Dine Brands Q3 Earnings Surprise Amid Weak Applebee's And IHOP Sales; Q4 Strategy In Focus

Benzinga11-07

Dine Brands Global, Inc. (NYSE:DIN) shares are trading higher on Wednesday.

The company reported third-quarter adjusted earnings per share of $1.44, beating the analyst consensus of $1.34. Quarterly sales of $195.034 million (down 3.7%) missed the street view of $198.563 million. The decrease was primarily due to the negative comparable same-restaurant sales growth at Applebee’s and IHOP.

Applebee’s year-over-year domestic comparable same-restaurant sales declined 5.9% for the third quarter. IHOP’s year-over-year domestic comparable same-restaurant sales declined 2.1% for the quarter.

“For the fourth quarter, we are enhancing our value proposition for guests and remain focused on executing our plans across our brands,” said John Peyton, chief executive officer, Dine Brands Global.

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Consolidated adjusted EBITDA for the third quarter was $61.9 million compared to $60.6 million in the year-ago period.

Total cash and equivalents and restricted cash of approximately $235.1 million, of which approximately $169.6 million was unrestricted cash.

Outlook: The company reiterated the FY24 outlook for Applebee’s domestic system-wide comparable same-restaurant sales performance to range between negative 4% and negative 2%.

The company also reiterated IHOP’s domestic system-wide comparable same-restaurant sales performance forecast between negative 2% and 0%.

The company continues to expect consolidated adjusted EBITDA to range approximately $245 million to $255 million.

Price Action: DIN shares are trading higher by 13.1% to $35.23 at last check Wednesday.

Photo via Wikimedia Commons

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