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)

Company Overview - Dine Brands (DIN) is anticipated to report a year-over-year decline in earnings of 12.9%, with expected earnings of $1.49 per share for the quarter ended June 2025 [3] - Revenue is projected to increase by 7.7% to $222.12 million compared to the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on August 6, and the actual results will significantly influence the stock price [2] - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The Most Accurate Estimate for Dine Brands is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.36%, suggesting a bearish sentiment among analysts [12] Historical Performance - In the last reported quarter, Dine Brands had an earnings surprise of -12.71%, with actual earnings of $1.03 per share compared to an expected $1.18 [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Industry Context - In the Zacks Retail - Restaurants industry, The ONE Group Hospitality, Inc. is expected to post earnings of $0.08 per share, with a revenue increase of 21.4% to $209.33 million [19] - The ONE Group's consensus EPS estimate has been revised down by 666.7% over the last 30 days, resulting in an Earnings ESP of -28% [19][20]

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]

Core Insights - The article discusses the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, highlighting his unique stock selection style and methodologies [1]. Investment Strategies - Paul Franke employs a contrarian stock selection style, utilizing daily algorithm analysis of fundamental and technical data to identify investment opportunities [1]. - His system, named "Victory Formation," focuses on supply/demand imbalances indicated by specific stock price and volume movements [1]. - Franke recommends a diversified approach, suggesting investors hold at least 50 well-positioned stocks to achieve regular outperformance in the stock market [1]. Stock Selection Techniques - The "Bottom Fishing Club" articles target deep value candidates or stocks showing significant technical momentum reversals [1]. - The "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1].

Core Viewpoint - The restaurant sector is poised for disruption through the increasing application of artificial intelligence, with Dine Brands Global Inc actively integrating AI technology to enhance customer experience and operational efficiency [1][5]. Group 1: AI Implementation - Dine Brands is set to introduce an AI-powered "personalization engine" to assist with menu recommendations and increase sales, utilizing Amazon's Q generative AI assistant [2][5]. - The personalization engine leverages customer ordering history from the loyalty program to suggest items, while also providing recommendations based on popular items for new customers [3][6]. - AI technology will also be employed to streamline operations, such as detecting when tables need clearing and assisting managers with staffing decisions [4][6]. Group 2: Industry Context - Dine Brands joins other restaurant companies, including McDonald's and Yum Brands, in adopting AI technology for various operational enhancements, particularly in drive-thru services [5][6]. - The use of AI in the restaurant sector is expected to improve productivity, assist in inventory control, and ultimately reduce costs [6][7]. - The stock performance of Dine Brands shows a decline of 9.8% year-to-date in 2025, with shares closing at $27.15, within a 52-week range of $18.63 to $38.68 [7].

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]

Core Insights - Wyndham Rewards is enhancing its offerings by providing members with new dining perks and exclusive access to popular events and festivals [1][2][4] - The program aims to improve member experiences by allowing them to convert points into unique experiences through auctions and fixed-point rewards [3][6] - Wyndham Rewards has been recognized as the 1 hotel rewards program by U.S. News & World Report and USA Today, reflecting its commitment to continuous improvement [5][8] Dining and Experiences - Wyndham Rewards members will soon earn points for mobile To Go orders at over 1,500 Applebee's restaurants, with free delivery included [4][11] - The program features over 150 new experiences, including VIP tickets to sold-out events and unique activities like riding on a Zamboni during a New York Rangers game [9][10] Membership Benefits - Members earn a guaranteed 1,000 points with every qualified stay and can redeem free nights starting at just 7,500 points [10] - The program has expanded its offerings, including the introduction of a co-brand debit card and enhanced points redemption options [6]

Group 1 - The article suggests that Dine Brands (NYSE: DIN) has reached a potential bottom around the $20 mark after a six-month search for a buying opportunity [1] - The author has a strong background in restaurant stocks, with expertise in Business Administration, Accounting, and an MBA in Forensic Accounting [2] - The company focuses on analyzing various segments of the restaurant industry, including QSR, fast casual, casual dining, fine dining, and family dining, using advanced analytical models [2] Group 2 - The analysis aims to provide detailed insights and actionable strategies to help investors make informed decisions in the restaurant sector [2] - The author has previously contributed to discussions on monetary policy, financial education, and financial modeling, indicating a commitment to making financial topics accessible [2]

Buffett-style rational value picks | Top 95th percentile of financial bloggers according to TipRanks.Six years of long-horizon investment portfolio management and consulting. I do not provide or publish investment advice on Seeking Alpha. My articles are opinion pieces only and are not soliciting any content or security. Opinions expressed in my articles are purely my own. My opinions may change at any time and without notice. Please conduct your own research and analysis before purchasing a security or mak ...

Core Insights - Dine Brands (DIN) reported revenue of $214.78 million for Q1 2025, a year-over-year increase of 4.1%, but fell short of the Zacks Consensus Estimate by -0.24% [1] - The EPS for the quarter was $1.03, down from $1.33 a year ago, representing a surprise of -12.71% against the consensus estimate of $1.18 [1] Financial Performance Metrics - Dine Brands' shares returned +6.4% over the past month, underperforming the Zacks S&P 500 composite's +10.6% [3] - IHOP's domestic same-restaurant sales decreased by -2.7%, worse than the average estimate of -1.8% [4] - The total number of IHOP restaurants was 1,814, slightly below the estimated 1,822 [4] - Applebee's restaurants totaled 1,594, compared to the average estimate of 1,606 [4] - Applebee's domestic same-restaurant sales decreased by -2.2%, better than the estimated -3% [4] Revenue Breakdown - Franchise revenues were reported at $166.21 million, below the average estimate of $168.51 million, reflecting a year-over-year decline of -5.5% [4] - Rental revenues were $26.66 million, compared to the average estimate of $28.88 million, marking a -9.8% year-over-year change [4] - Financing revenues were $0.34 million, lower than the estimated $0.45 million, representing a significant -36.8% decline year-over-year [4] - Company restaurant sales reached $21.57 million, exceeding the average estimate of $17.47 million, with a remarkable year-over-year increase of +7773.4% [4] - Advertising revenue from franchise revenues was $70.49 million, slightly below the average estimate of $71.55 million, indicating a -6.3% year-over-year change [4] - Royalties, franchise fees, and other revenues totaled $95.72 million, compared to the average estimate of $97.51 million, reflecting a -4.9% year-over-year decline [4]