DineEquity Inc., which has been cutting costs to pay down debt since acquiring the Applebee’s restaurant chain, reported better-than-expected fourth quarter results on Wednesday.

The Glendale parent of the IHOP and Applebee’s chains reported a fourth-quarter net loss of almost $137 million (-$8.15 per share) compared with a loss of $16 million (-94 cents) a year earlier. Total revenue rose 66 percent to almost $356 million, largely from the addition of Applebee’s, which was acquired in late 2007.

Excluding charges related to write-downs of Applebee’s goodwill and assets, the company had adjusted profit of 34 cents a share. Analysts polled by Reuters Estimates had expected an adjusted loss of 6 cents a share.

IHOP bought Applebee’s in a $2 billion leveraged buyout just as the global credit crunch was getting underway. The company said it complied with its debt covenants in 2008 and plans to do so in 2009. The company has been aggressively selling off Applebee’s locations to franchisees and using the cash to lower debt.

“We have taken proactive steps to maximize our financial flexibility and tighten expenses as we continue to manage our business for the long-term,” Chief Executive Julia Stewart said in a statement.

DineEquity shares closed up 77 cents, or 13 percent, to $6.67 on the New York Stock Exchange after earlier jumping as high as 41 percent before an overall market downturn.