Mizuho Securities Maintains Hold Rating on Dine Brands Global Amid Market Share Decline and Uncertain Turnaround Efforts

Dine Brands Global (DIN) has received a new Hold rating, initiated by Mizuho Securities analyst, .

Mizuho Securities has given its Hold rating due to a combination of factors impacting Dine Brands Global. The company, which owns Applebee’s and IHOP, has faced challenges with declining market share and unit closures following post-COVID price increases that outpaced both grocery and industry standards. Although management has implemented value platforms and social media marketing to drive sales, the results remain uncertain, and investor confidence in sustained EBITDA growth is low.
Mizuho’s rating reflects concerns about the visibility of investment success in turnaround efforts, particularly with the acquisition and remodeling of Applebee’s units. The ongoing negative unit growth rates for both brands pose a significant challenge, requiring same-store sales growth to offset these declines for positive revenue and EBITDA growth. Despite a strong dividend yield and free cash flow, the company’s valuation is discounted compared to peers due to these uncertainties. Thus, Mizuho maintains a cautious outlook with a Hold rating.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DIN in relation to earlier this year.