Dine Brands Global has reported a net income of $18.48m for the third quarter of 2023, a decline of 11.7% compared to $20.95m a year previously.

The parent company of Applebee’s Neighborhood Grill & Bar, IHOP and Fuzzy’s Taco Shop attributed the decline in profit to higher interest rates and general and administrative expenses.

Adjusted net income available to common stockholders was $22.3m, compared to $25.6m for the third quarter of 2022.

During the quarter, the company’s total revenues declined to $202.6m from $233.2m a year previously.

The company stated that the decline was due to the refranchising of the 69 company-operated Applebee’s units in October 2022 and the negative comparable same-restaurant sales growth at Applebee’s.

Dine Brands Global’s consolidated adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] for the quarter was $60.6m, compared to $63.6m a year previously.

The development activity by Applebee’s and IHOP franchisees in Q3 2023 resulted in 14 new restaurant openings and the closure of 19 restaurants.

The total cost of revenues for the quarter was $105.28m, down from $138.89m a year previously.

In the quarter that concluded on 30 September 2023, the company bought back around $6m worth of common shares.

The company noted that its domestic development activity target for Applebee’s franchisees is between 25 and 35 net fewer restaurants.

Due to continued permitting and construction delays, the company anticipates that IHOP franchisees and area licensees will engage in domestic development activities with 20 to 30 net new openings as against 45 to 60 net new openings previously.