Finally, Dine Brands (NYSE: DIN )—operator and franchisor of full-service restaurants like Applebee's, IHOP, and Fuzzy's—released its results . And honestly, we saw this coming already (just look back at my earnings preview ).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it ...

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Group 1 - Avnet, Inc. (AVT) has been added to the Zacks Rank 5 (Strong Sell) List due to a 7.5% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Banco do Brasil S.A. (BDORY) is also on the Zacks Rank 5 (Strong Sell) List, with a 16.9% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Dine Brands Global, Inc. (DIN) has seen a 5.3% downward revision in the consensus estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 List [2]

Group 1 - Dine Brands Global held its Second Quarter 2025 Earnings Conference Call, featuring remarks from key executives including John Peyton, CEO of Applebee's, and Vance Chang, CFO [1][3] - The call included a Q&A session with Lawrence Kim, President of IHOP, along with other executives to address inquiries from the investment community [3] Group 2 - The conference call was recorded, indicating a formal structure for sharing financial results and insights with stakeholders [1] - Management will discuss forward-looking information that may involve risks and uncertainties, which could lead to actual results differing from expectations [4]

Financial Data and Key Metrics Changes - Consolidated total revenues increased by 11.9% to $230.8 million in Q2 compared to $206.3 million in the prior year, primarily driven by an increase in company restaurant sales [25] - Adjusted EBITDA decreased to $56.2 million from $67 million in the previous year [26] - Adjusted diluted EPS for 2025 was $1.17 compared to $1.71 for 2024 [26] - Adjusted free cash flow was $48.7 million compared to $52.9 million for the same period last year [27] Business Line Data and Key Metrics Changes - Applebee's reported a 4.9% increase in comparable sales, while IHOP posted a negative 2.3% in comparable sales [7][29] - Average weekly sales for Applebee's were $58,000, including approximately $12,800 from off-premise sales, which accounted for 22% of total sales [29] - IHOP's average weekly sales were $37,800, with $7,600 from off-premise sales, representing 20% of total sales [29] Market Data and Key Metrics Changes - Applebee's value mix was approximately 30% in Q2, while IHOP's value mix was about 19% [7] - Off-premise sales for Applebee's saw a positive lift of 7.6% in Q2 [29] - IHOP's House Faves menu drove incremental traffic and dollar margin for franchisees, leading to a sequential improvement in comparable sales [14] Company Strategy and Development Direction - The company is focused on enhancing menu and value platforms, improving marketing communication, and elevating guest experience [6] - Strategic investments are being made to modernize the brand and improve operations, including remodeling efforts and dual brand conversions [20][21] - The company plans to open at least a dozen dual brand restaurants by year-end, leveraging the complementary nature of Applebee's and IHOP [23] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are still feeling macroeconomic pressure, leading to changes in ordering behavior [6] - The company remains confident in its strategy to drive traffic, sales, and unit growth, with updated guidance reflecting positive trends [34] - Management expressed optimism about the potential for international expansion and new restaurant formats [19] Other Important Information - The company completed a refinancing transaction with new senior secured notes of $600 million at a fixed rate of 6.72% [28] - G&A expenses increased to $50.8 million due to higher compensation and professional services fees [26] - The company added 12 Applebee's to its portfolio, now operating a total of 70 company-operated restaurants [19] Q&A Session Summary Question: Performance at Applebee's and sustaining operations with frequent menu changes - Management confirmed strong performance driven by the two for 25 platform and emphasized effective training and processes to manage complexity [39][41] Question: Impact of the House Faves platform on franchisee profitability - Management indicated positive results from the House Faves program, leading to an expansion to seven days a week [47][49] Question: Path forward with corporate-owned stores and timeline for profitability - Management expects a timeline of approximately three years to improve operations and refranchise the restaurants for appropriate valuation [53][56]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-15283 Dine Brands Global, Inc. (Exact name of registrant as specified in its charter) Delaware 95-3038279 (State or other jurisdiction of incorpo ...

