DineEquity (DIN) Tops Q4 EPS by 27c; FY16 Outlook Provided
DineEquity (NYSE: DIN) reported Q4 EPS of $1.59, $0.27 better than the analyst estimate of $1.32. Revenue for the quarter came in at $171.3 million versus the consensus estimate of $168.94 million.
Fourth Quarter of Fiscal 2015
- IHOP's domestic system-wide comparable same restaurant sales increased 1.4% for the fourth quarter of 2015.
- Applebee's domestic system-wide comparable same-restaurant sales declined 2.5% for the fourth quarter of 2015.
Financial Performance Guidance for Fiscal 2016
- Applebee's domestic system-wide same-restaurant sales performance is expected to range between negative 2.0% and positive 2.0%.
- IHOP's domestic system-wide same-restaurant sales performance is expected to range between positive 1.0% and positive 4.0%.
- Applebee's franchisees are projected to develop between 35 and 45 new restaurants, the majority of which are expected to be domestic openings.
- IHOP franchisees and its area licensee are projected to develop between 60 and 70 restaurants, the majority of which are expected to be domestic openings.
- Franchise segment profit is expected to be between $345 million and $360 million.
- Rental and Financing segments are expected to generate roughly $40 million in combined profit.
- General and administrative expenses are expected to range between $154 million and $158 million, including non-cash stock-based compensation expense and depreciation of approximately $20 million. This amount includes approximately $4 million of non-recurring costs related to our restaurant support center consolidation.
- Interest expense is expected to be approximately $62 million. Approximately $3 million is projected to be non-cash interest expense.
- Weighted average diluted shares outstanding are expected to be approximately 18.5 million shares.
- The income tax rate is expected to be approximately 37%.
- Cash flow provided by operating activities is expected to range between $115 million and $125 million.
- Capital expenditures are projected to be roughly $8 million.
- Free cash flow (See "Non-GAAP Financial Measures" below) is projected to range between $116 million and $126 million. Our guidance reflects non-recurring tax payments totaling approximately $10 million related to deferred gains from the repurchase of our debt, primarily in 2008 and 2009, approximately $6 million in cash payments related to our restaurant support center consolidation and the impact of fiscal 2016 containing 52 weeks compared to 53 weeks in fiscal 2015, taking into account the effects to working capital, including gift card receivables.
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