Corrects Adjusted EPS to $0.88, from $1.07, after the company issued an updated statement; also corrects throughout to show adj EPS missed, not beat, market estimates

Overview

• U.S. restaurant operator's Q1 revenue rose, beating analyst expectations

• Adjusted EPS for Q1 misses analyst expectations

• Company repurchased $22 mln of its stock in Q1

Outlook

• Dine Brands expects 2026 Applebee's same-restaurant sales growth between 0% and 2%

• Company sees 2026 IHOP same-restaurant sales growth between 0% and 2%

• Dine Brands expects 2026 adjusted EBITDA between $220 mln and $230 mln

Result Drivers

• COMP SALES IMPROVEMENT - Co said improved comparable sales, especially at Applebee's, were driven by focus on value, marketing, and disciplined execution

• HIGHER COMPANY-OWNED SALES - Revenue increase was primarily due to higher company-owned restaurant sales, mainly from acquiring restaurants from franchisees

• DUAL BRAND INITIATIVES - Continued investment in dual brand development and remodels, supported by positive franchisee and guest feedback

Company press release: ID:nBw4x5fHRa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$225.20 mln	$222.32 mln (5 Analysts)
Q1 Adjusted EPS	Miss	$0.88	$1.006 (7 Analysts)
Q1 EPS		$0.57
Q1 Adjusted EBITDA		$50.80 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Dine Brands Global Inc is $30.00, about 6.6% above its May 5 closing price of $28.15

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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