Dine Brands Global, Inc. (NYSE:DIN) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Company Participants John Peyton – Chief Executive Officer Vance Chang – Chief Financial Officer Tony Moralejo – President of Applebee's Jay Johns – President of IHOP Brett Levy – Vice President of Investor Relations and Treasury Conference Call Participants Eric Gonzalez – KeyBanc Jake Bartlett – Truist Securities Todd Brooks – The Benchmark Company Nick Setyan – Wedbush Brian Mullan – Piper Sandler Andrew Wolf – ...

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, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Delaware 95-3038279 (State or other jurisdiction of incorporation or Pasadena CA organization) (I.R.S. Employer Ident ...

Financial Data and Key Metrics - Consolidated total revenues increased by 11% in Q1 2023 to $211 million, driven by strong franchise revenues which grew by 12% to $180 million [5] - Rental segment revenues improved by 11% to $32 million in Q1 2023 compared to $29 million in the same quarter of 2022 [5] - Adjusted EBITDA for Q1 2023 increased to $66.4 million from $65.2 million in Q1 2022 [133] - Adjusted diluted EPS for Q1 2023 was $1.97 compared to $1.54 in Q1 2022 [30] - Cash provided from operations for Q1 2023 was $16 million compared to cash used in operations of nearly $8 million in Q1 2022 [66] Business Line Data and Key Metrics - Applebee's average weekly sales per restaurant were approximately $56,800 in Q1 2023, with off-premise sales accounting for 23% of total sales [129] - IHOP's average weekly sales per restaurant were approximately $38,200 in Q1 2023, with off-premise sales accounting for 22% of total sales [129] - The rental segment margin increased due to lease buyouts and operating lease renewals, while company restaurant operations sales decreased by 97% to $1 million in Q1 2023 [2] - IHOP added 19 new restaurants globally in Q1 2023, with development numbers higher than usual due to rollovers from 2022 [8] Market Data and Key Metrics - The company opened 21 gross new restaurants globally in Q1 2023, demonstrating franchisees' belief in the brands [107] - International operations remain a growth engine, with 217 IHOP and Applebee's restaurants and 56 ghost kitchen locations in 16 countries and two U.S. territories at the end of Q1 2023 [114] - The first dual-brand Applebee's and IHOP location in the Middle East opened in Dubai, achieving record sales of $135,000 in its first week [1] Company Strategy and Industry Competition - The company is focused on providing superior guest experiences through menu and technology innovation, attracting new and returning guests through marketing and loyalty strategies, and expanding the global footprint of its brands [79] - Applebee's launched a financial development initiative to drive openings in 2024 and beyond, while IHOP introduced financial incentives to accelerate development [108][8] - The company is leveraging its asset-light model to invest in long-term growth, with a focus on maintaining a strong balance sheet and returning capital to shareholders [23][97] Management Commentary on Operating Environment and Future Outlook - Management expects commodity costs to moderate in the second half of 2023, with easing in coffee, eggs, and poultry prices, although wheat and beef remain elevated [3][115] - The company is closely monitoring guest behavior, commodity prices, and labor costs, with franchisees seeing revenue rise at a rate that offsets labor cost increases for the first time since 2019 [91][52] - Management reiterated full-year guidance, expressing confidence in the company's ability to deliver on its 2023 financial goals despite macroeconomic uncertainty [136] Other Important Information - The company completed a $500 million refinancing of senior secured notes, reducing debt by approximately $200 million [113] - IHOP's loyalty program has 5.5 million members, representing roughly 5% of sales, with app downloads increasing 3x following the program's launch [131] - Fuzzy's Taco Shop's loyalty program has over 500,000 active members, with loyalty guests visiting more often and spending more than non-loyalty guests [9] Summary of Q&A Session Question: Consumer health and value offerings - The majority of guests at both Applebee's and IHOP have household incomes below $100,000, with about half at the $50,000 level, a trend that has remained stable over time [17] - Applebee's has seen growth in the $100,000-plus income segment since 2019, while IHOP's value platforms have remained consistent [17] Question: Pricing strategy and inflation impact - Applebee's franchisees took a 5.6% price increase in Q1 2023 to protect margins, lower than direct peers, while IHOP franchisees took a 4% price increase [100][41] - The company expects inflation to continue moderating, with franchisees likely to be strategic in pricing decisions to minimize traffic impact [26] Question: Refinancing and balance sheet management - The company refinanced $585 million of debt, issuing $500 million in new notes, with the gap covered by cash on the balance sheet [25] - The revolver availability remains at $220 million, with $100 million drawn, and the company used cash to reduce debt and buy back bonds [84] Question: Development and investment strategy - The company is focused on ROI-driven investments, with flexibility to adjust G&A and CapEx if needed, and is not influenced by peers' investment decisions [43][28] - IHOP's development plans are progressing, with 19 new restaurants added globally in Q1 2023, and financial incentives introduced to accelerate future development [8] Question: Trade-down dynamics and industry trends - Applebee's has seen an increase in higher-income guests, while IHOP has not seen significant changes in guest demographics [59][63] - The company is monitoring industry trends and is prepared to adjust marketing and promotions if a significant slowdown occurs [104]

