DineEquity, which owns Kansas City-based Applebee’s Neighborhood Grill & Bar, on Wednesday reported a fourth-quarter loss of $22.4 million after reporting a profit in the same period a year earlier.
The Glendale, Calif., company said its loss amounted to $1.18 per share.
DineEquity attributed the quarterly loss to higher expenses and a debt refinancing. Those costs were partly offset by lower income tax expenses, a decline in interest expenses and higher profits in its restaurant segments.
Earnings, after adjusting for one-time gains and costs, came to $1.16 per share. The results beat Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was $1.14 per share.
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DineEquity, which also owns IHOP restaurants, posted revenue of $164.4 million in the period, up from $157.9 million in the 2013 fourth quarter. Analysts expected $157.1 million, according to Zacks.
For the year, the company reported a profit of $36.5 million on revenue of $655 million, compared with a profit of $72 million on revenue of $640.5 million in 2013.
Julia Stewart, DineEquity’s chairman and chief executive, said there was “meaningful progress” in boosting sales at Applebee’s and IHOP, as the brands finished the year “with great momentum.”