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Jun 30, 2022

Dine Brands Q2 2022 Earnings Report

Dine Brands reported a solid performance in Q2 2022, driven by positive comparable restaurant sales and sustained off-premise traffic.

Key Takeaways

Dine Brands Global, Inc. announced its financial results for the second quarter of fiscal 2022. The company reported total revenues of $237.8 million, an increase compared to $233.6 million for the second quarter of 2021. Applebee’s and IHOP both achieved positive comparable sales, with average weekly sales exceeding pre-pandemic levels.

Applebee’s year-over-year comparable same-restaurant sales increased 1.8%.

IHOP’s year-over-year comparable same-restaurant sales increased 3.6%.

Consolidated adjusted EBITDA was $66.1 million compared to $71.7 million for the second quarter of 2021.

The Company repurchased 912,992 shares of its common stock for approximately $61 million.

Total Revenue
$238M
Previous year: $234M
+1.8%
EPS
$1.65
Previous year: $1.94
-14.9%
Applebee's Same Restaurant Sales
1.8%
Previous year: 102.2%
-98.2%
IHOP Same Restaurant Sales
3.6%
Previous year: 120.1%
-97.0%
Adjusted EBITDA
$66.1M
Gross Profit
$95.7M
Previous year: $98.9M
-3.2%
Cash and Equivalents
$264M
Previous year: $259M
+1.6%
Free Cash Flow
$30.2M
Previous year: $73.7M
-59.0%
Total Assets
$1.88B
Previous year: $1.9B
-0.7%

Dine Brands

Dine Brands

Dine Brands Revenue by Segment

Forward Guidance

The Company reiterates its fiscal 2022 guidance:

Positive Outlook

  • Domestic development activity by IHOP franchisees and area licensees to result in net new openings between 50 and 65 restaurants.
  • Consolidated adjusted EBITDA to range between approximately $235 million and $250 million. This range is inclusive of adjusted EBITDA related to the company restaurants segment.
  • General and administrative expenses to range between approximately $188 million and $198 million, including non-cash stock-based compensation expense and depreciation of approximately $30 million. This range reflects incremental investments in technology and operational initiatives as well as unit development and is inclusive of general and administrative expenses related to the company restaurants segment.
  • Capital expenditures to range between $33 million and $38 million, reflecting incremental investments in the business to support sustainable growth.

Challenges Ahead

  • Domestic development activity by Applebee’s franchisees to result in between 5 and 15 net fewer restaurants.