Dine Brands(US:DIN)2025-11-05 12:05Revenue Performance - Total revenues for the third quarter of 2025 were $216.166 million, an increase of 10.9% compared to $195.034 million in the same quarter of 2024[15] - Franchise revenues decreased to $161.346 million in Q3 2025 from $166.354 million in Q3 2024, representing a decline of 3.0%[15] - Total revenues for the nine months ended September 30, 2025, were $661.7 million, with revenues excluding advertising revenue at $449.5 million[123] - Total franchise revenues for the nine months ended September 30, 2025, were $502.3 million, compared to $518.7 million for the same period in 2024, reflecting a decline of 3.2%[37] - Total franchise revenues for the three months ended September 30, 2025, were $161.3 million, a decrease of 3.1% from $166.4 million in Q3 2024[37] Profitability - Net income for the third quarter of 2025 was $7.326 million, down from $19.061 million in Q3 2024, a decrease of 61.6%[15] - Basic earnings per share for Q3 2025 were $0.48, down from $1.24 in Q3 2024, a decrease of 61.3%[15] - The company reported a net income before income taxes of $10.1 million for the three months ended September 30, 2025[121] - Net income for the nine months ended September 30, 2024, was $59,716 thousand, compared to $29,337 thousand for the same period in 2025, indicating a decrease of 50%[21] Gross Profit and Expenses - The company reported a gross profit of $84.553 million for Q3 2025, compared to $93.319 million in Q3 2024, reflecting a decline of 9.4%[15] - The company incurred depreciation and amortization expenses of $31,378 thousand for the nine months ended September 30, 2025, compared to $29,049 thousand in 2024, indicating an increase of approximately 8.0%[21] - The total operating lease income for the nine months ended September 30, 2025, was $79.7 million, down from $85.2 million in the same period of 2024[53] - Stock-based compensation expense for the nine months ended September 30, 2025, was $9,733 thousand, down from $12,572 thousand in the same period of 2024, a decrease of about 22.9%[21] Assets and Liabilities - The company’s total assets were $1.773 billion as of September 30, 2025, slightly down from $1.791 billion at the end of 2024[11] - Total current liabilities decreased to $340.110 million as of September 30, 2025, from $445.305 million at the end of 2024, a reduction of 23.6%[11] - The company’s long-term debt increased to $1.187 billion as of September 30, 2025, compared to $1.087 billion at the end of 2024, an increase of 9.2%[11] - The company reported a total stockholders' deficit of $231.918 million as of September 30, 2025, compared to $216.019 million at the end of 2024[11] Cash Flow and Investments - Total cash flows provided by operating activities for the nine months ended September 30, 2025, were $83,302 thousand, an increase from $77,694 thousand in 2024, representing a growth of about 7.3%[21] - The company’s cash flows used in investing activities for the nine months ended September 30, 2024, were $(661) thousand, while in 2025, they increased to $(15,827) thousand, indicating a significant increase in investment outflows[21] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, totaled $251,113 thousand, compared to $235,110 thousand at the end of September 30, 2024[21] Shareholder Activities - The company repurchased 989,662 shares of common stock at a cost of $22,503 thousand during the three months ended September 30, 2025[17] - For the nine months ended September 30, 2025, the Company paid dividends of $23.6 million, maintaining a dividend of $0.51 per share for both 2025 and 2024[89] - During the nine months ended September 30, 2025, the Company repurchased 1,299,440 shares of common stock at a cost of $30.1 million, with a remaining amount of $103.1 million available for repurchase under the 2022 Repurchase Program[93] Debt and Financing - The Company issued $600 million of Series 2025-1 6.720% Fixed Rate Senior Secured Notes on April 17, 2023, as part of a refinancing transaction[56] - The Company completed a refinancing transaction and issued $600 million of Series 2025-1 6.720% Fixed Rate Senior Secured Notes, Class A-2[58] - The Company incurred costs of approximately $4.1 million in connection with the issuance of the Credit Facility, which are being amortized over the term of the new arrangement[80] - The Company incurred approximately $8.0 million in costs related to the issuance of the 2023 Class A-2 Notes, with unamortized debt issuance costs of $5.3 million reported as of September 30, 2025[82] Franchise Operations - The Company has 477 IHOP franchisee-operated restaurants and leases from third parties for these properties, indicating ongoing market expansion efforts[48] - The Franchise Segment reported revenues of $161.3 million for the three months ended September 30, 2025, with revenues excluding advertising revenue at $93.1 million[121] - The balance of deferred franchise revenue as of September 30, 2025, was $39.6 million, with $1.5 million expected to be recognized in the remaining three months of 2025[37] Legal and Compliance - The Company does not expect any material adverse impact from ongoing legal proceedings, although there are various lawsuits and claims pending[135] - The company does not have a material amount of financial assets or liabilities that are required to be measured at fair value on a recurring basis[133]