Dine Brands Global (NYSE:DIN) Releases Earnings Results

by · The Markets Daily

Dine Brands Global (NYSE:DIN – Get Free Report) issued its earnings results on Wednesday. The restaurant operator reported $0.82 earnings per share for the quarter, missing the consensus estimate of $1.01 by ($0.19), FiscalAI reports. The company had revenue of $248.90 million during the quarter, compared to analysts’ expectations of $239.71 million. Dine Brands Global had a negative return on equity of 20.34% and a net margin of 0.75%. Dine Brands Global’s quarterly revenue was up 15.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.73 EPS.

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 Stock Up 3.5%

Dine Brands Global stock traded up $1.22 during trading hours on Wednesday, hitting $36.53. 794,558 shares of the company traded hands, compared to its average volume of 670,163. Dine Brands Global has a 1-year low of $23.23 and a 1-year high of $39.68. The firm has a market cap of $462.47 million, a P/E ratio of 77.73 and a beta of 0.93. The firm’s 50-day simple moving average is $30.93 and its two-hundred day simple moving average is $31.70.

Dine Brands Global Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 16th were paid a dividend of $0.19 per share. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $0.76 annualized dividend and a yield of 2.1%. Dine Brands Global’s dividend payout ratio (DPR) is presently 161.70%.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Mizuho decreased their price objective on shares of Dine Brands Global from $38.00 to $35.00 and set a “neutral” rating for the company in a report on Friday, October 30th. Benchmark restated a “hold” rating on shares of Dine Brands Global in a research note on Monday, August 10th. Zacks Research upgraded shares of 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. Finally, Piper Sandler lifted their price target on Dine Brands Global from $28.00 to $37.00 and gave the stock a “neutral” rating in a research note on Monday, August 10th. Ten research analysts have rated the stock with a Hold rating. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $33.25.

View Our Latest Research Report on DIN

Key Headlines Impacting Dine Brands Global

Here are the key news stories impacting Dine Brands Global this week:

  • Positive Sentiment: Revenue rose 15.2% year over year to $248.9 million, beating analyst expectations of $239.7 million. This growth is a positive sign for sales momentum at the Applebee’s and IHOP owner. Third-quarter results
  • Neutral Sentiment: Dine Brands rejected a $39-per-share takeover proposal and adopted a stockholder rights agreement. The offer signals potential acquisition interest, but its rejection and the rights agreement may make a transaction harder to pursue; a sale is not assured. Takeover proposal Stockholder rights agreement
  • Negative Sentiment: Adjusted earnings of $0.82 per share fell short of the roughly $1.01 analyst consensus, despite rising from $0.73 a year earlier. Net income also declined to $4.6 million from $7.3 million, adding pressure to the otherwise solid revenue report. Q3 earnings miss Sales rise, profit slips

Dine Brands Global Company Profile

(Get Free Report)

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.

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