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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