Shares of DineEquity Inc. rose 7 percent on Monday after the restaurant operator said its board approved the repurchase of up to $45 million of its common stock.

The Glendale owner of Applebee’s Neighborhood Grill & Bar and IHOP chains said it may buy back shares on the open market and through privately negotiated transactions. The program does not require that any specific number of shares be repurchased.

The share repurchase program “reflects our confidence in the sustainability of our business model and its free cash flow generation,” Chief Executive Julia Stewart said in a statement.

Dine Equity, which franchises and operates more than 3,500 restaurants, slipped to a 2-cent-per-share loss in the second quarter on weaker sales at IHOP and a lower operating profit at Applebee’s.

Shares closed up $2.90, or 7 percent, to $42.32 on the New York Stock Exchange.