DIN

Dine Brands delivered second-quarter results that exceeded Wall Street’s revenue expectations but fell short on non-GAAP profit, leading to a positive market reaction. Management attributed the quarter’s performance to continued menu innovation and a sharpened focus on value platforms across both Applebee’s and IHOP. CEO John Peyton emphasized the impact of new campaigns and product launches, such as Applebee’s All You Can Eat promotion and IHOP’s expanded $6 value menu, which supported guest engagement despite a challenging consumer environment. While Applebee’s saw sequential improvement through the quarter, IHOP continued to outperform industry benchmarks in both sales and traffic. Is now the time to buy DIN? Find out in our full research report (it’s free). Revenue: $240.9 million vs analyst estimates of $236.8 million (4.4% year-on-year growth, 1.7% beat) Adjusted EPS: $1.16 vs analyst expectations of $1.20 (3.3% miss) Adjusted EBITDA: $54.2 million vs analyst estimates of $56.73 million (22.5% margin, 4.5% miss) Operating Margin: 14.8%, down from 18% in the same quarter last year Locations: 3,434.7 at quarter end, down from 3,523 in the same quarter last year Same-Store Sales were flat year on year (1.6% in the same quarter last year) Market Capitalization: $453.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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. Nerses Setyan (Mizuho) asked for more details on Q3 sales trends and menu innovation. CEO John Peyton highlighted strong early performance from new launches like Cheeseburger Wonton Taco and Dubai Chocolate Pancakes, stating, “We like what we’re seeing.” Nerses Setyan (Mizuho) inquired about the profitability of dual-brand conversions and franchisee response. Peyton confirmed dual-brand units deliver about twice the sales of single-brand locations and are expected to generate incremental profitability. Todd Brooks (Benchmark StoneX) questioned profitability timelines for reacquired company-owned stores. CFO Vance Chang said the company is on track with its three-year turnaround plan and is already seeing franchisee interest in refranchising improved locations. Todd Brooks (Benchmark StoneX) sought clarification on elevated G&A expenses. Chang explained Q2 included one-time costs related to acquisitions and severance, which are not expected to recur, and reaffirmed that capex tied to remodels should ease going forward. Emily Li (UBS) asked about the impact of value and innovation initiatives on sales mix. Peyton and CCO Lawrence Kim both emphasized that consistent value platforms are driving steady guest frequency, while innovative offerings are supporting average check growth. In the coming quarters, our analysts will be closely monitoring (1) the pace of dual-brand openings and their impact on systemwide sales, (2) execution of ongoing restaurant remodels and associated guest satisfaction improvements, and (3) the effectiveness of menu innovation in sustaining traffic and check growth. We will also track whether cost containment efforts can offset inflationary pressures and support margin stability. Dine Brands currently trades at $35.82, up from $34.85 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, August 5, 2026 at 11 a.m. ET Senior Vice President, Finance and Investor Relations - Matthew Lee Chief Executive Officer and President of Applebee's - John Peyton Executive Vice President and Chief Financial Officer - Vance Chang Chief Commercial Officer and President of IHOP - Lawrence Kim Operator: Good day, and thank you for standing by. Welcome to the Dine Brands Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Matt Lee, Senior Vice President, Finance and Investor Relations. Matthew Lee: Good morning, and welcome to Dine Brands Global's Second Quarter Fiscal 2026 Conference Call. This morning's call will include prepared remarks from John Peyton, CEO and President of Applebee's; and Vance Chang, CFO. Following those prepared remarks, Lawrence Kim, Chief Commercial Officer and President of IHOP, will also be available, along with John and Vance to address questions during the Q&A portion of the call. Please remember our safe harbor regarding forward-looking information. During the call, management will discuss information that is forward-looking and involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release and 10-Q filing. The forward-looking statements are as of today, and we assume no obligation to update or supplement these statements. We will refer to certain non-GAAP financial measures, which are described in our press release and available on Dine Brands' Investor Relations website. With that, it is my pleasure to turn the call over to Dine Brands' CEO, John Peyton. John Peyton: Good morning, everyone, and thanks for joining us. Today, I'd like to start with our results, and then I'll share some perspective on what's driving those results at each of our brands before turning it over to Vance for a deeper look at the financials. Our second quarter financial performance reflected the continued resilience of our brands in a dynamic operating environment. IHOP posted positive 1.5% comp sales and delivered its third consecutive quarter of industry outperformance versus Black Box on both traffic and sales. Applebee's reported comp sales of negative 1.8%, shaped by a difficult April comparison period, although we did see improvement in May and June. Fuzzy's delivered positive comp sales for the second consecutive quarter. And our adjusted EBITDA was $54 million compared to $56 million in the same quarter last year. With those results as context, let me share some insights on what's driving them. The economic conditions we described at the end of Q1 continued into Q2. Inflation in food away from home, elevated gas prices and declining consumer sentiment contributed to more deliberate spending behavior. Guests aren't walking away from dining out, but they are making intentional choices of when and where they choose to go. And our results show that when they choose Applebee's or IHOP, they are engaging fully. Average check was slightly up at both brands and value mix remained consistent with Q1 levels, 26% at Applebee's and 22% at IHOP. We believe this is a result of the commitment we made roughly a year ago to deliver core consistent value through our everyday value platforms, 2 for $25 at Applebee's and Everyday Value at IHOP. We're seeing that consistency show up in our Q2 results, and we're encouraged by the early trends in the third quarter. Underpinning all of this is a shared framework across the brands, building long-term equity and everyday value, balancing check with premium options and driving buzz through innovation. These aren't separate playbooks. They're the same priorities executed through the distinct platforms and personalities of each brand. While we expect the macro environment to remain dynamic throughout the rest of the year, we entered the second half in a stronger position than we were a year ago. Our operations are sharper, our value messaging is more consistent, and our brands are showing up as part of culture, not just reacting to it. Combined with our long-term growth initiatives, dual brands, a refreshed physical footprint and our company-owned portfolio and supported by our asset-light model, we have a strong foundation to build on the momentum we're seeing across the brands and deliver growth for our franchisees and our shareholders. And so with that, I'll share some updates across the portfolio, beginning with Applebee's. Applebee's comp sales performance this quarter reflects the nature of building momentum, a slower start to gain traction as the period progressed. This April, we were comping against one of the strongest 2 for $25 promotions, the Sizzlin' Skillets campaign in the same period last year. As the quarter progressed, results improved sequentially, driven by All You Can Eat and Poolio with Don Julio campaigns. This is our barbell strategy and our marketing playbook in action, an accessible, value-driven all-you-can-eat campaign anchored in affordability paired with a culturally resonant higher-priced indulgence that drove traffic and generated social buzz among the younger audience. Together, these campaigns lifted both food and beverage sales, with liquor comps up 10.5% during the promotional period. That commitment to cultural relevance isn't limited to just marketing. It shapes how we innovate the menu, too. Our new Loaded Potato Waves, a modern take on loaded potato skins that taps into the nostalgia trend, became our strongest appetizer launch since the pandemic. Looking ahead to Q3, we're seeing a solid performance for both the DOLLARITA and the Bacon Cheeseburger Wonton Taco on the 2 for $25 platform, a combination that plays into the strength of our value platform and bar and beverage program. Off-premise sustained its positive momentum with comp sales of 1.5% and a fifth consecutive quarter of double-digit delivery comp sales growth, a meaningful signal of the underlying demand for the brand across different platforms. On the development front, the Lookin' Good remodel program continues to gain momentum. 