DineEquity, Inc. (DIN) has reported a 43.77 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $14.36 million, or $0.79 a share in the quarter, compared with $25.54 million, or $1.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.56 million, or $1.22 a share compared with $29.06 million or $1.58 a share, a year ago.
Revenue during the quarter dropped 4.49 percent to $156.17 million from $163.52 million in the previous year period. Gross margin for the quarter contracted 157 basis points over the previous year period to 59.23 percent. Total expenses were 74.65 percent of quarterly revenues, up from 65.47 percent for the same period last year. That has resulted in a contraction of 919 basis points in operating margin to 25.35 percent.
Operating income for the quarter was $39.59 million, compared with $56.47 million in the previous year period.
"The stabilization work on the Applebee's business is ongoing. We have made strategic changes to our organizational structure to start developing talent through more brand-specific expertise. We are also continuing to leverage and build stronger collaborative working relationships with franchisees. We recently announced the appointment of John Cywinski, a highly-regarded industry veteran, as President of Applebee's. Additionally, we recently selected a new advertising agency of record to develop campaigns that will resonate with Applebee’s guests on a national scale. Further, we are developing new culinary initiatives to enhance brand relevance," said Richard J. Dahl, chairman and interim chief executive officer of DineEquity, Inc.
Operating cash flow drops significantly
DineEquity, Inc. has generated cash of $19.54 million from operating activities during the quarter, down 47.88 percent or $ 17.95 million, when compared with the last year period.
Cash flow from investing activities was $1.82 million for the quarter, down 44.30 percent or $1.44 million, when compared with the last year period.
The company has spent $31.59 million cash to carry out financing activities during the quarter as against cash outgo of $40.81 million in the last year period.
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