What's Going On With Applebee Parent Dine Brands Stock On Wednesday?

Dine Brands Global Inc. DIN shares gained on Wednesday after reporting the first-quarter earnings.

The company clocked first-quarter FY25 revenue growth of 4.1% year-on-year to $214.78 million, missing the analyst consensus estimate of $217.56 million.

The increase was primarily due to an increase in company restaurant sales, which were mainly attributable to the acquisition of 47 Applebee’s restaurants in the fourth quarter of 2024.

Adjusted EPS of $1.03 missed the analyst consensus estimate of $1.23.

Applebee’s year-over-year domestic comparable same-restaurant sales declined 2.2% while those of IHOP’s fell 2.7%.

General and Administrative expenses declined 1.7% to $52.2 million. Gross profit decreased 7.3% to $90.3 million with a gross margin of 42%.

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Adjusted EBITDA fell 10% to $54.7 million.

Operating cash flow for the quarter totaled $16.1 million, and adjusted free cash flow was $14.6 million. As of March 31, 2025, the company held $186.5 million in cash and equivalents.

“As we navigate the current operating environment, the fundamentals of our business remain strong, and since the second half of the quarter, we’re seeing steady improvement across sales, traffic, and our development pipeline,” said CEO John Peyton.

Outlook FY25: Applebee’s domestic system-wide comparable same-restaurant sales performance is expected to be negative 2% and positive 1%.

IHOP’s domestic system-wide comparable same-restaurant sales performance is expected to be negative 1% and positive 2%.

Dine Brands expects adjusted EBITDA of $235 million—$245 million and capital expenditures of $20 million—$30 million.

Price Action: DIN shares closed higher by 2.05% to $20.38 on Wednesday.

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