Dine Brands Global (DIN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 1% to $206.3M, driven by lower guest visits and negative same-restaurant sales at Applebee's (-1.8%), IHOP (-1.4%), and Fuzzy's (-7.5%).

• Net income for Q2 2024 was $23.2M, up $4.9M year-over-year, while adjusted net income was $25.6M, down from $27.8M.

• Adjusted EBITDA for Q2 2024 was $67M, nearly flat year-over-year.

• Consumer behavior trends show guests trading down to lower-priced menu items and reducing restaurant visits industry-wide.

• Strategic focus remains on long-term growth, value creation, and returning value to shareholders despite economic headwinds.

Financial highlights

• Q2 2024 revenue was $206.3M, down from $208.4M; six-month revenue was $412.5M, down from $422.2M.

• Adjusted diluted EPS for Q2 2024 was $1.71 (down from $1.82); GAAP EPS was $1.50 (up from $1.16).

• Adjusted free cash flow for the first six months was $52.9M, up from $24.1M last year.

• Unrestricted cash at quarter-end was $153.5M; total cash, cash equivalents, and restricted cash were $218.4M.

• $6M in share repurchases and $7.9M in dividends paid in Q2; $133.3M remains under the repurchase program.

Outlook and guidance

• Applebee's domestic comp sales guidance revised to -4% to -2%; IHOP to -2% to 0%.

• EBITDA guidance lowered to $245M–$255M; CapEx guidance reduced to $14M–$16M.

• IHOP net new domestic restaurant openings guidance cut to 0–10; Applebee's net closures guidance unchanged at 25–35.

• G&A expense guidance narrowed to $200M–$205M.

• Management notes ongoing headwinds from declining traffic and same-restaurant sales, with continued focus on cost control and franchisee support.