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DIN Expands Global Reach With New Dual-Branded Restaurant

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Dine Brands Global, Inc.’s (DIN - Free Report) affiliate, Dine Brands International, expands its global presence with new deals and the launch of its first dual-branded Applebee’s and IHOP restaurant in San Pedro Sula, Honduras. The company has entered into a multi-unit development agreement with franchisee BLT Global Brands to open the first restaurant on Sept. 16, 2024.

The strategic expansion marks a key development in Dine Brands' international growth efforts. The new dual-branded restaurant in Honduras features both IHOP and Applebee’s, designed to streamline operations and improve efficiency for franchisees. Dine Brands aims to enhance its market presence and drive further growth in the global restaurant industry with this concept.

The company is leveraging IHOP’s morning popularity and Applebee’s evening appeal to connect with and attract new guests worldwide. This strategy is aimed at offering consistent dining experiences throughout the day. The performance and returns of the dual-branded restaurants have improved, indicating the effectiveness of this approach.

The total number of international dual-branded restaurants is expected to reach 13, including the new outlet, and spread across seven markets — Mexico, Canada, UAE, Kuwait, Saudi Arabia, Peru and Honduras.

Dine Brands, the parent company of Applebee’s, IHOP and Fuzzy’s Taco Shop, has also secured agreements to develop at least 21 new restaurants, including 13 dual-branded ones. These new sites will consist of both conversions of existing single-branded locations and new openings in various channels, such as airports and travel centers.

DIN is looking for Master Franchisees and Developers in specific regions — South Korea and Japan in Asia, Spain in Europe, Brazil, and select areas in Mexico and Canada — to strengthen its presence in these key markets.

DIN’s YTD Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Year to date, the company’s shares have lost 41.4% compared with the industry’s 1.3% decline. Although the company’s shares have underperformed the industry in the said period, it is likely to benefit from expansion efforts in the days ahead. DIN is optimistic on the back of its new approach to marketing, the launch of a loyalty program, technological developments and virtual brands.

DIN’s Zacks Rank & Key Picks

Currently, Dine Brands carries a Zacks Rank #5 (Strong Sell).

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