DineEquity, Inc. Reports 32% Increase in Adjusted Earnings per Diluted Share for the Second Quarter 2015

Second Quarter 2015 Highlights

- Second quarter 2015 adjusted EPS (Non-GAAP) of $1.53, an increase of 32% over second quarter 2014

- Second quarter 2015 GAAP EPS of $1.40, a 40% increase over second quarter 2014

- Returned approximately $37 million to shareholders, including $20 million in the form of share repurchases and approximately $17 million in cash dividends

- Returned over $68 million combined to shareholders in the first six months of 2015

- Second quarter domestic system-wide same-restaurant sales increased 6.2% at IHOP and 1.0% at Applebee's

- IHOP and Applebee's each ranked number one by Nation's Restaurant News for the eighth consecutive year in their respective categories based on last fiscal year's U.S. system-wide same-restaurant sales

Jul 29, 2015, 08:00 ET from DineEquity, Inc.

GLENDALE, Calif., July 29, 2015 /PRNewswire/ -- DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar® and IHOP® restaurants, today announced financial results for the second quarter of fiscal 2015.

"This was another stellar quarter for DineEquity, reflecting strong financial discipline and the successful execution of our strategic priorities for DineEquity and our two category-leading brands," said Julia A. Stewart, Chairman and Chief Executive Officer of DineEquity, Inc.   

Ms. Stewart continued, "IHOP's sales rose 6.2% for the second quarter, which is the largest increase in over a decade.  We believe that our brand building initiatives at Applebee's and IHOP are laying a solid foundation for long-term growth."   

Second Quarter of Fiscal 2015 Financial Highlights

  • Adjusted net income available to common stockholders was $28.9 million, representing adjusted earnings per diluted share of $1.53, for the second quarter of 2015. This compares to $22.1 million, representing adjusted earnings per diluted share of $1.16, for the same period of 2014. The increase in adjusted net income was mainly due to a significant decline in cash interest expense and higher gross segment profit. The growth in gross segment profit was mainly due to the 6.2% increase in IHOP's domestic system-wide same-restaurant sales, which was the highest quarterly sales increase since the first quarter of 2004. (See "Non-GAAP Financial Measures" below.)
  • GAAP net income available to common stockholders was $26.5 million for the second quarter of 2015, or earnings per diluted share of $1.40. This compares to net income available to common stockholders of $18.9 million, or earnings per diluted share of $1.00, for the second quarter of 2014. The increase was primarily due to significantly lower interest expense and higher gross segment profit.

First Six Months of Fiscal 2015 Financial Highlights

  • Adjusted net income available to common stockholders was $60.0 million, or adjusted earnings per diluted share of $3.17, for the first six months of 2015. This compares to $46.1 million, or adjusted earnings per diluted share of $2.43, for the same period of 2014. The increase in adjusted net income was primarily due to a significant decline in cash interest expense and higher gross segment profit. (See "Non-GAAP Financial Measures" below.)
  • GAAP net income available to common stockholders was $54.6 million for the first six months of 2015, or earnings per diluted share of $2.88. This compares to net income available to common stockholders of $39.3 million, or earnings per diluted share of $2.07, for the same period of 2014. The increase was mainly due to a substantial decline in interest expense and higher gross segment profit.
  • For the first six months of fiscal 2015, cash flows from operating activities were $48.1 million and free cash flow was $49.7 million. (See "Non-GAAP Financial Measures" below.)

Same-Restaurant Sales Performance

Second Quarter of Fiscal 2015

  • IHOP's domestic system-wide same restaurant sales increased 6.2% for the second quarter of 2015 compared to the same period in 2014.
  • Applebee's domestic system-wide same-restaurant sales increased 1.0% for the second quarter of 2015 compared to the second quarter of 2014.