Executive Summary & Business Update Dine Brands Global, Inc. reported positive Q2 2025 momentum for Applebee's and IHOP, strengthened its capital structure, and detailed domestic restaurant sales performance [CEO and CFO Commentary](index=1&type=section&id=CEO%20and%20CFO%20Commentary) Dine Brands Global, Inc. reported positive momentum in Q2 2025, with Applebee's benefiting from value promotions and IHOP from refreshed branding. The company also strengthened its capital structure through a successful refinancing transaction - Applebee's experienced positive momentum due to strong consumer response to value-driven promotions and continued innovation in menu and marketing[3](index=3&type=chunk) - IHOP saw growth fueled by its refreshed brand positioning and value strategy[3](index=3&type=chunk) - The Dual Brands initiative is gaining traction with franchisees, with the second domestic unit opening with strong economics[3](index=3&type=chunk) - A refinancing transaction was successfully completed, strengthening the capital structure and enhancing financial flexibility for future growth[4](index=4&type=chunk) [Domestic Restaurant Sales Performance](index=1&type=section&id=Domestic%20Restaurant%20Sales%20Performance) Applebee's reported a significant increase in domestic comparable same-restaurant sales for Q2 2025, while IHOP experienced a decline. Off-premise sales continued to be a notable component for both brands Q2 2025 Domestic Comparable Same-Restaurant Sales Performance | Brand | YoY Sales Change | Off-Premise Sales Mix | Avg. Weekly Off-Premise Sales | | :--------- | :--------------- | :-------------------- | :---------------------------- | | Applebee's | +4.9% | 22.0% | ~$12,800 | | IHOP | -2.3% | 20.0% | ~$7,600 | Financial Performance Highlights Dine Brands reported mixed financial results for Q2 and the first six months of 2025, with increased revenues from acquisitions but decreased net income and EBITDA, while maintaining a strong balance sheet [Second Quarter 2025 Summary](index=2&type=section&id=Second%20Quarter%202025%20Summary) Dine Brands reported increased total revenues for Q2 2025, primarily driven by company restaurant acquisitions. However, GAAP and Adjusted Net Income, as well as Adjusted EBITDA, decreased compared to the prior year, mainly due to lower segment profit and higher G&A expenses Q2 2025 Financial Summary (YoY Comparison) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenues | $230,784 | $206,267 | +11.9% | | General and Administrative Expenses | $50,769 | $46,858 | +8.3% | | GAAP Net Income Available to Stockholders | $13,213 | $22,479 | -41.2% | | GAAP EPS (Diluted) | $0.89 | $1.50 | -40.7% | | Adjusted Net Income Available to Stockholders | $17,367 | $25,575 | -32.1% | | Adjusted EPS (Diluted) | $1.17 | $1.71 | -31.6% | | Consolidated Adjusted EBITDA | $56,192 | $66,980 | -16.1% | - The increase in total revenues was primarily due to the acquisition of **59 Applebee's and 10 IHOP restaurants**[9](index=9&type=chunk) - The decrease in net income and adjusted net income was primarily due to a decrease in segment profit and an increase in G&A expenses[9](index=9&type=chunk) - Development activity resulted in **7 new restaurant openings** and **46 restaurant closures**[9](index=9&type=chunk) [First Six Months 2025 Summary](index=2&type=section&id=First%20Six%20Months%202025%20Summary) For the first six months of 2025, total revenues increased, largely due to company restaurant acquisitions. However, GAAP and Adjusted Net Income, as well as Adjusted EBITDA, declined year-over-year, primarily impacted by decreased segment profit, increased G&A, and higher closure and impairment charges. Operating cash flows saw a slight increase due to favorable working capital First Six Months 2025 Financial Summary (YoY Comparison) | Metric | 6M 2025 (in thousands) | 6M 2024 (in thousands) | Change (YoY) | | :-------------------------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenues | $445,564 | $412,502 | +8.0% | | General and Administrative Expenses | $102,106 | $99,045 | +3.1% | | GAAP Net Income Available to Stockholders | $21,092 | $39,449 | -46.5% | | GAAP EPS (Diluted) | $1.41 | $2.64 | -46.6% | | Adjusted Net Income Available to Stockholders | $32,788 | $45,511 | -27.9% | | Adjusted EPS (Diluted) | $2.20 | $3.04 | -27.6% | | Consolidated Adjusted EBITDA | $110,923 | $127,790 | -13.2% | | Cash