05-03-2025
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
