Dine Brands Global (NYSE:DIN) Releases Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Dine Brands Global (NYSE:DIN) issued its earnings results on Wednesday. The restaurant operator reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.20 by ($0.04), FiscalAI reports. The firm had revenue of $240.90 million during the quarter, compared to analyst estimates of $237.28 million. Dine Brands Global had a net margin of 1.77% and a negative return on equity of 23.28%. The company’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter last year, the business posted $1.17 earnings per share.

Here are the key takeaways from Dine Brands Global’s conference call:

• IHOP outperformed industry benchmarks for the third consecutive quarter, with 1.5% comparable sales growth, nearly flat traffic, positive off-premise sales, and catering sales up 22%.
• Applebee’s performance improved through the quarter as value and premium promotions gained traction; off-premise comparable sales rose 1.5%, delivery grew by double digits for the fifth consecutive quarter, and remodels are producing an average mid-single-digit sales lift.
• Management reported continued momentum in the dual-brand strategy, with 45 domestic locations open, 12 under construction, and a goal of 80 by year-end; converted locations are generating roughly twice the sales of single-brand restaurants.
• Adjusted EBITDA declined to $54.2 million from $56.2 million, while adjusted free cash flow fell sharply to $3.7 million year to date from $48.7 million, reflecting higher capital expenditures, marketing and compensation payments, interest expense, and franchisee incentives.
• Full-year financial guidance was maintained, though management indicated results could land toward the lower end of the range; higher beef costs, company-owned restaurant investments, and elevated G&A remain near-term pressures.

Dine Brands Global Price Performance

NYSE:DIN traded up $0.84 during trading hours on Wednesday, hitting $35.69. The company’s stock had a trading volume of 349,664 shares, compared to its average volume of 392,341. Dine Brands Global has a twelve month low of $19.58 and a twelve month high of $39.68. The stock has a fifty day simple moving average of $34.00 and a 200-day simple moving average of $31.68. The company has a market capitalization of $452.92 million, a P/E ratio of 35.32 and a beta of 0.96.

Dine Brands Global Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Wednesday, June 24th were given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 2.1%. The ex-dividend date was Wednesday, June 24th. Dine Brands Global’s payout ratio is currently 75.25%.

Insider Buying and Selling

In related news, Director Michael Hyter sold 1,800 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $28.88, for a total transaction of $51,984.00. Following the sale, the director owned 9,315 shares in the company, valued at $269,017.20. The trade was a 16.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 6.73% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dine Brands Global

Several large investors have recently modified their holdings of DIN. Quadrant Capital Group LLC raised its position in shares of Dine Brands Global by 8.8% in the 4th quarter. Quadrant Capital Group LLC now owns 3,821 shares of the restaurant operator’s stock worth $123,000 after acquiring an additional 309 shares in the last quarter. Russell Investments Group Ltd. grew its stake in Dine Brands Global by 1.2% during the fourth quarter. Russell Investments Group Ltd. now owns 28,282 shares of the restaurant operator’s stock worth $909,000 after purchasing an additional 326 shares during the period. Garton & Associates Financial Advisors LLC bought a new stake in Dine Brands Global in the fourth quarter worth approximately $26,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of Dine Brands Global by 4.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 25,557 shares of the restaurant operator’s stock worth $822,000 after buying an additional 1,010 shares in the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of Dine Brands Global during the 3rd quarter worth approximately $27,000. 92.83% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms recently weighed in on DIN. Barclays dropped their price target on Dine Brands Global from $30.00 to $28.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 7th. Mizuho raised their target price on shares of Dine Brands Global from $30.00 to $36.00 and gave the stock a “neutral” rating in a research note on Friday, July 31st. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Dine Brands Global in a research note on Tuesday, June 9th. Seven equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $31.60.

About Dine Brands Global

Dine Brands Global, Inc is a leading franchisor and operator of full‐service restaurants in the casual dining and breakfast segments. The company’s primary brands include IHOP®, known for its wide variety of breakfast offerings and pancakes, and Applebee’s Neighborhood Grill + Bar®, a casual dining concept featuring a range of American entrées, appetizers and cocktails. Through its franchise model, Dine Brands works with independent restaurant owners to develop, market and support both domestic and international locations.

The origins of Dine Brands Global date back to the founding of the International House of Pancakes (IHOP) in 1958 in California.