expense |
755 |
1,642 |
||||
| Deferred income taxes |
(10,378) |
(10,031) |
||||
| Non-cash stock-based compensation expense |
2,432 |
3,143 |
||||
| Tax benefit from stock-based compensation |
4,696 |
3,524 |
||||
| Excess tax benefit from stock-based compensation |
(4,526) |
(4,455) |
||||
| Closure and impairment charges |
1,827 |
200 |
||||
| (Gain) loss on disposition of assets |
(9) |
927 |
||||
| Other |
31 |
(396) |
||||
| Changes in operating assets and liabilities: |
||||||
| Accounts receivable, net |
(2,742) |
(9,767) |
||||
| Current income tax receivables and payables |
22,341 |
18,020 |
||||
| Gift card receivables and payables |
5,623 |
2,982 |
||||
| Prepaid expenses and other current assets |
(1,638) |
(751) |
||||
| Accounts payable |
1,034 |
9,175 |
||||
| Accrued employee compensation and benefits |
(14,810) |
(14,857) |
||||
| Other accrued expenses |
267 |
23,877 |
||||
| Cash flows provided by operating activities |
41,130 |
52,840 |
||||
| Cash flows from investing activities: |
||||||
| Additions to property and equipment |
(2,617) |
(2,039) |
||||
| Proceeds from sale of property and equipment |
— |
681 |
||||
| Principal receipts from notes, equipment contracts and other long-term receivables |
4,442 |
3,415 |
||||
| Other |
(40) |
(55) |
||||
| Cash flows provided by investing activities |
1,785 |
2,002 |
||||
| Cash flows from financing activities: |
||||||
| Repayment of long-term debt |
— |
(1,200) |
||||
| Principal payments on capital lease and financing obligations |
(3,165) |
(2,695) |
||||
| Repurchase of DineEquity common stock |
(15,003) |
(15,002) |
||||
| Dividends paid on common stock |
(16,598) |
(14,293) |
||||
| Repurchase of restricted stock |
(2,961) |
(1,831) |
||||
| Proceeds from stock options exercised |
8,206 |
6,623 |
||||
| Excess tax benefit from stock-based compensation |
4,526 |
4,455 |
||||
| Change in restricted cash |
11,561 |
(3,692) |
||||
| Other |
(15) |
— |
||||
| Cash flows used in financing activities |
(13,449) |
(27,635) |
||||
| Net change in cash and cash equivalents |
29,466 |
27,207 |
||||
| Cash and cash equivalents at beginning of period |
104,004 |
106,011 |
||||
| Cash and cash equivalents at end of period |
$ |
133,470 |
$ |
133,218 |
||
| NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (Unaudited) |
||||||
| Reconciliation of (i) net income available to common stockholders to (ii) net income available to common stockholders excluding closure and impairment charges; loss on extinguishment of debt; amortization of intangible assets; non-cash interest expense; and gain or loss on disposition of assets, all items net of taxes, and related per share data: |
||||||
| Three Months Ended |
||||||
| March 31, |
||||||
| 2015 |
2014 |
|||||
| Net income available to common stockholders, as reported |
$ |
28,040 |
$ |
20,481 |
||
| Closure and impairment charges |
1,827 |
200 |
||||
| Loss on extinguishment of debt |
— |
6 |
||||
| Amortization of intangible assets |
2,500 |
3,071 |
||||
| Non-cash interest expense |
755 |
1,642 |
||||
| (Gain) loss on disposition of assets |
(9) |
927 |
||||
| Income tax provision |
(1,928) |
(2,221) |
||||
| Net income allocated to unvested participating restricted stock |
(43) |
(61) |
||||
| Net income available to common stockholders, as adjusted |
$ |
31,142 |
$ |
24,045 |
||
| Diluted net income available to common stockholders per share: |
||||||
| Net income available to common stockholders, as reported |
$ |
1.47 |
$ |
1.08 |
||
| Closure and impairment charges |
0.06 |
0.01 |
||||
| Loss on extinguishment of debt |
— |
0.00 |
||||
| Amortization of intangible assets |
0.08 |
0.10 |
||||
| Non-cash interest expense |
0.02 |
0.06 |
||||
| (Gain) loss on disposition of assets |
(0.00) |
0.03 |
||||
| Net income allocated to unvested participating restricted stock |
