- Dine Brands Global Inc DIN reported a first-quarter FY23 revenue decline of 7.2% year-on-year to $213.77 million, beating the consensus of $206.71 million.
- Applebee's comparable same-restaurant sales rose by 6.1% Y/Y. IHOP's domestic comparable same-restaurant sales increased 8.7%.
- Gross profit grew 11.7% Y/Y to $103.62 million, and the margin expanded by 822 bps to 48.5%.
- Adjusted EBITDA was $66.36 million (+1.8% Y/Y), with a margin of 31.04%, up by 274 bps.
- Adjusted EPS improved to $1.97 from $1.54 in 1Q22, beating the consensus of $1.73.
- DIN's cash flows provided by operating activities for the quarter were $16.08 million, versus cash utilized of $(7.79) million in 1Q22.
- The company held $235.1 million in cash and equivalents at the end of the quarter.
- Dine Brands repurchased $5 million of its common stock and paid quarterly cash dividends totaling ~$16 million during the quarter.
- Also Read: Analyst Unimpressed With Dine Brands' Sluggish Same-Store Sales Trends, Cuts Price Target
- "We are balancing our focus between current strategy execution and long-term investments. After the end of the first quarter, we were pleased to announce the completed refinancing of our Senior Secured Notes, further evidence of the strength of our steady and strong cash flow generating franchisor model in today's lending environment," commented CFO Vance Chang.
- FY23 Outlook, reaffirmed: Dine expects domestic development activity by Applebee's franchisees of between 10 and 20 net fewer restaurants, domestic development activity by IHOP franchisees, and area licensees between 45 and 60 net new openings.
- Dine expects Adjusted EBITDA of $243 million - $255 million.
- Price Action: DIN shares are trading higher by 5.86% at $67.07 on the last check Wednesday.
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