Dine Brands Q3 2022 Earnings Report
Key Takeaways
Dine Brands Global, Inc. reported a revenue increase for the third quarter of 2022, with Applebee's and IHOP posting positive comparable restaurant sales. Total revenues reached $233.2 million, up from $228.7 million in the third quarter of 2021. Adjusted EBITDA was $63.6 million, slightly ahead of the previous year.
Applebee's same-restaurant sales increased by 3.8% year-over-year.
IHOP's same-restaurant sales increased by 1.9% year-over-year.
Total revenues for the third quarter of 2022 were $233.2 million.
Adjusted earnings per diluted share were $1.66 for the third quarter of 2022.
Dine Brands
Dine Brands
Dine Brands Revenue by Segment
Forward Guidance
The Company adjusted a number of its fiscal 2022 guidance items, expecting IHOP franchisees to open between 35 and 45 net new openings. Consolidated adjusted EBITDA range is narrowed to between approximately $243 million and $248 million, and G&A expenses are now expected to be reduced to a range of between approximately $185 million and $190 million.
Positive Outlook
- Domestic development activity by Applebee’s franchisees of between 5 and 15 net fewer restaurants is reaffirmed.
- Domestic development activity by IHOP franchisees and area licensees is now expected to be between 35 and 45 net new openings.
- Consolidated adjusted EBITDA range is narrowed to between approximately $243 million and $248 million.
- G&A expenses are now expected to be reduced to a range of between approximately $185 million and $190 million.
- Capital expenditures is left unchanged in a range between $33 million and $38 million.
Challenges Ahead
- The change in IHOP development is primarily due to new openings being moved to 2023 as a result of permitting delays and supply chain issues.
- The adjusted EBITDA guidance reflects planned strategic investments in the fourth quarter, along with the impact from refranchising company-owned restaurants.
- The G&A expenses range reflects incremental investments in technology and operational initiatives as well as unit development and is inclusive of G&A expenses related to the company restaurants segment.
- Uncertainty regarding the duration and severity of the ongoing COVID-19 pandemic and its ultimate impact on the Company.
- General economic conditions, including the impact of inflation