Latest news with #Dine
Yahoo
27-05-2025
- Business
- Yahoo
KBRA Assigns Preliminary Ratings to Applebee's Funding LLC & IHOP Funding LLC Series 2025-1 Senior Secured Notes
NEW YORK, May 27, 2025--(BUSINESS WIRE)--KBRA assigns preliminary ratings to Applebee's Funding LLC and IHOP Funding LLC (Dine 2025-1), Series 2025-1 Class A-1 Notes and Class A-2 Notes, a whole business securitization (WBS). Dine 2025-1 represents the IHOP Funding LLC and Applebee's Funding LLC's (each, a Co-Issuer) sixth series issued by the master trust since 2014. In conjunction with the issuance of the Series 2025-1 Notes, KBRA anticipates affirming the ratings on the Co-Issuers' outstanding notes. Proceeds from Series 2025-1 Notes will be used to repay outstanding amounts on the Series 2019-1 Class A-2-II Notes in full, repay the Series 2022-1 Class A-1 Notes, and pay transaction fees and expenses. Dine Brands Global, Inc. (Dine Brands or the Company) is the Manager and operator of restaurants under the International House of Pancakes and Applebee's Grill & Bar brand. As of Q1 2025, the Dine Brands' restaurant system (including non-securitized assets) was approximately 98% franchised with 3,522 restaurants across 50 states (including the District of Columbia) and 23 international markets. As of the last twelve months ending Q1 2025, the Company's revenue-generating assets produced approximately $7.9 billion in system-wide sales. The securitization collateral includes the system's domestic locations, totaling 3,172 restaurants, and is approximately 98% franchised. To access ratings and relevant documents, click here. Click here to view the report. Methodologies ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009620 View source version on Contacts Analytical Contacts Chris Baffa, Senior Director (Lead Analyst)+1 Anna Roginkin, Senior Director+1 Ronan Brew, Analyst+1 Kenneth Martens, Managing Director (Rating Committee Chair)+1 Business Development Contact Arielle Smelkinson, Senior Director+1 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Australian
08-05-2025
- Business
- The Australian
Mars ups its sustainability creds with reef program
A new documentary exploring coral reef restoration efforts has shone a light on a major sustainability program by one of the world's largest food company's, Mars. The Reef Builders documentary, which is available on Amazon Prime, highlights a global coral reef restoration initiative, which is active in 12 countries, including Australia's Great Barrier Reef. Mars has invested more than USD$10m in the initiative since 2020 as part of the company's 'ongoing commitment' to sustainability. It has been led by Mars cat-food brand Dine, which is known as Sheba internationally, in a bid to 'ensure a more plentiful fish population' for people and cats around the world. The documentary tells the story of the Mars Sustainable Solutions initiative, which began on Indonesia's Hope Reef after a period of coral bleaching. Mars worked with marine biologists to pioneer a trial program of its Reef Stars technology, collections of hexagonal steel structures coated with sand and tied to reef structures that provide coral a stable place to grow. The initiative has since grown to sites across 12 countries with more than 70 partner organisations and 87,000 reef stars around the world, according to Mars Sustainable Solutions global operations manager Alicia McArdle. 'What sets [the initiative] apart is that because we're part of the business, we have that strength of being part of Mars, and we can also utilise some of the brands that are within Mars to be able to support our projects as well. So by having donations on packs and that kind of thing, it gives us direct funds to be able to support restoration actions on the ground with our partners.' McArdle, a marine biologist, joined the initiative in 2019 and brought the technology to Australia to begin work on the first site on the Great Barrier Reef. The Mars initiative aims to ensure a more plentiful fish population for people and planet ... and cats. The initiative works with traditional owners and indigenous communities, in addition to reef authorities, researchers and tourism operators to ensure the ecosystems surrounding the sites are able to support and maintain the recovered sites. The project is part of the Mars business' ongoing commitment to sustainability and sustainable solutions across its entire product portfolio. Earlier this year, Mars launched a trial of fully recyclable paper-based packaging for its iconic Masterfoods' Squeeze On Tomato Sauce packs. The move, which will save 190 tonnes of plastic a year, is part of the brand's commitment to creating a circular economy. It also follows the launch of paper-based packaging for the company's confectionery brands including Mars, Snickers and Milky Way Chocolate Bars.
