Restaurant operator Applebee’s International has reported lower second-quarter profit as higher restaurant expenses outweighed revenue growth.

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Applebee’s reported earnings of $27.5m, compared with $28.1m, in the year-earlier period. Revenue for the quarter rose to $306.6m from $281.9m.


Same-store sales, a widely used gauge measuring sales in restaurants open at least one year, rose 1.6 percent in the quarter. July comparable sales rose 1.6 percent, comprising a 2.3 percent rise in franchised restaurants, and a 0.3 percent decline at company-owned restaurants. Applebee’s operated 462 company-owned and 1,260 franchised restaurants at the end of the quarter.


Applebee’s said it was “disappointed” in sales trends over the last few months, but added it was “confident” it would see improved sales trends for the rest of the year.

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