Financial Performance - Portillo's Inc. reported quarterly earnings of $0.12 per share, matching the Zacks Consensus Estimate, and an increase from $0.10 per share a year ago [1] - The company posted revenues of $188.46 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.5%, but up from $181.86 million year-over-year [2] - Over the last four quarters, Portillo's has surpassed consensus EPS estimates three times, while it has topped consensus revenue estimates only once [2][3] Market Performance - Portillo's shares have increased by approximately 1% since the beginning of the year, compared to a 7.6% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $196.28 million, and for the current fiscal year, it is $0.36 on revenues of $779.09 million [7] - The outlook for the Retail - Restaurants industry, where Portillo's operates, is currently in the top 41% of Zacks industries, suggesting a favorable environment for stock performance [8]

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]