The Sun
01-05-2025
- Business
- The Sun
Get more for your money with these four supermarket meal deals that are cheaper than a takeaway
IF you can't face cooking from scratch, a supermarket meal deal is a much cheaper option than a takeaway. There are loads of offers to pick from, but it's not always easy to work out which is the best value. 7 To get more meal for your money, we've done the maths for you and looked at the best deals on offer . . . POSH NOSH: If it's date night, look to the premium ranges for a fancier meal. Sainsbury's Taste The Difference £12 deal gets Nectar card holders a main course, side dish, dessert and drink, including a bottle of wine or four-pack of lager or Coca-Cola. It will save you up to £8.10. WOK A DEAL: Stir-fry offers are a great option for all the family. Most supermarkets do deals on a pack of vegetables, sauce and noodles, with Asda coming in cheapest at £2.50. But if you want to include protein (beef, chicken, duck, prawns or plant-based), then Morrisons ' £6 deal is hard to beat. It includes some Itsu products and could save you up to £5.30. TOP OF THE TOPPINGS: There's always great pizza deals — and it's easy to just bung your pizza in the oven. Prices vary depending on the kind of product your pick. Aldi's Kitchen Revolution: Affordable Innovation With the Pizza Club at Asda you can get two medium pizzas and two sides for £9.96, saving £5.92. Or you can opt for two medium pizzas and a bottle of soft drink for £5.98, saving £3.96. Tesco has two of its stonebaked pizzas for £5 with a Clubcard, saving £1.40. Sainsbury's Taste The Difference pizzas are down from £4.75 to £3.15 with a Nectar card. BEST OF THE REST: Asda's Bistro deal for two, including a starter, main course, side dish and dessert is £9.97, saving £5.92. There's a great range of dishes to choose from. M&S is running its family-friendly Rotisserie Dine In deal — a whole chicken and three side dishes for £12. All prices on page correct at time of going to press. Deals and offers subject to availability. DEAL OF THE DAY KIDS will love playing in this unicorn play centre and paddling pool all summer long. It's down from £50 to £25 at Argos. SAVE: £25 CHEAP TREAT BRIGHTEN skin with this peach jelly face mask, £1, from Superdrug. TOP SWAP FILL your home with an uplifting fragrance with the revitalise three-wick candle, £17 from M&S. Or for a more affordable option, try Aldi's apothecary candle, £9.99. SAVE: £7.01 SHOP & SAVE KEEP feet comfortable and stylish in these fisherman sandals, down from £32.99 to £24.74 at New Look. SAVE: £8.25 PLAY NOW TO WIN £200 7 JOIN thousands of readers taking part in The Sun Raffle. Every month we're giving away £100 to 250 lucky readers - whether you're saving up or just in need of some extra cash, The Sun could have you covered. Every Sun Savers code entered equals one Raffle ticket. The more codes you enter, the more tickets you'll earn and the more chance you will have of winning!
NBC News
06-03-2025
- Business
- NBC News
Applebee's owner Dine Brands to lean on value, marketing to reverse sales declines
Dine Brands hopes to boost sales this year with a wider swath of value meals and buzzier advertising after a rough 2024 for Applebee's and IHOP. 'We had a soft year in 2024, which disappoints us, but we're focused on improving that in 2025,' Dine Brands CEO John Peyton told CNBC. 'We've got to have compelling messages and compelling promotions and compelling reasons to drive traffic into the restaurants.' Dine on Wednesday reported fourth-quarter U.S. same-store sales dropped 4.7% at Applebee's and 2.8% at IHOP, ending the year with four straight quarters of domestic same-store sales declines for its two flagship brands. Shares of Dine have fallen 50% over the last 12 months, dragging its market cap down to $386 million. The company's down year followed three years of strong growth for the company, driven by pent-up demand as diners returned to IHOP and Applebee's after the pandemic. But like many restaurant companies, Dine saw a pullback last year from customers who make less than $75,000. After several years paying higher prices for groceries, rent, gas and other necessities, consumers opted to stay home to cook their meals or visit other chains that offered better deals or flashy promotions. The slowdown in restaurant spending led a slew of casual-dining restaurant chains to file for bankruptcy over the last 12 months. Familiar names like Red Lobster and TGI Friday's sought bankruptcy protection to reorganize their struggling businesses and offload their worst-performing restaurants. Most recently, On the Border filed for Chapter 11 bankruptcy on Tuesday. Applebee's promotions have failed to cut through much of the noise from the so-called value wars that have ignited across the restaurant industry, at chains from McDonald's to Bloomin' Brands' Outback Steakhouse. Even a triad of recent pop-culture moments last year couldn't boost its profile: a pivotal cameo in the tennis drama film 'Challengers,' an Applebee's-motivated meltdown on 'Survivor' and a shoutout from football legend Peyton Manning during Netflix's roast of his former rival Tom Brady. 'You've got most of the restaurant companies are advertising value, and they're advertising full meal deals, and so it's harder to break through with a message when there are so many similar messages out there,' Dine's Peyton said. But it's not impossible to break out from the pack. Chili's, which is owned by Brinker International, won over diners with its viral Triple Dipper and $10.99 burger combo after spending months turning around its business. In its most recent quarter, Brinker reported same-store sales growth of 27.4%. Thanks to its dramatic comeback, the company has become the rare casual-dining darling of investors. Brinker's stock has soared over the last year, nearly tripling its value in the same period and raising its market cap to $6.29 billion. For now, the star of Applebee's value promotions, the two for $25 deal, routinely accounts for roughly a fifth of the chain's tickets, according to Peyton. But Applebee's is looking to add to its value offerings later this spring or in the early summer with options that appeal to larger groups or to customers who don't want to order with their dining partner. Dine is also trying to improve its social media presence. 'At both IHOP and Applebee's, we know we need to do better there. We know we need to be more relevant. We know that we have to be part of the conversation and the culture,' Peyton said. A new president for Applebee's could help with that goal. Peyton is currently pulling double duty serving as interim president for the chain after Tony Moralejo stepped down effective Tuesday. Peyton said the company is looking for a replacement 'with a great marketing background' who understands how to connect with younger customers, on top of being a great leader with an understanding of franchising and some restaurant experience. (Yum Brands' Lawrence Kim joined Dine as IHOP's president in early January, succeeding Jay Johns.) Looking to 2025, Dine is trying to communicate better with its customers and use its menu innovation to attract younger diners, according to Peyton. But Dine's confidence in its ability to attract customers seems shaky. For 2025, the company is projecting Applebee's same-store sales to range between a 2% decline and a 1% increase and IHOP's same-store sales to range between a 1% decrease and a 2% gain.
