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1. Company Snapshot

1.a. Company Description

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally.It operates through five segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations.The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill + Bar in the bar and grill segment of the casual dining category; and IHOP in the family dining category of the restaurant industry.


Its Applebee's restaurants offer American fare with drinks and drafts; and IHOP restaurants provide full table services, and food and beverage offerings.As of December 31, 2021, the company had 1,611 Applebee's franchised restaurants, and 1,751 IHOP franchised and area licensed restaurants.It is also involved in the lease or sublease of 598 IHOP franchised restaurants and two Applebee's franchised restaurants; and the financing of franchise fees and equipment leases.


the company was formerly known as DineEquity, Inc.and changed its name to Dine Brands Global, Inc.in February 2018.


Dine Brands Global, Inc.was founded in 1958 and is headquartered in Glendale, California.

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1.b. Last Insights on DIN

Dine Brands Global, Inc.'s recent performance was driven by operational progress, despite lackluster bottom-line earnings. The company's Q3 2025 results showed mixed trends, with revenue and traffic gains offset by profitability declines and higher operating costs. Menu innovation, dual-branded store initiatives, and operational improvements position IHOP and Applebee's for long-term success. The stock is attractively valued with a 28% discount to intrinsic value. Additionally, the company's focus on franchisee recognition and community engagement, such as Applebee's annual business meeting and IHOP's Franchisee of the Year award, highlights its commitment to stakeholders.

1.c. Company Highlights

2. Dine Brands' Q3 Earnings: A Closer Look at Financial Performance

Dine Brands reported consolidated total revenues of $216.2 million in Q3, representing a 10.8% increase. However, adjusted EBITDA was $49 million, down from $61.9 million in the same quarter last year. The company's EPS came in at $0.73, missing estimates of $0.82. The financial performance was impacted by the temporary closure of around 10% of restaurants due to remodeling and dual brand conversion. Vance Chang, CFO, noted that the company's financial results were affected by investments to improve company restaurants.

Publication Date: Nov -24

📋 Highlights
  • Applebee's Comp Sales Growth: Achieved a 3.1% increase in comp sales, driven by new menu items and off-premise sales growth of 9% in Q3.
  • EBITDA Decline: Adjusted EBITDA fell to $49 million in Q3 ($61.9 million YoY) despite a 10.8% revenue increase to $216.2 million.
  • Dual-Brand Sales Performance: Dual-branded restaurants showed 1.5x–2.5x higher sales post-conversion, with 4-wall margins nearly doubling compared to single-branded locations.
  • Capital Allocation Strategy: Repurchased $22.5 million in stock and paid $7.8 million in dividends, with a commitment to at least $50 million in share buybacks over two quarters.
  • Remodel Program Impact: Over 100 Applebee's locations remodels in 2024, delivering double-digit sales lifts, with plans to renovate 2/3 of the portfolio by 2027.

Operational Highlights

Applebee's achieved a 3.1% increase in comp sales, driven by new menu items and targeted marketing campaigns. IHOP's comp sales were negative 1.5%, but the brand saw positive traffic trends. The IHOP Value menu launch in mid-September drove positive impacts on sales and traffic. The company's dual brand program is gaining traction, with 1.5x to 2.5x higher sales performance post-conversion.

Dual Brand Strategy

The company is excited about its dual-branded restaurant concept, which combines both Applebee's and IHOP under one roof. The concept has been tested internationally with 20 locations opened over the past two years, delivering 1.5x sales versus single-branded restaurants. Dine Brands aims to double its international dual-branded restaurant count to 40 and have approximately 30 opened or under construction in the US by year-end.

Valuation and Capital Allocation

With a P/E Ratio of 11.86 and an EV/EBITDA of 11.0, the company's valuation appears reasonable. The company has a history of returning capital to shareholders, with a Dividend Yield of 7.18%. Dine Brands has committed to buying back at least $50 million of shares over the next two quarters, indicating a focus on shareholder returns. The company's capital allocation strategy includes a reduced dividend and increased share repurchases.

