Overview

* Dine Brands Q2 revenue rises to $230.8 mln, beating analyst expectations

* Adjusted EPS for Q2 misses estimates, declining to $1.17 from $1.71 last year

* Company completed refinancing transaction, enhancing financial flexibility

Outlook

* Dine Brands updates Applebee's sales growth to 1%-3% for 2025, vs versus -2% to 1% previously

* IHOP sales expected to range from -1% to 1% in 2025, vs -1% to 2% previously

* Company cuts 2025 adjusted EBITDA forecast to between $220 mln and $230 mln

* G&A expenses for 2025 expected between $205 mln and $210 mln

Result Drivers

* APPLEBEE'S PROMOTIONS - Strong consumer response to value-driven promotions and menu innovation boosted Applebee's sales

* IHOP BRAND STRATEGY - IHOP's refreshed brand positioning and value strategy aimed to fuel growth, but sales declined 2.3%

* DUAL BRANDS INITIATIVE - Dual Brands initiative gaining traction with franchisees, contributing to strong economics in new unit openings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $230.80 $223.90

Revenue mln mln (8

Analysts

)

Q2 Miss $1.17 $1.45 (9

Adjusted Analysts

EPS )

Q2 EPS $0.89

Q2 $56.20

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Dine Brands Global Inc ( DIN ) is $25.00, about 12.8% above its August 5 closing price of $21.81

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)