Associated Press
05-03-2025
- Business
- Associated Press
Dine Brands Global, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results
Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar ®, IHOP ® and Fuzzy's Taco Shop ® restaurants, today announced financial results for the fourth quarter and fiscal year 2024. 'Our financial results have demonstrated that this continues to be a dynamic operating environment and underscores our commitment to refreshing, reinvesting, and reinforcing our brands in the year ahead. For 2025, we have a clear plan that addresses both the short-term and long-term and are confident that, in partnership with our franchisees, we will elevate the guest experience and enhance our value propositions,' said John Peyton, chief executive officer, Dine Brands Global, Inc. Vance Chang, chief financial officer, Dine Brands Global, Inc., added, 'Against a backdrop of market volatility, Dine continued to generate strong free cash flow in 2024. It speaks to our overall financial stability and highlights the resilience of the Dine platform through market cycles. Going into 2025, we will remain prudent with our capital and make the necessary investments and changes to drive improved performance.' Domestic Restaurant Sales for the Fourth Quarter of 2024 Applebee's year-over-year domestic comparable same-restaurant sales declined 4.7% for the fourth quarter of 2024. Off-premise sales accounted for 21.6% of sales mix in the fourth quarter of 2024 representing per restaurant average weekly sales of approximately $11,000. IHOP's year-over-year domestic comparable same-restaurant sales declined 2.8% for the fourth quarter of 2024. Off-premise sales accounted for 20.4% of sales mix in the fourth quarter of 2024, representing per restaurant average weekly sales of approximately $7,800. Fourth Quarter of 2024 Summary Total revenues for the fourth quarter of 2024 were $204.8 million compared to $206.3 million for the fourth quarter of 2023. The decline was primarily due to the decrease in franchise revenues primarily resulting from negative comparable same-restaurant sales growth at Applebee's and IHOP and a decrease in proprietary product sales, offset by an increase in company restaurant sales due to the acquisition of 47 Applebee's restaurants in the fourth quarter. General and Administrative ('G&A') expenses for the fourth quarter of 2024 were $52.3 million compared to $50.5 million for the fourth quarter of 2023. The variance was primarily attributable to organization restructuring costs and an increase in depreciation expense partially offset by a decrease in compensation-related expenses. GAAP net income available to common stockholders was $5.0 million, or earnings per diluted share of $0.34, for the fourth quarter of 2024 compared to net income available to common stockholders of $32.3 million, or earnings per diluted share of $2.14 for the fourth quarter of 2023. The decrease was primarily due to a prior year income tax benefit resulting from the conclusion of a state income tax audit settlement, a decrease in segment profit, net of tax, and an increase in closure and impairment charges partially offset by a current year gain on disposition of assets. Adjusted net income available to common stockholders was $12.9 million, or adjusted earnings per diluted share of $0.87, for the fourth quarter of 2024 compared to adjusted net income available to common stockholders of $21.1 million, or adjusted earnings per diluted share of $1.40, for the fourth quarter of 2023. The decrease was primarily due to a decrease in segment profit, net of tax. (See 'Non-GAAP Financial Measures' for reconciliation of GAAP net income available to common stockholders to adjusted net income available to common stockholders.) Consolidated adjusted EBITDA for the fourth quarter of 2024 was $50.1 million compared to $62.2 million for the fourth quarter of 2023. (See 'Non-GAAP Financial Measures' for reconciliation of GAAP net income to consolidated adjusted EBITDA.) Development activity by Applebee's and IHOP franchisees for the fourth quarter of 2024 resulted in 30 new restaurant openings and the closure of 19 restaurants. 2024 Summary Total 2024 revenues were $812.3 million compared to $831.1 million for the prior year. The decline was primarily due to a decrease in franchise revenues primarily resulting from negative comparable same-restaurant sales growth at Applebee's and IHOP and a decrease in rental revenues, partially offset by an increase in company-operated restaurant sales due to the acquisition of 47 Applebee's restaurants from franchisees in the fourth quarter. G&A expenses for 2024 were $196.7 million compared to $198.1 million for 2023. The decrease was primarily due to the stopping of the IHOP Flip'd initiative in the prior year, a decrease in professional services including acquisition costs and a decrease in occupancy costs, partially offset by an increase in depreciation expense and organization restructuring costs. GAAP net income available to common stockholders was $63.0 million, or earnings per diluted share of $4.22, for 2024 compared to net income available to common stockholders of $94.9 million, or earnings per diluted share of $6.22 for 2023. The decrease was primarily due to a decrease in segment profit, net of tax, a prior year income tax benefit resulting from the conclusion of a state income tax audit settlement and an increase in closure and impairment charges offset by a favorable swing in gain/loss on disposition of assets. Adjusted net income available to common stockholders was $79.8 million, or adjusted earnings per diluted share of $5.34, for 2024 compared to adjusted net income available to common stockholders of $101.4 million, or adjusted earnings per diluted share of $6.65, for 2023. The decrease was primarily due to a decrease in segment profit, net of tax, and a decrease in weighted-average diluted shares as a