Table of Contents For the transition period from to Commission File Number 001-15283 Dine Brands Global, Inc. 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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Delaware 95-3038279 (Sta ...

Dine Brands Global, Inc. (NYSE:DIN) Q4 2022 Earnings Conference Call March 1, 2023 9:00 AM ET Company Participants Brett Levy - VP, IR & Treasury John Peyton - CEO Vance Chang - CFO Tony Moralejo - President, Applebee’s Jay D. Johns - President, IHOP Conference Call Participants Eric Gonzalez - KeyBanc Capital Markets Todd Brooks - Benchmark Company Nick Setyan - Wedbush Securities Brian Vaccaro - Raymond James Jeffrey Bernstein - Barclays Operator Good day. And thank you for standing by. Welcome to the Din ...

Revenue and Operations - For the year ended December 31, 2022, approximately 73% of total revenues were generated from the two largest franchise operating segments, Applebee's and IHOP[17]. - As of December 31, 2022, the company operated 3,596 restaurants, with almost all being franchised, indicating a highly franchised business model[16]. - Revenue from international operations comprised less than 2% of total consolidated revenue for the year ended December 31, 2022[17]. - Approximately 90% of franchise segment revenue for the year ended December 31, 2022, consisted of Applebee's, IHOP, and Fuzzy's royalties and advertising revenue[54]. - The company reported approximately $27 million in receivables for equipment leases and franchise fee notes, and approximately $17 million in notes receivable from franchisees[19]. - The company experienced a slight increase in system-wide sales in the first quarter due to gift card redemptions from the previous December holiday season[78]. - Applebee's domestic franchise restaurant sales for 2022 were $4,235.3 million, an increase of 5.3% from $4,021.7 million in 2021[211]. - Applebee's total reported retail sales for 2022 were $7,724.7 million, up from $7,289.3 million in 2021, marking a 6.0% increase[211]. - IHOP's system-wide sales grew by 7.7% in 2022, supported by a 5.8% increase in domestic same-restaurant sales and an increase in franchise restaurants[201]. Franchise and Acquisitions - The company acquired Fuzzy's Taco Shop in December 2022, which included 135 franchised restaurants and three company-operated restaurants at the time of acquisition[24]. - The company plans to continue evaluating the addition of new brands to its restaurant portfolio through acquisitions and strategic investments[21]. - As of December 31, 2022, signed commitments from IHOP franchisees included plans to build 302 IHOP restaurants over the next six years[58]. - The current standard franchise fees for Fuzzy's restaurants include an initial franchise fee of $40,000 per restaurant and a royalty fee of 5% of weekly gross sales[42]. - The Applebee's franchise agreements require domestic franchisees to contribute 3.25% of their gross sales to a national advertising fund, with the potential to increase to a maximum of 5%[46]. - The current form of IHOP franchise agreement provides for a national advertising fee equal to 3.5% of weekly gross sales[50]. - The Fuzzy's Development Fund contributions are set at 2% of weekly gross sales under the standard form of new franchise agreements[51]. - Applebee's franchisees operated 1,569 restaurants in the U.S., with the ten largest franchisees owning 1,220 restaurants, representing 78% of all franchised Applebee's locations[152]. Financial Performance and Stockholder Returns - The company aims to maximize long-term stockholder return through capital allocation strategies, including cash dividends and stock repurchases[21]. - The company returned over $151 million to stockholders, including $30.8 million in cash dividends and $120.5 million in stock repurchases[201]. - The cumulative total stockholder return for Dine Brands Global, Inc. was $146.94 as of December 31, 2022, compared to $156.89 for the S&P 500[187]. - Dine Brands Global reported net income of $81.1 million, or $4.96 per diluted share, in 2022, a decrease from $97.9 million, or $5.66 per diluted share, in 2021[201]. - The effective tax rate for 2022 was 29.3%, influenced by state and local income taxes and non-deductible executive compensation[203]. Employee and Corporate Structure - As of December 31, 2022, the company had 637 employees, with 59% male and 41% female[93]. - Approximately 83% of corporate employees are salaried, while 17% are paid hourly[93]. - The company maintains a focus on diversity and inclusion, with 44% of corporate employees