Dine Brands (DIN) CEO John Peyton says that as the economy is passing through a difficult period, he feels customers could use a little help.
To lead by example, he says Dine Brand’s restaurant chain Applebee’s is offering a special promotion, which will give customers 12 shrimp for $1 with the purchase of a steak.
Another Dine Brand’s brand, IHOP has been offering its own promotions to attract battered consumers, offering customers 2 eggs, 2 meat portions, and two pancakes for only $5.
In an interview Payton said, “That’s the kind of value-add promotion that our guests need right now. It’s tough times.”
Given the sky high inflation and its effects on the cost of living, Peyton said he believes the promotions will remain in effect through the end of the year, especially since the efforts appear to be driving major traffic to the brands.
On Wednesday, Dine Brands reported that same store sales in Applebee’s and IHOP for the third quarter were up 3.8% and 1.9% respectively, as adjusted operating profits were also up slightly year over year.
The report also showed, net sales beat expectations, coming in at $232.2 million vs a $228.8 million estimate. Adjusted earnings per share came in at $1.66, beating the $1.30 estimate.
As of the market close Wednesday, the stock was up slightly. The gains were slightly reduced due to the guidance in the report, which narrowed the full-year adjusted operating profit prediction from $235-$250 million to $243-$248 million. Adjusted operating profits were predicted to be $235-$250 million.
Peyton noted, “The environment is tough and so we really lean into the love that people have for our brands and the promotions will continue. But I should also say that we’re working on things that drive the longer term. We’re very focused on our consumer and how they’re feeling right now.”
