Financial Data and Key Metrics Changes - In Q1, EBITDA decreased to $54.7 million from $60.8 million in the same quarter last year [12] - Revenues increased by 4% to $214.8 million compared to $206.2 million in the prior year [28] - Adjusted free cash flow was $14.6 million, down from $29.7 million in the same period last year [30] - Adjusted diluted EPS for Q1 was $1.03 compared to $1.33 for the same quarter of the previous year [29] Business Line Data and Key Metrics Changes - Applebee's reported a 2.2% decline in comp sales, while IHOP posted a negative 2.7% in comp sales [12][32] - Applebee's value mix increased from 28% to 34%, and IHOP's value mix increased from 16% to 19% [9] - Off-premise comp sales at Applebee's increased by 3.7% compared to last year [12] Market Data and Key Metrics Changes - Approximately 13% of IHOP's and 10% of Applebee's annual market basket comes from international markets [10] - Applebee's commodity costs increased by 0.5%, while IHOP's commodity costs increased by 8.4% compared to the prior year [33] Company Strategy and Development Direction - The company is focusing on three key priorities: elevating guest experience, enhancing menu and value programs, and better communicating brand value [7] - The company is committed to remodeling Applebee's restaurants and has initiated a reimaging incentive program for franchisees [31][25] - The dual brand concept is being expanded, with plans to open 13 additional dual brands and complete 10 dual conversions this year [20] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has declined, affecting spending, particularly among lower-income guests [8] - Despite challenges, management expressed optimism about the positive momentum seen in sales and traffic in March and April [9][41] - The company is maintaining its full-year financial guidance at this time [35] Other Important Information - The company is actively monitoring global trade tensions and their potential impact on operations, confirming that only a small portion of their market basket is sourced internationally [10] - The company has implemented projects resulting in over $14 million of annualized savings across both systems in 2025 [35] Q&A Session Summary Question: Context on Applebee's performance in April - Management noted modest improvement in January, pressure in February, and a significant improvement in March that continued into April, driven by promotions and off-premise sales [41][42] Question: IHOP's same-store sales guidance - Management indicated that the positive trend in traffic is driven by the success of the house faves menu and ongoing marketing efforts [49][55] Question: Value proposition at both brands - Management emphasized the importance of listening to consumers and evolving the value proposition based on feedback and market conditions [60][62] Question: Franchisee sentiment and development demand - Management expects a healthy mix of dual brands and single brands, with ongoing interest from franchisees in new openings [66][68] Question: Applebee's remodel package details - The remodel package is expected to cost between $200,000 to $300,000 per location, with incentives for franchisees [71][72] Question: Average check growth expectations - Management indicated that menu pricing increases are expected to normalize in the low single-digit range moving forward [75]

Financial Data and Key Metrics Changes - In Q1 2025, EBITDA decreased to $54.7 million from $60.8 million in the same quarter last year [13] - Revenues increased by 4% to $214.8 million compared to $206.2 million in Q1 2024 [28] - Adjusted free cash flow was $14.6 million, down from $29.7 million in the prior year [30] - Adjusted diluted EPS for Q1 2025 was $1.03, compared to $1.33 in Q1 2024 [29] Business Line Data and Key Metrics Changes - Applebee's reported a 2.2% decline in comp sales, while IHOP posted a negative 2.7% in comp sales [13][32] - Off-premise comp sales at Applebee's increased by 3.7%, driven by promotions [13] - IHOP's house faves value menu contributed to traffic growth, outperforming the family dining segment [18] Market Data and Key Metrics Changes - The value mix at Applebee's increased from 28% to 34%, while IHOP's value mix rose from 16% to 19% [9] - Approximately 13% of IHOP's and 10% of Applebee's annual market basket is sourced internationally [11] Company Strategy and Development Direction - The company is focused on three key priorities: elevating guest experience, enhancing menu and value programs, and better communicating brand value [7] - The dual brand concept is being expanded, with plans for 13 additional dual brands and 10 conversions this year [21][23] - The company is committed to remodeling Applebee's restaurants and has introduced an early adopter incentive for franchisees [31][75] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has declined, affecting spending, particularly among lower-income guests [8] - Despite challenges, there was positive momentum in sales and traffic in March and April [9][94] - The company maintains its full-year financial guidance, indicating confidence in its strategic initiatives [35] Other Important Information - The company is actively monitoring global trade tensions and their potential impact on costs, with a small portion of market basket sourced internationally [10] - The company has implemented cost-saving initiatives resulting in over $14 million of annualized savings across both systems [34] Q&A Session Summary Question: Context on Applebee's performance in April - Management noted modest improvement in January, pressure in February, but a significant improvement in March that continued into April, driven by promotions and off-premise sales [41][42] Question: IHOP's same-store sales guidance - Management confirmed confidence in IHOP's guidance due to traffic momentum and successful marketing initiatives [50][56] Question: Value proposition at both brands - Management emphasized the importance of evolving the value proposition based on consumer feedback and market conditions [59][63] Question: Applebee's remodel package details - The remodel package is expected to cost between $200,000 to $300,000 per franchisee, with incentives provided for early adopters [72][75] Question: Average check growth expectations - Applebee's check increased slightly, while IHOP's check dropped due to a shift in product mix [77] Question: Operational simplification examples - Management highlighted improvements in ordering speed through technology and operational flow enhancements [81][84] Question: Future direction for Club Applebee's - The company plans to enhance Club Applebee's with more personalized marketing and exclusive offers for members [87][92]

Financial Data and Key Metrics Changes - Dine Brands Global, Inc. generated $106.4 million in adjusted free cash flow for fiscal 2024, an increase from $103.3 million in the previous year, indicating financial stability [10][52] - Adjusted EBITDA for the full year was $239.8 million, down from $256.4 million in 2023, with Q4 adjusted EBITDA at $50.1 million compared to $62.2 million in Q4 2023 [11][50] - Total revenues decreased by 0.7% to $204.8 million in Q4, with full-year revenues at $812.3 million, reflecting negative comps and a decrease in rental revenues [48][49] Business Line Data and Key Metrics Changes - IHOP experienced a full-year comp sales decline of 2%, with Q4 comp sales at negative 2.8% [12] - Applebee's comp sales were negative 4.2% for the full year, with a decline of 4.7% in Q4 [12] - The company took back 47 Applebee's restaurants in November, which contributed to an increase in company restaurant sales [11][48] Market Data and Key Metrics Changes - The macroeconomic environment in 2024 significantly impacted consumer spending, particularly affecting guests with household incomes under $75,000, who represent about two-thirds of the customer base [13] - Average weekly sales for Applebee's in 2024 were $52.3 thousand, while IHOP's average weekly sales were $37.7 thousand [54][55] Company Strategy and Development Direction - The company aims to improve performance in 2025 by focusing on enhancing guest experience, improving operations, and refining menu offerings [15][18] - Dine Brands plans to remodel 30 Applebee's restaurants under the "Lookin' Good" program and convert five restaurants to a dual-brand concept [16][24] - The dual-brand concept is seen as a competitive advantage, with locations achieving 1.5% to 2x the revenue compared to single-brand restaurants [40][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 performance did not meet expectations but expressed confidence in the company's ability to achieve better results in 2025 [14][46] - The company is optimistic about international growth potential, particularly in Canada, Mexico, and the Middle East, and plans to expand dual-brand locations [38][39] Other Important Information - The company has initiated a nationwide search for a new leader for Applebee's following the resignation of Tony Moralejo [8][9] - In 2024, the company implemented projects resulting in over $50 million of annualized savings across the system [58] Q&A Session Summary Question: What is the primary source of the recent underperformance of your brands? - Management indicated that the focus is on value communication and that recent promotions like the "Really Big Meal Deal" and "House Faves" have shown progress in increasing traffic [70][72] Question: Can you provide more details on the value plans for Applebee's? - The company is building an everyday value platform that includes new offerings for groups and individuals, expected to roll out in late spring or early summer [80][81] Question: How confident are franchisees in the turnaround plan? - Franchisees are aligned with the company's plans for 2025, with strong interest in renovation incentives and new openings [88][90] Question: What is the outlook for IHOP's food costs, particularly regarding eggs? - IHOP expects low to mid-single-digit inflation primarily driven by egg prices, but franchisees have not implemented surcharges [105][106] Question: What innovations were implemented in 2024, and what is planned for 2025? - Innovations included the dual-brand concept and new menu items, with plans to enhance the loyalty program and marketing strategies in 2025 [110][114]