Dine Brands Global (NYSE:DIN) Issues Quarterly Earnings Results, Misses Expectations By $0.19 EPS

Dine Brands Global (NYSE:DIN) posted its quarterly earnings results on Wednesday. The restaurant operator reported $0.82 earnings per share 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 20.34% and a net margin of 0.75%. The firm had revenue of $248.90 million during the quarter, compared to the consensus estimate of $239.71 million. During the same quarter in the previous year, the company earned $0.73 earnings per share. The business’s revenue for the quarter was up 15.2% compared to the same quarter last year.

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 DIN traded down $0.82 during midday trading on Thursday, hitting $35.67. 475,839 shares of the company traded hands, compared to its average volume of 426,286. The firm has a 50 day moving average of $30.93 and a 200-day moving average of $31.70. Dine Brands Global has a 52 week low of $23.97 and a 52 week high of $39.68. The stock has a market cap of $451.62 million, a price-to-earnings ratio of 76.00 and a beta of 0.93.

Dine Brands Global Dividend Announcement

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

More Dine Brands Global News

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

• Positive Sentiment: Third-quarter revenue rose 15.2% year over year to $248.9 million, topping the roughly $239.7 million consensus estimate—a sign of solid top-line growth. Dine Brands reports third-quarter results
• Neutral Sentiment: Dine Brands rejected a $39-per-share takeover proposal. The bid highlights potential transaction interest, but rejection leaves uncertainty about whether a higher offer—or a deal at all—will emerge. Dine Brands rejects takeover proposal
• Negative Sentiment: Quarterly EPS of $0.82 came in below the $1.01 consensus estimate. Net profit also fell to $4.6 million from $7.3 million a year earlier, tempering the positive revenue result. Dine Brands reports third-quarter profit decline
• Negative Sentiment: Recent coverage also flagged cash-flow strain, adding to investor concern that weaker profitability may be accompanied by pressure on cash generation. Dine Brands cash-flow strain after Q3 decline

Analyst Upgrades and Downgrades

DIN has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “hold (c-)” rating on shares of Dine Brands Global in a report on Friday, September 4th. Freedom Broker raised Dine Brands Global to a “hold” rating in a research note on Monday, August 24th. Mizuho cut their target price on Dine Brands Global from $38.00 to $35.00 and set a “neutral” rating for the company in a research report on Friday, October 30th. Benchmark reissued a “hold” rating on shares of Dine Brands Global in a research note on Monday, August 10th. Finally, Raymond James Financial reissued a “market perform” rating on shares of Dine Brands Global in a report on Wednesday. Ten investment analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, Dine Brands Global currently has a consensus rating of “Hold” and an average price target 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.