Dine Brands Global (NYSE:DIN) Issues Earnings Results

Dine Brands Global (NYSE:DIN) released its earnings results on Wednesday. The restaurant operator reported $0.82 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.01 by ($0.19), FiscalAI reports. Dine Brands Global had a negative return on equity of 19.01% and a net margin of 0.43%. The firm had revenue of $248.90 million for the quarter, compared to the consensus estimate of $239.71 million. During the same quarter last year, the company posted $0.73 EPS. Dine Brands Global’s revenue for the quarter was up 15.2% on a year-over-year basis.

Here are the key takeaways from Dine Brands Global’s conference call:

• Applebee’s and IHOP posted modest domestic same-restaurant sales growth of 0.9% and 0.8%, respectively. Adjusted EBITDA was flat at $49 million, while adjusted diluted EPS increased to $0.82 from $0.73 a year earlier.
• Management highlighted continued progress in growth initiatives: Applebee’s off-premise sales rose 1.8%, while IHOP off-premise sales increased 5.6% and catering sales grew 44%. Dual-brand restaurants are averaging roughly 1.5 to 2 times the sales of standalone locations, with a strong 2027 pipeline, according to management.
• Management said Q4 trends have been mixed, with Applebee’s starting soft, and expects full-year results near the low end of guidance. Applebee’s and IHOP commodity costs rose 5.4% and 1.3%, respectively, with beef prices a key pressure.
• Adjusted free cash flow for the first nine months fell to $12.8 million from $68.2 million a year earlier, as operating cash flow declined and capital spending increased for remodels and dual-brand conversions. The company-owned restaurant segment is still expected to post a loss in Q4, though management said its oldest portfolio cohort is profitable.

Dine Brands Global Trading Up 0.6%

Shares of NYSE DIN traded up $0.21 during mid-day trading on Friday, hitting $36.09. The company had a trading volume of 264,402 shares, compared to its average volume of 427,408. Dine Brands Global has a one year low of $24.05 and a one year high of $39.68. The company has a market capitalization of $456.90 million, a PE ratio of 100.21 and a beta of 0.93. The firm has a 50-day simple moving average of $30.95 and a two-hundred day simple moving average of $31.69.

Dine Brands Global Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Wednesday, September 16th were issued a $0.19 dividend. The ex-dividend date was Wednesday, September 16th. This represents a $0.76 annualized dividend and a dividend yield of 2.1%. Dine Brands Global’s dividend payout ratio (DPR) is presently 211.11%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on DIN shares. Freedom Broker upgraded Dine Brands Global to a “hold” rating in a report on Monday, August 24th. Zacks Research upgraded Dine Brands Global from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 15th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Dine Brands Global in a research report on Friday, September 4th. Raymond James Financial reaffirmed a “market perform” rating on shares of Dine Brands Global in a research note on Wednesday. Finally, Benchmark reiterated a “hold” rating on shares of Dine Brands Global in a report on Monday, August 10th. Ten analysts have rated the stock with a Hold rating. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $33.25.

Dine Brands Global Company Profile

Dine Brands Global, Inc is a franchisor and full-service restaurant company that operates a portfolio of well-known dining concepts. Its primary brands are Applebee’s Neighborhood Grill + Bar, which offers casual American dining, and IHOP, which specializes in pancakes, breakfast foods and other all-day meals. The company also owns Fuzzy’s Taco Shop, a fast-casual Mexican restaurant brand acquired in 2022.

Dine Brands generally operates through a franchise-based business model. Independent franchisees own and operate most restaurants under the company’s brands, while Dine Brands provides brand management, restaurant development support, marketing, training, technology and other services.