Group 1 - The article discusses the strategy of paying a premium for quality stocks that are profitable and growing, which is generally considered a winning approach [1] - It highlights that growth stocks can sometimes become excessively expensive, leading to potential market distortions [1] - The author emphasizes a fundamental analysis approach, focusing on numerical data and maintaining skepticism towards company-reported pro-forma figures [1] Group 2 - The author has a beneficial long position in the shares of DIN, indicating a personal investment interest in the stock [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2] - There is a disclaimer that past performance does not guarantee future results, and no specific investment advice is provided [3]

Group 1 - Dine Brands (NYSE: DIN) shares have declined over 40% from their 52-week high due to softness in the casual dining sector [1] - The company's Applebee's business faced challenges in 2024, reporting negative comparable sales [1]

Group 1 - The company specializes in analyzing restaurant stocks in the U.S. market, covering various segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] - The founder has a strong background in Business Administration and Accounting, with an MBA in Forensic Accounting and Controllership, enhancing the analytical capabilities of the company [1] Group 2 - The company actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous experience includes being a columnist discussing monetary policy, financial education, and financial modeling, aimed at making these subjects accessible [1] - The company also provides accounting and business consulting services across LATAM, serving as an independent accountant and consultant [1]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $1.3 million to $61.9 million in Q3 2024 compared to Q3 2023 [14] - Total consolidated revenues decreased by $7.6 million to $195 million in Q3 2024 compared to the same period last year [14] - Adjusted diluted EPS for Q3 2024 was $1.44 compared to $1.46 for the same period last year [39] - Total franchise revenues decreased by 3.6% to $166.4 million compared to $172.5 million for the same quarter of 2023 [37] - G&A expenses decreased by 6.6% to $45.4 million in Q3 2024 from $48.6 million in the same period last year [38] Business Line Data and Key Metrics Changes - Applebee's reported negative 5.9% comp sales, with average weekly sales over $49,500, including over $10,700 from off-premise sales [42] - IHOP reported negative 2.1% comp sales, with average weekly sales of $37,000, including $7,100 from off-premise sales [43] - Fuzzy's comp sales and traffic were pressured, but new value promotions helped improve performance towards the end of the quarter [29] Market Data and Key Metrics Changes - The consumer demographic remains under financial pressure, impacting discretionary spending, particularly among lower-income consumers [10] - Guests are increasingly seeking simplicity and consistency in their dining experiences, with a focus on total meal costs [51][12] Company Strategy and Development Direction - The company is focusing on refining its offerings to better meet evolving consumer needs, emphasizing promotions that deliver value and an outstanding experience [11] - IHOP is launching a new House Faves menu aimed at providing stable everyday value, which is expected to drive traffic [25][64] - Applebee's is developing an integrated value platform to enhance consistency and unlock new ideas for traffic and sales growth [65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that industry headwinds have persisted, and the operating environment remains highly competitive and promotional [9] - The company is committed to leveraging its brand equity to enhance stakeholder impact and is optimistic about future growth opportunities [13][28] - Management emphasized the importance of operational consistency and effective marketing strategies to drive repeat traffic [50][57] Other Important Information - The company has implemented projects resulting in over $42 million of annualized savings across the system in 2024 [45] - The company is on track to open its first U.S. domestic dual-brand location in Seguin, Texas, in Q1 of 2025 [34] Q&A Session Summary Question: Need for Operational Adjustments - Management acknowledged the need for more consistent operations and service quality, emphasizing the importance of aligning promotions with guest expectations [50][51] Question: Frequency of Customer Visits - Management reported that guest satisfaction scores have improved, indicating that operational issues are not the primary concern; rather, marketing strategies need to be more compelling [57] Question: Value Messaging Challenges - Management recognized the need for a more stable everyday value offering and is working on enhancing value messaging across both brands [62][63] Question: Pricing and Average Check - Applebee's took a 2.7% price increase, while IHOP took a 6% increase year-on-year; both brands expect low single-digit pricing increases going forward [94][96] Question: Franchisee Health and Store Margins - Franchisee store margins are holding steady, but some units are generating negative store-level EBITDA; management is focused on supporting franchisees through value campaigns [99][100]