66 remodels have been completed year-to-date with over 100 planned for 2026, putting us on pace for approximately 1/3 of the system to be remodeled by year-end. These remodels continue to deliver a mid-single-digit sales lift on average. Alongside the physical transformation, we remain equally focused on the in-restaurant experience. Manager-guest interactions rose to 75% of dine-in guests in Q2, up from 2025 baseline of 68%. And that's showing up in our guest satisfaction scores, which continue to climb quarter-over-quarter. Our average Google rating increased to 4.4 out of 5 in Q2. That's up from 4.1 a year ago and across a review base that grew more than 23% year-over-year. Higher ratings on a larger base of reviews is a strong indication that our operational and physical improvements are registering with guests. Overall, we're encouraged by the brand's improved performance as the quarter progressed, the continued strength of our off-premise platform and the traction of our operational agenda heading into the second half of the year. And now IHOP. For the third consecutive quarter, IHOP outperformed Black Box industry benchmarks for sales and traffic, specifically beating traffic by mid-single digits. Comp sales grew 1.5%, driven by a new value-focused advertising campaign that brought guests in and deliberate check-driving initiatives that kept average ticket moving in the right direction. Q2 was a clear expression of IHOP's barbell strategy, Everyday Value driving frequency on one end, premium offerings driving check at the other. In April, we expanded our $6 value menu with the BLTAF, bacon, lettuce, tomato and fries, responding to our guest demands for complete meals across dayparts. Beyond value, our menu continues to balance approachable everyday options with premium offerings, including the promotion of IHOP's signature stuffed 'n stacked omelets and culturally relevant LTOs. Most recently, we responded to overwhelming fan enthusiasm by bringing back Dubai Chocolate Pancakes as a national LTO following a widely popular limited release the year prior. In just the first few weeks, it's already over-indexing in sales versus forecast, and we'll have more to share in Q3. IHOP also saw consistent growth in off-premise, delivering its fifth consecutive quarter of positive off-premise comp sales with a 3.5% lift in Q2. Our catering business was a particular standout. Comp sales accelerated 22% in Q2, up from 16% in Q1, reflecting growing demand across occasions beyond the restaurant. Operationally, our progress is tangible. Table turns at IHOP improved by 4 minutes compared to the end of last year, a meaningful throughput gain. And guests are responding, IHOP's average Google rating rose to 4.0 out of 5 in Q2, up from 3.9 a year ago, while its review base also grew by more than fourfold over the same period, reflecting broader guest engagement and consistent in-restaurant experience. IHOP has now outperformed Black Box benchmarks on both sales and traffic for 3 consecutive quarters, and early Q3 trends suggest that momentum is continuing. The strategy is working and the operational foundation behind it is stronger than it was a year ago. And Fuzzy's delivered positive comp sales for the second consecutive quarter, outperforming its Black Box competitive set. The results reflected our sustained effort to strengthen that business by improving technology, streamlining the menu and enhancing the in-restaurant experience. Off-premise remains a meaningful and consistent contributor to the brand's quarter-over-quarter improvement. And we're encouraged by Fuzzy's performance in the first half of the year and remain focused on sustaining and building on this momentum going forward. Now I'll turn to our dual-brand initiative. The platform continued its steady expansion in Q2. As a reminder, our target is to open 80 dual brands by year-end. And as of today, we have 45 domestic dual-brand locations open, including 7 company-owned with 12 additional locations under construction. With each new opening, we refine our preopening process, reduce construction time lines and sharpen our operational playbook, resulting in a faster path to steady-state performance. The concept is also continuing to reach new markets. In June, we opened our first dual brand in Los Angeles, one of the most competitive restaurant markets in the country. Opened by an existing franchisee who knows our brands well, the location is already performing at high sales levels, a strong proof point that the concept can win in new markets and that experienced operators are continuing to lean in. We're pleased that franchisee interest in the dual-brand program remains strong, and our pipeline continues to grow. We see increased engagement from franchisees who are incorporating dual-brand conversions into their long-term development plans as a growth vehicle, given the compelling economics versus the prior stand-alone unit. And taken together, dual brands and investing in the physical restaurant experience matter and the early results validate that conviction. Before I turn it over to Vance, I'll reiterate that we're seeing steady performance across our brands, which gives us continued confidence that our near-term priorities are setting us up for long-term growth and value creation. Vance? Vance Chang: All right. Thanks, John. On the top line, our total revenues increased 4.4% to $240.9 million in Q2 versus $230.8 million in the prior year, and it's really driven by an increase in the number and timing of when we acquired restaurants from franchisees. So if we take out advertising revenues, franchise revenues in Q2 decreased 6% due to a decrease in the number of franchise restaurants, primarily from our restaurant takebacks and a decrease in franchise termination fees. Rental segment revenues for the second quarter of 2026 decreased to $26.7 million versus $27.8 million in the prior-year period, primarily due to lease terminations. G&A expenses were $55.6 million in Q2 of 2026, up from $50.8 million in the same period of last year from higher employee-related costs associated with the expansion of company-owned restaurants and dual-brand operations, increased severance charges and higher transaction expenses from the acquisition of 48 Applebee's restaurants in June of 2026. Adjusted EBITDA for Q2 of 2026 decreased to $54.2 million from $56.2 million in Q2 of 2025. Adjusted diluted EPS for the second quarter of 2026 was $1.16 compared to adjusted diluted EPS of $1.17 for the second quarter of 2025. Now turning to the statement of cash flows. We had adjusted free cash flow of $3.7 million for the first 6 months of 2026 compared to $48.7 million for the same period of last year. The decrease was primarily driven by higher capital expenditures, timing of marketing spend and higher payments related to performance-based compensation and interest expense. Additionally, we continue to provide remodel and development incentives to our franchisees, which also had a negative impact on adjusted free cash flow for the period. CapEx for Q2 of 2026 was $23.2 million compared to $9.3 million for the same period of 2025. The increase is primarily due to our investments in company-owned restaurant remodels and dual-brand conversions. We finished the second quarter with total unrestricted cash of $97.5 million compared to unrestricted cash of $104.2 million at the end of the first quarter. On buybacks and dividends, we returned $9 million of capital to shareholders in Q2, including $7 million of share repurchases and $2 million of dividends. Year-to-date, we repurchased $29 million of shares, which was approximately 7% of our total shares outstanding at the beginning of the year. In May, the Board authorized an additional share repurchase program of up to $100 million. We continue to believe our shares are undervalued and remain committed to share repurchases. Next, let me discuss Applebee's performance. Q2 domestic same-restaurant sales decreased 1.8% year-over-year. Domestic average weekly franchise sales per restaurant were $57,700, including approximately $13,200 from off-premise or 22.8% of total sales, of which 10.9% is from to-go and 11.8% is from delivery. Off-premise saw a positive 1.5% lift in comp sales in 2026 compared to the same period of last year. IHOP's Q2 domestic same-restaurant sales increased 1.5%. Domestic average weekly franchise sales per restaurant were $39,700, including $8,000 from off-premise or 20.2% of total sales, of which 7.6% is from to-go and 12.6% is from delivery. Off-premise saw a positive 3.5% lift in comp sales in 2026 compared to the same period of last year. Now turning to commodities. Applebee's commodity costs in Q2 increased by 8.2% and IHOP commodity costs increased by 1.6% versus the prior year. Our co-op supplier, CSCS, continues to expect commodity costs in 2026 at mid-single digits for Applebee's and low single digits for IHOP. The primary driver for both brands' commodity costs is higher beef prices, including the lapping of favorable beef contracts at Applebee's last year. To date, in 2026, we implemented projects resulting in over $12 million of annualized savings across both systems, and we continue to partner with CSCS to leverage our scale. Lastly, our company-owned portfolio remains instrumental in