Flows from Operating Activities | $53,105 | $52,179 | +1.8% | | Adjusted Free Cash Flow | $48,668 | $52,942 | -8.1% | - The decline in GAAP and Adjusted Net Income was primarily due to a decrease in segment profit, an increase in closure and impairment charges, and higher G&A expenses[12](index=12&type=chunk) - Cash flows provided by operating activities increased due to a favorable change in working capital, primarily from the timing of income tax payments postponed due to wildfire relief[12](index=12&type=chunk) - Development activity for the first six months resulted in **16 new restaurant openings** and **85 restaurant closures**[12](index=12&type=chunk) [Key Balance Sheet Metrics](index=3&type=section&id=Key%20Balance%20Sheet%20Metrics) As of June 30, 2025, Dine Brands maintained a strong cash position and significant available borrowing capacity Key Balance Sheet Metrics (as of June 30, 2025) | Metric | Amount (in thousands) | | :------------------------------------------ | :-------------------- | | Total Cash, Cash Equivalents & Restricted Cash | $263,204 | | Unrestricted Cash | $194,201 | | Available Borrowing Capacity (2025 Variable Funding Senior Notes, Class A-1) | Over $224,000 | [GAAP Effective Tax Rate](index=4&type=section&id=GAAP%20Effective%20Tax%20Rate) The company's effective tax rate increased for the first six months of 2025 compared to the prior year, primarily due to a lower tax deduction related to stock-based compensation GAAP Effective Tax Rate (Six Months Ended June 30) | Period | Effective Tax Rate | | :----- | :----------------- | | 2025 | 30.6% | | 2024 | 26.4% | - The increase in the effective tax rate was primarily due to a lower tax deduction related to stock-based compensation, resulting from changes in the stock price[14](index=14&type=chunk) Capital Management & Shareholder Returns Dine Brands enhanced financial flexibility through a major refinancing transaction and returned capital to shareholders via stock repurchases and quarterly dividends in Q2 2025 [Refinancing Activities](index=4&type=section&id=Refinancing%20Activities) Dine Brands completed a significant refinancing transaction in June 2025, issuing new fixed-rate senior secured notes and establishing a new variable funding facility to enhance financial flexibility - On June 17, 2025, the company refinanced its Series 2019-1 notes by issuing Series 2025-1 **6.720% Fixed Rate Senior Secured Notes** with an initial aggregate principal amount of **$600 million** and an expected term of five years[15](index=15&type=chunk) - The company terminated its 2022-1 Variable Funding Senior Notes and entered into a purchase agreement for the issuance of up to **$325 million** of Series 2025-1, Class A-1 Variable Funding Senior Notes, allowing for revolving borrowings and letters of credit[16](index=16&type=chunk) [Share Repurchases and Dividends](index=4&type=section&id=Share%20Repurchases%20and%20Dividends) During the second quarter of 2025, Dine Brands returned capital to shareholders through common stock repurchases and quarterly cash dividends Q2 2025 Capital Returns to Shareholders | Activity | Amount (in millions) | | :------------------- | :------------------- | | Common Stock Repurchases | $6.0 | | Quarterly Cash Dividends | $8.0 | Financial Performance Guidance for 2025 Dine Brands updated its fiscal year 2025 guidance, reflecting increased business investment, adjusted sales outlooks for its brands, and revised financial forecasts [Updated Guidance](index=4&type=section&id=Updated%20Guidance) Dine Brands updated its fiscal year 2025 guidance, reflecting increased investment in the business. Applebee's sales outlook improved, while IHOP's was slightly adjusted. Consolidated Adjusted EBITDA guidance was lowered, and G&A expenses and capital expenditures forecasts were increased Updated Fiscal Year 2025 Guidance | Metric | Updated Guidance | Previous Guidance | | :------------------------------------------ | :------------------------- | :------------------------- | | Applebee's Domestic Comparable Same-Restaurant Sales | +1% to +3% | -2% to +1% | | IHOP Domestic Comparable Same-Restaurant Sales | -1% to +1% | -1% to +2% | | Applebee's Domestic Development (Net) | 20-35 net fewer restaurants | 20-35 net fewer restaurants | | IHOP Domestic Development (Net) | 10 net fewer to 10 net new openings | 10 net fewer to 10 net new openings | | Consolidated Adjusted EBITDA | $220M to $230M | $235M to $245M | | G&A Expenses | $205M to $210M | $200M to $205M | | Capital Expenditures | $30M to $40M | $20M to $30M | - The company is further investing in the business to accelerate development opportunities and strengthen its company-owned portfolio[18](index=18&type=chunk) [GAAP Net Income Guidance Disclaimer](index=5&type=section&id=GAAP%20Net%20Income%20Guidance%20Disclaimer) Dine Brands does not provide forward-looking guidance for GAAP net income due to the unpredictable nature of certain items that are not reflective of current operations - The company is unable to predict certain items contained in the GAAP measure, such as closure and impairment charges, loss on extinguishment of debt, and gain or loss on disposition of assets, without unreasonable efforts[20](index=20&type=chunk) Company Information & Legal Disclosures This section provides details on the Q2 2025 earnings call, an overview of Dine Brands Global, Inc., important forward-looking statement disclaimers, and definitions of non-GAAP financial measures [Earnings Conference Call Details](index=5&type=section&id=Earnings%20Conference%20Call%20Details) Dine Brands Global, Inc. will host a conference call on August 6, 2025, to discuss its Q2 2025 results, with a live webcast and replay available online - A live webcast and replay of the conference call will be available at https://investors.dinebrands.com[21](index=21&type=chunk) [About Dine Brands Global, Inc.](index=5&type=section&id=About%20Dine%20Brands%20Global%2C%20Inc.) Dine Brands Global, Inc. is a leading full-service restaurant company, operating and supporting nearly 3,500 Applebee's, IHOP, and Fuzzy's Taco Shop restaurants across 19 international markets as of June 30, 2025 - Dine Brands Global, Inc. is the parent company of Applebee's Neighborhood Grill + Bar®, IHOP®, and Fuzzy's Taco Shop® restaurants[22](index=22&type=chunk) - As of June 30, 2025, the three brands comprised close to **3,500 restaurants** across **19 international markets**[22](index=22&type=chunk) - Dine Brands is one of the largest full-service restaurant companies globally and expanded into the Fast Casual segment in 2022[22](index=22&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various known and unknown risks and uncertainties that could cause actual results to differ materially. These factors include general economic conditions, indebtedness, dependence on IT, franchisee health, industry risks, and regulatory changes - Statements in the press release may constitute 'forward-looking statements' and involve known and unknown risks, uncertainties, and other factors[23](index=23&type=chunk) - Key risk factors include general economic conditions (e.g., inflation), indebtedness, compliance with securitized debt, ability to refinance, dependence on information technology, potential cyber incidents, and the financial health of franchisees[23](index=23&type=chunk)[26](index=26&type=chunk) - The company does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date of the press release[26](index=26&type=chunk) [Non-GAAP Financial Measures Definitions](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines the non-GAAP financial measures used by Dine Brands, including 'adjusted net income available to common stockholders,' 'adjusted earnings per diluted share (Adjusted EPS),' 'Adjusted EBITDA,' and 'Adjusted free cash flow,' explaining their calculation and management's rationale for their use - Adjusted EPS is calculated by deducting specific non-operating items from net income available to common stockholders[27](index=27&type=chunk) - Adjusted EBITDA is computed by adjusting net income for interest expense, income tax, depreciation and amortization, non-cash stock-based compensation, closure and impairment charges, and other non-operating items[27](index=27&type=chunk) - Adjusted free cash flow is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less capital expenditures[27](index=27&type=chunk) - Management uses these non-GAAP measures to evaluate business performance, make decisions, and assess cash dividends and stock repurchases, believing they provide additional meaningful information for investors[27](index=27&type=chunk)[29](index=29&type=chunk) Consolidated Financial Statements This section presents the company's detailed consolidated statements of comprehensive