result of shares repurchases. (See 'Non-GAAP Financial Measures' for reconciliation of GAAP net income available to common stockholders to adjusted net income available to common stockholders.) Consolidated adjusted 2024 EBITDA was $239.8 million compared to $256.4 million for 2023. (See 'Non-GAAP Financial Measures' for reconciliation of GAAP net income to consolidated adjusted EBITDA.) Cash flows provided by operating activities for 2024 were $108.2 million. This compares to cash provided by operating activities of $131.1 million for 2023. The decrease was primarily due to a decrease in segment profit and a decrease in working capital offset by a decrease in G&A expenses. The Company had adjusted free cash flow of $106.4 million for 2024. This compares to adjusted free cash flow of $103.3 million for 2023. (See 'Non-GAAP Financial Measures' for reconciliation of the Company's cash provided by operating activities to adjusted free cash flow.) Development activity by Applebee's and IHOP franchisees for 2024 resulted in 65 new restaurant openings and the closure of 83 restaurants. Key Balance Sheet Metrics (as of December 31, 2024) Total cash, cash equivalents and restricted cash of approximately $248.6 million, of which approximately $186.7 million was unrestricted cash. Available borrowing capacity under the Variable Funding Senior Secured Notes is over $224 million. GAAP Effective Tax Rate The fiscal year 2024 effective tax rate of 27.5% applied to pretax book income was different than the statutory Federal income tax rate of 21% primarily due to state and local taxes and a lower tax deduction related to stock-based compensation. Capital Returns to Equity Holders During 2024, the Company repurchased approximately $12 million of its common stock and paid approximately $31 million in dividends. In 2023, the Company repurchased approximately $26 million of its common stock and paid approximately $32 million in dividends. On February 21, 2025, the Company announced that its Board of Directors declared and approved a quarterly cash dividend of $0.51 per share of common stock. The dividend will be paid on April 4, 2025, to the Company's stockholders of record at the close of business on March 17, 2025. Financial Performance Guidance for 2025 The Company introduced its fiscal 2025 guidance items: Applebee's domestic system-wide comparable same-restaurant sales performance is expected to range between negative 2% and positive 1%. IHOP's domestic system-wide comparable same-restaurant sales performance is expected to range between negative 1% and positive 2%. Domestic development activity for Applebee's franchisees is between 20 and 35 net fewer restaurants. Domestic development activity by IHOP franchisees and area licensees is expected to be between 10 net fewer restaurants and 10 net new openings. Consolidated adjusted EBITDA is expected to range between approximately $235 million and $245 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 $35 million. Capital expenditures are expected to range between approximately $20 million and $30 million. 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. Fourth Quarter of 2024 Earnings Conference Call Details Dine Brands will host a conference call to discuss its results on March 5, 2025, at 9:00 a.m. Eastern time. A live webcast of the call, along with a replay will be available for a limited time at Participants should allow approximately ten minutes prior to the call's start time to visit the site and download any streaming media software needed to listen to the webcast. An online archive of the webcast will also be available on Events and Presentations under the Investors section of the Company's website. About Dine Brands Global, Inc. Based in Pasadena, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries and franchisees, supports and operates restaurants under the Applebee's Neighborhood Grill + Bar®, IHOP®, and Fuzzy's Taco Shop® brands. As of December 31, 2024, these three brands consisted of over 3,500 restaurants across 19 international markets. Dine Brands is one of the largest full-service restaurant companies in the world and in 2022 expanded into the Fast Casual segment. For more information on Dine Brands, visit the Company's website located at Forward-Looking Statements Statements contained in this press release may constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as 'may,' 'will,' 'would,' 'should,' 'could,' 'expect,' 'anticipate,' 'believe,' 'estimate,' 'intend,' 'plan,' 'goal' and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: general economic conditions, including the impact of inflation, particularly as it may impact our franchisees directly; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of corporate strategies, including restaurant development plans; our dependence on our franchisees; the concentration of our Applebee's franchised restaurants in a limited number of franchisees; the financial health of our franchisees including any insolvency or bankruptcy; credit risks from our IHOP franchisees operating under our previous IHOP business model in which we built and equipped IHOP restaurants and then franchised them to franchisees; insufficient insurance coverage to cover potential risks associated with the ownership and operation of restaurants; our franchisees' and other licensees' compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands' reputation; risks of food-borne illness or food tampering; possible future impairment charges; trading volatility and fluctuations in the price of our stock; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; changes in U.S. government regulations and trade policies, including the imposition of tariffs and other trade barriers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; delivery initiatives and use of third-party delivery vendors; our allocation of human capital and our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; risks