A new announcement from DineEquity Inc (NYSE:DIN) has IHOP closing up to 25 locations in 2017.
This decision will have IHOP closing between 20 and 25 of its store locations this year. The company was previously only planning to close 18 locations in 2017. DIN has yet to announce details on the locations that will be closing.
Despite plans that have IHOP closing some locations in 2017, it will also be opening new locations. This includes having the breakfast chain open between 80 and 95 new locations this year. The company was previously expecting to open between 75 and 90 stores in 2017.
“I am optimistic about the growth in both effective franchise restaurants and system-wide sales,” Richard Dahl, Chairman and interim CEO of DineEquity Inc, said in a statement. “IHOP is currently rolling out initiatives to address the convenience needs of our guests, which are inclusive of online ordering as well as accelerating tests for delivery and development of an IHOP mobile application.”
It isn’t just IHOP closing locations in 2017. DineEquity Inc is also planning to close down up to 135 Applebee’s locations. The company is planning to add between 20 and 30 new Applebee’s locations in 2017.
News of Applebee’s and IHOP closing stores came in DineEquity Inc’s earnings report for the second quarter of 2017. This had the company reporting earnings per share of $1.30 on revenue of $155.20 million. Wall Street was expecting DIN to report earnings per share of $1.17 on revenue of $155.33 million for the quarter.
DIN stock was up 1% as of noon Friday, but is down 49% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.