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In a Form 8-K, Dine Brands Global Inc. unveiled that up to 100 underperforming IHOP restaurants in the US could be shut down over the next six months given the unprecedented repercussions triggered by Covid-19 indoor-dining restrictions. The Company also said that its sales for the third quarter ended in September dropped 19% to $176.6 million, despite gains from delivery, online and takeout orders. As of September 30, nearly 1,595 of 1,614 Applebee’s restaurants and 1,425 of 1,683 IHOP restaurants in the US were open for in-restaurant dining, the Company said. “We’re evaluating only greatly underperforming restaurants that we currently believe are not viable coming out of the pandemic,” IHOP President Jay Johns says. Dine Brands reported a third-quarter profit of $10 million, or 60 cents a share, compared with $23.9 million, or $1.36 a share, in the comparable quarter last year.
US same-restaurant sales retreated 13.3% at Applebee’s and 30.2% at IHOP for the quarter. The Company said preliminary sales for October so far fell 1.9% at Applebee’s and 24% at IHOP.
For the current quarter, the Company expects general and administrative expenses of about $45 million, including noncash stock-based compensation expense and depreciation of about $7 million.
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