Applebee's Parent Dine Brands' Strong Free Cash Flow And Accelerated Share Repurchase Is Noteworthy, Analyst Upgrades Stock

Core Viewpoint - Wedbush analyst Nick Setyan upgraded Dine Brands Global, Inc. (DIN) to Outperform from Neutral, raising the price forecast to $47 from $34, citing key catalysts for multiple expansions over the next twelve months [1] Financial Projections - The analyst forecasts adjusted free cash flow of $99.2 million in 2024 and $107.5 million in 2025, translating to free cash flow yields of 22% and 25% respectively [2] - Dividend payments are projected at $31.8 million in 2024 and $30.9 million in 2025, with a current dividend yield of 6.5% [4] Share Repurchase and Growth Strategy - A $100 million+ accelerated share repurchase plan is anticipated in the second half of 2025, representing over 20% of the company's current market capitalization [1] - Strong free cash flow generation is expected to support ongoing annual repurchases of $60 million+ after the ASR [3] Business Outlook - Both Applebee's and IHOP are positioned to optimize their value propositions as they approach 2025, with current offers stabilizing and near-term same-store sales growth remaining largely in line [3] - The analyst raised the company's FY25 EPS estimate to $6.43 from $6.34 [4] Market Performance - DIN shares are trading higher by 13.1% to $35.32 at last check [9]