Dine Brands Global (DIN) AI Stock Analysis

• Market Cap: $396.89M
• Dividend Yield: 8.03%
• Average Volume (3M): 409.00K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.60
• Revenue Growth: -0.33%
• EPS Growth: -35.74%
• Country: US
• Employees: 992
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): 1.03
• Shares Outstanding: 15,625,779
• 10 Day Avg. Volume: 373,446
• 30 Day Avg. Volume: 409,004
• PEG Ratio: -1.00
• Price to Book (P/B): -3.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.98
• Enterprise Value/Market Cap: 6.22
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 2.99
• 1Y Price Target: $24.00
• Price Target Upside: -7.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $27.00 ▲(4.49%Upside)

Dine Brands Global's stock score reflects a balance of strengths and risks. The company's attractive valuation and strong cash flow provide a robust foundation, yet financial leverage and mixed earnings results present challenges. Positive technical indicators help offset some concerns, but strategic improvements are needed for stronger growth.

Positive Factors

Business Strategy

DIN is showing an increased willingness to pivot from its fully franchised operating model by owning up to 2% of each system to advance and prove-out important initiatives like the new dual/brand format.

Revenue Growth

Revenues of $205M beat consensus of $199M with an $8M contribution from the 47 Applebee’s franchisee locations acquired.

Sales Performance

SSS momentum improved with Applebee’s returning to positive SSS growth, largely driven by improvement in off-premises sales.

Negative Factors

Earnings Performance

Dine Brands Global reported 2Q25 operating results that lagged consensus expectations from a gross profit, AEPS, and AEBITDA standpoint.

Growth Prospects

The probability of improvement in Applebee's and IHOP's unit growth trajectories is declining.

Profitability

The acquired 47 lower-AUV Applebee’s locations are currently not profitable at the gross margin level, and management expects it will take until the end of FY25 for this group of stores to be approaching breakeven.

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 makes money primarily through its franchising operations. The company generates revenue from franchise fees, royalties based on a percentage of franchisee sales, and income from company-operated restaurants. Additionally, Dine Brands earns revenue through the sale of proprietary products and services to its franchisees. Key revenue streams include franchise operations for both Applebee's and IHOP, with each brand contributing significantly to the overall earnings. The company also benefits from strategic partnerships and marketing initiatives that enhance brand visibility and customer engagement. Factors such as menu innovation, customer loyalty programs, and international expansion efforts further contribute to its revenue growth.

Dine Brands Global Financial Statement Overview

Summary

Dine Brands Global has a mixed financial profile, with strong cash flow generation but concerning leverage and declining revenue and net profit margins. The negative equity and high debt levels pose significant financial risks.

Income Statement

Dine Brands Global shows mixed results in its income statement. The Gross Profit Margin for the TTM (Trailing-Twelve-Months) is approximately 44.86%, reflecting strong core profitability. However, the Net Profit Margin has declined to 6.77% from the previous annual figure of 7.99%, indicating increased cost pressures or lower efficiency. Revenue has decreased by 1.56% on an annual basis, suggesting challenges in driving top-line growth. The EBIT Margin is 19.68%, with a slight decrease from the previous year, while the EBITDA Margin remains robust at 23.13%. Overall, the company maintains decent profitability, but declining revenue and net profit margins pose concerns.

Balance Sheet

The balance sheet highlights significant leverage, with a negative Stockholders' Equity of $-215.75 million, resulting in a negative Debt-to-Equity Ratio. The Total Debt is high at $1.64 billion, which is a potential risk if earnings do not improve. The Return on Equity (ROE) calculation is not feasible due to negative equity, but the ongoing equity deficit signals financial instability. The Equity Ratio is negative, indicating liabilities exceed assets, which raises concerns about long-term solvency.

Cash Flow

Cash flow analysis reveals a positive trajectory in operational efficiency. Operating Cash Flow to Net Income Ratio for the TTM is 1.69, indicating strong cash generation relative to net income. Free Cash Flow has shown growth and is at $79.68 million for the TTM. The Free Cash Flow to Net Income Ratio is 1.43, supporting the company's ability to generate cash beyond its net earnings. Despite these strengths, the decline in Operating Cash Flow from $108.16 million to $93.74 million year-over-year warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	820.85M	812.31M	831.07M	909.40M	896.17M	689.27M
Gross Profit	368.19M	375.31M	396.68M	377.36M	375.23M	248.72M
EBITDA	189.86M	200.84M	217.38M	213.69M	225.10M	1.16M
Net Income	55.61M	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	186.50M	186.65M	146.03M	269.65M	361.41M	383.37M
Total Debt	1.64B	1.63B	1.59B	1.74B	1.77B	2.03B
Total Liabilities	1.98B	2.01B	1.99B	2.18B	2.24B	2.43B
Stockholders Equity	-215.75M	-216.02M	-250.97M	-301.08M	-242.81M	-354.65M
Cash Flow
Free Cash Flow	79.68M	94.09M	93.97M	54.02M	178.99M	85.58M
Operating Cash Flow	93.74M	108.16M	131.14M	89.34M	195.84M	96.50M
Investing Cash Flow	-9.16M	-8.45M	-30.10M	-80.90M	3.86M	18.73M
Financing Cash Flow	-46.26M	-51.70M	-225.44M	-108.80M	-230.40M	168.35M

