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Dec 31, 2022

Dine Brands Q4 2022 Earnings Report

Reported solid quarterly comparable sales for Applebee's and IHOP, expanded into the fast-casual segment with the acquisition of Fuzzy's Taco Shop, and returned over $151 million to shareholders while retiring $40 million of long-term debt.

Key Takeaways

Dine Brands Global, Inc. reported fourth-quarter results with total revenues of $208.0 million and adjusted earnings per diluted share of $1.34. Applebee's and IHOP showed positive comparable sales growth. The company also acquired Fuzzy's Taco Shop and returned capital to shareholders.

Applebee’s year-over-year comparable same-restaurant sales increased 1.7%.

IHOP’s year-over-year domestic comparable same-restaurant sales increased 2.0%.

Total revenues for the fourth quarter of 2022 were $208.0 million.

Adjusted earnings per diluted share of $1.34 for the fourth quarter of 2022.

Total Revenue
$208M
Previous year: $230M
-9.4%
EPS
$1.34
Previous year: $1.32
+1.5%
Applebee's Same Restaurant Sales
1.7%
Previous year: 34.8%
-95.1%
IHOP Same Restaurant Sales
2%
Previous year: 39.2%
-94.9%
Adjusted EBITDA
$57M
Previous year: $60.1M
-5.2%
Gross Profit
$94.6M
Previous year: $96.5M
-1.9%
Cash and Equivalents
$270M
Previous year: $361M
-25.4%
Free Cash Flow
$10M
Previous year: $41.3M
-75.8%
Total Assets
$1.88B
Previous year: $2B
-5.9%

Dine Brands

Dine Brands

Dine Brands Revenue by Segment

Forward Guidance

The Company introduced its fiscal 2023 guidance items:

Positive Outlook

  • Domestic development activity by IHOP franchisees and area licensees is now expected to be between 45 and 60 net new openings.
  • Consolidated adjusted EBITDA is expected in the range of between approximately $243 million and $255 million.
  • G&A expenses are expected to range between approximately $200 million and $210 million, due to some of our planned 2022 G&A investments extended into 2023 given the disruptions caused by the pandemic last year and other organic investments, including Fuzzy’s.
  • This range includes non-cash stock-based compensation expense and depreciation of approximately $30 million.
  • Gross capital expenditures are expected to range between $33 million and $38 million.

Challenges Ahead

  • Domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants.
  • Domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants.
  • Domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants.
  • Domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants.
  • Domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants.