Dine Brands has posted lower revenues for the third quarter, driven by lower sales at all of its restaurant chains as consumers pull back on spending.
The company’s total revenues fell 3.8 per cent year-on-year to $195 million, but its net income slightly improved from $18.5 million to $19 million.
At Applebee’s, system-wide sales decreased 7.1 per cent and same-restaurant sales fell 5.9 per cent. Ihop witnessed a softer decline, with system-wide sales down 1.6 per cent and same-restaurant sales down 1.9 per cent.
Fuzzy’s Taco Shop saw 15.8 per cent drop in system-wide sales and 9.6 per cent decline in comparable sales.
John Peyton, CEO of Dine Brands, said the company continued to experience consumer pullback and a highly promotional operating environment in the third quarter.
“We know we need to do more in the near term to drive traffic and get back to better top-line performance,” Peyton added.
As of September 30, the company operated more than 3500 restaurants across 19 international markets. Seven Applebee’s, two Ihop and six Fuzzy’s locations were closed during the quarter.
For the first nine months, total revenues decreased from $624.8 million last year to $607.5 million, and net income reduced from $64.1 million to $59.7 million.
For the full year, the company expects sales to be down 2-4 per cent for Applebee’s and flat or down 2 per cent for Ihop.