income, balance sheets, and cash flows for the reported periods [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income provide a detailed breakdown of revenues, costs, and expenses, leading to net income and comprehensive income for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Comprehensive Income (Selected Data, in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $230,784 | $206,267 | $445,564 | $412,502 | | Total Cost of Revenues | $138,555 | $106,996 | $263,025 | $215,807 | | Gross Profit | $92,229 | $99,271 | $182,539 | $196,695 | | General and Administrative Expenses | $50,769 | $46,858 | $102,106 | $99,045 | | Income Before Income Taxes | $18,931 | $31,224 | $31,726 | $55,270 | | Net Income | $13,814 | $23,182 | $22,011 | $40,655 | | Net Income Available to Common Stockholders | $13,213 | $22,479 | $21,092 | $39,449 | | Diluted EPS | $0.89 | $1.50 | $1.41 | $2.64 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' deficit Consolidated Balance Sheets (Selected Data, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | Total Current Assets | $370,749 | $385,999 | | Total Assets | $1,789,947 | $1,790,584 | | Total Current Liabilities | $431,247 | $445,305 | | Long-Term Debt, Net, Less Current Maturities | $1,086,992 | $1,086,551 | | Total Liabilities | $2,002,492 | $2,006,603 | | Total Stockholders' Deficit | $(212,545) | $(216,019) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows outline the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows (Selected Data, in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Cash Flows Provided by Operating Activities | $53,105 | $52,179 | | Cash Flows Used in Investing Activities | $(5,185) | $(1,072) | | Cash Flows Used in Financing Activities | $(33,314) | $(33,308) | | Net Change in Cash, Cash Equivalents and Restricted Cash | $14,606 | $17,799 | | Cash, Cash Equivalents and Restricted Cash at End of Period | $263,204 | $218,391 | Non-GAAP Financial Reconciliations This section provides detailed reconciliations of GAAP net income to adjusted net income, cash flows to adjusted free cash flow, and net income to adjusted EBITDA for key financial periods [Reconciliation of Net Income to Adjusted Net Income](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) This section provides a reconciliation of GAAP net income available to common stockholders to adjusted net income, detailing the adjustments made for non-recurring or non-operational items for both the three and six months ended June 30, 2025 and 2024 Reconciliation of Net Income to Adjusted Net Income (Selected Data, in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income Available to Common Stockholders | $13,213 | $22,479 | $21,092 | $39,449 | | Closure and Impairment Charges | $1,155 | $442 | $7,001 | $1,076 | | Amortization of Intangible Assets | $2,694 | $2,723 | $5,410 | $5,445 | | Loss on Extinguishment of Debt | $850 | — | $850 | — | | Net Income Available to Common Stockholders, as Adjusted | $17,367 | $25,575 | $32,788 | $45,511 | | Diluted Adjusted EPS | $1.17 | $1.71 | $2.20 | $3.04 | [Reconciliation of Cash Flows to Adjusted Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Cash%20Flows%20to%20Adjusted%20Free%20Cash%20Flow) This reconciliation details the calculation of adjusted free cash flow from operating activities, a key liquidity measure used by management, for the six months ended June 30, 2025 and 2024 Reconciliation of Cash Flows to Adjusted Free Cash Flow (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Cash Flows Provided by Operating Activities | $53,105 | $52,179 | | Principal Receipts from Notes and Equipment Contracts | $4,826 | $7,542 | | Additions to Property and Equipment | $(9,263) | $(6,779) | | Adjusted Free Cash Flow | $48,668 | $52,942 | [Reconciliation of Net Income to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section provides a reconciliation of GAAP net income to Adjusted EBITDA, adjusting for interest, taxes, depreciation, amortization, non-cash stock-based compensation, and other specific items for the three and six months ended June 30, 2025 and 2024 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income, as Reported | $13,814 | $23,182 | $22,011 | $40,655 | | Interest Charges | $21,300 | $21,488 | $42,513 | $42,991 | | Income Tax Provision | $5,117 | $8,042 | $9,715 | $14,615 | | Depreciation and Amortization | $10,458 | $9,654 | $20,820 | $19,395 | | Non-Cash Stock-Based Compensation | $3,251 | $3,833 | $6,616 | $8,756 | | Closure and Impairment Charges | $1,155 | $442 | $7,001 | $1,076 | | Loss on Extinguishment of Debt | $850 | — | $850 | — | | Adjusted EBITDA | $56,192 | $66,980 | $110,923 | $127,790 | Restaurant Operating Data This section provides an overview of restaurant operating data, including effective restaurant counts, same-restaurant sales, average weekly unit sales, and development activity for Applebee's, IHOP, and Fuzzy's Taco Shop [Overview of Restaurant Data](index=14&type=section&id=Overview%20of%20Restaurant%20Data) This section provides an overview of restaurant data, including the number of 'Effective Restaurants' and system-wide sales performance for Applebee's, IHOP, and Fuzzy's Taco Shop, emphasizing that franchisee sales are not attributable to the company but impact royalty revenues - 'Effective Restaurants' are the weighted average number of restaurants open, adjusted for partial period operations, and include both franchisee/area licensee and company-owned units[47](index=47&type=chunk) - 'System-wide sales' include retail sales from all Applebee's, IHOP, and Fuzzy's restaurants, both franchised and company-owned, but exclude ghost kitchens[48](index=48&type=chunk) - An increase or decrease in franchisees' reported sales directly impacts the company's royalty revenue[48](index=48&type=chunk) [Applebee's Restaurant Data](index=14&type=section&id=Applebee%27s%20Restaurant%20Data) Applebee's reported a decrease in total effective restaurants but a strong positive domestic same-restaurant sales percentage change for Q2 2025, with an increase in average weekly domestic unit sales Applebee's Restaurant Data (Selected Metrics) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Global Effective Restaurants (Total) | 1,577 | 1,627 | 1,587 | 1,631 | | Domestic Same-Restaurant Sales % Change | +4.9% | -1.8% | +1.3% | -3.2% | | Average Weekly Domestic Unit Sales (in thousands) | $58.0 | $53.9 | $56.3 | $54.3 | | Reported Sales (in millions) | $1,129.0 | $1,102.0 | $2,204.2 | $2,222.9 | - The franchise sales percentage change for 2025 was impacted by the acquisition of **47 Applebee's restaurants** in November 2024 and **12 Applebee's restaurants** in May 2025, which are now reported as company-owned[48](index=48&type=chunk) [IHOP Restaurant Data](index=14&type=section&id=IHOP%20Restaurant%20Data) IHOP experienced a slight decrease in total effective restaurants and negative domestic same-restaurant sales percentage change for Q2 and the first six months of 2025, with a modest decline in average weekly unit sales IHOP Restaurant Data (Selected Metrics) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Global Effective Restaurants (Total) | 1,791 | 1,802 | 1,795 | 1,801 | | Domestic Same-Restaurant Sales % Change (incl. area license) | -2.3% | -1.4% | -2.5% | -1.5% | | Average Weekly Unit Sales (in thousands) | $37.8 | $38.4 | $37.2 | $38.0 | | Reported Sales (in millions) | $876.4 | $897.1 | $1,731.8 | $1,778.8 | - The franchise sales percentage change for 2025 was impacted by the acquisition of **10 IHOP restaurants** in March 2025, now reported as company-owned[48](index=48&type=chunk) [Fuzzy's Taco Shop Restaurant Data](index=15&type=section&id=Fuzzy%27s%20Taco%20Shop%20Restaurant%20Data) Fuzzy's Taco Shop experienced a reduction in total effective restaurants and a significant negative domestic same-restaurant sales percentage change for both Q2 and the first six months of 2025, alongside a decrease in average weekly domestic unit sales Fuzzy's Taco Shop Restaurant Data (Selected Metrics) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Global Effective Restaurants (Total) | 111 | 125 | 113 | 127 | | Domestic Same-Restaurant Sales % Change | -11.8% | -7.5% | -12.0% | -8.6% | | Average Weekly Domestic Unit Sales (in thousands) | $30.2 | $32.2 | $28.3 | $30.4 | | Reported Sales (in millions) | $43.3 | $52.2 | $82.8 | $99.7 | [Restaurant Development Activity](index=16&type=section&id=Restaurant%20Development%20Activity) Dine Brands' restaurant development activity for the first six months of 2025 showed a net reduction in franchise restaurants across all three brands, with a notable number of closures partially offset by new openings and company acquisitions [Applebee's Development](index=16&type=section&id=Applebee%27s%20Development) Applebee's