Dine Brands Global (DIN) Q4 2023 earnings summary

Executive summary

• Q4 concluded a year of positive comparable sales growth at IHOP and Applebee’s, adjusted EBITDA growth, Fuzzy’s integration, and balance-sheet improvement.

• FY 2023 GAAP net income was $94.9 million; adjusted EBITDA reached $256.4 million, exceeding the stated guidance.

Financial highlights

• Q4 revenue was $206.3 million vs. $208.0 million YoY; excluding refranchised Applebee’s restaurants, revenue was $204.3 million vs. $196.5 million.

• Q4 GAAP net income was $32.3 million, or diluted EPS of $2.14, vs. $11.0 million and $0.72; adjusted net income was $21.1 million, or adjusted EPS of $1.40, vs. $20.6 million and $1.34.

• FY revenue was $831.1 million vs. $909.4 million; excluding refranchised Applebee’s restaurants, revenue was $822.7 million vs. $780.7 million.

• FY GAAP net income was $94.9 million, or diluted EPS of $6.22, vs. $78.9 million and $4.96; adjusted net income was $101.4 million, or adjusted EPS of $6.65, vs. $98.5 million and $6.20.

• FY operating cash flow was $131.1 million vs. $89.3 million; adjusted free cash flow was $103.3 million vs. $64.6 million.

Outlook and guidance

• FY 2024 domestic comparable sales guidance: Applebee’s 0%–2%; IHOP 1%–3%.

• FY 2024 development outlook: Applebee’s franchisees 25–35 net fewer domestic restaurants; IHOP franchisees and area licensees 15–25 net new domestic openings.

• FY 2024 adjusted EBITDA guidance is $255–$265 million; G&A is $200–$210 million, including ~$35 million of non-cash stock compensation and depreciation.

• FY 2024 gross capital expenditures are expected to be $15–$20 million.