Better bottom lines were reported yesterday by three Washington-based business - Quality Inns International, Garfinckel, Brooks Brothers, Miller & Rhoads, and peoples Drugs Stores.

Garfinckel Corp. said its third-quarter earnings increased 41 per cent and nine-month profits gained 36 per cent over the previous year.

Peoples' operating earning for the year were 20 per cent ahead of the combined previous year profits of Peoples and Lane drug, which it acquired last year

Quality Inns said its domestic motel operations turned around from a $731,000 loss to $1.012 million profit in the year just ended. Its total loss for the year was reduced 16 per cent, from $1.36 million.

The model chain reported a profit of $632.000 or (23 cents a share) for the fourth quarter, up from$144,000 (5 cents) a year ago as revenues in-creased from $14.4 to $14.7 million.

Nearly half the annual loss - $551,000-resulted from converting revenues from European operations to dollars, said James H. Rempe, executive vice president and secretary. He termedthe translation "a paper loss" caused by the accounting forthe company's foreign operations.

Quality Inns said revenue for the year ended Aug. 31 decreased from $54 million to $52.2 million, due to the saleo fs one motel properties and the scaling down of an interior decorating subsidiary, the Revere Group.

President Joseph W. McCarthey attributed the turnaround in U.S. operations to a strengthening of the travel industry, reduced headquarters costs and cutbacks in the Revere operations.

Peoples Drug reported net income of $4.5 million ($1.25 a share) for the year ended Sept. 24. That compares with $3.78 million ($1.03) on an adjusted pro-forma basis - assuming that the marger of Peoples and Lane Drug had occurred at the beginning of the previous fiscal year.

Sales for fiscal 1977 increased from $344 million to $366 million on that basis. Comparisons with previous years are complicated, Peoples' executives noted, not only by the merger, but also by changes in the company's fiscal year.

Garfinckel reported earnings of $3.22 million or (75 cents a share) for the 13 weeks through Oct. 29, an increase of 41 per cent from the $2,185,000 (53 cents) of the previous year. Sales for the period climbed 15 per cent, from $71.5 million to $82 million.

The quarterly figures included six weeks of sales for the Ann Taylor chain, which was acquired Sept. 21, and do not yet count the results of Catherine's Stout Shoppes, which the company is also acquiring.

For the none months, the company's 120 stores earned $4.4 million ($1.01) a 36 per cent gain over last year's $3.26 million (75 cents). Sales were $213 million compared with $197.