Dine Brands Global (DIN) AI Stock Analysis

• Market Cap: $490.69M
• Dividend Yield: 5.1%
• Average Volume (3M): 364.32K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.89
• Revenue Growth: 6.47%
• EPS Growth: -62.84%
• Country: US
• Employees: 992
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.73
• Shares Outstanding: 14,423,699
• 10 Day Avg. Volume: 321,262
• 30 Day Avg. Volume: 364,317
• PEG Ratio: -0.21
• Price to Book (P/B): -2.08
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 4.78
• Enterprise Value/Market Cap: 3.80
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 5.33
• Enterprise Value/Ebitda: 11.28
• 1Y Price Target: $36.33
• Price Target Upside: 12.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $35.00 ▲(8.26% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by balance-sheet risk (high leverage/negative equity) and uneven profitability, partially offset by improving free cash flow trends. Technicals are neutral with longer-term support but limited near-term momentum, while valuation is moderately supportive due to the combination of a mid P/E and a high dividend yield. Earnings commentary is cautiously positive on strategy and Applebee’s momentum but tempered by EBITDA/FCF declines and cost pressures.

Positive Factors

Franchise-driven cash generation

Dine Brands’ royalty-and-fee franchise model yields recurring, largely capex-light cash flows. Improved TTM free cash flow trends provide a durable liquidity buffer and funding source for dividends, buybacks, or dual-brand growth even when operating margins fluctuate.

Dual-brand strategy lifts sales

Dual-brand conversions materially boost unit sales and franchisee economics, creating a scalable growth lever. A pipeline (~30 units) and demonstrated post-conversion uplift imply durable same-store sales expansion potential and stronger franchise retention over the medium term.

Board refresh strengthens governance

Adding seasoned franchising and restaurant executives to the board improves industry expertise and strategic oversight. Stronger governance and franchise operator experience should support execution of conversions, franchise relations and long-term franchise network health.

Negative Factors

High leverage / negative equity

Very high leverage and negative shareholders' equity constrain financial flexibility and elevate refinancing and solvency risk. This structural balance-sheet weakness limits ability to invest in remodels, pursue M&A, or absorb extended operating weakness without costly financing.

Declining adjusted EBITDA and FCF

Year-over-year drops in adjusted EBITDA and free cash flow reduce internal funding for growth and shareholder returns. Persistent EBITDA pressure undermines margin sustainability and makes reliance on franchise cash flows and external funding more critical over the medium term.

Commodity, store & G&A cost pressure

Elevated commodity costs, higher G&A, and losses from company-owned store remodels/dual conversions create sustained margin headwinds. These structural cost pressures can compress profits even as top-line initiatives progress, slowing margin recovery and cash conversion.

Dine Brands Global Business Overview & Revenue Model

Company Description

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates through five segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill + Bar in the bar and grill segment of the casual dining category; and IHOP in the family dining category of the restaurant industry. Its Applebee's restaurants offer American fare with drinks and drafts; and IHOP restaurants provide full table services, and food and beverage offerings. As of December 31, 2021, the company had 1,611 Applebee's franchised restaurants, and 1,751 IHOP franchised and area licensed restaurants. It is also involved in the lease or sublease of 598 IHOP franchised restaurants and two Applebee's franchised restaurants; and the financing of franchise fees and equipment leases. the company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Glendale, California.

How the Company Makes Money

Dine Brands Global generates revenue primarily through franchise fees and royalties from its franchisees, who operate Applebee's and IHOP locations across the globe. The company charges a percentage of sales from franchisees, which contributes significantly to its income. Additionally, Dine Brands earns revenue from company-operated restaurants, as well as from the sale of food and beverage products to its franchisees. The company may also engage in strategic partnerships, marketing initiatives, and promotional campaigns that enhance brand visibility and drive customer traffic to its restaurants, further contributing to its financial performance.

Dine Brands Global Financial Statement Overview

Summary

Financial profile is pressured by very high leverage and negative equity (balance sheet weakness), alongside inconsistent profitability and low EBIT/EBITDA margins. Cash flow is a relative bright spot with improved TTM free cash flow trends, but conversion of earnings to operating cash flow remains a concern.