of major natural disasters, including earthquake, wildfire, tornado, flood or a man-made disaster, including terrorism, civil unrest or a cyber incident; risks of volatile or adverse weather conditions as a result of climate change; pandemics, epidemics, or other serious incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; changes in tax laws; failure to meet investor and stakeholder expectations regarding business responsibility matters; and other factors discussed from time to time in the Corporation's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Corporation's other filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances. Non-GAAP Financial Measures This press release includes references to the Company's non-GAAP financial measure 'adjusted net income available to common stockholders', 'adjusted earnings per diluted share (Adjusted EPS)', 'Adjusted EBITDA' and 'Adjusted free cash flow.' Adjusted EPS is computed for a given period by deducting from net income or loss available to common stockholders for such period the effect of any closure and impairment charges, any intangible asset amortization, any non-cash interest expense, any gain or loss related to the disposition of assets, any gain or loss related to debt extinguishment, and other items deemed not reflective of current operations. This is presented on an aggregate basis and a per share (diluted) basis. Adjusted EBITDA is computed for a given period by deducting from net income or loss for such period the effect of any interest expense, any income tax provision or benefit, any depreciation and amortization, any non-cash stock-based compensation, any closure and impairment charges, any gain or loss related to debt extinguishment, any gain or loss related to the disposition of assets, and other items deemed not reflective of current operations. 'Adjusted free cash flow' for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less capital expenditures. Management may use certain of these non-GAAP financial measures along with the corresponding U.S. GAAP measures to evaluate the performance of the business and to make certain business decisions. Management uses adjusted free cash flow in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock and we believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes. Management believes that these non-GAAP financial measures provide additional meaningful information that should be considered when assessing the business and the Company's performance compared to prior periods and the marketplace. Adjusted EPS and adjusted free cash flow are supplemental non-GAAP financial measures and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. FBN-R Dine Brands Global, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Revenues: Franchise revenues: Royalties, franchise fees and other $ 96,363 $ 101,571 $ 395,524 $ 405,569 Advertising revenues 70,868 74,395 290,436 300,796 Total franchise revenues 167,231 175,966 685,960 706,365 Company restaurant sales 8,422 289 9,262 2,128 Rental revenues 28,740 29,451 115,286 119,970 Financing revenues 377 596 1,798 2,605 Total revenues 204,770 206,302 812,306 831,068 Cost of revenues: Franchise expenses: Advertising expenses 75,695 74,561 295,263 300,962 Bad debt expense 1,096 66 701 2,659 Other franchise expenses 11,912 10,992 43,892 40,782 Total franchise expenses 88,703 85,619 339,856 344,403 Company restaurant expenses 9,005 303 9,920 2,136 Rental expenses: Interest expense from finance leases 696 699 2,904 2,771 Other rental expenses 21,003 21,167 84,008 84,705 Total rental expenses 21,699 21,866 86,912 87,476 Financing expenses 68 86 309 369 Total cost of revenues 119,475 107,874 436,997 434,384 Gross profit 85,295 98,428 375,309 396,684 General and administrative expenses 52,267 50,512 196,702 198,057 Interest expense, net 17,851 18,498 72,142 70,047 Closure and impairment charges 7,798 506 9,240 3,594 Amortization of intangible assets 2,663 2,721 10,832 10,923 Loss on extinguishment of debt — — — 10 (Gain) loss on disposition of assets (3,093 ) 41 (3,150 ) 2,350 Income before income taxes 7,809 26,150 89,543 111,703 Income tax (provision) benefit (2,635 ) 6,889 (24,653 ) (14,527 ) Net income 5,174 33,039 64,890 97,176 Other comprehensive income, net of tax: Foreign currency translation adjustment (9 ) 3 (12 ) 1 Total comprehensive income $ 5,165 $ 33,042 $ 64,878 $ 97,177 Net income available to common stockholders: Net income $ 5,174 $ 33,039 $ 64,890 $ 97,176 Less: Net income allocated to unvested participating restricted stock (148 ) (751 ) (1,915 ) (2,317 ) Net income available to common stockholders $ 5,026 $ 32,288 $ 62,975 $ 94,859 Net income available to common stockholders per share: Basic $ 0.34 $ 2.14 $ 4.22 $ 6.23 Diluted $ 0.34 $ 2.14 $ 4.22 $ 6.22 Weighted average shares outstanding: Basic 14,904 15,106 14,931 15,233 Diluted 14,904 15,106 14,931 15,242 Dine Brands Global, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited) December 31, December 31, Assets 2024 2023 Current assets: Cash and cash equivalents $ 186,650 $ 146,034 Receivables, net of allowance 115,218 127,937 Restricted cash 42,448 35,058 Prepaid gift card costs 28,552 29,545 Prepaid income taxes 1,446 3,445 Other current assets 11,685 15,759 Total current assets 385,999 357,778 Other intangible assets, net 575,654 586,033 Operating lease right-of-use assets 323,468 275,214 Goodwill 248,622 254,062 Property and equipment, net 156,134 161,891 Long-term receivables, net of allowance 35,873 35,602 Deferred rent receivable 24,804 33,326 Non-current restricted cash 19,500 19,500 Other non-current assets, net 20,530 16,881 Total assets $ 1,790,584 $ 1,740,287 Liabilities and Stockholders' Deficit Current liabilities: Current maturities of long-term debt $ 100,000 $ 100,000 Accounts payable 37,718 36,193 Gift card liability 177,584 175,640 Current maturities of operating lease