Overview

• Dine Brands Q2 revenue rises to $230.8 mln, beating analyst expectations

• Adjusted EPS for Q2 misses estimates, declining to $1.17 from $1.71 last year

• Company completed refinancing transaction, enhancing financial flexibility

Outlook

• Dine Brands updates Applebee’s sales growth to 1%-3% for 2025, vs versus -2% to 1% previously

• IHOP sales expected to range from -1% to 1% in 2025, vs -1% to 2% previously

• Company cuts 2025 adjusted EBITDA forecast to between $220 mln and $230 mln

• G&A expenses for 2025 expected between $205 mln and $210 mln

Result Drivers

• APPLEBEE'S PROMOTIONS - Strong consumer response to value-driven promotions and menu innovation boosted Applebee's sales

• IHOP BRAND STRATEGY - IHOP's refreshed brand positioning and value strategy aimed to fuel growth, but sales declined 2.3%

• DUAL BRANDS INITIATIVE - Dual Brands initiative gaining traction with franchisees, contributing to strong economics in new unit openings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for Dine Brands Global Inc is $25.00, about 12.8% above its August 5 closing price of $21.81

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nBwQz2MXa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)