Dine Brands Global (DIN) AI Stock Analysis

• Market Cap: $310.07M
• Dividend Yield: 10.29%
• Average Volume (3M): 818.47K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.67
• Revenue Growth: -2.26%
• EPS Growth: -32.36%
• Country: US
• Employees: 992
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Restaurants
• EPS (TTM): 4.21
• Shares Outstanding: 15,636,426
• 10 Day Avg. Volume: 971,496
• 30 Day Avg. Volume: 818,469
• PEG Ratio: 0.16
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.46
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.17
• Price Target Upside: 50.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Dine Brands Global's overall score of 56 reflects significant financial and operational challenges. High leverage and declining sales are critical concerns, while robust cash flows and valuation offer some positives. Market sentiment is currently bearish, as indicated by technical analysis. Strategic initiatives to boost sales and reduce debt will be essential for improving the outlook.

Positive Factors

Competitive Position

IHOP is in a stronger competitive position than Applebee's, with successful promotions and a growing loyalty program.

Free Cash Flow

DIN's strong free cash flow yield suggests potential long-term upside in the shares.

Revenue Performance

Reported revenues of $205M beat consensus of $199M, with an $8M contribution from the 47 Applebee’s franchisee locations acquired in November.

Negative Factors

Analyst Downgrade

Analyst downgrades the rating to HOLD from BUY due to shaken confidence in near-term sales catalysts.

Earnings Performance

Applebee’s SSS fell (4.7)% and IHOP SSS fell (2.8)%, with AEPS of $0.87 below consensus of $1.34 and AEBITDA of $50M missed a $58M expectation.

Sales Catalysts

There is less confidence in positive sales catalysts for Applebee's upcoming quarters due to underwhelming performance.

Dine Brands Global Business Overview & Revenue Model

Company Description

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates through five segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill + Bar in the bar and grill segment of the casual dining category; and IHOP in the family dining category of the restaurant industry. Its Applebee's restaurants offer American fare with drinks and drafts; and IHOP restaurants provide full table services, and food and beverage offerings. As of December 31, 2021, the company had 1,611 Applebee's franchised restaurants, and 1,751 IHOP franchised and area licensed restaurants. It is also involved in the lease or sublease of 598 IHOP franchised restaurants and two Applebee's franchised restaurants; and the financing of franchise fees and equipment leases. the company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Glendale, California.

How the Company Makes Money

Dine Brands Global generates revenue primarily through its franchise operations, which include franchise fees, royalty fees, and licensing agreements associated with its Applebee's and IHOP brands. These fees are typically a percentage of the franchisee's sales. Additionally, the company earns money through company-operated restaurants, although the majority of its locations are franchised. Partnerships with food and beverage suppliers, as well as marketing and promotional activities, further contribute to its earnings. Dine Brands also benefits from its scale and brand recognition, which help maintain strong customer loyalty and drive sales across its restaurant network.

Dine Brands Global Financial Statement Overview

Summary

Dine Brands Global presents a mixed financial outlook. Robust cash flows and healthy margins are overshadowed by high leverage and negative equity, which poses significant financial risks. Enhancing revenue growth and equity is crucial for stability.

Income Statement

Dine Brands Global exhibits a varied financial performance. The Gross Profit Margin remains solid, while the Net Profit Margin shows some stability over the years. However, revenue growth has experienced fluctuations, which presents a potential concern. EBIT and EBITDA margins are healthy, indicating effective cost control despite inconsistent revenue growth.

Balance Sheet

The Balance Sheet reveals significant leverage with a high Debt-to-Equity ratio due to negative equity, which poses a risk. The Return on Equity (ROE) is unmeasurable with negative equity, while the Equity Ratio is troublingly negative, underscoring financial instability. The company needs to focus on strengthening its equity base to improve financial health.

Cash Flow

Cash flow management is a notable strength for Dine Brands Global. Operating Cash Flow to Net Income Ratio is consistently positive, indicating effective cash generation. The Free Cash Flow to Net Income Ratio is also favorable, demonstrating robust cash flow relative to profits. Free Cash Flow growth has been substantial, enhancing liquidity and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
812.31B	831.07M	909.40M	896.17M	689.27M
	Gross Profit
375.31B	396.68M	377.36M	375.23M	248.72M
	EBIT
178.61B	187.70M	176.05M	192.71M	93.02M
	EBITDA
178.61B	217.38M	214.31M	232.59M	1.16M
	Net Income Common Stockholders
64.89M	97.18M	81.11M	97.86M	-103.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.65B	146.03M	269.65M	361.41M	383.37M
	Total Assets
1.79T	1.74B	1.88B	2.00B	2.07B
	Total Debt
516.49B	1.59B	1.71B	1.77B	2.03B
	Net Debt
329.83B	1.44B	1.44B	1.41B	1.65B
	Total Liabilities
2.01T	1.99B	2.18B	2.24B	2.43B
	Stockholders Equity
-216.02B	-250.97M	-301.08M	-242.81M	-354.65M
Cash Flow		Free Cash Flow
94.09B	93.97M	54.02M	178.99M	85.58M
	Operating Cash Flow
108.16B	131.14M	89.34M	195.84M	96.50M
	Investing Cash Flow
-8.45B	-30.10M	-80.90M	3.86M	18.73M
	Financing Cash Flow
-51.70B	-225.44M	-108.80M	-230.40M	168.35M

Dine Brands Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIN, the sentiment is Negative. The current price of 18.77 is below the 20-day moving average (MA) of 23.63, below the 50-day MA of 25.39, and below the 200-day MA of 29.35, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 17.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIN.

Dine Brands Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	78 Outperform	$10.29B	23.94	34.69%	1.62%	16.01%	42.54%
DRI	75 Outperform	$22.12B	21.32	48.22%	2.92%	5.00%	3.73%
EAT	71 Outperform	$6.07B	23.08	2390.91%	―	13.67%	69.41%
Sector *	59 Neutral	$10.97B	9.83	-1.56%	4.06%	1.31%	-16.49%
DIN	56 Neutral	$310.07M	4.70	-42.81%	10.29%	-2.26%	-32.36%
RRGB	41 Neutral	$56.94M	―	92.02%	―	-4.19%	-266.52%
BLMN	36 Underperform	$546.95M	―	-13.92%	13.51%	-7.42%	-153.35%

Dine Brands Global Corporate Events

Dine Brands Global Announces Leadership Transition at Applebee’s

On February 5, 2025, Dine Brands Global announced the departure of Tony Moralejo as President of the Applebee’s Business Unit, effective March 4, 2025. John Peyton, CEO of Dine Brands, will serve as Interim President while the company searches for a successor. The transition aims to capitalize on growth opportunities, focusing on digital, menu innovation, and expansion. Moralejo will stay on as an advisor until June 4, 2025, ensuring a smooth transition.