DineEquity (NYSE: DIN) reported Q1 EPS of $1.90, $0.08 better than the analyst estimate of $1.82. Revenue for the quarter came in at $237.18 million versus the consensus estimate of $248.96 million.

• Earnings Per Diluted Share (GAAP) Increased 88%
• Adjusted Earnings Per Diluted Share (Non-GAAP) Increased 71.2%
• Net Income Increased 85.3%; Adjusted EBITDA (Non-GAAP) Increased 40.4%

“Dine Brands delivered another impressive quarter. Our performance and momentum reflect the continued improvement in our core business. We delivered double-digit growth in several key metrics. The implementation of multi-pronged strategies at Applebee’s and IHOP have produced positive results. Both brands reported positive comparable sales growth for the first quarter, lapping over positive sales results for the first quarter of 2018,” said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc.

Mr. Joyce continued, “We are taking a long-term approach to managing the business and focusing on platforms that will deliver sustainable positive results. This includes expanding our off-premise business at both brands and investing in guest-facing technology, where we have made foundational changes to further enhance the guest experience. With the great work being done across the organization, I am enthusiastic about the road ahead.”

Key Highlights

• Total revenues, excluding Company restaurant sales, increased 7.1% to $201.4 million for the first quarter of 2019 compared to $188.2 million for the same period last year.
• IHOP business segment revenues, inclusive of Rental and Financing revenues, accounted for approximately 66% of total revenues, excluding advertising revenues and Company restaurant sales, during the first quarter of 2019.
• IHOP’s reported system-wide sales for the first quarter of 2019 increased 2.4% to $873.1 million compared to $852.9 million for the first quarter of 2018.
• Gross profit for the first quarter of 2019 increased 22.8% to $102.6 million compared to $83.5 million for the first quarter of 2018. The increase in gross profit was mainly due to a $13.5 million franchisor contribution to the Applebee’s national advertising fund in the first quarter 2018 that did not recur in the first quarter of 2019. IHOP restaurant development and increased IHOP and Applebee’s royalties contributed to the increase in gross profit.
• The Company restaurant segment contributed approximately $4.2 million of gross profit during their first full quarter of ownership.
• GAAP earnings per diluted share increased 88.0% to $1.73 for the first quarter of 2019 compared to $0.92 for the first quarter of 2018.
• Adjusted earnings per diluted share increased 71.2% to $1.90 for the first quarter of 2019 compared to $1.11 for the first quarter of 2018. (See “Non-GAAP Financial Measures” below.)
• GAAP net income for the first quarter of 2019 increased 85.3% to $31.6 million compared to $17.1 million for the first quarter of 2018.
• Consolidated adjusted EBITDA the first quarter of 2019 increased 40.4% to $74.6 million compared to $53.2 million for the first quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of GAAP net income to consolidated adjusted EBITDA.)
• For the three-month period ended March 31, 2019, the Company repurchased 151,316 shares of its common stock for a total cost of approximately $12.0 million and paid quarterly cash dividends totaling approximately $11.2 million.
• Cash flows from operating activities were approximately $28.9 million for the first quarter of 2019 compared to approximately $16.5 million for the first quarter of 2018. Adjusted free cash flow was approximately $27.7 million for the first quarter of 2019. This compares to approximately $15.3 million for the first quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of the Company’s cash provided by operating activities to adjusted free cash flow.)
• Over 1,100 IHOP restaurants, or approximately 65% of the domestic system, have the new Rise ‘N Shine remodel image (including new restaurant openings).
• Growth in off-premise sales at both brands during the first quarter of 2019 was primarily driven by online channels.

For earnings history and earnings-related data on DineEquity (DIN) click here.