obligations 65,336 63,498 Current maturities of finance lease and financing obligations 6,387 7,243 Accrued employee compensation and benefits 16,674 23,211 Accrued advertising expenses 4,735 9,446 Dividends payable 7,790 7,827 Other accrued expenses 29,081 37,394 Total current liabilities 445,305 460,452 Long-term debt, net, less current maturities 1,086,551 1,084,502 Operating lease obligations, less current maturities 310,476 269,097 Finance lease obligations, less current maturities 34,286 34,389 Financing obligations, less current maturities 23,251 26,984 Deferred income taxes, net 54,572 60,829 Deferred franchise revenue, long-term 36,700 38,658 Other non-current liabilities 15,462 16,350 Total liabilities 2,006,603 1,991,261 Commitments and contingencies Stockholders' deficit: Common stock 248 249 Additional paid-in-capital 254,814 256,542 Retained earnings 183,614 150,008 Accumulated other comprehensive loss (76 ) (64 ) Treasury stock, at cost (654,619 ) (657,709 ) Total stockholders' deficit (216,019 ) (250,974 ) Total liabilities and stockholders' deficit $ 1,790,584 $ 1,740,287 Dine Brands Global, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) Twelve Months Ended December 31, 2024 2023 Cash flows from operating activities Net income $ 64,890 $ 97,176 Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation and amortization 39,153 35,630 Non-cash stock-based compensation expense 15,978 11,990 Non-cash closure and impairment charges 9,240 3,594 Non-cash interest expense 3,290 3,505 Deferred income taxes (6,520 ) (13,822 ) Deferred revenue (6,278 ) (4,224 ) Loss on extinguishment of debt — 10 (Gain) loss on disposition of assets (3,150 ) 2,359 Other (4,204 ) (3,552 ) Changes in operating assets and liabilities: Accounts receivable, net (671 ) 1,913 Deferred rent receivable 8,522 9,003 Income tax receivables and payables 667 1,160 Operating lease assets and liabilities (12,530 ) 7,256 Gift card receivables and payables (678 ) 5,095 Other current assets 7,618 1,911 Accounts payable 1,032 (16,027 ) Accrued employee compensation and benefits (6,368 ) (1,748 ) Accrued advertising expenses (1,441 ) (14,711 ) Other current liabilities (390 ) 4,622 Cash flows provided by operating activities 108,160 131,140 Cash flows from investing activities Principal receipts from notes, equipment contracts and other long-term receivables 12,264 9,319 Additions to property and equipment (14,069 ) (37,172 ) Proceeds from sale of property and equipment 3,021 10 Additions to long-term receivables (718 ) (1,069 ) Acquisition of business, net of cash acquired (8,452 ) (101 ) Other (497 ) (1,084 ) Cash flows used in investing activities (8,451 ) (30,097 ) Cash flows from financing activities Proceeds from issuance of long-term debt, including revolving line of credit — 530,000 Repayment of long-term debt — (651,713 ) Repayments of revolving credit facility — (30,000 ) Payment of debt issuance costs — (8,044 ) Dividends paid on common stock (31,302 ) (31,715 ) Repurchase of common stock (12,066 ) (26,130 ) Principal payments of finance lease and financing obligations (5,638 ) (6,431 ) Proceeds from stock options exercised — 3,812 Repurchase of restricted stock for tax payments upon vesting (2,667 ) (4,355 ) Tax payments for share settlement of restricted stock units (30 ) (859 ) Cash flows used in financing activities (51,703 ) (225,435 ) Net change in cash, cash equivalents and restricted cash 48,006 (124,392 ) Cash, cash equivalents and restricted cash at beginning of year 200,592 324,984 Cash, cash equivalents and restricted cash at end of year $ 248,598 $ 200,592 Dine Brands Global, Inc. and Subsidiaries Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) Reconciliation of net income available to common stockholders to net income available to common stockholders, as adjusted for the following items: Closure and impairment charges; amortization of intangible assets; non-cash interest expenses; gain or loss on disposition of assets; gain or loss on extinguishment of debt; acquisition costs; IHOP Flip'd initiative; other EBITDA adjustments; the combined tax effect of the preceding adjustments; and income tax adjustments related to the tax impact from a state settlement, as well as related per share data: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Net income available to common stockholders, as reported $ 5,026 $ 32,288 $ 62,975 $ 94,859 Closure and impairment charges 7,798 506 9,240 3,594 Amortization of intangible assets 2,663 2,722 10,832 10,924 Noncash interest expense 842 791 3,290 3,505 (Gain) loss on disposition of assets (3,093 ) 41 (3,150 ) 2,350 Loss on extinguishment of debt — — — 10 Merger and acquisition costs — — — 804 IHOP Flip'd initiative — — — 5,121 Other EBITDA adjustments 2,746 863 3,230 3,095 Net income tax provision for above adjustments (2,849 ) (1,280 ) (6,095 ) (7,645 ) Income tax adjustments — (15,063 ) — (15,063 ) Net income allocated to unvested participating restricted stock (228 ) 257 (542 ) (159 ) Net income available to common stockholders, as adjusted $ 12,905 $ 21,125 $ 79,780 $ 101,395 Diluted net income available to common stockholders per share: Net income available to common stockholders $ 0.34 $ 2.14 $ 4.22 $ 6.22 Closure and other impairment charges 0.39 0.02 0.46 0.17 Amortization of intangible assets 0.13 0.13 0.54 0.53 Non-cash interest expense 0.04 0.04 0.16 0.17 (Gain) loss on disposition of assets (0.15 ) 0.00 (0.16 ) 0.11 Loss on extinguishment of debt — — — 0.00 Merger and acquisition costs — — — 0.04 IHOP Flip'd initiative — — — 0.25 Other EBITDA adjustments 0.14 0.04 0.16 0.15 Net income tax provision for above adjustments 0.00 (1.00 ) 0.00 (0.99 ) Net income allocated to unvested participating restricted stock (0.02 ) 0.02 (0.04 ) (0.01 ) Rounding — 0.01 — 0.01 Diluted net income available to common stockholders per share, as adjusted $ 0.87 $ 1.40 $ 5.34 $ 6.65 Numerator for basic EPS - net income