(0.00) |
(0.00) |
||||
| Rounding |
0.01 |
(0.02) |
||||
| Diluted net income available to common stockholders per share, as adjusted |
$ |
1.64 |
$ |
1.26 |
||
| Numerator for basic EPS-income available to common stockholders, as adjusted |
$ |
31,142 |
$ |
24,045 |
||
| Effect of unvested participating restricted stock using the two-class method |
— |
3 |
||||
| Numerator for diluted EPS-income available to common stockholders after assumed conversions, as adjusted |
$ |
31,142 |
$ |
24,048 |
||
| Denominator for basic EPS-weighted-average shares |
18,870 |
18,794 |
||||
| Dilutive effect of stock options |
149 |
260 |
||||
| Denominator for diluted EPS-weighted-average shares and assumed conversions |
19,019 |
19,054 |
||||
| DineEquity, Inc. and Subsidiaries |
||||||
| Reconciliation of the Company's cash provided by operating activities to "free cash flow" (cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less additions to property and equipment). We believe this information is helpful to investors to determine our cash available for general corporate purposes and for the return of cash to stockholders pursuant to our capital allocation strategy. |
||||||
| Three Months Ended |
||||||
| March 31, |
||||||
| 2015 |
2014 |
|||||
| (In millions) |
||||||
| Cash flows provided by operating activities |
$ |
41.1 |
$ |
52.8 |
||
| Receipts from notes and equipment contracts receivable |
2.6 |
1.8 |
||||
| Additions to property and equipment |
(2.6) |
(2.0) |
||||
| Free cash flow |
41.1 |
52.6 |
||||
| Dividends paid on common stock |
(16.6) |
(14.3) |
||||
| Repurchase of DineEquity common stock |
(15.0) |
(15.0) |
||||
| $ |
9.5 |
$ |
23.3 |
|||
| DineEquity, Inc. and Subsidiaries Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||||||||||
| Reconciliation of U.S. GAAP gross profit to segment EBITDA: |
|||||||||||||||||
| Three months ended March 31, 2015 |
|||||||||||||||||
| Franchise - |
Franchise - |
Company |
Rental |
Financing |
Total |
||||||||||||
| Revenue |
$ |
52,431 |
$ |
72,111 |
$ |
17,276 |
$ |
31,402 |
$ |
2,594 |
$ |
175,814 |
|||||
| Expense |
1,596 |
33,921 |
16,509 |
23,490 |
12 |
75,528 |
|||||||||||
| Gross profit |
50,835 |
38,190 |
767 |
7,912 |
2,582 |
100,286 |
|||||||||||
| Plus: |
|||||||||||||||||
| Depreciation/amortization |
2,592 |
— |
189 |
3,224 |
— |
6,005 |
|||||||||||
| Interest charges |
— |
— |
99 |
3,501 |
— |
3,600 |
|||||||||||
| Segment EBITDA |
$ |
53,427 |
$ |
38,190 |
$ |
1,055 |
$ |
14,637 |
$ |
2,582 |
$ |
109,891 |
|||||
| Three months ended March 31, 2014 |
|||||||||||||||||
| Franchise - |
Franchise - |
Company |
Rental |
Financing |
Total |
||||||||||||
| Revenue |
$ |
50,753 |
$ |
64,741 |
$ |
16,301 |
$ |
30,753 |
$ |
4,653 |
$ |
167,201 |
|||||
| Expense |
1,400 |
27,973 |
16,305 |
23,866 |
585 |
70,129 |
|||||||||||
| Gross profit |
49,353 |
36,768 |
(4) |
6,887 |
4,068 |
97,072 |
|||||||||||
| Plus: |
|||||||||||||||||
| Depreciation/amortization |
2,621 |
— |
524 |
3,344 |
— |
6,489 |
|||||||||||
| Interest charges |
— |
— |
100 |
3,860 |
— |
3,960 |
|||||||||||
| Segment EBITDA |
$ |
51,974 |
$ |
36,768 |
$ |
620 |
$ |
14,091 |
$ |
4,068 |
$ |
107,521 |
|||||
Restaurant Data
The following table sets forth, for the three months ended March 31, 2015 and 2014, the number of "Effective Restaurants" in the Applebee's and IHOP systems and information regarding the percentage change in sales at those restaurants compared to the same periods in the prior year. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. However, we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales, and, where applicable, rental payments under leases that may be partially based on a percentage of their sales. Management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations.
