Core Insights - Dine Brands aims to enhance sales in 2025 through value meals and effective advertising after a disappointing 2024 for Applebee's and IHOP [1] - The company reported a decline in same-store sales for both Applebee's (4.7%) and IHOP (2.8%) in the fourth quarter, marking four consecutive quarters of declines [1][2] - Dine Brands' stock has decreased by 50% over the past year, resulting in a market capitalization of $386 million [1] Company Performance - The downturn in 2024 followed three years of growth driven by post-pandemic demand, but a shift in consumer behavior led to reduced spending, particularly among those earning less than $75,000 [2] - The casual dining sector has faced significant challenges, with several chains, including Red Lobster and TGI Friday's, filing for bankruptcy [3] Competitive Landscape - Applebee's has struggled to stand out amid intense competition in the value segment, with promotions failing to resonate against similar offers from competitors [4][5] - Brinker International, owner of Chili's, reported a remarkable same-store sales growth of 27.4%, highlighting its successful marketing strategies [6] Marketing and Strategy - Applebee's current value promotion, the two for $25 deal, constitutes about 20% of its sales, with plans to introduce new value options targeting larger groups [7] - The company is focusing on improving its social media presence and relevance in the market [8] Leadership Changes - Dine Brands is seeking a new president for Applebee's to enhance marketing efforts and connect with younger customers, following the resignation of Tony Moralejo [9] - The company is also looking to leverage menu innovation to attract younger diners [9] Future Projections - For 2025, Dine Brands anticipates Applebee's same-store sales to decline by 2% to increase by 1%, while IHOP's sales are expected to decrease by 1% to increase by 2% [10]