Posted on Wednesday, September 7th, 2011 | In Current Market News, Stocks to Watch
DineEquity Inc. (DIN) recently announced the appointment of Tom Emrey as its chief financial officer (CFO), effective September 12. Emrey succeeds John F. Tierney, who will continue for some more time to facilitate a seamless transition. The reason behind Tierney’s departure, however, was not disclosed.
Emrey was the executive vice president and chief operating officer at Universal Studios Home Entertainment for the last four years. Universal Studios Home Entertainment is a subsidiary of NBCUniversal, one of the world's leading media and entertainment companies.
With more than 25 years of financial experience, Emrey can easily be tagged a veteran in consumer businesses. Prior to his chief operating responsibility, he was the CFO at Universal Studios Home Entertainment.
A number of senior finance positions at Nestlé USA, several years with Silgan Containers Corporation as corporate controller, director of financial reporting and director of internal audit as well the inception of his career as an auditor in Ernst & Young vouch for his expertise.
In the second quarter of 2011, DineEquity's earnings missed our estimate but were in line with the prior-year quarter earnings. This parent company of Applebee's and IHOP also recorded a 21.1% plunge in total revenue to $268.3 million. On the positive front, the company has been paying down its debt and sold some company-operated Applebee's restaurants to ensure steady cash flow.
Management is hopeful that Emrey’s experience and expertise will add value and drive DineEquity’s growth and profitability ahead. However, the transition is still at its early stage, keeping us cautious until there is further evidence of successful execution. DineEquity currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are maintaining our long-term Neutral recommendation on the stock.
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