HomeFinancial MarketsDine Brands CEO Expects Return of Customers Amid Lower Gas Price

Dine Brands CEO Expects Return of Customers Amid Lower Gas Price

The drop in gasoline prices across the U.S. might lead to a return of customers to casual diners. That is at least what John Peyton, CEO of Applebee’s and IHOP parent company Dine Brands, predicted in a recent chat with Yahoo Finance.

Dine Brands released its second-quarter results on Tuesday, revealing a slight uptick in same-store sales for both of its leading brands. However, it still wasn’t enough to beat the analyst estimates. Applebee’s same-store sales were up 1.8% versus 2.2% estimated, while IHOP had a 3.6% increase compared to 3.9% expected.

But according to Peyton, the lower gas prices are making the company “cautiously optimistic” about the remainder of the year. The current national average, according to AAA, is $4.033 compared to the $5.03 average in June. 

“We know that gas prices do correlate — we do believe that will encourage some of those lower income guests to return to IHOP more frequently and Applebee’s more frequently than they have,” said Peyton.

Dine Brands also reported $237.8 million in revenue compared to an estimated $237.3 million and $1.65 diluted earnings per share vs. $1.64 estimated. Its stock (DIN) is down 1% and closed at $71.56 on Tuesday. The company’s shares are down 7.20% year to date.

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