Dine Brands(US:DIN)2025-05-07 14:02Financial 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]