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Dine Brands Global Inc (DIN)
NYSE:DIN

Dine Brands Global (DIN) AI Stock Analysis

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Dine Brands Global

(NYSE:DIN)

Rating:65Neutral
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 (DIN) vs. SPDR S&P 500 ETF (SPY)

Dine Brands Global Business Overview & Revenue Model

Company DescriptionDine 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 MoneyDine 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 31.90%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive revenue growth and successful loyalty and international expansion. However, it also noted declines in comp sales, adjusted EBITDA, and free cash flow, along with increased commodity costs, indicating challenges in maintaining profitability. Overall, the sentiment is mixed with both positive developments and notable financial challenges.
Q1-2025 Updates
Positive Updates
Revenue Growth
Revenues were up 4% to $214.8 million in Q1 2025 compared to the same quarter last year.
Off-Premise Sales Growth
Applebee's saw off-premise comp sales increase by 3.7% compared to last year, driven by campaigns like America's Favorite Boneless Wings.
Loyalty Program Expansion
Applebee's Club Applebee's loyalty program saw an increase of 175,000 new signups, totaling over 8.5 million members.
International Expansion
Plans to open 13 additional dual brands and complete 10 dual conversions this year, with new openings in Costa Rica and Mexico.
Positive IHOP Traffic
IHOP beat the family dining segment on traffic for the quarter, with absolute traffic growth in March continuing into April.
Negative Updates
Decline in Comp Sales
Applebee's reported a 2.2% decline in comp sales, and IHOP posted comp sales of negative 2.7%.
Adjusted EBITDA Decrease
Adjusted EBITDA for Q1 2025 decreased to $54.7 million from $60.8 million in Q1 2024.
Decreased Free Cash Flow
Adjusted free cash flow was $14.6 million, a decrease of $15.1 million from the same period last year.
Commodity Cost Increases
IHOP's commodity costs increased by 8.4% versus the prior year, primarily due to elevated egg pricing.
Company Guidance
During the Dine Brands First Quarter 2025 Earnings Conference Call, management provided detailed guidance and updates on key metrics. Applebee's saw a significant increase in the value mix to 34%, up from 28% in Q4, while IHOP's value mix rose from 16% to 19% due to the broader rollout of House Faves. Despite a challenging consumer environment, Applebee's and IHOP experienced improvements in sales, traffic, and development pipeline, with March and April showing positive momentum. Applebee's comp sales declined by 2.2%, while IHOP's comp sales decreased by 2.7%. Adjusted free cash flow was $14.6 million, a decrease of $15.1 million from the previous year. Consolidated total revenues increased by 4.1% to $214.8 million, driven by a $21.3 million rise in company restaurant sales. Adjusted EBITDA for Q1 decreased to $54.7 million from $60.8 million in Q1 2024. Additionally, IHOP's Q1 traffic beat the family dining segment, with a 4.3% increase, and their House Faves menu was a key traffic driver. The company maintained its full-year financial guidance and emphasized its commitment to investing in brand initiatives and returning capital to shareholders.

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
65
Positive
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
40
Negative
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue820.85M812.31M831.07M909.40M896.17M689.27M
Gross Profit368.19M375.31M396.68M377.36M375.23M248.72M
EBITDA189.86M200.84M217.38M213.69M225.10M1.16M
Net Income55.61M64.89M97.18M81.11M97.86M-103.99M
Balance Sheet
Total Assets1.77B1.79B1.74B1.88B2.00B2.07B
Cash, Cash Equivalents and Short-Term Investments186.50M186.65M146.03M269.65M361.41M383.37M
Total Debt1.64B1.63B1.59B1.74B1.77B2.03B
Total Liabilities1.98B2.01B1.99B2.18B2.24B2.43B
Stockholders Equity-215.75M-216.02M-250.97M-301.08M-242.81M-354.65M
Cash Flow
Free Cash Flow79.68M94.09M93.97M54.02M178.99M85.58M
Operating Cash Flow93.74M108.16M131.14M89.34M195.84M96.50M
Investing Cash Flow-9.16M-8.45M-30.10M-80.90M3.86M18.73M
Financing Cash Flow-46.26M-51.70M-225.44M-108.80M-230.40M168.35M

Dine Brands Global Technical Analysis

Technical Analysis Sentiment
Negative
Last Price25.84
Price Trends
50DMA
23.75
Positive
100DMA
23.47
Positive
200DMA
26.54
Negative
Market Momentum
MACD
0.52
Positive
RSI
50.76
Neutral
STOCH
63.23
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 Risk Analysis

Dine Brands Global disclosed 43 risk factors in its most recent earnings report. Dine Brands Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Dine Brands Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$3.15B19.9446.60%1.70%4.42%48.23%
71
Outperform
$1.46B25.4112.90%1.53%2.84%-4.44%
DIDIN
65
Neutral
$396.89M7.04-42.81%8.03%-0.33%-35.74%
64
Neutral
$1.56B20.14-20.16%3.87%-2.77%4.01%
63
Neutral
$226.02M13.33-63.40%-0.53%-24.19%
63
Neutral
$16.67B10.96-6.97%3.00%1.72%-24.21%
46
Neutral
$373.06M4.15%8.91%-6.02%-289.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DIN
Dine Brands Global
25.84
-3.36
-11.51%
CBRL
Cracker Barrel
66.37
28.07
73.29%
DENN
Denny's
4.38
-2.11
-32.51%
JACK
Jack In The Box
21.45
-24.36
-53.18%
PZZA
Papa John's International
48.31
7.63
18.76%
CAKE
Cheesecake Factory
63.22
26.59
72.59%

Dine Brands Global Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Dine Brands Global Completes Major Refinancing Transaction
Positive
Jun 17, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Dine Brands Global Issues $600M Senior Secured Notes
Positive
Jun 5, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Dine Brands Global Announces Refinancing Plan
Neutral
May 27, 2025

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.

Executive/Board ChangesShareholder Meetings
Dine Brands Global Holds 2025 Annual Stockholders Meeting
Neutral
May 19, 2025

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.

Dividends
Dine Brands Global Declares Q2 2025 Cash Dividend
Positive
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025