GLENDALE, CA--(Marketwire - Nov 3, 2011) - DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar and IHOP Restaurants, today announced financial results for the third quarter ended September 30, 2011.
"During the quarter, we made good progress in achieving our long-term strategic goals as we continued to generate strong free cash flow, improve our G&A, refranchise company-operated restaurants and create value for our shareholders," said Julia A. Stewart, Chairman and Chief Executive Officer of DineEquity. "While same-restaurant sales were not what we would have liked, we are confident in the plans we have at both brands to achieve our longer-term financial objectives. With about 95% of our restaurants either franchised or soon to be franchised, we are close to completing the planned transformation of the Company into a pure franchisor and creating a platform upon which we will continue generating strong cash flow going forward."
DineEquity's financial performance included the following highlights:
On August 15, 2011, DineEquity announced the approval by the Company's Board of Directors of the repurchase of up to $45 million of the Company's outstanding common stock. Under the program, DineEquity may repurchase shares on an opportunistic basis from time to time in open market transactions and in privately negotiated transactions, based on business, market, applicable legal requirements and other considerations. The repurchase program does not require the company to repurchase any specific number of shares, and may be terminated at any time.
On October 13, 2011, the Company announced that it entered into an asset purchase agreement with Apple Investors Group, LLC for the sale of 17 Applebee's company-operated restaurants located in Tennessee, Illinois, Mississippi, Missouri, Kentucky and Arkansas. The transaction is expected to result in net proceeds after taxes of approximately $15.9 million and reduce DineEquity's sale-leaseback related financing obligations by $11.3 million. The Company expects to pay approximately $2.4 million related to the settlement of net working capital liabilities and deal costs. Additionally, the sale of these Applebee's company-operated restaurants will result in approximately $0.9 million in annualized consolidated general and administrative expense savings. The Company anticipates closing the transaction in the first quarter of 2012.
On November 2, 2011, DineEquity successfully completed the sale of 62 restaurants from the previously-announced transaction involving 66 company-operated Applebee's restaurants located in New England. The four remaining restaurants are expected to close soon.
Given that DineEquity's brands are nearly 95% franchised, the Company is providing an adjusted earnings per share (EPS) outlook as it believes that adjusted EPS, along with cash flow and same-restaurant sales, are key measures by which the Company will be evaluating its success going forward. The strength of the Company's fully franchised business model is that it somewhat mitigates earnings fluctuations based on restaurant sales. The Company expects adjusted earnings per share (EPS) to range between $4.20 and $4.30 per diluted share. (See "Non-GAAP Financial Measures" below.)
Additionally, DineEquity provided the following fiscal 2011 guidance:
The Company's 2011 financial performance guidance excludes any impact from the future sales of Applebee's company-operated restaurants, the timing of which could be highly variable due to factors including the economy, the availability of buyer financing, acceptable valuations, and the operating wherewithal of the acquiring franchisee. Should additional Applebee's company-operated restaurants be sold this year, DineEquity plans to update its performance guidance accordingly, in conjunction with its regular quarterly reporting schedule, following any transaction announcement.
The Company will host an investor conference call today (Thursday, November 3, 2011, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time) to discuss its third quarter 2011 results. To participate on the call, please dial (888) 713-4216 and reference pass code 20830563. Participants may also pre-register to obtain a unique pin number to join the live call without operator assistance by visiting the following Web site: https://www.theconferencingservice.com/prereg/key.process?key=P8ARJ6EKX
A live webcast of the call will be available on DineEquity's Web site at www.dineequity.com, and may be accessed by visiting Calls & Presentations under the site's Investor Information section. Participants should allow approximately ten minutes prior to the call's start time to visit the site and download any streaming media software needed to listen to the webcast. A telephonic replay of the call may be accessed through November 10, 2011 by dialing (888) 286-8010 and referencing pass code 21428112. An online archive of the webcast also will be available on the Investor Information section of DineEquity's Web site.
Based in Glendale, California, DineEquity, Inc., through its subsidiaries, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. With more than 3,500 restaurants combined, DineEquity is one of the largest full-service restaurant companies in the world. For more information on DineEquity, visit the Company's Web site located at www.dineequity.com.
Statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words such as "may," "will," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: the effect of general economic conditions; the Company's substantial indebtedness; risk of future impairment charges; the Company's results in any given period differing from guidance provided to the public; the highly competitive nature of the restaurant business; the Company's business strategy failing to achieve anticipated results; risks associated with the restaurant industry; shortages or interruptions in the supply or delivery of food; changing health or dietary preferences; harm to our brands' reputation; litigation; environmental liability; liability relating to employees; failure to comply with applicable laws and regulations; failure to effectively implement restaurant development plans; concentration of Applebee's franchised restaurants in a limited number of franchisees; credit risk from IHOP franchisees operating under our previous business model; termination or non-renewal of franchise agreements; franchisees breaching their franchise agreements; changes in the number and quality of franchisees; inability of franchisees to fund capital expenditures; third-party claims with respect to intellectual property assets; heavy dependence on information technology; failure to protect the integrity and security of individually identifiable information; and other factors discussed from time to time in the Company's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company's other filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof and the Company assumes no obligation to update or supplement any forward-looking statements.
This news release includes references to the Company's non-GAAP financial measures "adjusted net income available to common stockholders (adjusted EPS)," "EBITDA," and "free cash flow." "Adjusted EPS" is computed for a given period is computed by deducting from net income (loss) available to common stockholders for such period the effect of any impairment and closure charges, any gain or loss related to debt extinguishment, any intangible asset amortization, any non-cash interest expense, any debt modification costs and any gain or loss related to the disposition of assets incurred in such period. This is presented on an aggregate basis and a per share (diluted) basis. The Company defines "EBITDA" for a given period is defined as income before income taxes less interest expense, loss on retirement of debt and Series A preferred stock, depreciation and amortization, impairment and closure charges, stock-based compensation, gain/loss on sale of assets and other charge backs as defined by its credit agreement. "Free cash flow" for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable ("long-term notes receivable"), less dividends paid and capital expenditures. Management utilizes EBITDA for debt covenant purposes and free cash flow to determine the amount of cash remaining for general corporate and strategic purposes after the receipts from long-term notes receivable, and the funding of operating activities, capital expenditures and preferred dividends. Management believes this information is helpful to investors to determine the Company's adherence to debt covenants and the Company's cash available for these purposes. Adjusted EPS, EBITDA and free cash flow are supplemental non-GAAP financial measures and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with United States generally accepted accounting principles.
DINEEQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
Segment Revenues:
Franchise revenues $ 97,679 $ 92,157 $ 300,782 $ 280,851
Company restaurant sales 131,618 206,907 420,955 642,216
Rental revenues 31,163 32,210 95,003 98,329
Financing revenues 4,021 4,241 16,279 12,319
--------- --------- --------- ----------
Total segment revenues 264,481 335,515 833,019 1,033,715
--------- --------- --------- ----------
Segment Expenses:
Franchise expenses 25,006 25,298 78,656 76,163
Company restaurant expenses 113,976 177,253 363,021 551,874
Rental expenses 24,521 24,628 73,734 74,337
Financing expenses 425 763 6,001 1,234
--------- --------- --------- ----------
Total segment expenses 163,928 227,942 521,412 703,608
--------- --------- --------- ----------
Gross segment profit 100,553 107,573 311,607 330,107
General and administrative
