DineEquity, Inc., the parent company of Applebee's Neighborhood Grill & Bar and IHOP restaurants, announced financial results for the first quarter of fiscal 2016.
"We continued to generate strong free cash flow in the first quarter and returned the majority of it to our shareholders. We're aggressively executing our plan to get Applebee's back on track, including the most transformative platform launch in the brand's history in the coming weeks. We remain focused on building on IHOP's momentum through the implementation of several strategic initiatives that address all aspects of enhancing the guest experience," says Julia A. Stewart, chairman and chief executive officer of DineEquity, Inc.
Stewart concludes, "We are confident in the steps currently being taken to drive positive and sustainable sales and traffic at both brands, while remaining committed to returning the majority of free cash flow to our shareholders."
First Quarter of Fiscal 2016 Financial Results
Adjusted net income available to common stockholders was $29.1 million, or adjusted earnings per diluted share of $1.58, for the first quarter of 2016. This compares to $31.1 million, or adjusted earnings per diluted share of $1.64, for the same period of 2015. The decline in adjusted net income was mainly due to the expected increase in general and administrative expenses and the impact on gross profit from the sale of the remaining Applebee's company-operated restaurants in the third quarter of 2015. The decline was partially offset by fewer weighted average shares outstanding.
General and administrative expenses were $39.4 million for the first quarter of 2016. This compares to $34.2 million for the same period of 2015. The expected increase was mainly due to $2.1 million of non-recurring costs associated with the consolidation of our restaurant support center announced on September 3, 2015, higher personnel costs and an increase in costs for travel in the first quarter of 2016 compared to the first quarter of 2015.
Same-Restaurant Sales Performance
First Quarter of Fiscal 2016
IHOP's domestic system-wide same restaurant sales increased 1.5 percent for the first quarter of 2016 compared to the same period in 2015.
Applebee's domestic system-wide same-restaurant sales decreased 3.7 percent for the first quarter of 2016 compared to the first quarter of 2015.
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