Dine Brands Global (NYSE:DIN – Get Free Report) released its quarterly earnings results on Wednesday. The restaurant operator reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($0.19), FiscalAI reports. The firm had revenue of $248.90 million during the quarter, compared to the consensus estimate of $239.71 million. Dine Brands Global had a net margin of 0.75% and a negative return on equity of 20.34%. The business’s revenue for the quarter was up 15.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.73 earnings per share.
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 Performance
Shares of NYSE:DIN traded up $1.22 during midday trading on Wednesday, hitting $36.53. 794,558 shares of the stock were exchanged, compared to its average volume of 670,163. The business’s 50-day moving average price is $30.93 and its 200 day moving average price is $31.70. Dine Brands Global has a 12 month low of $23.23 and a 12 month high of $39.68. The stock has a market capitalization of $462.47 million, a price-to-earnings ratio of 8.35 and a beta of 0.93.
Dine Brands Global Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Wednesday, September 16th were issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Wednesday, September 16th. Dine Brands Global’s payout ratio is 161.70%.
Key Stories 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
Analyst Upgrades and Downgrades
Several equities research analysts recently issued reports on DIN shares. Raymond James Financial reiterated a “market perform” rating on shares of Dine Brands Global in a research note on Wednesday. Freedom Broker upgraded Dine Brands Global to a “hold” rating in a research note on Monday, August 24th. Benchmark restated a “hold” rating on shares of Dine Brands Global in a research note on Monday, August 10th. Zacks Research raised Dine Brands Global from a “strong sell” rating to a “hold” rating in a report on Tuesday, September 15th. Finally, Piper Sandler upped their target price on Dine Brands Global from $28.00 to $37.00 and gave the company a “neutral” rating in a research report on Monday, August 10th. Ten investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $33.25.
Check Out Our Latest Analysis on Dine Brands Global
About Dine Brands Global
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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