California-based restaurant operator DineEquity, Inc. DIN posted disappointing first quarter 2016 results with earnings and revenues missing the Zacks Consensus Estimate. Earnings and Revenue Discussion Adjusted earnings of $1.58 per share missed the Zacks Consensus Estimate of $1.68 by 5.95%. Earnings also declined from $1.64 in the year-ago quarter owing to an impact on gross profit due to the sale of the Applebee's company-operated restaurants in the third quarter of 2015. Total revenue of $164 million declined 6.7% year over year and missed the Zacks Consensus Estimate of $166 million by 1.46 %. Behind the Headline Numbers The company operates under the Applebee's Neighborhood Grill & Bar and IHOP brands. IHOP's domestic system-wide comps increased 1.5% backed by menu innovation strategy and breakfast inspired food offered throughout the day. Comps also compared favorably with the prior quarter comps growth of 1.4%. Due to the lack of adequate initiatives to boost sales, Applebee's Neighborhood Grill & Bar domestic system-wide comps declined 3.7% as against prior quarter comps decline of 2.5%. The company believes that efforts to improve the performance of the brand have not been enough to date. Applebee casual dining restaurants are facing stiff competition from fast-food and quick service restaurants. The company is taking steps to revitalize the Applebee brand. It is focusing on food and menu innovation, guest satisfaction and marketing to improve comps. 2016 Outlook IHOP's domestic system-wide comps are expected to range between 1% and 4% in 2016. Applebee's domestic system-wide comps are expected in a range of negative 2% to positive 2%. Capital expenditures are projected to be approximately $8 million. General and administrative expenses are projected to range between $154 million and $158 million, including non-recurring costs related to restaurant support center consolidation. DineEquity presently has a Zacks Rank #4 (Sell). Stocks to Consider Better-ranked stocks in the same industry include Diversified Restaurant Holdings, Inc. SAUC, Dave & Buster's Entertainment, Inc. PLAY and Darden Restaurants, Inc. DRI. All these stocks carry a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DARDEN RESTRNT (DRI): Free Stock Analysis Report DINEEQUITY INC (DIN): Free Stock Analysis Report DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report DIVERSIFIED RST (SAUC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research