Dine Brands Global has booked a slight decrease in sales for the second quarter, driven by negative comparable sales growth at its Applebee’s and Ihop banners.
The company’s total revenues were $206.3 million, down from $208.4 million in the prior-year period.
At Applebee’s Neighborhood Grill & Bar, domestic comparable same-restaurant sales declined 1.8 per cent. Ihop also recorded a 1.4 per cent decrease in comparable sales.
The decline in total revenues was partially offset by increases in the number of effective franchise restaurants and proprietary product sales at Ihop, the company explained.
“Our brands have a long history of weathering economic cycles and despite the consumer pullback the industry witnessed this quarter, we are confident that our strategies around profitable promotions, menu innovation and development will help us manage both short-term challenges while positioning us for the long term,” said John Peyton, CEO of Dine Brands.
On the bottom line, adjusted EBITDA was flat at $67 million, while net income rose from $18.2 million to $23.1 million.
For the full year, the company expects comparable same-restaurant sales growth of negative 2-4 per cent for Applebee’s and flat to negative 2 per cent for Ihop.