strengthening brand performance and supporting the overall health of our system. And our goal is to ultimately refranchise these locations at the right time. End of Q2, we own 136 restaurants, which includes 7 dual-branded restaurants totaling about 4% of our system. During the quarter, we completed 10 remodels and 3 dual-brand conversions, bringing our total to 30 remodels and 7 dual-brand conversions since taking back these restaurants. Although closures for construction impacted the profitability of our company-owned portfolio, we're making progress. Our dual-brand conversions are averaging approximately 2x single-branded sales levels. While we're operating more company-owned restaurants than a year ago, we are actively looking at refranchising some of the restaurants in the portfolio and continue to remain a highly franchised business model. Before turning the call back over to John for Q&A, I'd like to add that we're maintaining our full year financial guidance at this time. With that, I will hand it back over to John. John Peyton: Thank you all for your time today, and we look forward to taking your questions. Operator, I'll turn it back to you for instructions on how to access the queue. Operator: [Operator Instructions] Our first question of the day will be coming from the line of Nick Setyan of Mizuho. Nerses Setyan: One, just kind of bigger picture. It seems like the casual dining category overall has seen a big acceleration through June and here into the Q3-to-date period. I know you guys talked about some solid trends, both in June and into Q3. Just given the magnitude of the acceleration of some of your peers, any chance that you would be willing to give us a little bit more color on what kind of trends you're seeing? John Peyton: Nick, it's John. Yes, what we can say about Q3 and obviously, July specifically is that we also see the positive trends that are there. I can comment on the work we've done. So you've already seen in Q3 that Applebee's, for example, launched the Cheeseburger Wonton Taco as part of the 2 for $25 menu. That's part of our strategy to make sure there's a new menu item each quarter on 2 for 25, and we also had DOLLARITA in July. And so you can point to those launches as programs that drove performance in the third quarter. For IHOP, they launched Dubai Chocolate Pancakes in the beginning of the third quarter. And that, too, is performing better than expectations. So while we can't quantify the quarter so far, we can tell you that we like what we're seeing, and we can point to great menu innovation that's driving it. Nerses Setyan: Okay. And then on the dual-brand conversions, which obviously is a big part of the thesis going forward. I think you guys have said 2x the sales levels of the single branded -- the single brands. Is that a level you're comfortable with? Does that imply higher profitability? What are the franchisees seeing? Any color there would be helpful as well. John Peyton: Yes, Nick, it's John. I can take that as well. So for the dual-brand program, we're pleased overall with where we are. Keep in mind that the first dual brand opened about 1.5 years ago. And 1.5 years later, we've got the 45 open, on our way to 80 this year. That's number one. And number two is, yes, the revenue -- the incremental revenue from adding the second brand is about 2x, and we're pleased with that. We're also pleased with the stabilizing cost of the conversion, which is about $1 million, plus or minus, depending on which brand you are leading with. And then we're pleased with the pipeline that we're developing for next year as well. The focus that we have right now is on the operations of the restaurants. So now that we've got 45 open, we can go back in, challenge our assumptions, and we're looking at the cost model. We're looking at the menu mix. We're looking at the way in which we've designed the menu, et cetera, to improve the profitability. But the profitability, yes, is intended to be incremental on that incremental portion of the revenue. Operator: And our next question is coming from the line of Todd Brooks of Benchmark StoneX. Todd Brooks: First one, on the corporate store portfolio, I was wondering if we could look at that by maybe time that you've owned it back in the portfolio to understand, okay, whatever you want to call the first cohort of reacquired stores, have they achieved profitability? If you look at that group, [ have you ] had enough time on task to improve? Just trying to get a sense for when we should see profitability for owned units improve. And especially, I think, Vance, you talked about maybe some more focus on refranchising. I'm imagining that some of the acquired base has improved nicely and maybe ready to attack that effort. John Peyton: Yes. Thanks, Todd. Vance will take that question. Vance Chang: Todd, good to hear from you. The company restaurants, we're on track to the sort of 3-year time line that we provided to investors. Reminder that we took these restaurants back at little or no cost to Dine in terms of purchase price. And the ultimate goal is just to remodel, right, we reinvest and refranchise them back to the system over time. So we're seeing progress with operation improvements, with guest feedback. And then by and large, we're done with the bulk of the construction work for this year. So we're tracking well, encouraged by it. And I think, Todd, you mentioned this yourself, which is we're already getting interest from franchisees to refranchise. And so we're going to consider the inbound interest on a case-by-case basis, and we're going to make the right decision for the franchisees and for our guests. Todd Brooks: Okay. Great. Good to hear. And then I was wondering, I know you said guidance is unchanged, but we did have a kind of a G&A pop in Q2 relative to, I think, taking back the Applebee's units late in the quarter. I'm just wondering if there's anything when you think about kind of the shape of the G&A guidance relative to the full year, any nuances that we should be building into our models? John Peyton: Vance? Vance Chang: Yes, of course. Todd, we're on track to maintaining our guidance, maybe towards the lower end of the guidance, but we're definitely within that range. And let me sort of break it down in different components. So starting with EBITDA, right? And there are really 2 components to this. There's the franchise business and there's the company restaurant piece. On the franchise side, we have a very steady base franchise business. And we're -- as John mentioned earlier, we're very encouraged by what we saw in the second half of Q2 and early Q3. The noise in our EBITDA is really from the turnaround effort of the company restaurant portfolio. We do expect that to moderate as the portfolio stabilizes and benefiting from the investments that we've made so far. And on the G&A front, right, there -- what we reported reflects some onetime expenses such as we had some severance costs. We had transaction expenses related to the acquisition of the restaurants. So that's not going to be recurring, right? And then on the CapEx front, most of the CapEx, as I mentioned, is tied to remodels and dual-brand conversions at our company portfolio, which we do expect to ease as the program advances. And that's how we got to the decision to maintain our guidance level. Operator: [Operator Instructions] Our next question is coming from the line of Brian Vaccaro of Raymond James. Brian Vaccaro: To just ask about the sort of comp components that we're seeing and just confirm that I heard correctly. So at IHOP, I believe you said you outperformed on traffic by mid-single digits. I just wanted to confirm that, that would mean traffic was around flat in the quarter. And could you round out sort of the price or check dynamics you're seeing at each brand, both IHOP and Applebee's? Maybe we could start there. John Peyton: Thanks, Brian. Vance will address the comps for both brands. Vance Chang: Brian, good to hear from you. So Applebee's menu pricing bump was 3.4% and IHOP was 3.5%. And so check -- grew check a little bit both sequentially and also year-over-year. IHOP's traffic was pretty close to flat, slightly down and Applebee's traffic was down. That gives you the breakdown. Brian Vaccaro: Okay. That is super helpful. And then I guess kind of following up on Todd's question just on the guidance. Can you help us frame -- I know there's a lot of noise related to the company-owned units, and it looks like in the adjusted earnings and adjusted EBITDA, maybe there were some add-backs of some items related to company-owned stores like preopening costs, et cetera. But -- so there's a lot of moving pieces. But I guess, is there a way as we just look at your P&L as you'll report it, can you help us with a ballpark range of the company-owned portfolio EBIT loss you expect to see this year sort of just staring at the main P&L, the EBIT loss on company-owned, just a ballpark range on that? And is there a way to frame the G&A impact from the company ownership as well? John Peyton: Vance, you're up again. Vance Chang: Sounds good. Brian, so the way -- so the best place to study the company restaurant performance is in Footnote 13 when we have the segment reporting, you can see 3 months, 6 months this year, last year. And then what we said before was we were targeting as close to a breakeven EBITDA level as we can get for the company restaurant portfolio. And that's reflective of G&A, both direct G&A and corporate allocation G&A, right? And so I think about G&A as -- the rule of thumb is sort of 6% to 7% of our restaurant -- company restaurant top line percent of sales is sort of the rough guide in terms of how much incremental G&A is added for the incremental portfolio that we add. So that gives you a sense of how you can model it going forward. Brian, we also talked about just on a run rate, right, once the portfolio is stabilized, we do -- we're tracking probably in the low 2s right now in terms of AUV. System average is closer to $3 million. So we want to bridge that gap as much as we can. And then the flow-through on the incremental sales we can gain is going to be beneficial to the four wall of the restaurants. Operator: And we have another question in the queue, one moment, please. And that question will be coming from the line of Emily Li of UBS. Emily Li: I just want to touch on value. You mentioned All You Can Eat campaign at Applebee's and expanding the value menu at IHOP. I was wondering if you could share more about how these initiatives resonated among customers, if there was any impact to the mix? And if there's anything in the barbell playbook moving forward that you're excited about? John Peyton: Thanks, Emily. It's John. I'll start with Applebee's and then Lawrence can give you some details for IHOP. At Applebee's, that's exactly right. The value focus has been consistent for us since last year and consistency is super important so that we can break through in the messaging and ensure that our guests and consumers in general are aware of the 2 for $25 platform. And as I mentioned, we keep it fresh with new items. And so in Q2, it's a great example of us doing just that. So we had All You Can Eat, which was a big driver of our performance in the latter part of Q2. That was one end of the barbell. And then at the same time, we also offered the new Loaded Potato Waves, and we introduced the Sesame Salmon Bowl and Lemon Parm Chicken, which are more full-priced, high-margin items. And as far as moving forward, that's exactly what our strategy will be for the back half of the year because our assessment is that our guests remains focused on really good value, which as we've always talked about, is more than just the price of the food. It's the quality of the food, it's the abundance, it's the service. And we'll continue to have appealing items at both ends of the barbell that are new and fresh for the rest of the year. And Lawrence, how about IHOP? Lawrence Kim: Yes, absolutely. Emily, yes, for IHOP, value definitely continues to be our priority, especially the Everyday Value menu at $6, which we just updated this past April, as John mentioned earlier in the call and introduced the BLT and fries to the $6 value lineup. Great part is that value continues to stay steady at around low 20% of total checks, which has been consistent this past year, especially as we even converted to a $6 Everyday Value menu. And similar to Applebee's with our barbell strategy, we balance value with premium offerings as well as product innovation. We have the stuffed 'n stacked omelets part of our core menu, breakfast combos, of course, our signature coffees and our LTOs like our Dubai Chocolate Pancakes, which we just launched nationally this past June. And so we're going to continue, similar to Applebee's, to have a strong innovation pipeline to complement value so that we maintain our steady value mix while also protecting check. Operator: [Operator Instructions] I'm not showing any further questions in the queue. I would now like to turn the call back over to John Peyton, Dine Brands' CEO. Please go ahead for closing remarks. John Peyton: Thanks, Lisa, and thanks, everybody, for your questions. We wrapped up on value there, certainly an important driver for both brands as we go to the second part of the year. But I also want to emphasize, we continue to invest in the long term. We're investing in the guest experience through menu innovation in partnership with our franchisees, we're renovating restaurants, and we continue to expand the dual-brand platform. So we're very invested in both our short-term performance and our long-term growth, and we thank you all for your questions today. Have a great day. Operator: Thank you for your participation in today's conference. This concludes the program. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management observed a shift toward 'intentional' spending behavior driven by inflation in food away from home, elevated gas prices, and declining consumer sentiment. Performance was anchored by a 'barbell strategy' that balances everyday value platforms (2 for $25 at Applebee's, $6 menu at IHOP) with premium, culturally resonant innovation to protect average check. Applebee's experienced a difficult April comparison against a strong prior-year promotion but saw sequential improvement in May and June driven by 'All You Can Eat' and beverage-led campaigns. IHOP outperformed industry benchmarks for the third consecutive quarter, specifically beating traffic benchmarks by mid-single digits through a mix of value-focused advertising and premium LTOs. The 'Lookin' Good' remodel program at Applebee's is delivering a mid-single-digit sales lift on average, with approximately one-third of the system expected to be remodeled by year-end. Operational improvements, including a 4-minute gain in table turns at IHOP and increased manager-guest interactions at Applebee's, are directly correlating with higher guest satisfaction scores. Off-premise channels remain a critical growth driver, with Applebee's seeing its fifth consecutive quarter of double-digit delivery growth and IHOP's catering business accelerating to 22% growth. Full-year financial guidance is maintained, with management noting that early Q3 trends suggest continued momentum from late Q2 improvements. The dual-brand initiative remains a primary growth vehicle, with a target of 80 domestic locations by year-end and a growing pipeline of franchisee-led conversions. Management expects the macro environment to remain dynamic but believes the company is in a stronger position than a year ago due to sharper operations and consistent value messaging. Commodity costs for 2026 are projected at mid-single digits for Applebee's and low single digits for IHOP, primarily driven by higher beef prices and the lapping of favorable prior-year contracts. The company-owned portfolio strategy follows a three-year timeline to remodel and stabilize units before refranchising them back into the system. G&A expenses increased to $55.6 million due to higher employee costs from company-owned expansion, severance charges, and transaction expenses from the June acquisition of 48 Applebee's units. Adjusted free cash flow decreased significantly to $3.7 million for the first half of 2026, impacted by higher CapEx for remodels, timing of marketing spend, and franchisee incentives. The company-owned portfolio now includes 136 restaurants (4% of the system), with dual-brand conversions in this set averaging approximately 2x the sales levels of single-branded units. A new $100 million share repurchase program was authorized in May, reflecting management's view that current share prices are undervalued. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed positive trends in July, specifically citing the success of the Cheeseburger Wonton Taco at Applebee's and Dubai Chocolate Pancakes at IHOP. While not quantifying the exact magnitude, they noted that these menu innovations are performing better than internal expectations. Conversions typically cost approximately $1 million and result in roughly double the revenue of a single-branded unit. Management is currently refining the operational playbook for the 45 open locations to optimize menu mix and cost models for better incremental profitability. The portfolio is currently targeting a breakeven EBITDA level as it undergoes a turnaround effort. Management expects profitability to improve as construction closures for remodels ease and AUVs move closer to the $3 million system average from the current low $2 million range. Value mix has remained steady at 26% for Applebee's and 22% for IHOP, which management views as a healthy level that drives frequency without eroding the brand. Menu pricing increases of 3.4% to 3.5% helped maintain average check despite the heavy promotional environment.

Interested in Dine Brands Global, Inc.? Here are five stocks we like better. Mixed Q2 performance: Revenue rose 4.4% to $240.9 million, while adjusted EBITDA fell to $54.2 million and adjusted EPS was nearly flat at $1.16. IHOP’s comparable sales increased 1.5%, while Applebee’s declined 1.8% year over year but improved sequentially during May and June. Value and innovation supported demand: Management cited cautious, value-focused consumers but highlighted successful promotions, new menu items and strong off-premise trends. Applebee’s delivery comparable sales grew double digits for the fifth consecutive quarter, while IHOP catering sales rose 22%. Investment increased despite weaker cash flow: Dine Brands continued remodels and dual-brand conversions, which generate roughly twice the sales of single-brand locations, while targeting 80 dual-brand restaurants by year-end. First-half adjusted free cash flow fell to $3.7 million as capital expenditures and other costs rose, though the company maintained full-year guidance and continued share repurchases. This Energy Stock Has Quietly Soared 130% in a Year Dine Brands Global (NYSE:DIN) reported mixed second-quarter results as IHOP posted positive same-restaurant sales and Applebee’s improved through the quarter despite a year-over-year decline in comparable sales. The company maintained its full-year financial guidance, with management pointing to continued value-focused consumer behavior, menu innovation and investments in restaurant operations and dual-brand locations. Adjusted EBITDA declined to $54.2 million in the second quarter from $56.2 million a year earlier, while adjusted diluted earnings per share were essentially flat at $1.16, compared with $1.17 in the prior-year period. Total revenue increased 4.4% to $240.9 million, driven primarily by the number and timing of restaurants acquired from franchisees, Chief Financial Officer Vance Chang said. → 3 Drone Stocks That Should Soar After the Summer Slump Dine Brands’ Transformation Plan: A Recipe for Recovery? IHOP’s domestic same-restaurant sales increased 1.5% during the quarter, marking its third consecutive quarter of outperformance against Black Box industry benchmarks for sales and traffic, according to CEO John Peyton. IHOP’s traffic was nearly flat but slightly down, while its menu pricing increased 3.5%, Chang said. Applebee’s domestic same-restaurant sales fell 1.8% year over year, though Peyton said results improved sequentially in May and June after a difficult April comparison against the prior year’s Sizzlin’ Skillets promotion. Applebee’s menu pricing increased 3.4%, while traffic declined during the quarter, Chang said. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Dine Brands Stock is a Post-Pandemic Steady Eddie Management said inflation in food-away-from-home prices, elevated gasoline prices and weaker consumer sentiment contributed to more deliberate dining decisions. However, average check increased slightly at both major brands, while value offerings represented 26% of Applebee’s sales mix and 22% of IHOP’s mix, consistent with first-quarter levels. “Guests aren’t walking away from dining out, but they are making intentional choices of when and where they choose to go,” Peyton said. → Jersey Mike's Serves Fresh Gains After IPO Stumble Fuzzy’s Taco Shop also delivered positive comparable sales for the second consecutive quarter and outperformed its Black Box competitive set, Peyton said. The company attributed the improvement to technology enhancements, menu streamlining, better restaurant experiences and off-premise sales momentum. At Applebee’s, the company highlighted the performance of its All You Can Eat promotion and its Poolio with Don Julio campaign during the latter part of the quarter. The promotions supported food and beverage sales, with liquor comparable sales rising 10.5% during the promotional period, Peyton said. Applebee’s Loaded Potato Waves became the brand’s strongest appetizer launch since the pandemic, according to Peyton. During the third quarter, the chain introduced the Bacon Cheeseburger Wonton Taco on its 2 for $25 menu and brought back DOLLARITA. Peyton said the company was seeing positive third-quarter trends but did not quantify them. IHOP expanded its $6 value menu in April with a BLT and fries offering. It also promoted Stuffed and Stacked Omelets and launched Dubai Chocolate Pancakes nationwide as a limited-time offer. Peyton said the pancake offering was exceeding its sales forecast in its first weeks. Lawrence Kim, Dine Brands’ chief commercial officer and president of IHOP, said the IHOP value mix has remained in the low-20% range of total checks over the past year. The company plans to pair value offers with premium products and limited-time menu innovation to support check levels. Applebee’s off-premise comparable sales rose 1.5%, including a fifth consecutive quarter of double-digit delivery comparable-sales growth. IHOP off-premise comparable sales increased 3.5%, its fifth consecutive quarter of positive off-premise growth. IHOP catering comparable sales accelerated 22% in the second quarter, compared with 16% growth in the first quarter. Dine Brands continued to invest in remodels, company-owned locations and its dual-brand strategy, which combines Applebee’s and IHOP in a single restaurant. The company had 45 domestic dual-brand restaurants open as of the call, including seven company-owned locations, and had 12 more under construction. Its target is to open 80 dual-brand locations by year-end. The company’s dual-brand conversions are averaging roughly twice the sales of single-brand locations, Chang said. Peyton said conversion costs have stabilized at approximately $1 million, depending on the lead brand, and the company is reviewing operations, menu mix and cost assumptions to improve profitability. Applebee’s completed 66 remodels year to date and expects more than 100 remodels in 2026, putting it on pace to have about one-third of its system remodeled by year-end. Peyton said remodels have generated a mid-single-digit sales lift on average. Dine Brands ended the quarter owning 136 restaurants, including seven dual-brand units, representing about 4% of its system. Chang said the company ultimately intends to refranchise those locations when appropriate. The company has completed 30 remodels and seven dual-brand conversions among restaurants it has taken back from franchisees. While construction closures affected company-owned restaurant profitability, Chang said the company was progressing toward its previously stated three-year timeline for improving the portfolio. He said management was receiving interest from franchisees in refranchising some locations and would evaluate proposals individually. Adjusted free cash flow was $3.7 million for the first six months of 2026, down from $48.7 million a year earlier. Chang attributed the decrease to higher capital expenditures, marketing-spend timing, performance-based compensation payments, interest expense, and remodel and development incentives for franchisees. Second-quarter capital expenditures rose to $23.2 million from $9.3 million a year earlier, largely reflecting company-owned remodels and dual-brand conversions. Unrestricted cash totaled $97.5 million at quarter-end, down from $104.2 million at the end of the first quarter. The company returned $9 million to shareholders in the quarter, including $7 million in share repurchases and $2 million in dividends. Year to date, Dine Brands repurchased $29 million in stock, or approximately 7% of shares outstanding at the beginning of the year. In May, the board authorized an additional repurchase program of up to $100 million. Commodity costs rose 8.2% at Applebee’s and 1.6% at IHOP, primarily because of higher beef prices. Management said projects implemented so far this year are expected to generate more than $12 million in annualized savings across both systems. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dine Brands Global Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenues: Increased 4.4% to $240.9 million in Q2 2026, up from $230.8 million in the prior year. Adjusted EBITDA: Decreased to $54.2 million in Q2 2026 from $56.2 million in Q2 2025. Adjusted Diluted EPS: $1.16 for Q2 2026, compared to $1.17 in Q2 2025. Applebee's Domestic Same-Restaurant Sales: Decreased 1.8% year over year. IHOP Domestic Same-Restaurant Sales: Increased 1.5% year over year. Fuzzy's Comp Sales: Positive for the second consecutive quarter. Applebee's Average Weekly Franchise Sales: $57,700 per restaurant, with off-premise contributing $13,200 (22.8% of total sales). IHOP Average Weekly Franchise Sales: $39,700 per restaurant, with off-premise contributing $8,000 (20.2% of total sales). Applebee's Off-Premise Comp Sales: Positive 1.5% lift in Q2 2026. IHOP Off-Premise Comp Sales: Positive 3.5% lift in Q2 2026. Applebee's Liquor Comps: Up 10.5% during the Poolio with Don Julio promotional period. IHOP Catering Comp Sales: Accelerated 22% in Q2, up from 16% in Q1. G&A Expenses: $55.6 million in Q2 2026, up from $50.8 million in the prior year. Adjusted Free Cash Flow: $3.7 million for the first six months of 2026, compared to $48.7 million in the prior year period. Capital Expenditures: $23.2 million through Q2 2026, compared to $9.3 million in the prior year period. Unrestricted Cash: $97.5 million at the end of Q2, compared to $104.2 million at the end of Q1. Share Repurchases: $29 million year-to-date, approximately 7% of total shares outstanding at the beginning of the year. Commodity Costs: Increased 8.2% at Applebee's and 1.6% at IHOP versus the prior year. Company-Owned Restaurants: 136 restaurants at the end of Q2, including seven dual-branded locations. Dual-Brand Locations: 45 domestic locations open, with 12 additional under construction. Applebee's Remodels: 66 completed year-to-date, with over 100 planned for 2026. Warning! GuruFocus has detected 8 Warning Signs with DIN. Is DIN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. IHOP delivered its third consecutive quarter of industry outperformance versus Black Box on both traffic and sales, with positive 1.5% comp sales. Applebee's off-premise sustained positive momentum with comp sales of 1.5% and a fifth consecutive quarter of double-digit delivery comp sales growth. The dual-brand initiative is expanding rapidly, with 45 locations open and 12 under construction, and new locations are performing at approximately 2 times single-brand sales levels. IHOP's catering business saw a significant acceleration, with comp sales up 22% in Q2, up from 16% in Q1. The company returned $9 million to shareholders in Q2, including $7 million in share repurchases, and the Board authorized an additional $100 million buyback program. Applebee's new Loaded Potato Waves became its strongest appetizer launch since the pandemic, and IHOP's Dubai Chocolate Pancakes are over-indexing in sales versus forecast. Applebee's comp sales decreased 1.8% year over year, impacted by a difficult April comparison period. Adjusted EBITDA decreased to $54.2 million from $56.2 million in the same quarter last year. Adjusted free cash flow dropped significantly to $3.7 million for the first six months of 2026, down from $48.7 million in the prior year period. Commodity costs increased, with Applebee's up 8.2% and IHOP up 1.6%, driven by higher beef prices. G&A expenses rose to $55.6 million from $50.8 million, due to higher employee-related costs, severance charges, and transaction expenses. The company-owned restaurant portfolio continues to impact profitability, with closures for construction and lower AUVs (low 2s) compared to the system average (closer to 3). Q: Given the acceleration in casual dining trends through June and into Q3, can you provide more color on the trends you're seeing at Dine Brands? A: John Peyton, CEO, confirmed that Dine Brands is also seeing positive trends in Q3, particularly in July. He attributed this to successful menu innovation, such as Applebee's Cheeseburger Wonton Taco on the 2 for $25 platform and the Dollarita campaign, as well as IHOP's Dubai Chocolate Pancakes LTO, which is performing better than expectations. While he couldn't quantify the quarter's results, he expressed confidence in the current momentum. Q: Can you provide more detail on the performance and profitability of the dual-brand conversions, which are a key part of the growth thesis? A: John Peyton, CEO, stated that the dual-brand program is on track, with 45 locations open and a goal of 80 by year-end. The incremental revenue from adding a second brand is approximately 2 times single-brand sales, and conversion costs are stabilizing at around $1 million. The company is now focused on optimizing operations, including cost models and menu mix, to improve profitability on the incremental revenue. Q: Regarding the company-owned store portfolio, can you provide insight into when these units will achieve profitability and the timeline for refranchising? A: Vance Chang, CFO, explained that the company is on track with its three-year timeline for the portfolio. The strategy is to remodel and reinvest in these restaurants before refranchising them. He noted that the bulk of construction work for the year is complete and that there is already inbound interest from franchisees to refranchise these locations, which will be considered on a case-by-case basis. Q: Can you break down the comp sales components, specifically traffic and check, for both Applebee's and IHOP? A: Vance Chang, CFO, provided the breakdown: Applebee's menu pricing was up 3.4% and IHOP was up 3.5%, with average check growing both sequentially and year-over-year at both brands. IHOP's traffic was close to flat, slightly down, while Applebee's traffic was down, which explains the overall comp sales of -1.8% for Applebee's and +1.5% for IHOP. Q: Can you help frame the expected EBIT loss and G&A impact from the company-owned portfolio for the year? A: Vance Chang, CFO, directed investors to Note 13 in the financial statements for segment reporting. He reiterated the target of getting the company restaurant portfolio to close to breakeven EBITDA. He provided a rule of thumb that incremental G&A for the portfolio is roughly 6% to 7% of company restaurant top-line sales. He also noted that the portfolio's average unit volumes are currently in the low $2 million range, versus a system average closer to $3 million, and closing that gap would be beneficial to four-wall economics. Q: How have the value initiatives, like All You Can Eat at Applebee's and the $6 value menu at IHOP, resonated with customers, and what is the impact on mix? A: John Peyton, CEO, and Lawrence Kim, President of IHOP, explained that value remains a key focus. At Applebee's, the All You Can Eat campaign was a major driver of performance in late Q2, balanced with premium items like Loaded Potato Waves. At IHOP, the $6 everyday value menu, updated with the BLT and fries, has kept the value mix steady at around 22% of checks. Both brands are using a "barbell strategy" to balance value offerings with premium, high-margin items to protect check while driving traffic. Q: Can you provide more color on the Q2 G&A increase and the shape of G&A guidance for the full year? A: Vance Chang, CFO, explained that the Q2 G&A increase was due to one-time expenses, including severance costs and transaction expenses related to the acquisition of 48 Applebee's restaurants. These are not expected to recur. He confirmed the company is maintaining its full-year guidance, potentially towards the lower end of the range, with the noise in EBITDA coming from the turnaround of the company restaurant portfolio, which is expected to moderate as the portfolio stabilizes. Q: What is the outlook for commodity costs and the company's mitigation strategies? A: Vance Chang, CFO, reported that Applebee's commodity costs increased 8.2% and IHOP's increased 1.6% in Q2, driven primarily by higher beef prices. The co-op supplier, CSCS, expects mid-single-digit commodity inflation for Applebee's and low single-digit for IHOP for the full year 2026. To date, the company has implemented projects resulting in over $12 million in annualized savings across both systems. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Dine Brands (DIN) reported $240.9 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 4.4%. EPS of $1.16 for the same period compares to $1.17 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $240.88 million, representing a surprise of +0.01%. The company delivered an EPS surprise of +11.54%, with the consensus EPS estimate being $1.04. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Dine Brands performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Franchise revenues- Royalties, franchise fees and other: $95 million versus the two-analyst average estimate of $99.93 million. The reported number represents a year-over-year change of -6.1%. Revenues- Franchise revenues- Advertising revenue: $71.9 million versus the two-analyst average estimate of $73.08 million. The reported number represents a year-over-year change of -2.2%. Revenues- Rental revenues: $26.7 million versus the two-analyst average estimate of $28.3 million. The reported number represents a year-over-year change of -3%. Revenues- Company-Owned Restaurants: $47.3 million versus $38.46 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +67.5% change. Revenues- Franchise revenues: $166.9 million versus $173.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change. View all Key Company Metrics for Dine Brands here>>> Shares of Dine Brands have returned -1.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dine Brands (DIN) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $1.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.54%. A quarter ago, it was expected that this parent company of Applebee's and IHOP restaurants would post earnings of $1 per share when it actually produced earnings of $0.88, delivering a surprise of -12%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Dine Brands, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $240.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $230.78 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dine Brands shares have added about 8.4% since the beginning of the year versus the S&P 500's gain of 13%. While Dine Brands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dine Brands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.89 on $235.37 million in revenues for the coming quarter and $4.14 on $930.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Jack In The Box (JACK), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This burger chain is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -11.8%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Jack In The Box's revenues are expected to be $260.04 million, down 21.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PASADENA, Calif., August 05, 2026--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN) (the "Company" or "Dine Brands"), the parent company of Applebee’s Neighborhood Grill + Bar®, IHOP® and Fuzzy’s Taco Shop® restaurants, today announced financial results for the second quarter of fiscal year 2026. "In the second quarter, our brands made meaningful progress in an environment in which consumers remain focused on affordability and value, highlighted by IHOP's third consecutive quarter of industry outperformance on both sales and traffic," said John Peyton, Chief Executive Officer of Dine Brands. "Across all our brands, our everyday value platform, barbell marketing strategy, and continued investment in the guest experience are working, and we are entering the second half of the year with confidence in our long-term growth initiatives, including the continued expansion of our dual brand program." Vance Chang, Chief Financial Officer of Dine Brands, added, "Our asset-lite model continues to provide the financial flexibility to invest in our brands and we are encouraged by the positive momentum we are seeing across our growth initiatives. We remain committed to our capital allocation priorities and creating long-term value for shareholders." Domestic Restaurant Sales for the Second Quarter of 2026 Applebee’s year-over-year comparable domestic same-restaurant sales decreased 1.8% for the second quarter of 2026. Off-premise sales accounted for 22.8% of sales mix in the second quarter of 2026. IHOP’s year-over-year comparable domestic same-restaurant sales increased 1.5% for the second quarter of 2026. Off-premise sales accounted for 20.2% of sales mix in the second quarter of 2026. Second Quarter of 2026 Summary Total revenues for the second quarter of 2026 were $240.9 million compared to $230.8 million for the second quarter of 2025. The increase was primarily driven by higher company-owned restaurant sales, mainly attributable to the increase in the number and timing of when we acquired restaurants from franchisees. General and administrative expenses for the second quarter of 2026 were $55.6 million compared to $50.8 million for the second quarter of 2025. The increase was driven by employee costs as we invest in our company-owned and dual-brand restaurant initiatives, reorganization costs, and transaction costs from the acquisition of company-owned restaurants. Net income available to common stockholders was $4.2 million, or earnings per diluted share of $0.35, for the second quarter of 2026 compared to net income available to common stockholders of $13.2 million, or earnings per diluted share of $0.89 for the second quarter of 2025. Non-GAAP1 net income available to common stockholders, as adjusted, was $14.0 million, or adjusted earnings per diluted share of $1.16, for the second quarter of 2026, compared to net income available to common stockholders, as adjusted, of $17.4 million, or adjusted earnings per diluted share of $1.17, for the second quarter of 2025. Income before income taxes for the second quarter of 2026 was $6.0 million compared to income before income taxes of $18.9 million for the second quarter of 2025. Adjusted EBITDA1 for the second quarter of 2026 was $54.2 million compared to $56.2 million for the second quarter of 2025. Development activity by Applebee’s and IHOP for the second quarter of 2026 resulted in 13 new restaurant openings and 30 restaurant closures, which includes nine net dual-branded openings.2 First Six Months of 2026 Summary Total revenues for the first six months of 2026 were $466.1 million compared to $445.5 million for the first six months of 2025. The increase was primarily driven by higher company-owned restaurant sales, mainly attributable to the increase in the number and timing of when we acquired restaurants from franchisees. General and administrative expenses for the first six months of 2026 were $108.7 million compared to $102.1 million for the first six months of 2025. The increase was driven by employee costs as we invest in our company-owned and dual-brand initiatives and incentive compensation due to higher expectations for the remainder of the year as compared to the prior year period. Net income available to common stockholders was $11.4 million, or earnings per diluted share of $0.92, for the first six months of 2026 compared to net income available to common stockholders of $21.1 million, or earnings per diluted share of $1.41 for the first six months of 2025. Non-GAAP3 net income available to common stockholders, as adjusted, was $25.1 million, or adjusted earnings per diluted share of $2.03, for the first six months of 2026, compared to net income available to common stockholders, as adjusted, of $32.8 million, or adjusted earnings per diluted share of $2.20, for the first six months of 2025. Income before income taxes for the first six months of 2026 was $16.1 million compared to income before income taxes of $31.7 million for the first six months of 2025. Adjusted EBITDA3 for the first six months of 2026 was $105.0 million compared to $110.9 million for the first six months of 2025. Cash flows provided by operating activities for the first six months of 2026 were $19.9 million. This compares to cash flows provided by operating activities of $53.1 million for the first six months of 2025. The decrease was primarily driven by timing of marketing spend, higher payments related to performance-based compensation and interest, as well as remodel and development incentives paid to our franchisees. Adjusted free cash flow4 was $3.7 million for the first six months of 2026. This compares to adjusted free cash flow of $48.7 million for the first six months of 2025. The decrease was primarily driven by a decrease in operating cash flows and an increase in capital expenditures as we invest in company-owned restaurants. Effective Tax Rate The Company's effective tax rate was 27.7% for the six months ended June 28, 2026, as compared to 30.6% for the six months ended June 29, 2025. Key Balance Sheet Metrics (as of June 28, 2026) Total cash, cash equivalents and restricted cash of approximately $172.8 million, of which approximately $97.5 million was unrestricted cash. Available borrowing capacity under the 2025 Variable Funding Senior Notes, Class A-1 was approximately $224.5 million. Capital Returns to Equity Holders During the second quarter of 2026, the Company repurchased approximately $7.4 million of its common stock and paid approximately $2.4 million in dividends. On May 14, 2026, the Company’s Board of Directors approved a new share repurchase program of up to $100 million in addition to the existing share repurchase program, approved in February 2022. As of June 28, 2026, approximately $143.8 million is available for repurchases under existing share repurchase programs. Financial Performance Guidance for 2026 The Company maintained its fiscal 2026 guidance. Second Quarter of 2026 Earnings Conference Call Details Dine Brands will host a conference call to discuss its results on August 5, 2026, at 11:00 a.m. Eastern time. A live webcast of the call, along with a replay will be available for a limited time at https://investors.dinebrands.com. Participants should allow approximately ten minutes prior to the call’s start time to visit the site and download any streaming media software needed to listen to the webcast. An online archive of the webcast will also be available on Events & Presentations under the Investors section of the Company’s website. About Dine Brands Global, Inc. Based in Pasadena, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries and franchisees, supports and operates restaurants under the Applebee's Neighborhood Grill + Bar®, IHOP®, and Fuzzy’s Taco Shop® brands. As of June 28, 2026, these three brands comprised nearly 3,500 restaurants. Dine Brands is one of the largest full-service restaurant companies in the world and in 2022 expanded into the Fast Casual segment. For more information on Dine Brands, visit the Company’s website located at www.dinebrands.com. Forward-Looking Statements Statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "plan," "goal" and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: general economic conditions, including the impact of inflation on us and our franchisees directly; cost pressures, including rising costs for commodities, labor, health care and utilities; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of corporate strategies, including restaurant development plans; our dependence on our franchisees; the concentration of our Applebee’s franchised restaurants in a limited number of franchisees; the financial health of our franchisees, including any insolvency or bankruptcy; credit risks from our IHOP franchisees operating under our previous IHOP business model in which we built and equipped IHOP restaurants and then franchised them to franchisees; insufficient insurance coverage to cover potential risks associated with the ownership and operation of restaurants; our franchisees’ and other licensees’ compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands’ reputation; risks of food-borne illness or food tampering; possible future impairment charges; trading volatility and fluctuations in the price of our shares; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; changes in U.S. government regulations and trade policies, including the imposition of tariffs and other trade barriers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; the implementation and use of artificial intelligence and related technologies; delivery initiatives and use of third-party delivery vendors; our allocation of human capital and our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; risks of major natural disasters, including earthquake, wildfire, tornado, flood or a man-made disaster, including terrorism, civil unrest or a cyber incident; risks of volatile or adverse weather conditions as a result of climate change; pandemics, epidemics, or other serious incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; changes in tax laws; failure to meet investor and stakeholder expectations regarding business responsibility matters; and other factors discussed from time to time in the Company’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company’s other filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances. Non-GAAP Financial Measures This press release includes references to the Company's non-GAAP financial measures "adjusted net income available to common stockholders", "adjusted earnings per diluted share (Adjusted EPS)", "Adjusted EBITDA" and "Adjusted free cash flow." Adjusted EPS is computed for a given period by deducting from net income or loss available to common stockholders for such period the effect of any closure and impairment charges, any intangible asset amortization, any non-cash interest expense, any gain or loss related to the disposition of assets, any gain or loss related to debt extinguishment, and other items deemed not reflective of current operations. This is presented on an aggregate basis and a per share (diluted) basis. Adjusted EBITDA is computed for a given period by deducting from net income or loss for such period the effect of any interest expense, any income tax provision or benefit, any depreciation and amortization, any non-cash stock-based compensation, any closure and impairment charges, any gain or loss related to debt extinguishment, any gain or loss related to the disposition of assets, and other items deemed not reflective of current operations. "Adjusted free cash flow" for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less capital expenditures. Management may use certain of these non-GAAP financial measures along with the corresponding U.S. GAAP measures to evaluate the performance of the business and to make certain business decisions. Management uses adjusted free cash flow in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock, and we believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes. Management believes that these non-GAAP financial measures provide additional meaningful information that should be considered when assessing the business and the Company’s performance compared to prior periods and the marketplace. Adjusted EPS, adjusted EBITDA, and adjusted free cash flow are supplemental non-GAAP financial measures and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. FBN-R Dine Brands Global, Inc. and SubsidiariesNon-GAAP Financial Measures(In millions, except per share amounts)(Unaudited) Reconciliation of net income available to common stockholders to net income available to common stockholders, as adjusted for the following items: Closure and impairment charges; amortization of intangible assets; non-cash interest expenses; gain or loss on disposition of assets; loss on extinguishment of debt; reorganization costs; company preopening and transition costs; other EBITDA adjustments; and the combined tax effect of the preceding adjustments, as well as related per share data: Dine Brands Global, Inc. and SubsidiariesNon-GAAP Financial Measures(Unaudited) Reconciliation of the Company's cash flows provided by operating activities to "adjusted free cash flow" (cash flows provided by operating activities, plus receipts from notes and equipment contracts receivable, less additions to property and equipment). Management uses this liquidity measure in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and the amount of repurchases of common stock. We believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes. Dine Brands Global, Inc. and SubsidiariesNon-GAAP Financial Measures(in millions)(Unaudited) Reconciliation of the Company's net income to "adjusted EBITDA." The Company defines adjusted EBITDA as net income or loss, adjusted for the effect of interest expense, income tax provision or benefit, depreciation and amortization, non-cash stock-based compensation, closure and impairment charges, loss on extinguishment of debt, gain or loss on disposition of assets, reorganization costs, company preopening and transition costs, and other items deemed not reflective of current operations. Management may use certain non-GAAP measures along with the corresponding U.S. GAAP measures to evaluate the performance of the Company and to make certain business decisions. Dual-branded restaurants are defined as restaurants that operate our IHOP and Applebee's restaurant concepts under two separate franchise agreements but within one restaurant location. Because of this, each dual-branded restaurant is counted in both IHOP and Applebee’s restaurant count and activity. As of June 28, 2026, we had 44 dual-branded domestic IHOP and Applebee's restaurant locations. During the three months ended June 28, 2026, we had three existing company-owned Applebee's restaurants which added the IHOP brand, three existing Applebee's franchised restaurants which added the IHOP brand, two existing IHOP franchised restaurants which added the Applebee's brand, and one new franchised restaurant which added to both brands. This totaled 10 dual-branded domestic openings. During the six months ended June 28, 2026, we had five existing company-owned Applebee's restaurants which added the IHOP brand, six existing Applebee's franchised restaurants which added the IHOP brand, three existing IHOP franchised restaurants which added the Applebee's brand, and three new franchised restaurants which added to both brands. This totaled 20 dual-branded domestic openings. During the three and six months ended June 29, 2025, we had one existing IHOP franchised restaurant which added the Applebee's brand for a total of one dual-branded opening. As of June 28, 2026, we had 37 dual-branded international IHOP and Applebee's restaurant locations. During the three months ended June 28, 2026, we had one dual-branded international opening and two dual-brand international closures. During the six months ended June 28, 2026, we had five new franchised restaurants which added both brands, and one dual-brand international closure. This totaled 10 dual-branded international openings and one dual-branded international closure. As of June 29, 2025, we had 20 dual-branded international IHOP and Applebee's restaurant locations. During the three months ended June 29, 2025, we had one existing Applebee's franchised restaurant which added the IHOP brand for a total of one dual-branded international opening. During the six months ended June 29, 2025, we had two existing Applebee's franchised restaurants which added the IHOP brand for a total of two dual-branded international openings. The following table shows the effects of the domestic and international restaurant count methodology described above as of June 28, 2026 and June 29, 2025: As our dual-branded business expands, we may reevaluate how these restaurants are counted in future disclosures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805914482/en/ Contacts Investor Contact Matt LeeSr. Vice President, Finance and Investor RelationsDine Brands Global, [email protected] Media Contact Susan NelsonSr. Vice President, Global CommunicationsDine Brands Global, [email protected]

First Watch Restaurant Group, Inc. (FWRG) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced a loss of $0.04, delivering a surprise of -100%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. First Watch Restaurant Group, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $354.67 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.04%. This compares to year-ago revenues of $307.89 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Watch Restaurant Group shares have lost about 17.1% since the beginning of the year versus the S&P 500's gain of 11%. While First Watch Restaurant Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Watch Restaurant Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $345.32 million in revenues for the coming quarter and $0.20 on $1.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Dine Brands (DIN), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This parent company of Applebee's and IHOP restaurants is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -11.1%. The consensus EPS estimate for the quarter has been revised 19.1% lower over the last 30 days to the current level. Dine Brands' revenues are expected to be $240.88 million, up 4.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Watch Restaurant Group, Inc. (FWRG) : Free Stock Analysis Report DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research