Income Statement

Dine Brands Global shows a volatile revenue growth pattern with a significant spike in TTM data, but historical annual data indicates fluctuations and negative growth in some years. The gross profit margin is relatively stable, but net profit margins have been inconsistent, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins are low, indicating operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage and financial risk. Negative stockholders' equity suggests potential solvency issues. Return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is also negative, further emphasizing financial instability.

Cash Flow

Cash flow metrics show some positive trends, with a strong free cash flow growth rate in TTM data. However, the operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is relatively healthy, suggesting some ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	866.50M	812.31M	831.07M	909.40M	896.17M	689.27M
Gross Profit	349.97M	375.31M	396.68M	377.36M	375.23M	248.72M
EBITDA	165.25M	200.84M	217.38M	213.69M	225.10M	1.16M
Net Income	34.51M	64.89M	97.18M	81.11M	97.86M	-103.99M
Balance Sheet
Total Assets	1.77B	1.79B	1.74B	1.88B	2.00B	2.07B
Cash, Cash Equivalents and Short-Term Investments	229.11M	186.65M	146.03M	269.65M	361.41M	383.37M
Total Debt	1.63B	1.63B	1.59B	1.74B	1.77B	2.03B
Total Liabilities	2.01B	2.01B	1.99B	2.18B	2.24B	2.43B
Stockholders Equity	-231.92M	-216.02M	-250.97M	-301.08M	-242.81M	-354.65M
Cash Flow
Free Cash Flow	87.19M	94.09M	93.97M	54.02M	178.99M	85.58M
Operating Cash Flow	113.77M	108.16M	131.14M	89.34M	195.84M	96.50M
Investing Cash Flow	-23.62M	-8.45M	-30.10M	-80.90M	3.86M	18.73M
Financing Cash Flow	-74.15M	-51.70M	-225.44M	-108.80M	-230.40M	168.35M

Dine Brands Global Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIN, the sentiment is Neutral. The current price of 32.33 is below the 20-day moving average (MA) of 34.30, below the 50-day MA of 34.67, and above the 200-day MA of 27.06, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DIN.

Dine Brands Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATH	73 Outperform	$411.57M	19.30	―	2.09%	7.81%	4.58%
LOCO	68 Neutral	$321.12M	12.27	9.63%	―	2.09%	12.10%
PTLO	68 Neutral	$429.64M	15.64	5.82%	―	2.40%	-14.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DIN	51 Neutral	$490.69M	15.22	―	5.10%	6.47%	-62.84%
JACK	45 Neutral	$420.46M	-4.90	―	9.34%	-6.75%	-118.94%

Dine Brands Global Corporate Events

Dine Brands Global Adds Two Independent Directors to Board

On February 1, 2026, Dine Brands Global’s board of directors expanded its size from nine to eleven members and elected Amanda Clark and Enrique “Rick” Silva as independent directors, with their appointments announced publicly on February 3, 2026 and effective February 4, 2026. The move continues the company’s board refreshment strategy by adding seasoned franchise and restaurant operators: Silva, former CEO of Checkers & Rally’s and Culver’s franchising and current chairman of Zips Car Wash, and Clark, former Papa John’s international COO and Taco Bell executive and current CEO of WellBiz Brands, both bring deep experience in franchised restaurant and consumer brands; their compensation and indemnification will align with existing non‑employee directors, underscoring an effort to strengthen governance and strategic oversight ahead of the 2026 annual meeting.

The most recent analyst rating on (DIN) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Dine Brands Global stock, see the DIN Stock Forecast page.

Dine Brands Global Announces Q4 Dividend Amid Mixed Results

On November 5, 2025, Dine Brands Global announced a fourth quarter cash dividend and reported its third quarter 2025 financial results. The company experienced positive sales trends at Applebee’s, but a slight decline at IHOP, with total revenues increasing due to acquisitions. However, net income and adjusted EBITDA decreased compared to the previous year, primarily due to higher general and administrative expenses and lower segment profit. The company plans to repurchase shares, demonstrating confidence in its strategic plan and business value.

The most recent analyst rating on (DIN) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Dine Brands Global stock, see the DIN Stock Forecast page.