Dine Brands downgraded to Neutral from Outperform at Wedbush

Wedbush downgraded Dine Brands (DIN) to Neutral from Outperform with a price target of $28, down from $47. The company’s same-store-sales growth visibility remains limited despite its pivot to value with “price certainty,” the analyst tells investors in a research note. The firm says the probability of improvement in Dine’s Applebee’s and IHOP unit growth trajectories is declining. The company’s franchised model limits EBITDA sensitivity, but a slow annual decline has become the base case given the system sales growth outlook implied, contends Wedbush. It cites a lack of catalysts for the downgrade.