Dine Brands Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 25.84 is below the 20-day moving average (MA) of 26.00, above the 50-day MA of 23.75, and below the 200-day MA of 26.54, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 63.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIN.

Dine Brands Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	74 Outperform	$3.15B	19.94	46.60%	1.70%	4.42%	48.23%
CBRL	71 Outperform	$1.46B	25.41	12.90%	1.53%	2.84%	-4.44%
DIN	65 Neutral	$396.89M	7.04	-42.81%	8.03%	-0.33%	-35.74%
PZZA	64 Neutral	$1.56B	20.14	-20.16%	3.87%	-2.77%	4.01%
DENN	63 Neutral	$226.02M	13.33	-63.40%	―	-0.53%	-24.19%
Sector *	63 Neutral	$16.67B	10.96	-6.97%	3.00%	1.72%	-24.21%
JACK	46 Neutral	$373.06M	―	4.15%	8.91%	-6.02%	-289.54%

Dine Brands Global Corporate Events

Dine Brands Global Completes Major Refinancing Transaction

On June 17, 2025, Dine Brands Global, Inc. completed a securitization refinancing transaction through its subsidiaries, Applebee’s Funding LLC and IHOP Funding LLC. The transaction involved issuing $600 million in Series 2025-1 Fixed Rate Senior Secured Notes and establishing a revolving financing facility for up to $325 million. The proceeds will be used to repay existing debt and for general corporate purposes. This strategic move is expected to optimize the company’s financial structure and support its operational and growth objectives.

The most recent analyst rating on (DIN) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Dine Brands Global stock, see the DIN Stock Forecast page.

Dine Brands Global Issues $600M Senior Secured Notes

On June 4, 2025, Dine Brands Global, Inc. and its subsidiaries entered into a Purchase Agreement to issue and sell $600 million in Series 2025-1 6.720% Fixed Rate Senior Secured Notes. This move, announced on June 5, 2025, is part of a strategic financial maneuver to strengthen the company’s capital structure and potentially enhance its market positioning by leveraging its well-known restaurant brands, Applebee’s and IHOP.

The most recent analyst rating on (DIN) stock is a Buy with a $71.00 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 Refinancing Plan

On May 27, 2025, Dine Brands Global, Inc. announced its plan to refinance its Series 2019-1 Class A-2-II Fixed Rate Senior Secured Notes and Series 2022-1 Class A-1 Variable Funding Senior Notes through a new securitized financing facility. The proceeds from this refinancing will be used to repay existing notes, cover transaction costs, and support general corporate purposes. The announcement indicates a strategic move to manage the company’s debt, although the timing and completion of the refinancing remain uncertain.

The most recent analyst rating on (DIN) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Dine Brands Global stock, see the DIN Stock Forecast page.

Dine Brands Global Holds 2025 Annual Stockholders Meeting

On May 14, 2025, Dine Brands Global, Inc. conducted its 2025 Annual Meeting of Stockholders, where several key proposals were voted on. The election of directors resulted in the appointment of nine individuals for a one-year term. Stockholders also ratified the appointment of Ernst & Young LLP as the independent auditor for the fiscal year 2025. Additionally, the compensation of the Corporation’s named executive officers was approved on an advisory basis, and an amendment to the 2019 Stock Incentive Plan was passed to increase the reservation of common stock for issuance.

The most recent analyst rating on (DIN) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Dine Brands Global stock, see the DIN Stock Forecast page.

Dine Brands Global Declares Q2 2025 Cash Dividend

On May 14, 2025, Dine Brands Global announced that its Board of Directors declared a second quarter 2025 cash dividend of $0.51 per share of common stock, payable on July 9, 2025, to stockholders of record as of June 20, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor confidence and market perception.

The most recent analyst rating on (DIN) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Dine Brands Global stock, see the DIN Stock Forecast page.