Applebee's Profit Up As Sales Rise

OVERLAND PARK, Kan. - Applebee's International Inc.'s fourth-quarter net income rose 14 percent, as average sales increased 4.6 percent.

The Overland Park-based restaurant chain Wednesday said it earned $23.2 million, or 41 cents a share, in the fourth quarter, up from the previous year's $20.3 million, or 36 cents a share.

Earnings for the latest quarter matched the average estimate in a Thomson First Call survey of analysts.

Last month, Applebee's forecast fourth-quarter earnings of 41 cents a share, a penny below the average analyst estimate at the time.

The company said its general and administrative expenses were higher than expected for the quarter, as an increase in its stock price led to higher stock-based compensation expense.

Total revenue for the fourth quarter rose 15 percent to $248.2 million from $215.7 million.

Sales at company and franchise restaurants open at least a year increased 5.2 percent and 4.4 percent, respectively.

For full-year 2003, net income rose to $93.6 million, or $1.64 a share, from $83 million, or $1.46 a share, in 2002.

Sales climbed to $990.1 million from $829.5 million.

Shares of Applebee's closed at $38.10, down 35 cents, or 0.9 percent, on the Nasdaq Stock Market.