With annual revenues of $605 million, Dine Brands Global (DIN), based in Glendale, Ca., owns and franchises restaurants such as Applebees and IHOP; it has 3,722 restaurants, notes Leo Fasciocco, breakout stock specialist and editor of Ticker Tape Digest.
DIN said net fell to $1.47 a share from $3.82 a share a year ago, which included a benefit related to tax reform. Excluding non-recurring items, adjusted earnings per share rose to $1.70 from 48 cents. It said that beat consensus estimates of $1.57.
Total revenue increased to $214.2 million from $176.7 million. That topped consensus estimates of $197 million. The company expects 2019 same-store sales growth of 2% to 4% for both Applebee's and IHOP restaurant chains.
The company has made several forecasts for the year. Currently, the Street has been predicting a 34% leap in this year's net to $7.02 a share. Just two analysts follow the stock. Net for the first quarter is expected to surge 66% to $1.84 a share from the $1.11 the year before.
The company also raised its quarterly dividend to 69 cents a share from 63 cents a share. It also replaced its current share repurchase program with a new $200 million program.
The long-term chart shows the stock climbing from $41 back in 2012 to an all-time high of $114.23 by early 2015. The stock then took a dive down to $36 by 2017. It has since made a strong come back getting to $99.
The stock has broken out to the upside following its better-than-expected earnings. The stock gapped higher to clear its breakpoint line.
The handle part of the base is brief and a bit below the breakpoint line. The strong volume makes this a blow out type breakout. It will be important to see a follow-through move. The stock's momentum indicator is strongly bullish.