First Six Months of Fiscal 2015

  • IHOP's domestic system-wide same restaurant sales increased 5.5% for the first six months of 2015 compared to the same period in 2014.
  • Applebee's domestic system-wide same-restaurant sales increased 2.0% for the first six months of 2015 compared to the same period in 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 and the Form 8-K issued on February 26, 2015, except for domestic system-wide same-restaurant sales for both IHOP and Applebee's. The Company revised IHOP's sales performance guidance to range between positive 4.0% and positive 6.0%. This reflects an increase from the previous expectations of between positive 2.0% and positive 5.0%.  Applebee's sales performance guidance was revised to range between positive 1.0% and positive 3.0%. This reflects a decrease from the previous expectations of between positive 1.0% and positive 4.0%.  DineEquity'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

DineEquity 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 40097834. International callers, please dial (847) 619-6396 and reference pass code 40097834.

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 July 29, 2015 through 11:59 p.m. Pacific Time on August 5, 2015 by dialing (888) 843-7419 and referencing pass code 40097834#. International callers, please dial (630) 652-3042 and reference pass code 40097834#. 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 net receipts from notes and equipment contracts receivable, excluding direct financing lease receivables ("net 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

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Revenues:

Franchise and restaurant revenues

$

137,768

$

126,444

$

279,586

$

258,239

Rental revenues

31,132

30,709

62,534

61,462

Financing revenues

2,649

3,368

5,243

8,021

Total revenues

171,549

160,521

347,363

327,722

Cost of revenues:

Franchise and restaurant expenses

51,423

42,155

103,449

87,833

Rental expenses

23,319

23,653

46,809

47,519

Financing expenses

240

12

825

Total cost of revenues

74,742

66,048

150,270

136,177

Gross profit

96,807

94,473

197,093

191,545

General and administrative expenses

34,577

34,816

68,807

69,001

Interest expense

15,677

24,942

31,323

49,911

Amortization of intangible assets

2,500

3,070

5,000

6,141

Closure and impairment charges, net

475

637

2,302

837

Loss on extinguishment of debt

6

12

Loss (gain) on disposition of assets

66

(130)

57

797

Income before income tax provision

43,512

31,132

89,604

64,846

Income tax provision

(16,615)

(11,965)

(34,295)

(24,855)

Net income

$

26,897

$

19,167

$

55,309

$

39,991

Net income available to common stockholders:

Net income

$

26,897

$

19,167

$

55,309

$

39,991

Less: Net income allocated to unvested participating restricted stock

(359)

(307)

(726)

(649)

Net income available to common stockholders

$

26,538

$

18,860

$

54,583

$

39,342

Net income available to common stockholders per share:

Basic

$

1.41

$

1.00

$

2.90

$

2.09

Diluted

$

1.40

$

1.00

$

2.88

$

2.07

Weighted average shares outstanding:

Basic

18,763

18,776

18,819

18,785

Diluted

18,895

18,955

18,959

19,003

Dividends declared per common share

$

0.875

$

0.75

$

1.75

$

1.50

Dividends paid per common share

$

0.875

$

0.75

$

1.75

$

1.50

 

DineEquity, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share amounts)

June 30,  2015

December 31, 2014

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$

104,383

$

104,004

Receivables, net

107,807

153,498

Restricted cash

41,255

52,262

Prepaid gift card costs

41,559

51,268

Prepaid income taxes

1,278

11,753

Deferred income taxes

38,465

30,860

Other current assets

12,835

9,239

Total current assets

347,582

412,884

Long-term receivables, net

170,368

180,856

Property and equipment, net

231,124

241,229

Goodwill

697,470

697,470

Other intangible assets, net

777,425

782,336

Deferred rent receivable

90,917

91,117

Other non-current assets, net

40,972

42,216

Total assets

$

2,355,858

$

2,448,108

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

39,162

$

41,771

Gift card liability

116,865

179,760

Accrued advertising

13,374

10,150

Accrued employee compensation and benefits

14,932

25,722

Dividends payable

16,546

16,635

Accrued interest payable

3,886

14,126

Current maturities of capital lease and financing obligations

15,291

14,852

Other accrued expenses

15,566

10,033

Total current liabilities

235,622

313,049

Long-term debt

1,300,000

1,300,000

Capital lease obligations, less current maturities

91,505

98,119

Financing obligations, less current maturities

42,461

42,524

Deferred income taxes

309,159

319,111

Deferred rent payable

74,874

75,375

Other non-current liabilities

21,365

20,857

Total liabilities

2,074,986

2,169,035

Commitments and contingencies

Stockholders' equity:

Common stock, $0.01 par value, shares: 40,000,000 authorized; June 30, 2015 - 25,212,715 issued, 18,873,985 outstanding; December 31, 2014 - 25,240,055 issued, 18,953,567 outstanding

252

252

Additional paid-in-capital

284,055

279,946

Retained earnings

335,750

313,644

Accumulated other comprehensive loss

(85)

(73)

Treasury stock, at cost; shares: June 30, 2015 - 6,338,730; December 31, 2014 - 6,286,488

(339,100)

(314,696)

Total stockholders' equity

280,872

279,073

Total liabilities and stockholders' equity

$

2,355,858

$

2,448,108

 

DineEquity, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six Months Ended

June 30,

2015

2014

Cash flows from operating activities:

Net income

$

55,309

$

39,991

Adjustments to reconcile net income to cash flows provided by operating activities:

Depreciation and amortization

15,855

17,498

Non-cash interest expense

1,519

3,315

Deferred income taxes

(16,768)

(16,047)

Non-cash stock-based compensation expense

4,593

5,508

Tax benefit from stock-based compensation

4,688

3,578

Excess tax benefit from stock-based compensation

(4,572)

(4,455)

Closure and impairment charges

2,302

837

Loss on disposition of assets

57

797

Other

(1,534)

(1,704)

Changes in operating assets and liabilities:

Accounts receivable, net

(11,249)

(4,949)

Current income tax receivables and payables

9,717

16,004

Gift card receivables and payables

(3,256)

(4,165)

Prepaid expenses and other current assets

(2,299)

(1,608)

Accounts payable

6,024

10,103

Accrued employee compensation and benefits

(10,790)

(10,552)

Other current liabilities

(1,473)

1,841

Cash flows provided by operating activities

48,123

55,992

Cash flows from investing activities:

Additions to property and equipment

(4,612)

(4,086)

Proceeds from sale of property and equipment

800

681

Principal receipts from notes, equipment contracts and other long-term receivables

9,517

6,066

Other

(110)

75

Cash flows provided by investing activities

5,595

2,736

Cash flows from financing activities:

Repayment of long-term debt

(2,400)

Principal payments on capital lease and financing obligations

(5,975)

(5,570)

Repurchase of DineEquity common stock

(35,007)

(30,006)

Dividends paid on common stock

(33,271)

(28,518)

Tax payments for restricted stock upon vesting

(3,010)

(1,944)

Proceeds from stock options exercised

8,374

6,658

Excess tax benefit from stock-based compensation

4,572

4,455

Change in restricted cash

11,007

(7,064)

Other

(29)

Cash flows used in financing activities

(53,339)

(64,389)

Net change in cash and cash equivalents

379

(5,661)

Cash and cash equivalents at beginning of period

104,004

106,011

Cash and cash equivalents at end of period

$

104,383

$

100,350

 

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

(Unaudited)

Reconciliation of net income available to common stockholders, as reported, to net income available to common stockholders, as adjusted to exclude: 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

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Net income available to common stockholders, as reported

$

26,538

$

18,860

$

54,583

$

39,342

Closure and impairment charges

475

637

2,302

837

Loss on extinguishment of debt

6

12

Amortization of intangible assets

2,500

3,070

5,000

6,141

Non-cash interest expense

764

1,673

1,519

3,315

Loss (gain) on disposition of assets

66

(130)

57

797

Income tax provision

(1,446)

(1,997)

(3,373)

(4,219)

Net income allocated to unvested participating restricted stock

(30)

(55)

(73)

(116)

Net income available to common stockholders, as adjusted

$

28,867

$

22,064

$

60,015

$

46,109

Diluted net income available to common stockholders per share:

Net income available to common stockholders, as reported

$

1.40

$

1.00

$

2.88

$

2.07

Closure and impairment charges

0.02

0.02

0.08

0.02

Loss on extinguishment of debt

0.00

0.00

Amortization of intangible assets

0.08

0.10

0.16

0.20

Non-cash interest expense

0.03

0.06

0.05

0.11

Loss (gain) on disposition of assets

0.00

(0.01)

0.00

0.02

Net income allocated to unvested participating restricted stock

(0.00)

(0.00)

(0.00)

(0.00)

