Dine Brands Global (NYSE:DIN) Issues Earnings Results

Dine Brands Global (NYSE:DIN) posted its quarterly earnings results on Wednesday. The restaurant operator reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.20 by ($0.04), FiscalAI reports. The firm had revenue of $240.90 million for the quarter, compared to analysts’ expectations of $237.28 million. Dine Brands Global had a net margin of 0.75% and a negative return on equity of 20.34%. The firm’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.17 EPS.

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 0.9%

Shares of DIN traded up $0.33 during mid-day trading on Friday, reaching $35.83. The company had a trading volume of 94,831 shares, compared to its average volume of 391,382. Dine Brands Global has a 52-week low of $20.11 and a 52-week high of $39.68. The stock has a market capitalization of $454.50 million, a P/E ratio of 76.49 and a beta of 0.96. The stock has a 50 day moving average of $34.16 and a two-hundred day moving average of $31.64.

Dine Brands Global Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Wednesday, June 24th were issued a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Wednesday, June 24th. Dine Brands Global’s payout ratio is 161.70%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Mizuho set a $38.00 target price on Dine Brands Global in a report on Thursday. Zacks Research downgraded shares of Dine Brands Global from a “hold” rating to a “strong sell” rating in a report on Tuesday. Weiss Ratings reissued a “hold (c-)” rating on shares of Dine Brands Global in a research report on Tuesday, June 9th. Finally, Barclays decreased their price objective on shares of 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. Six investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Dine Brands Global currently has a consensus rating of “Reduce” and an average price target of $32.00.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Atom Investors LP acquired a new position in shares of Dine Brands Global in the fourth quarter worth about $335,000. Summit Financial LLC purchased a new stake in shares of Dine Brands Global during the 4th quarter worth about $204,000. Inceptionr LLC acquired a new stake in shares of Dine Brands Global during the 4th quarter valued at about $232,000. Fox Run Management L.L.C. purchased a new position in shares of Dine Brands Global in the 4th quarter valued at about $248,000. Finally, Osaic Holdings Inc. increased its stake in shares of Dine Brands Global by 544.8% in the 2nd quarter. Osaic Holdings Inc. now owns 7,235 shares of the restaurant operator’s stock valued at $176,000 after purchasing an additional 6,113 shares in the last quarter. 92.83% of the stock is owned by institutional investors and hedge funds.

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.