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DineEquity CEO Julia Stewart on the impact of Hurricane Sandy and the company’s third-quarter results and outlook.
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New York has been like a ghost town for the past couple days which is tough on the restaurants -- rely on Manhattan's heavy foot traffic but.
It's gonna take awhile for such a hit to show -- on the books is certainly didn't show on today's excellent quarterly reports.
For dying equity -- the owner of Applebee's and I hop restaurant brands.
They reported quarterly profit today that beat Wall Street extract expectations.
But how will their sales hold up to super storm Sandy's -- joining us now for first on fox.
Business is Julie Stewart.
DineEquity CEO Juliette we'll talk about your stock in just a moment I know you're anxious to could yet great numbers but first of all the storm.
Any of your -- -- report any damage due to the storm.
You know it's too early to tell at this point as of yesterday we had about 450.
Restaurants that were closed.
Today we're down -- -- just under 200 restaurants and in the first and most important thing is the safety of our employees.
And of our guests but as we reopened there's a pent up demand because there isn't much in the area -- open so.
They are re -- now -- and I guess the key question is how to get the supplies it.
You know it depends on where you are whether trucks can get -- whether there's electricity but whenever those things meet and it's possible and certainly the safety of our employees is is up most but if that can all come together.
We are reopening and were re opening to incredible crowds of people because.
In many cases we may be the either the only thing in town open or people are getting a good hot meal that don't have electricity at their homes.
How they are almost all franchises but it does does the company main -- try to help them out as best as he -- and if so how.
So there's a couple of different things were 99%.
Franchised so we really is the franchisees and we put a safety up plan and an emergency plan to place.
With all of New England about a week ago and that is in full swing.
Working -- every which way we're doing everything we -- with first responders in many cases we may be feeding the first responders but.
We've had tremendous support from the franchise community and thus far.
We've been able to work the plan very successful and are.
Let's talk about your stock right now because right now you were -- having you beat expectations you're the hottest stock at least in the restaurant business right now.
How do you get even hotter what do you do some people said it may be Asian start issuing dividends -- you thought about doing something like that.
You know what -- we talked about today on the call with the investment community is we said that let's get through these fiscal 2012.
Year and in 2013.
We come back.
And talk more about our capital structure and strategy for the longer term.
At least in the short term it's really paying down debt but we we did say today we come back in 2013.
And look at the capital structure and you announced we might be able to to do but.
You know on our business Harris it's each and every day how do you steal market share and and do more for the guests and that's really the focus -- -- term what about the economy are you concerned -- some people even see recession comes.
-- that we've been talking about this for a couple years and I've been quoted several times as saying it's lumpy and bumpy and I think it will continue to be lumpy and bumpy.
We'll re really focus on it DineEquity is the things we can control like I can't control the economy should but I can't control but can control a great meal at a great price.
With great service and that's really what we're focused on -- Both brands you know and -- -- -- you can't neutralize just -- Zain tackle loans a lot of your franchise here in The New Yorker I'm sure you know -- He what's keeping him up at night is Obama -- trying to figure out how he's gonna deal with obamacare and his employees -- -- -- may have to put a lot of full time employees on part time.
Well we just finished our franchise convention -- -- Applebee's and I hop and we spent a fair amount of time.
With third party consultants and others to really help the franchisees.
Interpret the law take a look at the business.
And really think about what they might be able to do in 2013.
As you now it doesn't take -- until January 2014.
So this look back period which is really all of 2013.
Becomes very important for our franchisees and each -- -- Has a different set of circumstances and has to think about it differently.
And that's what we're really trying to provide them is expertise and a different way of thinking about it but no real decisions have been made that we must have a plan today.
And a plan B for that.
Earlier we got to make this quick which -- almost out of time but -- very close -- -- I heard that you were once and I -- server when you're in your teens.
It hasn't to -- -- that great recently how do you get that cook and again.
You know we've had a -- incredible amount of success that I happen I have every confidence we'll go back to that again.
We've talked at length about our plan to get us back -- we need to be an at the forefront of that is the real focus on the menu to streamline it.
Make it easy for guests to look at and read and frankly.
Reinvigorate.
With new innovative creative items and that's exactly what we're doing.