experienced a net decrease in franchise restaurants for the first six months of 2025, driven by closures and company acquisitions of franchise units Applebee's Restaurant Development Activity (6 Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------------- | :--- | :--- | | Total Applebee's Restaurants, Beginning of Period | 1,614 | 1,642 | | Franchise Restaurants Opened | 1 | 5 | | Franchise Restaurants Permanently Closed | (42) | (22) | | Franchise Restaurants Acquired by Company | (12) | — | | Total Applebee's Restaurants, End of Period | 1,573 | 1,625 | [IHOP Development](index=17&type=section&id=IHOP%20Development) IHOP also saw a net decrease in franchise/area license restaurants for the first six months of 2025, with closures outweighing new openings and company acquisitions IHOP Restaurant Development Activity (6 Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------------- | :--- | :--- | | Total IHOP Restaurants, Beginning of Period | 1,824 | 1,814 | | Franchise/Area License Restaurants Opened | 15 | 20 | | Franchise/Area License Restaurants Permanently Closed | (43) | (23) | | Franchise Restaurants Acquired by Company | (10) | — | | Total IHOP Restaurants, End of Period | 1,796 | 1,811 | [Fuzzy's Development](index=17&type=section&id=Fuzzy%27s%20Development) Fuzzy's Taco Shop experienced a net reduction in franchise restaurants for the first six months of 2025, primarily due to closures Fuzzy's Taco Shop Restaurant Development Activity (6 Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------------- | :--- | :--- | | Total Fuzzy's Restaurants, Beginning of Period | 117 | 132 | | Franchise Restaurants Opened | 3 | — | | Franchise Restaurants Permanently Closed | (7) | (7) | | Total Fuzzy's Restaurants, End of Period | 113 | 125 | [Dual-Branded Restaurants and Ghost Kitchens](index=18&type=section&id=Dual-Branded%20Restaurants%20and%20Ghost%20Kitchens) The restaurant counts include dual-branded Applebee's and IHOP restaurants, which are counted separately for each brand, but exclude ghost kitchens - As of June 30, 2025, there were **20 dual-branded international** and **one dual-branded domestic** Applebee's and IHOP restaurants[54](index=54&type=chunk) - Dual-branded restaurants operate two concepts in one location under separate franchise agreements and are counted in each brand's totals[54](index=54&type=chunk) - Ghost kitchens, defined as small kitchens with no store-front presence used for off-premise orders, are not included in the restaurant counts or activity[54](index=54&type=chunk)

Group 1 - Goulart Restaurant Stocks has released new traffic data in preparation for Q2 FY 2025, indicating a proactive approach rather than a reactive one post-earnings [1] - The article emphasizes the importance of fresh traffic data for understanding market trends and potential investment opportunities in the restaurant sector [1]

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Core Insights - Chili's has surpassed Applebee's in U.S. systemwide sales for the first time in 2024, with sales growing from approximately $3.6 billion in 2021 to $4.6 billion in 2024, while Applebee's sales remained flat at $4.1 billion during the same period [1] - In the most recent fiscal quarters, Chili's reported a 31% increase in same-store sales, whereas Applebee's experienced a 2.2% decline, marking the eighth consecutive quarter of declines for Applebee's [2] Company Performance - Dine Brands, the parent company of Applebee's, has seen its share price decline by about 40% over the past year, with analysts suggesting that returning to positive same-store sales could significantly boost the stock [3] - Dine Brands operates as an "asset light business," primarily through franchised restaurants, which limits operational control compared to Chili's, which is mostly company-owned [4] Strategic Initiatives - Dine Brands is planning to remodel all its locations over the next three years and is incentivizing franchisees to adopt these renovations early [6] - The company is also introducing combination restaurants featuring both IHOP and Applebee's, with the first location opened in Seguin, Texas, showing promising sales growth from $2 million to $6 million annually [7][8] Market Outlook - Despite softer traffic in 2024, there is optimism about future growth and success within the Applebee's franchisee community [9]