Rounding

(0.01)

0.01

Diluted net income available to common stockholders per share, as adjusted

$

1.53

$

1.16

$

3.17

$

2.43

Numerator for basic EPS-income available to common stockholders, as adjusted

$

28,867

$

22,064

$

60,015

$

46,109

Effect of unvested participating restricted stock using the two-class method

1

1

3

3

Numerator for diluted EPS-income available to common stockholders after assumed conversions, as adjusted

$

28,868

$

22,065

$

60,018

$

46,112

Denominator for basic EPS-weighted-average shares

18,763

18,776

18,819

18,785

Dilutive effect of stock options

132

179

140

218

Denominator for diluted EPS-weighted-average shares and assumed conversions

18,895

18,955

18,959

19,003

 

DineEquity, Inc. and Subsidiaries

Non-GAAP Financial Measures

(Unaudited)

Reconciliation of the Company's cash provided by operating activities to "free cash flow" (cash provided by operating activities, plus net 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.

Six Months Ended

June 30,

2015

2014

(In millions)

Cash flows provided by operating activities

$

48.1

$

56.0

Net receipts from notes and equipment contracts receivable

6.2

2.7

Additions to property and equipment

(4.6)

(4.1)

Free cash flow

49.7

54.6

Dividends paid on common stock

(33.3)

(28.5)

Repurchase of DineEquity common stock

(35.0)

(30.0)

$

(18.6)

$

(3.9)

 

DineEquity, Inc. and Subsidiaries

Non-GAAP Financial Measures

(In thousands)

(Unaudited)

Reconciliation of U.S. GAAP gross profit to segment EBITDA:

Three months ended June 30, 2015

Franchise - Applebee's

Franchise - IHOP

Company Restaurants

Rental Operations

Financing Operations

Total

Revenue

$

49,920

$

70,361

$

17,487

$

31,132

$

2,649

$

171,549

Expense

1,730

32,338

17,355

23,319

74,742

Gross segment profit

48,190

38,023

132

7,813

2,649

96,807

Plus:

Depreciation/amortization

2,588

184

3,196

5,968

Interest charges

98

3,374

3,472

Segment EBITDA

$

50,778

$

38,023

$

414

$

14,383

$

2,649

$

106,247

Three months ended June 30, 2014

Franchise - Applebee's

Franchise - IHOP

Company Restaurants

Rental Operations

Financing Operations

Total

Revenue

$

50,039

$

60,731

$

15,674

$

30,709

$

3,368

$

160,521

Expense

1,294

25,331

15,530

23,653

240

66,048

Gross segment profit

48,745

35,400

144

7,056

3,128

94,473

Plus:

Depreciation/amortization

2,615

495

3,314

6,424

Interest charges

99

3,721

3,820

Segment EBITDA

$

51,360

$

35,400

$

738

$

14,091

$

3,128

$

104,717

Six months ended June 30, 2015

Franchise - Applebee's

Franchise - IHOP

Company Restaurants

Rental Operations

Financing Operations

Total

Revenue

$

102,351

$

142,472

$

34,763

$

62,534

$

5,243

$

347,363

Expense

3,326

66,259

33,864

46,809

12

150,270

Gross profit

99,025

76,213

899

15,725

5,231

197,093

Plus:

Depreciation/amortization

5,180

373

6,420

11,973

Interest charges

197

6,875

7,072

Segment EBITDA

$

104,205

$

76,213

$

1,469

$

29,020

$

5,231

$

216,138

Six months ended June 30, 2014

Franchise - Applebee's

Franchise - IHOP

Company Restaurants

Rental Operations

Financing Operations

Total

Revenue

$

100,792

$

125,472

$

31,975

$

61,462

$

8,021

$

327,722

Expense

2,694

53,304

31,835

47,519

825

136,177

Gross profit

98,098

72,168

140

13,943

7,196

191,545

Plus:

Depreciation/amortization

5,236

1,019

6,658

12,913

Interest charges

199

7,581

7,780

Segment EBITDA

$

103,334

$

72,168

$

1,358

$

28,182

$

7,196

$

212,238

 

Restaurant Data

The following table sets forth, for the three and six months ended June 30, 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

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

(unaudited)

