Dine Brands(US:DIN)2024-05-08 11:31Financial Performance - Total revenues for the first quarter of 2024 were $206.235 million, a decrease of 3.5% from $213.767 million in the same period of 2023[14] - Net income for the first quarter of 2024 was $17.473 million, down 36.2% from $27.410 million in the first quarter of 2023[14] - Franchise revenues decreased to $175.877 million in Q1 2024, compared to $179.962 million in Q1 2023, reflecting a decline of 2.3%[14] - Company restaurant sales significantly dropped to $274,000 in Q1 2024 from $1.057 million in Q1 2023[14] - The company reported a gross profit of $97.424 million for Q1 2024, down from $103.616 million in Q1 2023, a decrease of 5.9%[14] - Basic earnings per share for Q1 2024 were $1.13, compared to $1.75 in Q1 2023, reflecting a decline of 35.4%[14] - Net income for the three months ended March 31, 2024, was $17.473 million, a decrease of 36.3% compared to $27.410 million for the same period in 2023[18] - Total revenue for the three months ended March 31, 2024, was $206.2 million, down 3.5% from $213.8 million in the same period last year[155] - Total gross profit for the three months ended March 31, 2024, was $97.4 million, down 6.0% from $103.7 million in the same period last year[156] Cash Flow and Liquidity - Cash flows provided by operating activities increased to $30.553 million in Q1 2024 from $16.076 million in Q1 2023, representing an increase of 90%[18] - The company reported a net change in cash of $11.533 million for Q1 2024, contrasting with a decrease of $89.880 million in Q1 2023[18] - Total cash, cash equivalents, and restricted cash at the end of Q1 2024 was $212.125 million, compared to $235.104 million at the end of Q1 2023[18] - The company’s cash and cash equivalents were $144.994 million as of March 31, 2024, slightly down from $146.034 million at the end of 2023[11] - Current restricted cash increased to $47.6 million as of March 31, 2024, compared to $35.1 million as of December 31, 2023[125] - Adjusted free cash flow for the three months ended March 31, 2024, improved to $29.8 million from $2.3 million in the same period of the prior year[198] Expenses and Liabilities - Total current assets decreased to $317.199 million as of March 31, 2024, down from $357.778 million at the end of 2023, a decline of 11.3%[11] - Total liabilities decreased to $1.940 billion as of March 31, 2024, compared to $1.991 billion at the end of 2023, a reduction of 2.6%[11] - General and administrative (G&A) expenses increased by 2.2% to $52.2 million, primarily due to higher compensation-related expenses and consumer research expenses[171] - Interest expense, net increased by $3.4 million to $18.1 million, attributed to higher interest rates on refinanced notes and borrowings[172] - Total interest expense for Q1 2024 was $19.2 million, compared to $15.7 million in Q1 2023, an increase of 22%[113] Franchise Operations - Total franchise revenue for the three months ended March 31, 2024, was $175.877 million, a decrease of 2.4% from $179.962 million in the same period of 2023[35] - Royalties generated $80.212 million in Q1 2024, down from $83.438 million in Q1 2023, reflecting a decline of 2.7%[35] - Advertising fees amounted to $75.261 million in Q1 2024, compared to $77.037 million in Q1 2023, representing a decrease of 2.3%[35] - Applebee's franchise restaurant sales decreased to $1,120.9 million in Q1 2024 from $1,190.3 million in Q1 2023, a decline of 5.8%[149] - IHOP franchise restaurant sales increased slightly to $803.8 million in Q1 2024 from $802.2 million in Q1 2023, reflecting a 0.2% increase[149] - Total franchise revenues decreased by $4.0 million to $175.9 million in Q1 2024, with Applebee's franchise fees down by $2.2 million and Fuzzy's franchise fees down by $0.7 million[164] Stock and Dividends - The company repurchased $6 million worth of common stock during Q1 2024, compared to $5 million in Q1 2023[18] - Dividends paid on common stock decreased to $7.827 million in Q1 2024 from $15.971 million in Q1 2023, a reduction of 51%[18] - The Company declared dividends of $0.51 per share for the three months ended March 31, 2024, totaling $7.8 million, down from $16.0 million in the same period of 2023[87] - During the three months ended March 31, 2024, the Company repurchased 128,479 shares at a cost of $6.0 million, totaling 1,724,257 shares repurchased under the 2022 Repurchase Program[191] Tax and Regulatory - The effective tax rate for the three months ended March 31, 2024, was 27.3%, compared to 24.2% for the same period in 2023[93] - The total gross unrecognized tax benefit as of March 31, 2024, was $3.9 million, an increase from $3.5 million as of December 31, 2023[94] Restaurant Operations - The company operated 1,636 Applebee's restaurants and 1,809 IHOP restaurants as of March 31, 2024, with operations in multiple countries[108] - The number of effective restaurants decreased by 38 for Applebee's, while IHOP saw an increase of 27 effective restaurants during the same period[137] - Applebee's system-wide domestic same-restaurant sales decreased by 4.6% for the three months ended March 31, 2024, primarily due to a decrease in traffic[138] - IHOP's system-wide domestic same-restaurant sales decreased by 1.7% for the same period, attributed to a decrease in traffic, partially offset by an increase in average check[142] - Fuzzy's system-wide domestic same-restaurant sales decreased by 9.8% for the three months ended March 31, 2024, primarily due to a decrease in traffic[145]