Core Viewpoint - Dine Brands reported a decline in revenue and earnings for the quarter ended September 2024, with revenue of $195.03 million, down 3.7% year-over-year, and EPS of $1.44, slightly lower than the previous year's $1.46 [1] Financial Performance - Revenue of $195.03 million was below the Zacks Consensus Estimate of $198.87 million, resulting in a surprise of -1.93% [1] - EPS of $1.44 exceeded the consensus estimate of $1.33, delivering a surprise of +8.27% [1] Key Metrics - Total number of IHOP restaurants: 1,809, slightly below the average estimate of 1,812 [3] - Domestic same-restaurant sales percentage change for IHOP: -2.1%, compared to the estimated -1.5% [3] - Total number of Applebee's restaurants: 1,620, close to the average estimate of 1,617 [3] - Domestic same-restaurant sales percentage change for Applebee's: -7.1%, worse than the estimated -3.6% [3] - Franchise revenues: $166.35 million, below the estimated $169.97 million, representing a -3.6% change year-over-year [3] - Rental revenues: $27.99 million, below the estimated $28.95 million, representing a -3.9% change year-over-year [3] - Financing revenues: $0.42 million, below the estimated $0.53 million, with a year-over-year change of -32.8% [3] - Company restaurant sales: $0.27 million, below the estimated $0.31 million, representing a -13.3% change year-over-year [3] - Advertising revenue from franchise revenues: $69.79 million, below the estimated $72.57 million, representing a -4.9% change year-over-year [3] - Royalties, franchise fees, and other revenues: $96.57 million, below the estimated $98.15 million, representing a -2.6% change year-over-year [3] Stock Performance - Dine Brands shares have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Company Performance - Dine Brands reported quarterly earnings of $1.44 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, but down from $1.46 per share a year ago, representing an earnings surprise of 8.27% [1] - The company posted revenues of $195.03 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.93% and down from $202.58 million year-over-year [2] - Over the last four quarters, Dine Brands has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Dine Brands shares have declined approximately 37.2% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The current Zacks Rank for Dine Brands is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.39 on revenues of $203.52 million, and for the current fiscal year, it is $5.77 on revenues of $814.91 million [7] - The outlook for the Retail - Restaurants industry, where Dine Brands operates, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

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 September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-15283 | --- | --- | --- | --- | |-------------------------|----------------------------------------------------------------|---------------- ...

Exhibit 99.1 News Release Investor Contact Matt Lee Sr. Vice President, Finance and Investor Relations Dine Brands Global, Inc. IR@dinebrands.com Media Contact Susan Nelson Sr. Vice President, Global Communications Dine Brands Global, Inc. Mediainquiries@dinebrands.com Dine Brands Global, Inc. Reports Third Quarter 2024 Results PASADENA, Calif., November 6, 2024 – Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar®, IHOP® and Fuzzy's Taco Shop® restaurants, today ...

Key Takeaways Shares of Dine Brands Global, the parent company of Applebee's and IHOP, fell Friday after receiving a downgrade from a Truist equities analyst. The analyst wrote Thursday that his firm's card data showed Applebee's sales struggling more than some of its competitors in recent months. Applebee's stock was downgraded by the firm to "hold" from "buy" and its price target cut nearly in half, to $37 from $66. Dine Brands Global (DIN) stock fell Friday as the owner of Applebee's and IHOP was downgra ...

Dine Brands Global, Inc. NYSE: DIN is the driving force behind beloved restaurant sector brands like Applebee's, IHOP, and Fuzzy's Taco Shop. Through a strategic franchise model, Dine Brands has successfully established a widespread presence across the globe, capturing the hearts (and stomachs) of a large and diverse customer base. Dine Brands Global Today DIN Dine Brands Global $34.54 -0.19 (-0.55%) 52-Week Range $28.25 ▼ $53.26 Dividend Yield 5.91% P/E Ratio 6.15 Price Target $50.71 Add to Watchlist The c ...