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

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

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

Shares of DIN traded up $0.84 during mid-day trading on Wednesday, hitting $35.69. 270,976 shares of the company’s stock were exchanged, compared to its average volume of 391,976. Dine Brands Global has a 52 week low of $19.58 and a 52 week high of $39.68. The company has a market cap of $452.91 million, a PE ratio of 35.16 and a beta of 0.96. The company has a 50-day simple moving average of $34.00 and a 200 day simple moving average of $31.68.

Dine Brands Global Announces Dividend

The company also recently declared 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. The ex-dividend date of this dividend was Wednesday, June 24th. This represents a $0.76 dividend on an annualized basis and a yield of 2.1%. Dine Brands Global’s dividend payout ratio is 75.25%.

Wall Street Analyst Weigh In

Several brokerages have issued reports on DIN. Mizuho boosted their price target on shares of Dine Brands Global from $30.00 to $36.00 and gave the company a “neutral” rating in a report on Friday, July 31st. Weiss Ratings restated a “hold (c-)” rating on shares of Dine Brands Global in a research report on Tuesday, June 9th. Finally, Barclays dropped their target price on shares of Dine Brands Global from $30.00 to $28.00 and set an “equal weight” rating for the company in a research report on Thursday, May 7th. Seven research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $31.60.

Insiders Place Their Bets

In other news, Director Michael Hyter sold 1,800 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $28.88, for a total transaction of $51,984.00. Following the completion of the transaction, the director directly owned 9,315 shares in the company, valued at $269,017.20. This represents a 16.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 6.73% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in DIN. Garton & Associates Financial Advisors LLC bought a new stake in shares of Dine Brands Global during the 4th quarter worth about $26,000. Advisory Services Network LLC bought a new position in shares of Dine Brands Global during the third quarter worth approximately $27,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of Dine Brands Global during the third quarter worth approximately $50,000. Tower Research Capital LLC TRC grew its position in Dine Brands Global by 307.6% during the second quarter. Tower Research Capital LLC TRC now owns 2,091 shares of the restaurant operator’s stock worth $51,000 after buying an additional 1,578 shares in the last quarter. Finally, Quadrant Capital Group LLC bought a new position in Dine Brands Global during the 3rd quarter worth $87,000. 92.83% of the stock is currently owned by institutional investors.

Dine Brands Global Company Profile

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.