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Dec 31, 2021
Dine Brands Q4 2021 Earnings Report
Dine Brands reported strong Q4 2021 results driven by top-line growth and exceeding pre-pandemic sales levels.
Key Takeaways
Dine Brands Global, Inc. reported a 17% increase in consolidated revenues to $229.6 million and a 43% improvement in gross profit to $96.5 million for the fourth quarter of 2021. Domestic average weekly unit sales for both Applebee's and IHOP exceeded pre-pandemic levels for the second consecutive quarter.
Consolidated revenues increased 17% to $229.6 million.
Gross profit improved by 43% to $96.5 million.
Adjusted earnings per diluted share were $1.32, compared to $0.39 for the fourth quarter of 2020.
Applebee’s and IHOP franchisees opened 15 new restaurants and closed 23 restaurants.
Dine Brands
Dine Brands
Dine Brands Revenue by Segment
Revenue by Segment
Company Restaurant Sales Revenue
CapyFin.com Forward Guidance
The Company’s guidance assumes there are no significant disruptions to its business due to COVID-19 during 2022, except for the impact from Omicron in the first quarter.
Positive Outlook
- General and administrative expenses are expected to range between approximately $188 million and $198 million, including non-cash stock-based compensation expense and depreciation of approximately $30 million.
- Capital expenditures are expected to range between $33 million and $38 million, reflecting incremental investments in the business to support sustainable growth.
- Domestic development activity by IHOP franchisees and area licensees are expected to result in net new openings between 50 and 65 restaurants.
- Consolidated adjusted EBITDA is expected to range between approximately $235 million and $250 million.
- Effective April 1, 2022, the Company’s Board of Directors also approved a new share repurchase program of up to $250 million and terminated the existing share repurchase program, approved in February 2019.
Challenges Ahead
- The Company’s guidance assumes there are no significant disruptions to its business due to COVID-19 during 2022, except for the impact from Omicron in the first quarter.
- Domestic development activity by Applebee’s franchisees is expected to result in between 5 and 15 net fewer restaurants.
- In 2021, Applebee’s concluded a strategic initiative to close underperforming domestic restaurants to improve the performance of the franchised system.
- 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.
- The projections are as of this date. The Company assumes no obligation to update or supplement this information.