Dine Brands Global (DIN) AI Stock Analysis

• Market Cap: $387.05M
• Dividend Yield: 8.23%
• Average Volume (3M): 502.68K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.65
• Revenue Growth: -0.33%
• EPS Growth: -35.74%
• Country: US
• Employees: 992
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Restaurants
• EPS (TTM): 1.03
• Shares Outstanding: 15,625,779
• 10 Day Avg. Volume: 343,965
• 30 Day Avg. Volume: 502,676
• PEG Ratio: -0.18
• Price to Book (P/B): -1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $24.00
• Price Target Upside: -3.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $27.00 ▲(9.00%Upside)

Dine Brands Global's stock score reflects a blend of solid technical momentum and attractive valuation, tempered by financial risks and mixed earnings results. The company's strong cash flow and strategic initiatives provide support, but high leverage and declining profitability metrics necessitate caution.

Positive Factors

Market Performance

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

Sales Performance

SSS momentum improved over the course of 1Q25, with Applebee’s returning to positive SSS growth, largely driven by improvement in off-premises sales.

Strategic Initiatives

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.

Negative Factors

Financial Performance

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

Profitability Challenges

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.

Unit Growth

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

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 presents a mixed financial outlook. Robust cash flows and healthy margins are overshadowed by high leverage and negative equity, which poses significant financial risks. Enhancing revenue growth and equity is crucial for stability.

Income Statement

Dine Brands Global exhibits a varied financial performance. The Gross Profit Margin remains solid, while the Net Profit Margin shows some stability over the years. However, revenue growth has experienced fluctuations, which presents a potential concern. EBIT and EBITDA margins are healthy, indicating effective cost control despite inconsistent revenue growth.

Balance Sheet

The Balance Sheet reveals significant leverage with a high Debt-to-Equity ratio due to negative equity, which poses a risk. The Return on Equity (ROE) is unmeasurable with negative equity, while the Equity Ratio is troublingly negative, underscoring financial instability. The company needs to focus on strengthening its equity base to improve financial health.

Cash Flow

Cash flow management is a notable strength for Dine Brands Global. Operating Cash Flow to Net Income Ratio is consistently positive, indicating effective cash generation. The Free Cash Flow to Net Income Ratio is also favorable, demonstrating robust cash flow relative to profits. Free Cash Flow growth has been substantial, enhancing liquidity and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
812.31B	831.07M	909.40M	896.17M	689.27M
	Gross Profit
375.31B	396.68M	377.36M	375.23M	248.72M
	EBIT
178.61B	187.70M	176.05M	192.71M	93.02M
	EBITDA
178.61B	217.38M	214.31M	232.59M	1.16M
	Net Income Common Stockholders
64.89M	97.18M	81.11M	97.86M	-103.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.65B	146.03M	269.65M	361.41M	383.37M
	Total Assets
1.79T	1.74B	1.88B	2.00B	2.07B
	Total Debt
516.49B	1.59B	1.71B	1.77B	2.03B
	Net Debt
329.83B	1.44B	1.44B	1.41B	1.65B
	Total Liabilities
2.01T	1.99B	2.18B	2.24B	2.43B
	Stockholders Equity
-216.02B	-250.97M	-301.08M	-242.81M	-354.65M
Cash Flow		Free Cash Flow
94.09B	93.97M	54.02M	178.99M	85.58M
	Operating Cash Flow
108.16B	131.14M	89.34M	195.84M	96.50M
	Investing Cash Flow
-8.45B	-30.10M	-80.90M	3.86M	18.73M
	Financing Cash Flow
-51.70B	-225.44M	-108.80M	-230.40M	168.35M

Dine Brands Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIN, the sentiment is Positive. The current price of 24.77 is above the 20-day moving average (MA) of 24.04, above the 50-day MA of 22.17, and below the 200-day MA of 27.32, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$2.86B	18.15	46.60%	1.87%	4.42%	48.23%
DIN	68 Neutral	$387.05M	6.86	-42.81%	8.23%	-0.33%	-35.74%
CBRL	65 Neutral	$1.23B	21.49	12.90%	1.80%	2.84%	-4.44%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
PZZA	62 Neutral	$1.63B	21.14	-20.16%	3.69%	-2.77%	4.01%
DENN	59 Neutral	$206.54M	12.26	-63.40%	―	-0.53%	-24.19%
JACK	50 Neutral	$383.06M	―	4.15%	8.67%	-6.02%	-136.86%

Dine Brands Global Corporate Events

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.