| Three Months Ended |
||||||
| March 31, |
||||||
| 2015 |
2014 |
|||||
| (unaudited) |
||||||
| Applebee's Restaurant Data |
||||||
| Effective Restaurants(a) |
||||||
| Franchise |
1,992 |
1,985 |
||||
| Company |
23 |
23 |
||||
| Total |
2,015 |
2,008 |
||||
| System-wide(b) |
||||||
| Sales percentage change(c) |
3.6% |
(0.7)% |
||||
| Domestic same-restaurant sales percentage change(d) |
2.9% |
(0.5)% |
||||
| Franchise(b) |
||||||
| Sales percentage change(c) |
3.6% |
(0.7)% |
||||
| Domestic same-restaurant sales percentage change(d) |
2.9% |
(0.5)% |
||||
| Average weekly domestic unit sales (in thousands) |
$ |
51.1 |
$ |
49.5 |
||
| Three Months Ended |
||||||
| March 31, |
||||||
| 2015 |
2014 |
|||||
| (unaudited) |
||||||
| IHOP Restaurant Data |
||||||
| Effective Restaurants(a) |
||||||
| Franchise |
1,470 |
1,439 |
||||
| Area license |
167 |
169 |
||||
| Company |
12 |
11 |
||||
| Total |
1,649 |
1,619 |
||||
| System-wide(b) |
||||||
| Sales percentage change(c) |
6.2% |
6.5% |
||||
| Domestic same-restaurant sales percentage change(d) |
4.8% |
3.9% |
||||
| Franchise(b) |
||||||
| Sales percentage change(c) |
6.0% |
6.4% |
||||
| Domestic same-restaurant sales percentage change(d) |
4.8% |
3.9% |
||||
| Average weekly domestic unit sales (in thousands) |
$ |
37.7 |
$ |
36.4 |
||
| Area License (b) |
||||||
| Sales percentage change(c) |
7.0% |
8.0% |
||||
| (a) |
"Effective Restaurants" are the weighted average number of restaurants open in a given fiscal period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all Effective Restaurants in the Applebee's and IHOP systems, which includes restaurants owned by the Company as well as those owned by franchisees and area licensees. |
| (b) |
"System-wide" sales are retail sales at Applebee's restaurants operated by franchisees and IHOP restaurants operated by franchisees and area licensees, as reported to the Company, in addition to retail sales at company-operated restaurants. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. Unaudited reported sales for Applebee's domestic franchise restaurants, IHOP franchise restaurants and IHOP area license restaurants for the three months ended March 31, 2015 and 2014 were as follows: |
| Three Months Ended |
||||||
| March 31, |
||||||
| 2015 |
2014 |
|||||
| (In millions) |
||||||
| Reported sales (unaudited) |
||||||
| Applebee's franchise restaurant sales |
$ |
1,226.0 |
$ |
1,183.1 |
||
| IHOP franchise restaurant sales |
$ |
721.2 |
$ |
680.3 |
||
| IHOP area license restaurant sales |
$ |
75.0 |
$ |
70.1 |
||
| (c) |
"Sales percentage change" reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior fiscal period for all restaurants in that category. |
| (d) |
"Domestic same-restaurant sales percentage change" reflects the percentage change in sales, in any given fiscal period, compared to the same weeks in the prior year for domestic restaurants that have been operated throughout both fiscal periods that are being compared and have been open for at least 18 months. Because of new unit openings and restaurant closures, the domestic restaurants open throughout both fiscal periods being compared may be different from period to period. Same-restaurant sales percentage change does not include data on IHOP area license restaurants located in Florida. |
| DineEquity, Inc. and Subsidiaries Restaurant Data (unaudited) |
||||
| The following table summarizes our restaurant development activity: |
Three Months Ended |
|||
| March 31, |
||||
| 2015 |
2014 |
|||
| Applebee's Restaurant Development Activity |
||||
| Summary - beginning of period: |
||||
| Franchise |
1,994 |
1,988 |
||
| Company restaurants |
23 |
23 |
||
| Total Applebee's restaurants, beginning of period |
2,017 |
2,011 |
||
| Franchise restaurants opened: |
||||
| Domestic |
4 |
8 |
||
| International |
2 |
— |
||
| Total franchise restaurants opened |
6 |
8 |
||
| Franchise restaurants closed: |
||||
| Domestic |
(4) |
(5) |
||
| International |
(5) |
(3) |
||
| Total franchise restaurants closed |
(9) |
(8) |
||
| Net franchise restaurant (reduction) development |
(3) |
— |
||
| Summary - end of period: |
||||
| Franchise |
1,991 |
1,988 |
||
| Company restaurants |
23 |
23 |
||
| Total Applebee's restaurants, end of period |
2,014 |
2,011 |
||
| IHOP Restaurant Development Activity |
||||
| Summary - beginning of period: |
||||
| Franchise |
1,472 |
1,439 |
||
| Area license |
167 |
168 |
||
| Company |
11 |
13 |
||
| Total IHOP restaurants, beginning of period |
1,650 |
1,620 |
||
| Franchise/area license restaurants opened: |
||||
| Domestic franchise |
6 |
9 |
||
| Domestic area license |
1 |
1 |
||
| International franchise |
— |
4 |
||
| Total franchise/area license restaurants opened |
7 |
14 |
||
| Franchise/area license restaurants closed: |
||||
| Domestic franchise |
(6) |
(5) |
||
| Domestic area license |
(1) |
— |
||
| International franchise |
— |
(1) |
||
| International area license |
— |
(1) |
||
| Total franchise/area license restaurants closed |
(7) |
(7) |
||
| Net franchise/area license restaurant development |
— |
7 |
||
| Refranchised from Company restaurants |
1 |
3 |
||
| Franchise restaurants reacquired by the Company |
(3) |
— |
||
| Net franchise/area license restaurant additions |
(2) |
10 |
||
| Summary - end of period |
||||
| Franchise |
1,470 |
1,449 |
||
| Area license |
167 |
168 |
||
| Company |
13 |
10 |
||
| Total IHOP restaurants, end of period |
1,650 |
1,627 |
||
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SOURCE DineEquity, Inc.
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