expenses 38,712 39,594 115,152 116,994
Interest expense 32,170 42,814 101,343 131,530
Impairment and closure charges 193 1,143 26,947 3,725
Debt modification costs -- -- 4,103 --
Amortization of intangible
assets 3,075 3,077 9,225 9,230
Loss (gain) on extinguishment of
debt -- -- 7,885 (4,640)
Loss (gain) on disposition of
assets 1,176 745 (21,287) 923
--------- --------- --------- ----------
Income before income taxes 25,227 20,200 68,239 72,345
Provision for income taxes (8,702) (5,869) (21,667) (24,302)
--------- --------- --------- ----------
Net income $ 16,525 $ 14,331 $ 46,572 $ 48,043
========= ========= ========= ==========
Net income available to common
stockholders
Net income $ 16,525 $ 14,331 $ 46,572 $ 48,043
Less: Series A preferred stock
dividends -- (5,640) -- (17,100)
Less: Accretion of Series B
preferred stock (647) (612) (1,915) (1,810)
Less: Net income allocated to
unvested participating
restricted stock (359) (307) (1,212) (1,113)
--------- --------- --------- ----------
Net income available to common
stockholders $ 15,519 $ 7,772 $ 43,445 $ 28,020
========= ========= ========= ==========
Net income available to common
stockholders per share
Basic $ 0.86 $ 0.45 $ 2.43 $ 1.63
========= ========= ========= ==========
Diluted $ 0.85 $ 0.44 $ 2.38 $ 1.60
========= ========= ========= ==========
Weighted average shares
outstanding
Basic 17,968 17,227 17,912 17,168
========= ========= ========= ==========
Diluted 18,243 17,568 18,268 17,519
========= ========= ========= ==========
DINEEQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
September 30, December 31,
2011 2010
--------------- ---------------
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 53,940 $ 102,309
Restricted cash 3,221 854
Receivables, net 73,071 98,776
Inventories 10,695 10,757
Prepaid income taxes 13,763 34,094
Prepaid gift cards 25,048 27,465
Prepaid expenses 14,439 14,602
Deferred income taxes 31,367 24,301
Assets held for sale 39,972 37,944
--------------- ---------------
Total current assets 265,516 351,102
Non-current restricted cash -- 778
Restricted assets related to captive
insurance subsidiary 3,675 3,562
Long-term receivables 230,588 239,945
Property and equipment, net 524,947 612,175
Goodwill 697,470 697,470
Other intangible assets, net 825,046 835,879
Other assets, net 115,097 115,730
--------------- ---------------
Total assets $ 2,662,339 $ 2,856,641
=============== ===============
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt $ 7,420 $ 9,000
Accounts payable 29,410 32,724
Accrued employee compensation and benefits 23,748 32,846
Gift card liability 68,066 124,972
Accrued interest payable 31,763 17,482
Current maturities of capital lease and
financing obligations 15,015 16,556
Facility closure liability 20,530 --
Other accrued expenses 23,359 31,502
--------------- ---------------
Total current liabilities 219,311 265,082
Long-term debt, less current maturities 1,480,393 1,631,469
Financing obligations, less current
maturities 203,091 237,826
Capital lease obligations, less current
maturities 136,957 144,016
Deferred income taxes 384,629 375,697
Other liabilities 114,484 118,972
--------------- ---------------
Total liabilities 2,538,865 2,773,062
--------------- ---------------
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock, Series B, at
accreted value, shares: 10,000,000
authorized; 35,000 issued; September 30,
2011 - 34,900 outstanding; December 31,
2010 - 35,000 outstanding 43,850 42,055
Common stock, $.01 par value, shares:
40,000,000 authorized; September 30, 2011
- 24,669,129 issued, 18,034,083
outstanding; December 31, 2010 -
24,382,991 issued, 18,183,083 outstanding 247 243
Additional paid-in-capital 203,971 192,214
Retained earnings 168,907 124,250
Accumulated other comprehensive loss (312) (282)
Treasury stock, at cost (shares: September
30, 2011 - 6,635,046; December 31, 2010 -
6,199,908) (293,189) (274,901)
--------------- ---------------
Total stockholders' equity 123,474 83,579
--------------- ---------------
Total liabilities and stockholders' equity $ 2,662,339 $ 2,856,641
=============== ===============
DINEEQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
--------------------------------
2011 2010
--------------- ---------------
Cash flows from operating activities
Net income $ 46,572 $ 48,043
Adjustments to reconcile net income to
