Dineequity Stock Earnings Reports

Dine Brands reported sustained momentum in Q3 2025 with Applebee's posting +3.1% comp sales and IHOP returning to positive traffic (first positive traffic quarter in years), though consolidated adjusted EBITDA and adjusted EPS declined vs. prior year due to investments in company-owned stores and remodel/dual-brand conversion activity. Management highlighted strong menu-driven traffic gains (new Applebee's LTOs and IHOP everyday value menu), improving guest satisfaction and off‑premise growth (Applebee's off‑premise +9% in Q3). The company is scaling a dual‑brand (Applebee's + IHOP) strategy — early results show meaningful sales lifts and margin improvement — and expects ~30 dual‑brand locations open/under construction by year‑end and at least 50 openings in 2026, with a long‑term U.S. white‑space of ~900 dual‑brand units. Capital allocation changes: the Board reduced the quarterly dividend from $0.51 to $0.19 to prioritize share repurchases, committing to at least $50 million of buybacks over the next two quarters (on top of ~8.5% repurchased YTD), citing belief the stock is undervalued. Company free cash flow remains positive but down YTD due to higher CapEx; guidance is maintained with expectation to be at the low end of adjusted EBITDA range due to company‑restaurant investments. Franchisee alignment and demand for development (particularly conversions and IHOP growth) were emphasized, and management expects remodels and dual‑brand conversions to improve unit economics and accelerate return to net unit growth.