being people of color[93]. Risks and Compliance - The company has been impacted by the COVID-19 pandemic, which has disrupted operations and may continue to affect sales and traffic at restaurants[98]. - The company faces risks related to cybersecurity incidents, which could disrupt operations and damage its reputation[113]. - The company is subject to compliance with PCI DSS guidelines, which regulate the security of cardholder data[114]. - The company may incur additional costs to comply with changing privacy and information security laws, such as the California Consumer Privacy Act[115]. - The company is involved in litigation that could divert significant operational resources and impact financial results[119]. - The company and its franchisees are subject to complaints related to food quality and safety, which could lead to liability issues[120]. - The company is subject to various lawsuits and legal proceedings, which may not have a material adverse impact on its operations[176]. Market and Competitive Environment - The restaurant industry is highly competitive, with sales and profitability affected by various external factors, including consumer behavior and economic conditions[159]. - Negative publicity regarding any single restaurant can adversely affect the entire brand, impacting sales and franchise payments[160]. - Changing health and dietary preferences may lead consumers to avoid the company's restaurants, affecting demand and royalty revenues[168]. Operational Challenges - The inability to open new restaurants that achieve acceptable sales volumes may have a material adverse effect on the company's business and financial condition[146]. - The concentration of franchised restaurants in a limited number of franchisees increases the risk of financial difficulties impacting the company's obligations and revenues[152]. - The company's delivery initiatives may not generate expected returns and could introduce new operational risks[125]. - The company may experience shortages or interruptions in the supply of food and other products, which could affect restaurant operations and revenue[163]. - Effective inventory management is crucial, as mismanagement can lead to financial losses or inventory shortages[164]. - The inability to secure suitable locations for new restaurants may adversely affect sales and operational results[162]. Debt and Financial Obligations - As of December 31, 2022, the company had approximately $1.3 billion in long-term debt and $0.4 billion in operating lease and financing obligations[103]. - The company must maintain a leverage ratio of less than or equal to 5.25x total debt to adjusted EBITDA to avoid mandatory principal payments[108]. - The company's financial performance measures, including debt service coverage ratios, must be met to avoid potential defaults under existing debt arrangements[100]. - The company's ability to refinance debt or obtain additional financing is influenced by factors beyond its control, including market conditions and credit ratings[110]. Future Outlook - The company is investing in technology to enhance customer access to its brands, including online ordering and delivery services[21]. - The company plans to move its corporate offices from Glendale to Pasadena, California, in May 2023, leasing approximately 93,000 square feet[175].

Dine Brands Global, Inc. (NYSE:DIN) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Participants John Peyton - CEO Vance Chang - CFO John C. Cywinski - President, Applebee’s Jay D. Johns - President, IHOP Brett Levy - VP, IR & Treasury Conference Call Participants Eric Gonzalez - KeyBanc Capital Markets Jake Bartlett - Truist Securities Jeffrey Bernstein - Barclays Nick Setyan - Wedbush Securities Brian Mullan - Deutsche Bank Brian Vaccaro - Raymond James Andrew Wolf - CL King Operator ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-15283 Dine Brands Global, Inc. (Exact name of registran ...

Dine Brands Global, Inc. (NYSE:DIN) Q2 2022 Earnings Conference Call August 9, 2022 9:00 AM ET CompanyParticipants John Peyton - CEO Vance Chang - CFO John Cywinski - President, Applebee’s Jay Johns - President, IHOP Brett Levy - VP, IR & Treasury Conference Call Participants Jeff Bernstein - Barclays Eric Gonzalez - KeyBanc Capital Markets Nick Setyan - Wedbush Securities Todd Brooks - The Benchmark Company Brian Mullan - Deutsche Bank Brian Vaccaro - Raymond James Jake Bartlett - Truist Securities Operato ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-15283 Dine Brands Global, Inc. (Exact name of registrant as ...