cash flows provided by operating
activities
Depreciation and amortization 38,599 47,594
Non-cash interest expense 4,582 31,203
Loss (gain) on extinguishment of debt 7,885 (4,640)
Impairment and closure charges 26,729 3,085
Deferred income taxes 1,866 (10,976)
Non-cash stock-based compensation expense 6,913 11,150
Tax benefit from stock-based compensation 6,085 1,407
Excess tax benefit from stock options
exercised (5,713) (2,211)
(Gain) loss on disposition of assets (21,287) 923
Other (217) (1,847)
Changes in operating assets and
liabilities
Receivables 25,360 30,930
Inventories (1,202) 226
Prepaid expenses 2,449 2,649
Current income tax receivables and
payables 21,519 7,253
Accounts payable (3,992) (4,699)
Accrued employee compensation and benefits (9,099) (3,460)
Gift card liability (56,906) (49,742)
Other accrued expenses 4,928 (9,384)
--------------- ---------------
Cash flows provided by operating
activities 95,071 97,504
--------------- ---------------
Cash flows from investing activities
Additions to property and equipment (20,829) (11,421)
Proceeds from sale of property and
equipment and assets held for sale 60,188 1,975
Principal receipts from notes, equipment
contracts and other long-term receivables 9,922 14,939
Other (558) 1,842
--------------- ---------------
Cash flows provided by investing
activities 48,723 7,335
--------------- ---------------
Cash flows from financing activities
Proceeds from issuance of long-term debt 25,000 --
Repayment of long-term debt (178,437) (80,658)
Principal payments on capital lease and
financing obligations (10,296) (12,191)
Dividends paid -- (17,100)
Purchase of common stock (21,170) --
Payment of debt modification and issuance
costs (12,307) (1,008)
Repurchase of restricted stock (4,802) (1,029)
Proceeds from stock options exercised 6,326 2,487
Excess tax benefit from stock options
exercised 5,713 2,211
Change in restricted cash (1,590) 25,377
Other (600) (12)
--------------- ---------------
Cash flows used in financing activities (192,163) (81,923)
--------------- ---------------
Net change in cash and cash equivalents $ (48,369) $ 22,916
Cash and cash equivalents at beginning of
period 102,309 82,314
--------------- ---------------
Cash and cash equivalents at end of period 53,940 105,230
=============== ===============
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Reconciliation of (i) net income available to common stockholders to (ii)
net income available to common stockholders excluding impairment and closure
charges, loss (gain) on extinguishment of debt, amortization of intangible
assets, non-cash interest expense, debt modification costs and loss (gain)
on disposition of assets, and related per share data:
Three Months Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
Net income available to common
stockholders, as reported $ 15,519 $ 7,772 $ 43,445 $ 28,020
Impairment and closure charges 168 899 26,729 3,085
Loss (gain) on extinguishment of
debt -- -- 7,885 (4,640)
Amortization of intangible assets 3,075 3,077 9,225 9,230
Non-cash interest expense 1,594 10,582 4,582 31,203
Debt modification costs -- -- 4,103 --
Loss (gain) on disposition of assets 1,176 745 (21,287) 923
Income tax provision (2,393) (6,091) (12,432) (15,841)
Net income allocated to unvested
participating restricted stock (82) (351) (511) (916)
-------- -------- -------- --------
Net income available to common
stockholders, as adjusted $ 19,057 $ 16,633 $ 61,739 $ 51,064
======== ======== ======== ========
Diluted net income available to
common stockholders per share:
Net income available to common
stockholders, as reported $ 0.85 $ 0.44 $ 2.38 $ 1.60
Impairment and closure charges 0.01 0.03 0.85 0.11
Loss (gain) on extinguishment of
debt -- -- 0.25 (0.16)
Amortization of intangible assets 0.10 0.11 0.29 0.32
Non-cash interest expense 0.05 0.36 0.14 1.07
Debt modification costs -- -- 0.13 --
Loss (gain) on disposition of assets 0.04 0.02 (0.68) 0.03
Net income allocated to unvested
participating restricted stock -- (0.02) (0.03) (0.05)
Change due to increase in net income (0.01) 0.01 0.04 --
-------- -------- -------- --------
Diluted net income available to
common stockholders per share, as
adjusted $ 1.04 $ 0.95 $ 3.37 $ 2.92
======== ======== ======== ========
Numerator for basic EPS-income
available to common stockholders,
as adjusted $ 19,057 $ 16,633 $ 61,739 $ 51,064
