DIN
DIN reported this morning. Was disappointed with the number of $1.33. But was happy they reiterated there guidance. I still think they will do about $6.25-$6.50 this year which is dirt cheap for a restaurant stock (To be fair I did make one mistake when I orginally thought they would earn $6.75-$7.25, I originally thought the added Stock based compensation to the adjusted earnings numbers, but they don't. They keep gradually knocking the share count down slightly quarter after quarter. And the divy is in the high 4's so you get paid while you wait. Lets face it SBC was abnormally high this quarter as well so that cost EPS .10-.15 more than normal as well.
However the main question is why do you feel confident they will hit the numbers after q1 disappointment?
That question is very fair by the way. Same store sales weren't pretty this quarter to say the least. First of all they had a very tough comp last year as SSS were up 6.1% Last Year for Applebee's and 8.7% for IHOP for q1. Hence the comps were difficult for this quarter to say the least, all other quarter are much easier. Secondly they said there number improved every month in the quarter and continuted improving sequentially into the q2. So that is a plus. The fact that they said q2 seemed to be going well so far, and this quarter got better as the quarter went on is what is giving me confidence and lets face it is not priced for perfection either here so that is a plus. So I'm sticking with DIN. All is just my opinion, and I could always be wrong though.