Applebee's Restaurant Data

Effective Restaurants(a)

Franchise

1,990

1,985

1,991

1,985

Company

23

23

23

23

Total

2,013

2,008

2,014

2,008

System-wide(b)

Sales percentage change(c)

2.0%

0.6%

2.9%

(0.1)%

Domestic same-restaurant sales percentage change(d)

1.0%

0.6%

2.0%

0.0%

Franchise(b)

Sales percentage change(c)

2.0%

0.6%

2.9%

(0.1)%

Domestic same-restaurant sales percentage change(d)

1.0%

0.6%

2.0%

0.1%

Average weekly domestic unit sales (in thousands)

$

48.9

$

48.2

$

50.0

$

48.8

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

(unaudited)

IHOP Restaurant Data

Effective Restaurants(a)

Franchise

1,471

1,448

1,471

1,444

Area license

167

167

167

167

Company

13

10

13

11

Total

1,651

1,625

1,651

1,622

System-wide(b)

Sales percentage change(c)

7.1%

6.0%

6.6%

6.2%

Domestic same-restaurant sales percentage change(d)

6.2%

3.2%

5.5%

3.6%

Franchise(b)

Sales percentage change(c)

6.8%

6.1%

6.4%

6.3%

Domestic same-restaurant sales percentage change(d)

6.2%

3.2%

5.5%

3.6%

Average weekly domestic unit sales (in thousands)

$

37.4

$

35.6

$

37.6

$

36.4

Area License (b)

Sales percentage change(c)

7.7%

5.8%

7.4%

6.9%

(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 franchisees and area licensees as well as those owned by the Company.

(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 and six months ended June 30, 2015 and 2014 were as follows:

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

(In millions)

Reported sales (unaudited)

Applebee's domestic franchise restaurant sales

$

1,174.6

$

1,150.7

$

2,400.6

$

2,333.8

IHOP franchise restaurant sales

$

715.1

$

669.5

$

1,436.4

$

1,349.8

IHOP area license restaurant sales

$

69.8

$

64.8

$

144.8

$

134.9

(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

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Applebee's Restaurant Development Activity

Summary - beginning of period:

Franchise

1,991

1,988

1,994

1,988

Company restaurants

23

23

23

23

Total Applebee's restaurants, beginning of period

2,014

2,011

2,017

2,011

Franchise restaurants opened:

Domestic

6

5

10

13

International

2

1

4

1

Total franchise restaurants opened

8

6

14

14

Franchise restaurants closed:

Domestic

(4)

(5)

(8)

(10)

International

(2)

(3)

(7)

(6)

Total  franchise restaurants closed

(6)

(8)

(15)

(16)

Net franchise restaurant development (reduction)

2

(2)

(1)

(2)

Summary - end of period:

Franchise

1,993

1,986

1,993

1,986

Company restaurants

23

23

23

23

Total Applebee's restaurants, end of period

2,016

2,009

2,016

2,009

IHOP Restaurant Development Activity

Summary - beginning of period:

Franchise

1,470

1,449

1,472

1,439

Area license

167

168

167

168

Company

13

10

11

13

Total IHOP restaurants, beginning of period

1,650

1,627

1,650

1,620

Franchise/area license restaurants opened:

Domestic franchise

7

7

13

16

Domestic area license

1

1

2

2

International franchise

3

5

3

9

Total franchise/area license restaurants opened

11

13

18

27

Franchise/area license restaurants closed:

Domestic franchise

(1)

(6)

(7)

(11)

Domestic area license

(2)

(2)

(3)

(2)

International franchise

(1)

International area license

(1)

Total franchise/area license restaurants closed

(3)

(8)

(10)

(15)

       Net franchise/area license restaurant development

8

5

8

12

Refranchised from Company restaurants

1

1

4

Franchise restaurants reacquired by the Company

(1)

(3)

(1)

Net franchise/area license restaurant additions

8

5

6

15

Summary - end of period

Franchise

1,479

1,455

1,479

1,455

Area license

166

167

166

167

Company

13

10

13

10

Total IHOP restaurants, end of period

1,658

1,632

1,658

1,632

 

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SOURCE DineEquity, Inc.



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http://www.dineequity.com