GO
Loading...

Quite A Hop For IHOP

Wednesday, 13 May 2009 | 6:18 PM ET

Dineequity, the owner of iHop and Applebee’s, has soared a whopping 133% since the beginning of the year. What’s going on?

Based in Glendale, Calif., DineEquity and its franchisees own or operate almost 3,400 restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands.

When the firm reported quarterly earnings at the end of April, they revealed profits almost tripled with the results largely due to cost controls and higher sales at its IHOP locations.

  Price   Change %Change
DIN
---

Sounds impressive. We were so intrigued we invited CEO Julia Stewart to join us on Fast Money.

She explained that the strength comes from the power of Dineequity’s brands. “People love their IHOP and Applebee’s,” she says. “And people want to eat out,” regardless of the economy. They choose Dineequity restaurants because they’re not terribly expensive -- prices are affordable.

Despite the strategy none of the Fast Money traders could be convinced to recommend the stock as a buy.

And J.P. Morgan restaurant analyst Steven Rees said in a client note that he remained cautious on the company's long-term outlook.

Setting the Record Straight
New perspective on the run on stocks, with the Fast Money traders and Julia Stewart, DinEquity chairman & CEO.

Want to know more? Check out our entire interview with Julia Stewart. Watch the video now.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On May 13th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (F), (WFC), (HRS), (TGT), (WFC), (SKF), (SDS); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (BX), (EEM), (FXI), (PBR), (TSL), (TSO); Seymour Is Short (NUE); Cortes Owns The Yen; Cortes Owns (GS)

GE Is The Parent Company Of NBC Universal and CNBC Is A Subsidiary Of NBC


CNBC.com with wires

  Price   Change %Change
DIN
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report