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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.
Dine Brands
Dine Brands
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.
- 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.
- Ongoing permitting and construction delays.
- 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.