Dine Brands Global (DIN) investor relations material

Executive summary

• Achieved flat to positive sales growth across all brands, outperforming industry benchmarks due to value-focused strategies, targeted marketing, and menu innovation.

• Continued investment in dual-brand development, remodels, and company-owned restaurant initiatives, with positive franchisee and guest feedback.

• Asset-light model supports long-term value creation and capital returns to shareholders.

• Lower income consumers faced the most pressure, driving emphasis on value offerings like Applebee's Two for $25 and IHOP's Everyday Value Menu.

• Net income available to common stockholders was $7.2 million, down from $7.8 million in Q1 2025, with diluted EPS of $0.57 compared to $0.53 in the prior year.

Financial highlights

• Consolidated total revenues increased 4.8% to $225.2 million in Q1 2026 from $214.8 million in Q1 2025, driven by company-owned restaurant acquisitions.

• Adjusted EBITDA was $50.8 million, down from $54.7 million year-over-year, reflecting investments in dual brands and company-owned initiatives.

• Adjusted diluted EPS rose to $1.07 from $1.03 year-over-year.

• Adjusted free cash flow was negative $3 million, down from $14.6 million, due to higher CapEx and compensation payments.

• CapEx rose to $12.1 million from $3.3 million, with two-thirds tied to remodels and dual-brand conversions.

Outlook and guidance

• Maintaining full-year financial guidance despite Q1 EBITDA softness, expecting EBITDA pressure to moderate as investments are leveraged.

• Fiscal 2026 guidance: Applebee's and IHOP domestic comparable sales expected to range between 0% and 2%.

• At least 50 domestic dual-branded openings anticipated, mainly franchise-driven, with a pipeline extending into 2027 and beyond.

• CapEx expected to be within previously provided range by year-end.

• Consolidated adjusted EBITDA guidance: $220M–$230M; G&A expenses: $205M–$210M; capital expenditures: $25M–$35M.