available to common stockholders, as adjusted $ 12,905 $ 21,125 $ 79,780 $ 101,395 Effect of unvested participating restricted stock using the two-class method — 1 1 — Numerator for diluted EPS - net income available to common stockholders, as adjusted $ 12,905 $ 21,126 $ 79,781 $ 101,395 Denominator for basic EPS - weighted-average shares 14,904 15,106 14,931 15,233 Dilutive effect of stock options — — — 9 Denominator for diluted EPS - weighted-average shares 14,904 15,106 14,931 15,242 Dine Brands Global, Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited) Reconciliation of the Company's cash flows provided by operating activities to 'adjusted free cash flow' (cash flows provided by operating activities, plus receipts from notes and equipment contracts receivable, less additions to property and equipment). Management uses this liquidity measure in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock. We believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes. Twelve Months Ended December 31, 2024 2023 (In thousands) Cash flows provided by operating activities $ 108,160 $ 131,140 Principal receipts from notes and equipment contracts 12,264 9,319 Additions to property and equipment (14,069 ) (37,172 ) Adjusted free cash flow 106,355 103,287 (Repayment) issuance of long-term debt, net — (151,713 ) Dividends paid on common stock (31,302 ) (31,715 ) Repurchase of common stock (12,066 ) (26,130 ) $ 62,987 $ (106,271 ) Dine Brands Global, Inc. and Subsidiaries Non-GAAP Financial Measures (in thousands) (Unaudited) Reconciliation of the Company's net income to 'adjusted EBITDA.' The Company defines adjusted EBITDA as net income or loss, adjusted for the effect of interest expense, income tax provision or benefit, depreciation and amortization, non-cash stock-based compensation, closure and impairment charges, gain or loss on extinguishment of debt, gain or loss on disposition of assets, and other items deemed not reflective of current operations. Management may use certain non-GAAP measures along with the corresponding U.S. GAAP measures to evaluate the performance of the Company and to make certain business decisions. Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Net income, as reported $ 5,174 $ 33,039 $ 64,890 $ 97,176 Interest charges on finance leases 696 699 2,904 2,771 All other interest charges 20,597 20,664 82,857 79,336 Income tax provision (benefit) 2,635 (6,889 ) 24,653 14,527 Depreciation and amortization 10,104 9,408 39,153 35,630 Non-cash stock-based compensation 3,406 3,823 15,978 11,990 Closure and impairment charges 7,798 506 9,240 3,594 Loss on extinguishment of debt — — — 10 (Gain) loss on disposition of assets (3,093 ) 41 (3,150 ) 2,350 Organization restructuring costs 2,661 — 2,661 — Merger and acquisition costs — — — 804 IHOP Flip'd initiative — — — 5,121 Other 85 864 569 3,095 Adjusted EBITDA $ 50,063 $ 62,155 $ 239,755 $ 256,404 Dine Brands Global, Inc. and Subsidiaries Restaurant Data (Unaudited) The following table sets forth, for the three and twelve months ended December 31, 2024 and 2023, the number of 'Effective Restaurants' in the Applebee's, IHOP and Fuzzy's systems and information regarding the percentage change in sales at those restaurants compared to the same periods in the prior year and, as such, the percentage change in sales at Effective Restaurants is based on non-GAAP sales data. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. However, we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales, and, where applicable, rental payments under leases that partially may be based on a percentage of their sales. Management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations. Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Applebee's Restaurant Data (Unaudited) Global Effective Restaurants (a) Franchise 1,583 1,646 1,616 1,659 Company 23 — 6 — Total 1,606 1,646 1,622 1,659 System-wide (b) Domestic sales percentage change (c) (6.3 )% (1.5 )% (5.5 )% (0.1 )% Domestic same-restaurant sales percentage change (d) (4.7 )% (0.5 )% (4.2 )% 0.6 % Franchise (b) Domestic sales percentage change (c)(e) (7.1 )% (0.6 )% (5.7 )% 2.9 % Domestic same-restaurant sales percentage change (d) (4.5 )% (0.5 )% (4.1 )% 0.6 % Average weekly domestic unit sales (in thousands) $ 51.0 $ 52.6 $ 52.3 $ 54.0 IHOP Restaurant Data Global Effective Restaurants (a) Franchise 1,648 1,639 1,646 1,629 Area license 153 157 155 156 Total 1,801 1,796 1,801 1,785 System-wide (b) Sales percentage change (c) (2.7 )% 4.2 % (1.1 )% 6.0 % Domestic same-restaurant sales percentage change, including area license restaurants (d) (2.8 )% 1.6 % (2.0 )% 3.5 % Franchise (b) Sales percentage change (c) (2.3 )% 4.1 % (0.9 )% 6.1 % Domestic same-restaurant sales percentage change (d) (2.5 )% 1.7 % (1.9 )% 3.6 % Average weekly unit sales (in thousands) $ 37.9 $ 39.1 $ 37.7 $ 38.5 Area License (b) Sales percentage change (c) (6.1 )% 5.2 % (2.8 )% 4.3 % Fuzzy's Restaurant Data Global Effective Restaurants (a) Franchise 115 134 122 135 Company 1 1 1 1 Total 116 135 123 136 System-wide (b) Sales percentage change (c) (18.1 )% (6.8 )% (14.7 )% (2.4 )% Domestic same-restaurant sales percentage change (d) (10.3 )% (6.4 )% (9.3 )% (4.2 )% Franchise (b) Sales percentage change (c) (18.2 )% (5.4 )% (14.4 )% (1.5 )% Domestic same-restaurant sales percentage change (d) (10.3 )% (6.3 )% (9.2 )% (4.2 )% Average weekly domestic unit sales (in thousands) $ 26.1 $ 27.4 $ 29.1 $ 30.6 _________________________________ (a) 'Effective Restaurants' are the weighted average number of restaurants open in each fiscal period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all Effective Restaurants in the Applebee's, IHOP and Fuzzy's systems, which consist of restaurants owned by franchisees and area licensees as well as those owned by the Company. Effective Restaurants do not include units operated as ghost kitchens (small kitchens with no store-front presence, used to fill off-premise orders). (b) 'System-wide sales' are retail sales at Applebee's and Fuzzy's restaurants operated by franchisees and IHOP restaurants operated by franchisees and area licensees, as reported to the Company, in addition to retail sales at company-operated Applebee's and Fuzzy's restaurants. System-wide sales do not include retail sales of ghost kitchens. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. An increase in franchisees' reported sales will result in a corresponding increase in our royalty revenue, while a decrease in franchisees' reported sales will result in a corresponding decrease in our royalty revenue. Unaudited reported sales for Applebee's and Fuzzy's franchise restaurants, Applebee's and Fuzzy's company-operated restaurants, IHOP franchise restaurants and IHOP area license restaurants were as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Reported sales (in millions) (Unaudited) Applebee's franchise restaurant sales $ 1,011.6 $ 1,088.6 $ 4,242.1 $ 4,500.1 Applebee's company-operated restaurants 8.2 — 8.2 — IHOP franchise restaurant sales 812.9 832.4 3,229.1 3,258.3 IHOP area license restaurant sales 72.5 77.2 296.9 305.3 Fuzzy's franchise restaurant sales 39.0 47.7 184.0 214.8 Fuzzy's company-operated restaurants 0.2 0.3 1.1 2.1 Total $ 1,944.4 $ 2,046.2 $ 7,961.4 $ 8,280.6 (c) 'Sales percentage change' reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior period for all restaurants in that category. (d) 'Domestic same-restaurant sales percentage change' reflects the percentage change in sales in any given fiscal period, compared to the same weeks in the prior period, for domestic restaurants that have been operated during both periods that are being compared and have been open for at least 18 months. Because of new restaurant openings and restaurant closures, the domestic restaurants open throughout both fiscal periods being compared may be different from period to period. (e) The franchise sales percentage change for 2024 was impacted by the acquisition of 47 franchise restaurants in November 2024 now reported as company-operated. Dine Brands Global, Inc. and Subsidiaries Restaurant Data (Unaudited) Restaurant Development Activity Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Applebee's (Unaudited) Summary - beginning of period: Franchise 1,618 1,652 1,642 1,678 Company — — — — Beginning of period 1,618 1,652 1,642 1,678 Franchise restaurants opened: Domestic — — — 3 International 8 2 17 7 Total franchise restaurants opened 8 2 17 10 Franchise restaurants permanently closed: Domestic (10 ) (8 ) (35 ) (36 ) International (2 ) (4 ) (10 ) (10 ) Total franchise restaurants permanently closed (12 ) (12 ) (45 ) (46 ) Net franchise restaurant reduction (4 ) (10 ) (28 ) (36 ) Refranchised from Company restaurants 9 — 9 — Net franchise restaurant addition/(reduction) 5 (10 ) (19 ) (36 ) Franchise restaurants acquired by the Company (56 ) — (56 ) — Net franchise restaurant reductions (51 ) (10 ) (75 ) (36 ) Summary - end of period: Franchise 1,567 1,642 1,567 1,642 Company 47 — 47 — Total Applebee's restaurants, end of period 1,614 1,642 1,614 1,642 Domestic 1,501 1,536 1,501 1,536 International 113 106 113 106 IHOP Summary - beginning of period: Franchise 1,654 1,638 1,657 1,625 Area license 155 156 157 156 Total IHOP restaurants, beginning of period 1,809 1,794 1,814 1,781 Franchise/area license restaurants opened: Domestic franchise 15 16 29 43 Domestic area license — 1 1 3 International franchise 7 5 18 16 Total franchise/area license restaurants opened 22 22 48 62 Franchise/area license restaurants permanently closed: Domestic franchise (4 ) (2 ) (28 ) (25 ) Domestic area license (1 ) — (4 ) (2 ) International franchise (2 ) — (6 ) (2 ) Total franchise/area license restaurants permanently closed (7 ) (2 ) (38 ) (29 ) Net increase in franchise/area license restaurants 15 20 10 33 Summary - end of period: Franchise 1,670 1,657 1,670 1,657 Area license 154 157 154 157 Total IHOP restaurants, end of period 1,824 1,814 1,824 1,814 Domestic 1,694 1,696 1,694 1,696 International 130 118 130 118 Dine Brands Global, Inc. and Subsidiaries Restaurant Data (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Fuzzy's (Unaudited) Summary - beginning of period: Franchise 118 137 131 134 Company 1 1 1 3 Beginning of period 119 138 132 137 Franchise restaurants opened: Domestic 2 1 3 4 Franchise restaurants permanently closed: Domestic (4 ) (7 ) (18 ) (9 ) Net franchise restaurant addition (reduction) (2 ) (6 ) (15 ) (5 ) Refranchised from Company restaurants — — — 2 Net franchise restaurant addition (reduction) (2 ) (6 ) (15 ) (3 ) Summary - end of period: Franchise 116 131 116 131 Company 1 1 1 1 Total Fuzzy's restaurants, end of period 117 132 117 132 Domestic 117 132 117 132 International — — — — The restaurant counts and activity presented above include 18 dual-branded international Applebee's and IHOP restaurants at December 31, 2024, and seven dual-branded international Applebee's and IHOP restaurants at December 31, 2023, which are separately counted in each of our brands' restaurant counts and activity. Dual-branded restaurants are defined as restaurants that reside in one location and operate two of our concepts under two separate franchise agreements. In addition, the restaurant counts and activity presented above do not include ghost kitchens (small kitchens with no store-front presence, used to fill off-premise orders). View source version on CONTACT: Investor Contact Matt Lee Sr. Vice President, Finance and Investor Relations Dine Brands Global, Inc. [email protected] Contact Susan Nelson Sr. Vice President, Global Communications Dine Brands Global, Inc. [email protected] KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: RETAIL RESTAURANT/BAR FOOD/BEVERAGE SOURCE: Dine Brands Global, Inc. Copyright Business Wire 2025. PUB: 03/05/2025 07:00 AM/DISC: 03/05/2025 07:03 AM
