Back to top

Image: Bigstock

Dine Brands (DIN) Q4 Earnings Top Estimates, Revenues Meet

Read MoreHide Full Article

Dine Brands Global, Inc. (DIN - Free Report) reported fourth-quarter fiscal 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues were in line.

Adjusted earnings per share (EPS) were $1.40 per share, beating the consensus estimate of $1.12. In the prior-year quarter, the company reported EPS of $1.34. The rise primarily stemmed from a boost in segment profit, a reduction in general and administrative expenses and a decrease in the number of weighted-average diluted shares due to share buybacks. This was partially mitigated by elevated interest expenses and income taxes.

Total revenues in the reported quarter were $206.3 million, in-line with the Zacks Consensus Estimate. However, the metric declined 0.8% year over year. The decrease was mainly due to the refranchising of 69 company-operated Applebee’s units in October 2022 and an unfavorable comparable same-restaurant sales growth at Applebee’s. However, this was counterbalanced by the favorable comparable same-restaurants sales growth at IHOP and the inclusion of a full quarter's revenue contribution from Fuzzy's, acquired in December 2022.

Brand Performances by Comps

Applebee's domestic system-wide comps declined 0.5%. IHOP’s domestic system-wide comps were up 1.6%.

DINE BRANDS GLOBAL, INC. Price, Consensus and EPS Surprise DINE BRANDS GLOBAL, INC. Price, Consensus and EPS Surprise

DINE BRANDS GLOBAL, INC. price-consensus-eps-surprise-chart | DINE BRANDS GLOBAL, INC. Quote

Costs & Gross Profits

In the fiscal fourth quarter, the total cost of revenues decreased 4.5% year over year to $107.9 million. Moreover, gross profits were $98.4 million, up 4.1% from the year-ago quarter.

General and administrative expenses in the quarter declined 14.1% year over year to $50.5 million.                                                                                        

Balance Sheet

As of Dec 31, 2023, cash and cash equivalents amounted to $146 million compared with $269.7 million as of Dec 31, 2022. Long-term debt at the end of fourth-quarter 2023 totaled $1.28 billion compared with $1.08 billion at the end of 2022.

Cash flow from operating activities totaled $131.1 million as of Dec 31, 2023 compared with $89.3 million as of Dec 31, 2022.

2024 View

The anticipated range for Applebee’s domestic system-wide comparable same-restaurant sales performance is 0-2%. IHOP's anticipated domestic system-wide comparable same-restaurant sales performance is forecast to fall within the range of 1-3%.

The company anticipates general and administrative expenses for 2024 in the range of nearly $200-$210 million. Management projects gross capital expenditure to be between $15 million and $20 million.

Domestic development activity by IHOP franchisees, as well as area licensees are anticipated to results net new openings in the range of 25-35 restaurants. For 2024, the company anticipates adjusted EBITDA to be between nearly $255 million and $265 million.

Zacks Rank

DIN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% year over year. Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. However, the top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns, and continued digital and delivery growth.

Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago. Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis.

Brinker International, Inc. (EAT - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic boded well.

During the quarter, EAT reported adjusted EPS of 99 cents. The Zacks Consensus Estimate was pegged at a loss of $1.47 per share. It reported adjusted EPS of 76 cents per share in the prior-year quarter. Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. The top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in