Dine Brands Global (NYSE:DIN) Issues Earnings Results

Dine Brands Global (NYSE:DIN) issued its earnings results on Wednesday, May 6th. The restaurant operator reported $0.88 earnings per share for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.12), Zacks reports. The company had revenue of $225.20 million for the quarter, compared to the consensus estimate of $222.08 million. Dine Brands Global had a negative return on equity of 23.28% and a net margin of 1.77%.Dine Brands Global’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.03 EPS.

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

• All three brands outperformed industry comps in Q1 — Applebee’s comp sales +1.9% and IHOP comp sales flat — signaling resilience in a tough consumer environment.
• Adjusted EBITDA fell to $50.8M (from $54.7M) and adjusted free cash flow was negative $3M, driven by higher pre-opening costs and elevated CapEx for remodels and dual-brand conversions.
• The dual-brand strategy is gaining traction — 43 duals open (13 under construction), ~80 targeted by year-end, modeled opportunity for ~900 conversions nationally, and typical sales lifts of 1.5–2.5x at conversions.
• Management returned capital and signaled confidence in the equity, repurchasing ~$52M of shares across Q4 and Q1 (including $22M in Q1) and returning $24M to shareholders in the quarter.
• Dine is expanding its company-owned base (86 restaurants, ~2% of system) and is the stalking-horse bidder for ~53 NRP units to renovate/convert and refranchise over ~3 years — a strategic move that boosts control but raises near-term execution and cash demands.

Dine Brands Global Trading Down 5.3%

Shares of DIN opened at $29.72 on Wednesday. The firm has a fifty day moving average price of $28.28 and a 200-day moving average price of $31.06. The firm has a market capitalization of $377.17 million, a P/E ratio of 29.43 and a beta of 0.97. Dine Brands Global has a 12-month low of $19.58 and a 12-month high of $39.68.

Dine Brands Global Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Wednesday, June 24th will be paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, June 24th. Dine Brands Global’s payout ratio is currently 75.25%.

Insider Activity

In related news, Director Douglas M. Pasquale acquired 2,000 shares of the stock in a transaction on Thursday, March 12th. The stock was bought at an average cost of $28.25 per share, with a total value of $56,500.00. Following the transaction, the director directly owned 31,469 shares in the company, valued at approximately $888,999.25. This represents a 6.79% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Michael Hyter sold 1,800 shares of the company’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $28.88, for a total transaction of $51,984.00. Following the completion of the transaction, the director owned 9,315 shares in the company, valued at $269,017.20. This represents a 16.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders purchased a total of 4,500 shares of company stock worth $128,250 in the last ninety days. 6.73% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DIN. Royal Bank of Canada raised its position in Dine Brands Global by 10.7% during the 1st quarter. Royal Bank of Canada now owns 71,451 shares of the restaurant operator’s stock valued at $1,662,000 after purchasing an additional 6,908 shares in the last quarter. Millennium Management LLC grew its position in shares of Dine Brands Global by 51.2% during the 1st quarter. Millennium Management LLC now owns 507,801 shares of the restaurant operator’s stock worth $11,817,000 after buying an additional 172,013 shares in the last quarter. Invesco Ltd. grew its position in shares of Dine Brands Global by 16.3% during the 2nd quarter. Invesco Ltd. now owns 65,821 shares of the restaurant operator’s stock worth $1,601,000 after buying an additional 9,226 shares in the last quarter. Jump Financial LLC purchased a new position in shares of Dine Brands Global during the second quarter valued at $921,000. Finally, Gamco Investors INC. ET AL purchased a new position in shares of Dine Brands Global during the second quarter valued at $747,000. 92.83% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. UBS Group cut their price target on Dine Brands Global from $35.00 to $33.00 and set a “neutral” rating for the company in a report on Thursday, February 26th. Zacks Research upgraded Dine Brands Global from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 2nd. KeyCorp reissued a “sector weight” rating on shares of Dine Brands Global in a report on Thursday, April 2nd. Barclays decreased their price target on shares of Dine Brands Global from $30.00 to $28.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 7th. Finally, Benchmark reaffirmed a “hold” rating on shares of Dine Brands Global in a report on Monday, March 2nd. Seven research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $30.40.

Dine Brands Global Company Profile

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.