Dine Brands Global Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did DIN Beat Earnings? Q2 2025 Results
Dine Brands Global posted a mixed second quarter for fiscal 2025, beating on revenue while falling well short on the bottom line, as the casual dining parent of Applebee's and IHOP reported adjusted EPS of $1.17, missing the $1.45 consensus estimate by 19.35%. Revenue climbed 11.9% year-over-year to $230.78 million, edging past the $223.41 million analyst expectation, but the top-line strength was largely structural rather than organic, driven by the addition of company-operated restaurants following acquisitions rather than franchise momentum. Profitability bore the real pressure: GAAP net income fell to $13.81 million from $23.18 million a year ago, while a costly debt refinancing that replaced 4.723% notes with new 6.720% senior secured notes meaningfully inflated the interest burden. The divergence between brands also complicated the picture, with Applebee's comps rising 4.9% even as IHOP declined 2.3% and Fuzzy's Taco Shop tumbled 11.8%. Management trimmed its full-year adjusted EBITDA outlook to $220 million-$230 million, though it raised its Applebee's comparable sales guidance to positive 1%-3%, reflecting that brand's relative resilience.
- Applebee's domestic comparable same-restaurant sales increased 4.9% driven by value-driven promotions and menu/marketing innovation
- IHOP domestic comparable same-restaurant sales declined 2.3%
- Fuzzy's domestic comparable same-restaurant sales declined 11.8%
- Company restaurant sales increased significantly due to acquisitions of 59 Applebee's and 10 IHOP restaurants
- Franchise revenues declined slightly due to lower royalties and advertising revenues
- G&A expenses increased due to higher compensation and professional service fees related to company restaurant operations and dual brand/remodel initiatives
- Applebee's off-premise sales mix was 22.0% with approximately $12,800 average weekly sales
- IHOP off-premise sales mix was 20.0% with approximately $7,600 average weekly sales
“In the second quarter, we continued to build positive momentum across both Applebee's and IHOP, with notable improvements in sales and traffic. Applebee's benefited from strong consumer response to our value-driven promotions and continued innovation in menu and marketing, while IHOP saw growth fueled by its refreshed brand positioning and value strategy. At the same time, our Dual Brands initiative is building traction with our franchisees as our second domestic unit also opened with strong economics. We remain confident that our ongoing investments will generate sustainable value for our shareholders and franchisees based on these results.”
Dine Brands Global CEO, on the earnings call
Forward Guidance & Outlook
Dine Brands updated its fiscal year 2025 guidance. Applebee's domestic comparable same-restaurant sales are now expected to range between positive 1% and positive 3% (raised from negative 2% to positive 1%). IHOP's domestic comparable same-restaurant sales are now expected between negative 1% and positive 1% (narrowed from negative 1% to positive 2%). Consolidated adjusted EBITDA guidance was lowered to approximately $220 million to $230 million (from $235 million to $245 million). G&A expenses are now expected between approximately $205 million and $210 million (raised from $200 million to $205 million), including approximately $35 million in non-cash stock-based compensation and depreciation. Capital expenditures guidance was increased to approximately $30 million to $40 million (from $20 million to $30 million). Domestic development guidance was reiterated: Applebee's expects 20 to 35 net fewer restaurants; IHOP expects between 10 net fewer restaurants and 10 net new openings.
DIN YoY Financials
DIN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.