Dine Brands’ first quarter results drew a strong positive market reaction, as investors looked past a shortfall in non-GAAP profit and focused on early signs of improvement in key business drivers. Management highlighted that traffic and sales momentum improved during March and continued into April, driven by renewed focus on value offerings and guest experience enhancements across Applebee’s and IHOP. CEO John Peyton credited successful menu innovation, expanded loyalty programs, and high-impact marketing campaigns—such as Applebee’s Big Easy promotion and IHOP’s House Faves value menu—for driving guest engagement despite a challenging consumer backdrop.
Is now the time to buy DIN? Find out in our full research report (it’s free).
Dine Brands (DIN) Q1 CY2025 Highlights:
- Revenue: $214.8 million vs analyst estimates of $215.1 million (4.1% year-on-year growth, in line)
- Adjusted EPS: $1.03 vs analyst expectations of $1.24 (16.7% miss)
- Adjusted EBITDA: $54.73 million vs analyst estimates of $57.31 million (25.5% margin, 4.5% miss)
- EBITDA guidance for the full year is $240 million at the midpoint, above analyst estimates of $235.4 million
- Operating Margin: 18.1%, down from 21.9% in the same quarter last year
- Locations: 3,408 at quarter end, down from 3,445 in the same quarter last year
- Same-Store Sales fell 2.4% year on year, in line with the same quarter last year
- Market Capitalization: $383.9 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Dine Brands’s Q1 Earnings Call
- Eric Gonzalez (KeyBanc): Sought clarity on Applebee’s sales trends in April and the sustainability of value mix. CEO John Peyton and CFO Vance Chang emphasized momentum from menu innovation and comfort operating at current value levels, with flexibility to adjust as consumer sentiment evolves.
- Larsen (Truist Securities): Asked about IHOP’s comp sales acceleration and self-help drivers. CFO Vance Chang and IHOP President Lawrence Kim highlighted ongoing success of the House Faves menu, value marketing, and operational improvements fueling positive traffic trends into Q2.
- Dennis Geiger (UBS): Inquired about value positioning and franchisee sentiment for dual-brand concepts. CEO John Peyton and IHOP President Lawrence Kim described a focus on evolving value programs and noted strong franchisee engagement and development demand, especially for dual-brand restaurants.
- Brian Vaccaro (Raymond James): Requested details on Applebee’s remodel investment and incentive impacts. CFO Vance Chang outlined investment ranges and incentive structures, while Peyton confirmed early remodels are delivering returns above the required threshold.
- Brian Mullan (Piper Sandler): Asked about operational simplification at IHOP. President Lawrence Kim detailed technology-enabled workflow changes and franchisee task force engagement, resulting in faster service and improved training outcomes.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace and profitability of dual-brand restaurant openings, (2) continued momentum in loyalty program signups and digital ordering, and (3) the effectiveness of supply chain initiatives in offsetting commodity and tariff pressures. Progress in remodeling and reimaging programs, as well as execution on marketing-led traffic drivers, will also be important indicators of sustained improvement.
Dine Brands currently trades at $24.60, up from $20.01 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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