Loading...
•
Mar 31, 2024
Dine Brands Q1 2024 Earnings Report
Dine Brands Global's financial performance was impacted by consumer price sensitivity and challenging weather conditions, leading to declines in same-restaurant sales for Applebee's and IHOP.
Key Takeaways
Dine Brands Global reported a decrease in total revenues for the first quarter of 2024, driven by negative comparable same-restaurant sales growth at Applebee's and IHOP, partially offset by increases in the number of effective franchise restaurants and proprietary product sales at IHOP. The company is focusing on value offerings and targeted promotions to improve performance.
Total revenues decreased to $206.2 million compared to $213.8 million in the first quarter of 2023.
Applebee’s domestic same-restaurant sales declined by 4.6%.
IHOP’s domestic same-restaurant sales declined by 1.7%.
Adjusted free cash flow increased to $29.7 million, compared to $2.3 million for the first quarter of 2023.
Dine Brands
Dine Brands
Dine Brands Revenue by Segment
Revenue by Segment
Franchise Revenues Revenue
CapyFin.comCompany Restaurant Sales Revenue
CapyFin.comRental Revenues Revenue
CapyFin.comFinancing Revenues Revenue
CapyFin.com Forward Guidance
The Company reiterated its fiscal year 2024 guidance items.
Positive Outlook
- Applebee’s domestic system-wide comparable same-restaurant sales performance is expected to range between 0% and 2%.
- IHOP’s domestic system-wide comparable same-restaurant sales performance is expected to range between 1% and 3%.
- Domestic development activity by IHOP franchisees and area licensees is expected to be between 15 and 25 net new openings.
- Consolidated adjusted EBITDA is expected to range between approximately $255 million and $265 million.
- G&A expenses are expected to range between approximately $200 million and $210 million. This total includes non-cash stock-based compensation expense and depreciation of approximately $35 million.
Challenges Ahead
- Domestic development activity for Applebee’s franchisees is between 25 and 35 net fewer restaurants.
- Dine Brands does not provide forward-looking guidance for GAAP net income because it is unable to predict certain items contained in the GAAP measure without unreasonable efforts.
- These items may include closure and impairment charges, loss on extinguishment of debt, gain or loss on disposition of assets, other non-income-based taxes and other items deemed not reflective of current operations.
- Gross capital expenditures are expected to range between approximately $15 million and $20 million.
- While we are not content with the start of the year, we are encouraged by the response of our value offerings and targeted promotions which drove improved performance as the quarter progressed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income