Effect of unvested participating
restricted stock using the two-
class method 21 13 87 40
Effect of dilutive securities:
Stock options -- -- -- --
Convertible Series B preferred stock 647 -- 1,915 --
-------- -------- -------- --------
Numerator for diluted EPS-income
available to common stockholders
after assumed conversions, as
adjusted $ 19,725 $ 16,646 $ 63,741 $ 51,104
======== ======== ======== ========
Denominator for basic EPS-weighted-
average shares 17,968 17,227 17,912 17,168
Effect of dilutive securities:
Stock options 275 341 356 351
Convertible Series B preferred stock 634 -- 634 --
-------- -------- -------- --------
Denominator for diluted EPS-
weighted-average shares and assumed
conversions 18,877 17,568 18,902 17,519
======== ======== ======== ========
NON-GAAP FINANCIAL MEASURES
(In thousands)
(Unaudited)
Reconciliation of U.S. GAAP income (loss) before income taxes to EBITDA:
Nine Months Twelve Months
Ended Ended
September 30, 2011
--------------------------------
U.S. GAAP income (loss) before income
taxes $ 68,239 $ (16,187)
Interest charges 115,457 160,206
Loss on retirement of debt and Series A
Preferred Stock 7,885 119,528
Depreciation and amortization 38,599 52,432
Non-cash stock-based compensation 6,913 8,848
Impairment and closure charges 26,726 27,122
Other 6,593 6,689
Gain on sale of assets (21,287) (35,782)
--------------- ---------------
EBITDA $ 249,125 $ 322,856
=============== ===============
Reconciliation of the Company's cash provided by operating activities to free cash flow:
Nine Months Ended
September 30,
2011 2010
--------------- ---------------
Cash flows provided by operating activities$ 95,071 $ 97,504
Principal receipts from notes, equipment
contracts and other long-term receivables 9,922 14,939
Dividends paid -- (17,100)
Additions to property and equipment (20,829) (11,421)
--------------- ---------------
Free cash flow $ 84,164 $ 83,922
=============== ===============
Restaurant Data The following table sets forth, for the three-month and nine-month periods ended September 30, 2011 and 2010, the number of effective restaurants in the Applebee's and IHOP systems and information regarding the percentage change in sales at those restaurants compared to the same periods in the prior year. "Effective restaurants" are the number of restaurants in a given period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all effective restaurants in the IHOP and Applebee's systems, which includes restaurants owned by the Company, as well as those owned by franchisees and area licensees. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. However, we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales, as well as rental payments under leases that are usually based on a percentage of their sales. Management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations.
Three Months Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
--------- --------- --------- ---------
Applebee's Restaurant Data (unaudited)
Effective restaurants(a)
Franchise 1,766 1,607 1,757 1,606
Company 243 393 253 394
--------- --------- --------- ---------
Total 2,009 2,000 2,010 2,000
========= ========= ========= =========
System-wide(b)
Sales percentage change(c) (0.1%) 3.4% 2.6% (0.9)%
Domestic same-restaurant
sales percentage change(d) (0.3%) 3.3% 2.3% (0.5)%
Franchise(b)(e)(g)
Sales percentage change(c) (1.3%) 4.1% 1.8% (0.2)%
Domestic same-restaurant
sales percentage change(d) (0.4%) 3.8% 2.5% (0.2)%
Average weekly domestic unit
sales (in thousands) $ 44.2 $ 44.8 $ 47.0 $ 46.2
Company(f)(g)
Sales percentage change(c) 1.4% 0.4% 1.0% (3.9)%
Same-restaurant sales
percentage change(d) 0.1% 1.2% 0.5% (1.7)%
Average weekly domestic unit
sales (in thousands) $ 40.2 $ 39.7 $ 41.3 $ 40.9
IHOP Restaurant Data
Effective restaurants(a)
Franchise 1,347 1,297 1,339 1,289
Company 10 10 10 11
Area license 163 164 163 164
--------- --------- --------- ---------
Total 1,520 1,471 1,512 1,464
========= ========= ========= =========
System-wide(b)
Sales percentage change(c) 2.6% 2.9% 1.7% 3.4%
Domestic same-restaurant
sales percentage change(d) (1.5)% 0.1% (2.4)% (0.4)%
Franchise(b)(e)(g)
Sales percentage change(c) 2.5% 3.0% 1.6% 3.5%
Domestic same-restaurant
sales percentage change(d) (1.5)% 0.1% (2.4)% (0.4)%
Average weekly domestic unit
sales (in thousands) $ 34.4 $ 34.9 $ 34.6 $ 35.3
Company(f)(g) n.m. n.m. n.m. n.m.
Area License(e)
Sales percentage change(c) 4.4% 2.2% 2.5% 3.3%
(a) "Effective restaurants" are the number of restaurants in a given fiscal period adjusted to account for restaurants open for only a portion of the period. Information is presented for all effective restaurants in the IHOP and Applebee's systems, which includes restaurants owned by the Company as well as those owned by franchisees and area licensees.
(b) "System-wide" sales are retail sales at IHOP and Applebee's restaurants operated by franchisees and IHOP restaurants operated by area licensees, as reported to the Company, in addition to retail sales at company-operated restaurants. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company.
(c) "Sales percentage change" reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior fiscal period for all restaurants in that category.
(d) "Domestic same-restaurant sales percentage change" reflects the percentage change in sales, in any given fiscal period compared to the same weeks in the prior year, for restaurants that have been operated throughout both fiscal periods that are being compared and have been open for at least 18 months. Because of new unit openings and restaurant closures, the restaurants open throughout both fiscal periods being compared may be different from period to period. Same-restaurant sales percentage change does not include data on IHOP restaurants located in Florida.
(e)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
(In millions)
Reported sales (unaudited) 2011 2010 2011 2010
--------- --------- --------- ---------
Applebee's franchise restaurant
sales $ 932.6 $ 852.4 $ 2,957.2 $ 2,639.8
IHOP franchise restaurant sales $ 602.7 $ 588.1 $ 1,805.5 $ 1,777.0
IHOP area license restaurant
sales $ 55.1 $ 52.8 $ 172.0 $ 167.8
(f) Sales percentage change and same-restaurant sales percentage change for IHOP company-operated restaurants are not meaningful ("n.m.") due to the relatively small number and test-market nature of the restaurants, along with the periodic inclusion of restaurants reacquired from franchisees that are temporarily operated by the Company.
(g) The sales percentage change for the three months and nine months ended September 30, 2011 for Applebee's franchise and company-operated restaurants was impacted by the franchising of 149 company-operated restaurants (83 in the fourth quarter of 2010, 65 in the first quarter of 2011 and one in the third quarter of 2011).
DINEEQUITY, INC. AND SUBSIDIARIES
RESTAURANT DATA
The following table summarizes our restaurant development activity:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2011 2010 2011 2010
---------- ---------- ---------- ----------
(unaudited)
Applebee's Restaurant
Development Activity
Beginning of period 2,012 2,001 2,010 2,008
New openings
Franchisee-developed 4 3 12 11
---------- ---------- ---------- ----------
Total new openings 4 3 12 11
---------- ---------- ---------- ----------
Closings
Company -- (1) -- (7)
Franchise (6) (4) (12) (13)
---------- ---------- ---------- ----------
Total closings (6) (5) (12) (20)
---------- ---------- ---------- ----------
End of period 2,010 1,999 2,010 1,999
========== ========== ========== ==========
Summary-end of period
Franchise 1,767 1,607 1,767 1,607
Company 243 392 243 392
---------- ---------- ---------- ----------
Total 2,010 1,999 2,010 1,999
========== ========== ========== ==========
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2011 2010 2011 2010
---------- ---------- ---------- ----------
(unaudited)
IHOP Restaurant Development
Activity
Beginning of period 1,522 1,476 1,504 1,456
New openings
Franchisee-developed 13 9 36 35
Area license 1 1 3 3
---------- ---------- ---------- ----------
Total new openings 14 10 39 38
---------- ---------- ---------- ----------
Closings
Company -- -- -- (2)
Franchise -- (3) (7) (6)
Area license (4) -- (4) (3)
---------- ---------- ---------- ----------
Total closings (4) (3) (11) (11)
---------- ---------- ---------- ----------
End of period 1,532 1,483 1,532 1,483
========== ========== ========== ==========
Summary-end of period
Franchise 1,356 1,309 1,356 1,309
Company 13 10 13 10
Area license 163 164 163 164
---------- ---------- ---------- ----------
Total 1,532 1,483 1,532 1,483
========== ========== ========== ==========
Based in Glendale, California, Dine Brands Global, Inc. (formerly DineEquity, Inc.) (NYSE: DIN), through its subsidiaries, franchises restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands.