Dine Brands Analyst Says Underlying Trends Are Bit Difficult To Discern Given Omicron Laps In Recent Months

Raymond James analyst Brian M.Vaccaro reiterated a Market Perform rating on the shares of Dine Brands Global, Inc. DIN.
Dine Brands reported a 9.4% sales decline in Q4 to $207.97 million, missing the Street view.
The analyst hosted a fireside chat with Dine Brands' CFO Vance Chang, during the 44th Raymond James Institutional Investor Conference. Management noted that it has yet to see any meaningful shifts in consumer behavior, attach rates, etc in recent quarters.
Underlying trends are a bit difficult to discern given Omicron laps in recent months, but management seemed to believe underlying demand trends remain relatively stable overall, the analyst noted.
Management expressed confidence in IHOP's unit growth improving in 2023 (guidance of 45 – 60 units), noting that the development shortfall in 2022 was primarily due to exogenous factors, the analyst added.
The company expressed confidence in its ability to drive fundamental improvements at Fuzzy's Taco Shop (recent acquisition), which it believes presents an attractive long-term unit growth opportunity for both existing and new franchisees.
The analyst pointed out that the company's 2023 general and administrative (G&A) guidance of $200 million – $210 million reflects incremental headcount, certain investments that were delayed in '22 and shifted into 2023, and underlying inflation.
Management noted that the securitization market seems to be thawing ahead of its refinancing of about $650 million of securitized notes that mature in June 2024.
Price Action: DIN shares are trading lower by 1.16% at $72.89 on the last check Tuesday.
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