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Jun 30, 2021
Dine Brands Q2 2021 Earnings Report
Dine Brands experienced significant improvement in domestic system-wide comparable same-restaurant sales and maintained a strong cash position.
Key Takeaways
Dine Brands Global reported strong second-quarter results, driven by significant improvements in comparable sales for both Applebee's and IHOP. Applebee's posted its best quarterly comp sales performance in over a decade relative to 2019, while IHOP's comp sales also improved markedly. The company's solid fundamentals generated significant adjusted free cash flow, enabling it to maintain a healthy cash position. However, the company remains tempered by continued volatility, including labor shortages and variants of COVID-19.
Applebee’s year-over-year comparable same-restaurant sales increased 102.2%.
IHOP’s comparable same-restaurant sales increased 120.1%.
Consolidated adjusted EBITDA was $71.7 million compared to $12.1 million for the second quarter of 2020.
Adjusted earnings per diluted share of $1.94 compared to an adjusted net loss per diluted share of $0.87 for the second quarter of 2020.
Forward Guidance
The Company believes that its consolidated financial results for 2021 could continue to be materially impacted by COVID-19. Considering the ongoing uncertainty of the pandemic and the possible emergence of new variants, the Company currently cannot provide a complete business outlook for fiscal 2021.
Positive Outlook
- The Company expects higher incentive compensation for 2021, which is a variable component of general and administrative expenses that will fluctuate based on business performance.
- The Company revises expectations for general and administrative expenses for 2021 to range between approximately $168 million and $178 million, including non-cash stock-based compensation expense and depreciation of approximately $30 million.
- Capital expenditures are expected to be approximately $19 million, inclusive of approximately $7 million related to the company restaurants segment.
- As of June 30, 2021, out of 3,244 domestic restaurants, 3,222, or 99%, were open for either dine-in service or off-premise service comprised of take-out and delivery, and 22 were temporarily closed.
- The Company assumes no obligation to update or supplement this information.
Challenges Ahead
- The Company believes that its consolidated financial results for 2021 could continue to be materially impacted by COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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