Dine Brands Global (DIN) Q4 2025 earnings summary

Executive summary

• 2025 performance improved over 2024, driven by operational enhancements, marketing, menu innovation, and a focus on guest experience and value across brands.

• Entered 2026 with momentum in dual-brand development, franchisee engagement, and optimism for continued growth.

• Completed debt refinancing and continued capital returns to shareholders while maintaining a strong balance sheet.

• Both Applebee's and IHOP saw positive sales and traffic trends, despite a challenging consumer environment and some Q4 softness.

• Off-premise and digital engagement were key growth drivers, with strong social media and loyalty program results.

Financial highlights

• FY 2025 revenues grew 8.2% to $879.3M; Q4 revenues up 6.2% to $217.6M, driven by more company-owned restaurant sales.

• FY 2025 adjusted EBITDA was $219.8M, down from $239.8M in 2024; Q4 adjusted EBITDA rose to $59.8M from $50.1M year-over-year.

• FY 2025 adjusted net income was $63.5M (adjusted EPS $4.45), down from $79.8M (adjusted EPS $5.34) in 2024.

• FY 2025 net income was $16.0M (EPS $1.11), down from $63.0M (EPS $4.22) in 2024, due to a $29M non-cash impairment charge.

• Adjusted free cash flow was $61.5M, down from $106.4M in 2024, due to higher CapEx and remodel incentives.

Outlook and guidance

• 2026 guidance: Applebee’s and IHOP domestic system-wide Comp Sales expected between 0% and 2%.

• 2026 adjusted EBITDA expected between $220M and $230M; CapEx projected at $25M–$35M.

• G&A projected at $205M–$210M, reflecting investment in dual-brand initiatives.

• At least 50 domestic dual-branded openings planned, mainly by franchisees.

• Anticipate net unit growth inflection within 12–24 months, driven by dual-brand expansion.