Applebee’s-parent Dine Brands beats Q2 sales estimates, updates FY forecast

Reuters
Aug 06
Applebee’s-parent Dine Brands beats <a href="https://laohu8.com/S/QTWO">Q2</a> sales estimates, updates FY forecast

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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$230.80 mln

$223.90 mln (8 Analysts)

Q2 Adjusted EPS

Miss

$1.17

$1.45 (9 Analysts)

Q2 EPS

$0.89

Q2 Adjusted EBITDA

$56.20 mln

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.)

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