Dine Brands Global Announces Five-Year Growth Plan As Part of Its Transformation Strategy
Holds Investor Day in New York City; With New Name, Outlines 2022 Targets and Plans to Return Company to Growth
GLENDALE, Calif. - Feb. 21, 2018 // PRNewswire // - Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar® and IHOP® concepts, will today hold an Investor Day to outline its 5-Year Growth Plan, and set operational and financial goals.
"Our rebrand to Dine Brands from DineEquity Inc. represents the most recent step in our transformation and our return to growth," said Stephen P. Joyce, Chief Executive Officer of Dine Brands. "Over the past year, we have made targeted changes at both the corporate and brand levels to continue executing on our new strategic plan. The positive performance we announced yesterday on our fourth quarter earnings reflects the early impact of our new strategy to best position the Company for future success. We have a strong leadership team in place dedicated to building a high performance, values-based culture, a clear plan to stabilize and grow both brands and a well-defined 5-Year Growth Plan. We are confident we will continue to create significant value for our shareholders and franchisees."
The rebrand to Dine Brands marks a new chapter in the Company's story and further builds on the initiatives undertaken to expand revenue channels, enhance the guest experience and improve the long-term health of both brands. As part of the significant transformation effort currently underway, the Company is focused on three key strategic pillars - People, Brands and Growth - that underlies its Vision 2022 to deliver sustainable results and strong shareholder returns.
The Investor Day presentations will detail the Company's Vision 2022 and its plan to achieve yearly low single digit revenue growth, percentage EPS growth in the high teens, and total shareholder returns of approximately 20%. The Company also expects 10% margin expansion over the 5 year period. In addition, the Company will outline its capital allocation priorities, including increasing free cash flow generation, with significant returns to shareholders. Dine Brands will seek to achieve these goals by executing a strategy based on:
- Strengthening the Leadership Team: build a high-performance, values-based culture with greater autonomy and accountability for our brands;
- Investing in the Existing Brands: invest in restaurants, culinary innovation, marketing, training, technology and relevant growth platforms to create greater efficiency at the brand level;
- Strategically Expanding the Portfolio: partner with existing and new franchisees to expand current brands in underpenetrated markets and internationally; explore 'tuck-in' opportunities to drive long-term growth; and
- Leveraging Technology, Data and Analytics: enhance the guest experience, drive traffic and increase conversion to a higher average check.
Investor Day Details
Dine Brands plan to share additional details on its rebrand, 5-Year Growth Plan and go-forward corporate strategy during the Company's Investor Day today, February 21, 2018. The presentations, other materials and further information can be found on the Investors section of the Company website located at https://www.dinebrands.com/investors. To view a webcast of the Investor Day event, please go to https://edge.media-server.com/m6/p/sh5swkuu.
About Dine Brands Global, Inc.
Based in Glendale, California, Dine Brands Global, Inc. (formerly DineEquity, Inc.) (NYSE: DIN), through its subsidiaries, franchises restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. With more than 3,700 restaurants combined in 18 countries and over 380 franchisees, Dine Brands is one of the largest full-service restaurant companies in the world. For more information on Dine Brands visit the Company's website located at www.dinebrands.com.
Statements contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "plan," "goal" and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: general economic conditions; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of restaurant development plans; our dependence on our franchisees; the concentration of our Applebee's franchised restaurants in a limited number of franchisees; the financial health our franchisees; our franchisees' and other licensees' compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands' reputation; possible future impairment charges; the effects of tax reform; trading volatility and fluctuations in the price of our stock; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; natural disasters or other series incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; and other factors discussed from time to time in the Company's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company's other filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof and the Company does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances.
SOURCE Dine Brands Global, Inc.