Outlook and Guidance

The company is maintaining its full-year financial guidance, with EBITDA guidance anticipated to be on the low end of the range. Analysts estimate next year's revenue growth at 2.1%. The company expects a decent Q4 for Applebee's and a strong Q4 for IHOP, driven by the rollout of new menu items and marketing campaigns.

3. NewsRoom

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Dine Brands Global, Inc. to Participate at Upcoming Barclays, Raymond James and KeyBanc Capital Markets Investor Conferences in December

Dec -02

Source: businesswire.com

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Dine Brands: Operational Progress In Q3 Despite Lacklustre Bottom-Line Earnings

Nov -11

Source: seekingalpha.com

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Dine Brands Global, Inc. (DIN) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Dine Brands (DIN) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -05

Source: zacks.com

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Dine Brands (DIN) Misses Q3 Earnings and Revenue Estimates

Nov -05

Source: zacks.com

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Applebee's Owner Dine Brands' Profit Falls Despite Higher Sales

Nov -05

Source: wsj.com

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Applebee's Recognizes Franchisees for Restaurant Performance, Innovation and Community Engagement

Nov -04

Source: businesswire.com

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Fuzzy's Tacos and Margs Expands in Houston Area With New Kingwood Restaurant

Nov -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.14%)

6. Segments

Franchise

Expected Growth: 1.2%

Dine Brands Global, Inc.'s franchise growth is driven by increasing demand for convenience, brand recognition, and expansion into new markets. The 1.2% growth rate is also attributed to the company's focus on digital transformation, menu innovation, and strategic partnerships, which enhance customer experience and drive sales.

Rental

Expected Growth: 0.8%

Rental growth of 0.8% at Dine Brands Global, Inc. is driven by increasing demand for off-premise dining, expansion of delivery services, and strategic partnerships with third-party aggregators. Additionally, menu innovation, loyalty programs, and remodels of existing restaurants contribute to the growth.

Financing

Expected Growth: 1.5%

Financing from Dine Brands Global, Inc. fuels growth, driven by increasing franchisee adoption of digital technologies, expansion into new markets, and strategic menu innovations. Additionally, cost savings initiatives and optimized restaurant operations contribute to the 1.5% growth rate.

Company Restaurants

Expected Growth: 0.9%

Dine Brands Global, Inc.'s Company Restaurants segment growth of 0.9% is driven by increasing same-store sales, expansion of delivery and online ordering capabilities, and strategic menu pricing. Additionally, the company's focus on remodeling and refurbishing existing locations, as well as investing in digital marketing and loyalty programs, contributes to the growth.

7. Detailed Products

Applebee's

Casual dining restaurants offering a variety of American-style comfort food and drinks

IHOP

Family-friendly restaurants serving pancakes, omelets, and other breakfast items, as well as lunch and dinner options

IHOP 'N GO

Convenience-focused restaurants offering grab-and-go breakfast and snack items

8. Dine Brands Global, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dine Brands Global, Inc. faces moderate threat from substitutes, as customers have various dining options, but the company's brands, Applebee's and IHOP, have a strong brand presence and customer loyalty.

Bargaining Power Of Customers

Dine Brands Global, Inc. faces high bargaining power from customers, as they have many dining options and can easily switch to competitors, making it essential for the company to maintain competitive pricing and quality.

Bargaining Power Of Suppliers

Dine Brands Global, Inc. has a low bargaining power of suppliers, as it is a large company with significant purchasing power, allowing it to negotiate better prices and terms with its suppliers.

Threat Of New Entrants

Dine Brands Global, Inc. faces a moderate threat from new entrants, as the restaurant industry has relatively low barriers to entry, but the company's established brands and scale of operations provide a competitive advantage.

Intensity Of Rivalry

Dine Brands Global, Inc. operates in a highly competitive industry, with many established players, leading to a high intensity of rivalry, making it essential for the company to focus on differentiating its brands and maintaining competitive pricing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 124.99%
Debt Cost 5.08%
Equity Weight -24.99%
Equity Cost 12.40%
WACC 3.25%
Leverage -500.15%

11. Quality Control: Dine Brands Global, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.2$

Current Price

33.2$

Potential

-0.00%

Expected Cash-Flows