Dine Brands Global (NYSE:DIN) Announces Quarterly Earnings Results

Dine Brands Global (NYSE:DIN) issued its earnings results on Wednesday. The restaurant operator reported $1.16 EPS for the quarter, missing analysts’ consensus estimates of $1.20 by ($0.04), FiscalAI reports. Dine Brands Global had a net margin of 1.77% and a negative return on equity of 23.28%. The business had revenue of $240.90 million during the quarter, compared to analysts’ expectations of $237.28 million. During the same period in the prior year, the business posted $1.17 EPS. The business’s revenue was up 4.4% on a year-over-year basis.

Here are the key takeaways from Dine Brands Global’s conference call:

• IHOP outperformed industry benchmarks for the third consecutive quarter, with 1.5% comparable sales growth, nearly flat traffic, positive off-premise sales, and catering sales up 22%.
• Applebee’s performance improved through the quarter as value and premium promotions gained traction; off-premise comparable sales rose 1.5%, delivery grew by double digits for the fifth consecutive quarter, and remodels are producing an average mid-single-digit sales lift.
• Management reported continued momentum in the dual-brand strategy, with 45 domestic locations open, 12 under construction, and a goal of 80 by year-end; converted locations are generating roughly twice the sales of single-brand restaurants.
• Adjusted EBITDA declined to $54.2 million from $56.2 million, while adjusted free cash flow fell sharply to $3.7 million year to date from $48.7 million, reflecting higher capital expenditures, marketing and compensation payments, interest expense, and franchisee incentives.
• Full-year financial guidance was maintained, though management indicated results could land toward the lower end of the range; higher beef costs, company-owned restaurant investments, and elevated G&A remain near-term pressures.

Dine Brands Global Stock Up 2.4%

DIN stock traded up $0.84 during mid-day trading on Wednesday, reaching $35.69. The company had a trading volume of 270,976 shares, compared to its average volume of 391,976. The stock’s 50-day simple moving average is $34.00 and its two-hundred day simple moving average is $31.68. The stock has a market capitalization of $452.91 million, a P/E ratio of 35.16 and a beta of 0.96. Dine Brands Global has a one year low of $19.58 and a one year high of $39.68.

Dine Brands Global Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Wednesday, June 24th were given a $0.19 dividend. The ex-dividend date of this dividend was Wednesday, June 24th. This represents a $0.76 annualized dividend and a yield of 2.1%. Dine Brands Global’s dividend payout ratio (DPR) is currently 75.25%.

Insider Buying and Selling

In related news, Director Michael Hyter sold 1,800 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $28.88, for a total transaction of $51,984.00. Following the sale, the director owned 9,315 shares of the company’s stock, valued at $269,017.20. The trade was a 16.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 6.73% of the company’s stock.

Institutional Trading of Dine Brands Global

A number of large investors have recently added to or reduced their stakes in the business. Quadrant Capital Group LLC raised its position in shares of Dine Brands Global by 8.8% during the fourth quarter. Quadrant Capital Group LLC now owns 3,821 shares of the restaurant operator’s stock worth $123,000 after purchasing an additional 309 shares during the period. Russell Investments Group Ltd. grew its position in Dine Brands Global by 1.2% during the 4th quarter. Russell Investments Group Ltd. now owns 28,282 shares of the restaurant operator’s stock worth $909,000 after purchasing an additional 326 shares in the last quarter. Garton & Associates Financial Advisors LLC acquired a new stake in Dine Brands Global during the 4th quarter worth about $26,000. Price T Rowe Associates Inc. MD increased its stake in shares of Dine Brands Global by 4.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 25,557 shares of the restaurant operator’s stock worth $822,000 after acquiring an additional 1,010 shares during the last quarter. Finally, Advisory Services Network LLC bought a new position in Dine Brands Global during the third quarter valued at approximately $27,000. 92.83% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on DIN shares. Barclays lowered their target price on Dine Brands Global from $30.00 to $28.00 and set an “equal weight” rating for the company in a research note on Thursday, May 7th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dine Brands Global in a research note on Tuesday, June 9th. Finally, Mizuho lifted their target price on Dine Brands Global from $30.00 to $36.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. Seven investment analysts have rated the stock with a Hold rating, According to MarketBeat, the company has an average rating of “Hold” and an average price target of $31.60.

About Dine Brands Global

Dine Brands Global, Inc is a leading franchisor and operator of full‐service restaurants in the casual dining and breakfast segments. The company’s primary brands include IHOP®, known for its wide variety of breakfast offerings and pancakes, and Applebee’s Neighborhood Grill + Bar®, a casual dining concept featuring a range of American entrées, appetizers and cocktails. Through its franchise model, Dine Brands works with independent restaurant owners to develop, market and support both domestic and international locations.

The origins of Dine Brands Global date back to the founding of the International House of Pancakes (IHOP) in 1958 in California.