Dine Brands parent Applebee's, IHOP parent DIN Q2 profit beats expectations

Applebee's and IHOP restaurant chains parent Dine Brands Global Inc. DIN reported second-quarter profit and revenue that surpassed expectations, citing continued off-premise traffic and continued recovery of dining in. Net income fell to $23.3 million, or $1.45 a share, from $28.7 million, or $1.69 a share, in the year-ago period. Adjusted earnings per share fell to $1.65 from $1.94, but beat the FactSet consensus of $1.63. Revenue was up 1.8% to $237.8 million, just above the FactSet consensus of $236.4 million. Domestic same-store sales for Apple rose by 1.8%, topping the FactSet consensus of 1.7%, and for IHOP rose 3.6% to meet expectations of 3.8% growth. The total cost of revenue increased by 5.5% to $142.1 million, as gross profit fell to 40.2% from 42.3%. The restaurant chain operator's stock, which was still inactive in premarket trading, has gained 4.9% over the past three months, while the S&P 500 SPX has tacked on 3.7%.