Dine Brands Global, Inc. (DIN) stock fell over 5% in premarket trading today after the national restaurant company, which owns Applebee's and House of Pancakes (IHOP), announced financial results for the fourth quarter and full year of fiscal 2021.
For the fourth quarter, consolidated revenues increased 17% to $229.6 million.
GAAP earnings per diluted share of $1.14 for the fourth quarter of 2021 compared to a net loss per diluted share of $0.10 for the fourth quarter of 2020.
GAAP earnings per diluted share of $5.66 for 2021 compared to a net loss per diluted share of $6.43 for 2020.
Return to Pre-Pandemic Levels
Speaking on the results, John Peyton, Dine Brands CEO, hailed the company's strong quarter and its return to profitability.
Peyton added, “This past year delivered strong growth for our business that can best be defined by our top-line results, Applebee’s record-setting full-year comp sales performance relative to 2019, marked improvement in gross profit, and the ability to resume returning capital to shareholders."
Applebee’s year-over-year comparable same-restaurant sales increased 34.8% for the quarter, while its two-year comparable same-restaurant sales increased 9.1% relative to the fourth quarter of 2019.
IHOP, however, has still not returned to its 2019 profitability, with two-year comparable same-restaurant sales declining 3% for the fourth quarter of 2021 relative to the fourth quarter of 2019.
Lower Store Numbers
Despite the strong growth numbers in 2021, Applebee's and IHOP closed a number of restaurant locations throughout the fiscal year.
Development activity by Applebee’s and IHOP franchisees for 2021 resulted in the opening of 46 new restaurants and the closure of 96 restaurants.
However, the number of closures in 2021 was 46% lower than in 2020.
Going into the new year, IHOP projects to open between 50 and 65 restaurants, with Applebee's expecting to have between 5 and 15 net fewer restaurants.
The closures come after Applebee’s concluded a strategic initiative in early 2021 to close underperforming domestic restaurants to improve the performance of the franchised system.
