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Sep 30, 2023
Dine Brands Q3 2023 Earnings Report
Dine Brands' financial performance reflected resilience amidst a volatile macroeconomic environment, leveraging brand value and strategic growth initiatives.
Key Takeaways
Dine Brands Global reported a decrease in total revenues for Q3 2023 to $202.6 million compared to $233.2 million in Q3 2022, primarily due to the refranchising of company-operated Applebee's units and negative comparable sales growth at Applebee's, offset by positive growth at IHOP. Net income also decreased to $18.5 million from $20.9 million year-over-year.
Total revenues decreased to $202.6 million, impacted by refranchising and Applebee's sales decline.
Applebee's same-restaurant sales declined by 2.4%, while IHOP's increased by 2.0%.
Net income decreased to $18.5 million due to higher interest and G&A expenses.
Adjusted EBITDA was $60.6 million compared to $63.6 million for the same quarter last year.
Forward Guidance
Dine Brands provided financial performance guidance for 2023, including reiterated and narrowed targets for domestic development activity, consolidated adjusted EBITDA, and G&A expenses.
Positive Outlook
- Domestic development activity target for Applebee’s franchisees is between 25 and 35 net fewer restaurants.
- Gross capital expenditures are expected to range between $33 million and $38 million.
- G&A expenses are expected to range between approximately $200 million and $205 million.
- This total includes non-cash stock-based compensation expense and depreciation of approximately $30 million.
- Consolidated adjusted EBITDA is expected to be in the range of between approximately $245 million and $255 million.
Challenges Ahead
- Domestic development activity by IHOP franchisees and area licensees is expected to be between 20 and 30 net new openings due to ongoing permitting and construction delays.
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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