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Mar 31, 2023
Dine Brands Q1 2023 Earnings Report
Dine Brands reported Q1 2023 results, featuring same store sales and profit growth. The company refinanced $500 million of A-2 long-term debt and reaffirmed its 2023 full-year guidance.
Key Takeaways
Dine Brands Global, Inc. reported total revenues of $214 million for Q1 2023, compared to $230 million for the same period in 2022. Net income for the quarter was $27.4 million, an increase from $24.9 million in the prior year. The company highlighted the strength of its brands and strong execution in a challenging operating environment.
Applebee’s same-restaurant sales increased by 6.1% year-over-year.
IHOP’s same-restaurant sales increased by 8.7% year-over-year.
Net income increased to $27.4 million compared to $24.9 million in the first quarter of 2022.
The company completed refinancing of Senior Secured Notes, reducing debt balance by $200 million.
Dine Brands
Dine Brands
Forward Guidance
The Company reiterated its fiscal 2023 guidance items.
Positive Outlook
- Domestic development activity by IHOP franchisees and area licensees is expected to be between 45 and 60 net new openings.
- Consolidated adjusted EBITDA is expected in the range of between approximately $243 million and $255 million.
- G&A expenses are expected to range between approximately $200 million and $210 million, due to some of our planned 2022 G&A investments extended into 2023 given the disruptions caused by the pandemic last year and other organic investments, including Fuzzy’s. This range includes non-cash stock-based compensation expense and depreciation of approximately $30 million.
- Gross capital expenditures are expected to range between $33 million and $38 million.
Challenges Ahead
- Domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants.