Dine Brands Global, Inc. Reports Strong First Quarter 2019 Results
Company Added
Company Removed
Apply to Request List

Dine Brands Global, Inc. Reports Strong First Quarter 2019 Results

  • Earnings Per Diluted Share (GAAP) Increased 88%
  • Adjusted Earnings Per Diluted Share (Non-GAAP) Increased 71.2%
  • Net Income Increased 85.3%; Adjusted EBITDA (Non-GAAP) Increased 40.4%

GLENDALE, Calif. - (BUSINESS WIRE) - May 01, 2019 - Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill + Bar® and IHOP® restaurants, today announced financial results for the first quarter of 2019.

“Dine Brands delivered another impressive quarter. Our performance and momentum reflect the continued improvement in our core business. We delivered double-digit growth in several key metrics. The implementation of multi-pronged strategies at Applebee’s and IHOP have produced positive results. Both brands reported positive comparable sales growth for the first quarter, lapping over positive sales results for the first quarter of 2018,” said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc.

Mr. Joyce continued, “We are taking a long-term approach to managing the business and focusing on platforms that will deliver sustainable positive results. This includes expanding our off-premise business at both brands and investing in guest-facing technology, where we have made foundational changes to further enhance the guest experience. With the great work being done across the organization, I am enthusiastic about the road ahead.”

                     
($ in 000's, except per share amounts)       First Quarter
        2019     2018     % Change
Total revenues, excluding Company restaurant sales       $ 201,447     $ 188,163     7.1 %
Net income available to common stockholders per diluted share       $ 1.73     $ 0.92     88.0 %
Diluted net income available to common stockholders per share, as adjusted(1)       $ 1.90     $ 1.11     71.2 %
Net income       $ 31,643     $ 17,073     85.3 %
Adjusted EBITDA(1)(2)       $ 74,649     $ 53,169     40.4 %
                           
(1)   See “Non-GAAP Financial Measures” and reconciliation of the Non-GAAP financial measure to the respective GAAP financial measure.
(2)   Does not conform to the definition of Covenant Adjusted EBITDA as found in the Base Indenture.
     

Key Highlights

  • Total revenues, excluding Company restaurant sales, increased 7.1% to $201.4 million for the first quarter of 2019 compared to $188.2 million for the same period last year.
  • IHOP business segment revenues, inclusive of Rental and Financing revenues, accounted for approximately 66% of total revenues, excluding advertising revenues and Company restaurant sales, during the first quarter of 2019.
  • IHOP’s reported system-wide sales for the first quarter of 2019 increased 2.4% to $873.1 million compared to $852.9 million for the first quarter of 2018.
  • Gross profit for the first quarter of 2019 increased 22.8% to $102.6 million compared to $83.5 million for the first quarter of 2018. The increase in gross profit was mainly due to a $13.5 million franchisor contribution to the Applebee’s national advertising fund in the first quarter 2018 that did not recur in the first quarter of 2019. IHOP restaurant development and increased IHOP and Applebee’s royalties contributed to the increase in gross profit.
  • The Company restaurant segment contributed approximately $4.2 million of gross profit during their first full quarter of ownership.
  • GAAP earnings per diluted share increased 88.0% to $1.73 for the first quarter of 2019 compared to $0.92 for the first quarter of 2018.
  • Adjusted earnings per diluted share increased 71.2% to $1.90 for the first quarter of 2019 compared to $1.11 for the first quarter of 2018. (See “Non-GAAP Financial Measures” below.)
  • GAAP net income for the first quarter of 2019 increased 85.3% to $31.6 million compared to $17.1 million for the first quarter of 2018.
  • Consolidated adjusted EBITDA the first quarter of 2019 increased 40.4% to $74.6 million compared to $53.2 million for the first quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of GAAP net income to consolidated adjusted EBITDA.)
  • For the three-month period ended March 31, 2019, the Company repurchased 151,316 shares of its common stock for a total cost of approximately $12.0 million and paid quarterly cash dividends totaling approximately $11.2 million.
  • Cash flows from operating activities were approximately $28.9 million for the first quarter of 2019 compared to approximately $16.5 million for the first quarter of 2018. Adjusted free cash flow was approximately $27.7 million for the first quarter of 2019. This compares to approximately $15.3 million for the first quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of the Company’s cash provided by operating activities to adjusted free cash flow.)
  • Over 1,100 IHOP restaurants, or approximately 65% of the domestic system, have the new Rise ‘N Shine remodel image (including new restaurant openings).
  • Growth in off-premise sales at both brands during the first quarter of 2019 was primarily driven by online channels.

Domestic System Same-Restaurant Sales Performance

  • Applebee’s comparable same-restaurant sales increased 1.8% for the first quarter of 2019, achieving the sixth consecutive quarter of sales growth.
  • IHOP’s comparable same-restaurant sales increased 1.2% for the first quarter of 2019, achieving the fifth consecutive quarter of sales growth.

GAAP Effective Tax Rate

Our effective tax rate of 23.1% for the first quarter of 2019 was lower than the effective tax rate of 24.8% for the comparable period of 2018 due to the recognition of excess tax benefits on stock-based compensation during the first quarter of 2019.

New Lease Accounting Standards ASC 842

Effective January 1, 2019, we adopted the lease accounting guidance codified in ASC 842. Upon adoption, we recognized operating lease obligations of approximately $453.0 million, discounted using the Company’s incremental borrowing rate and an adjustment to retained earnings upon adoption of $5.0 million, net of tax of $1.7 million. We reclassified $43.3 million of accrued rent payments and $7.4 million of previously established lease-related reserves. In offsetting these amounts, we recognized operating lease right-of-use assets of approximately $395.6 million.

Adoption of ASC 842 had no significant impact on our cash flows from operations or its results of operations.

Financial Performance Guidance for Fiscal 2019

Dine Brands reiterates its financial performance guidance for 2019 contained in the press release issued on February 21, 2019 and the Form 8-K filed on the same day. The projections are as of this date and do not take into consideration any transactions the Company may enter into after such date that may impact this guidance. The Company assumes no obligation to update or supplement these estimates.

First Quarter of 2019 Results Conference Call Details

Dine Brands will host a conference call to discuss its results on May 1, 2019 at 6:00 a.m. Pacific Time/9:00 a.m. Eastern Time. To participate on the call, please dial (888) 771-4371 and reference passcode 48515883. International callers, please dial (847) 585-4405 and reference passcode 48515883.

A live webcast of the call will be available on www.dinebrands.com and may be accessed by visiting Events and Presentations under the site’s Investors section. Participants should allow approximately ten minutes prior to the call’s start time to visit the site and download any streaming media software needed to listen to the webcast. A telephonic replay of the call may be accessed from 8:30 a.m. Pacific Time/11:30 a.m. Eastern Time on May 1, 2019 through 8:59 p.m. Pacific Time/11:59 p.m. Eastern Time on May 8, 2019 by dialing (888) 843-7419 and referencing passcode 48515883#. International callers, please dial (630) 652-3042 and reference passcode 48515883#. An online archive of the webcast will also be available on Events and Presentations under the Investors section of the Company’s website.

About Dine Brands Global, Inc.

Based in Glendale, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries, franchises restaurants under both the Applebee's Neighborhood Grill + Bar and IHOP brands. With approximately 3,700 restaurants combined in 18 countries and approximately 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.

Forward-Looking Statements

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.

Non-GAAP Financial Measures

This press release includes references to the Company's non-GAAP financial measure “adjusted net income available to common stockholders”, “adjusted earnings per diluted share (Adjusted EPS)”, “Adjusted EBITDA” and “Adjusted free cash flow.” Adjusted EPS is computed for a given period by deducting from net income or loss available to common stockholders for such period the effect of any closure and impairment charges, any gain or loss related to debt extinguishment, any intangible asset amortization, any non-cash interest expense, any gain or loss related to the disposition of assets, and other items deemed not reflective of current operations. This is presented on an aggregate basis and a per share (diluted) basis. Adjusted EBITDA is computed for a given period by deducting from net income or loss for such period the effect of any closure and impairment charges, any interest charges, any income tax provision or benefit, any non-cash stock-based compensation, any depreciation and amortization, any gain or loss related to the disposition of assets and other items deemed not reflective of current operations. “Adjusted free cash flow” for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less capital expenditures. Management may use certain of these non-GAAP financial measures along with the corresponding U.S. GAAP measures to evaluate the performance of the business and to make certain business decisions. Management uses adjusted free cash flow in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock and we believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes. Additionally, adjusted EPS is one of the metrics used in determining payouts under the Company’s annual cash incentive plan. Management believes that these non-GAAP financial measures provide additional meaningful information that should be considered when assessing the business and the Company’s performance compared to prior periods and the marketplace. Adjusted EPS and adjusted free cash flow are supplemental non-GAAP financial measures and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.

Dine Brands Global, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
             
        Three Months Ended
       

March 31,

        2019   2018
Revenues:            
Franchise revenues:            
Royalties, franchise fees and other      

$

96,296

   

$

91,477

 
Advertising revenue         72,630       63,836  
Total franchise revenues         168,926       155,313  
Company restaurant sales         35,735        
Rental revenues         30,711       30,841  
Financing revenues         1,810       2,009  
Total revenues         237,182       188,163  
Cost of revenues:            
Franchise expenses:            
Advertising expenses         72,630       63,836  
Other franchise expenses         7,673       18,036  
Total franchise expenses         80,303       81,872  
Company restaurant expenses         31,538        
Rental expenses:            
Interest expense from finance leases         1,529       1,877  
Other rental expenses         21,095       20,764  
Total rental expenses         22,624       22,641  
Financing expenses         146       150  
Total cost of revenues         134,611       104,663  
Gross profit         102,571       83,500  
General and administrative expenses         42,819       41,911  
Interest expense, net         15,393       15,199  
Amortization of intangible assets         2,924       2,502  
Closure and impairment charges         194       2,604  
Loss (gain) on disposition of assets         109      

(1,427

)

Income before income tax provision         41,132       22,711  
Income tax provision        

(9,489

)

   

(5,638

)

Net income      

$

31,643

   

$

17,073

 
Net income available to common stockholders:            
Net income      

$

31,643

   

$

17,073

 
Less: Net income allocated to unvested participating restricted stock        

(1,111

)

   

(568

)

Net income available to common stockholders      

$

30,532

   

$

16,505

 
Net income available to common stockholders per share:            
Basic      

$

1.76

   

$

0.93

 
Diluted      

$

1.73

   

$

0.92

 
Weighted average shares outstanding:            
Basic         17,343      

17,703

 
Diluted         17,690       17,845  
             
Dividends declared per common share       $ 0.69     $ 0.63  
Dividends paid per common share       $ 0.63     $ 0.97  
                     

 

Dine Brands Global, Inc. and Subsidiaries
Consolidated Balance Sheets

(In thousands, except share and per share amounts)

             
        March 31, 2019   December 31, 2018
Assets       (Unaudited)    
Current assets:            
Cash and cash equivalents      

$

132,932

   

$

137,164

 
Receivables, net         97,786       137,504  
Restricted cash         36,654       48,515  
Prepaid gift card costs         30,045       38,195  
Prepaid income taxes         19,370       17,402  
Other current assets         5,980       3,410  
Total current assets         322,767       382,190  
Other intangible assets, net         583,040       585,889  
Operating lease right-of-use assets         383,962        
Goodwill         343,862       345,314  
Property and equipment, net         225,396       240,264  
Long-term receivables, net         99,582       103,102  
Deferred rent receivable         75,569       77,069  
Non-current restricted cash         14,700       14,700  
Other non-current assets, net         27,239       26,152  
Total assets      

$

2,076,117

   

$

1,774,680

 
             
Liabilities and Stockholders’ Deficit            
Current liabilities:            
Current maturities of long-term debt      

$

   

$

25,000

 
Accounts payable         37,726       43,468  
Gift card liability         115,974       160,438  
Current maturities of operating lease obligations         67,340        
Current maturities of finance lease and financing obligations         13,708       14,031  
Accrued employee compensation and benefits         15,338       27,479  
Dividends payable         12,461       11,389  
Deferred franchise revenue, short-term         10,376       10,138  
Other accrued expenses         30,167       24,243  
Total current liabilities         303,090       316,186  
Long-term debt, less current maturities         1,274,916       1,274,087  
Operating lease obligations, less current maturities         386,364        
Finance lease obligations, less current maturities         87,624       87,762  
Financing obligations, less current maturities         38,306       38,482  
Deferred income taxes, net         102,074       105,816  
Deferred franchise revenue, long-term         62,472       64,557  
Other non-current liabilities         12,092       90,063  
Total liabilities         2,266,938       1,976,953  
Commitments and contingencies            
Stockholders’ deficit:            
Common stock, $0.01 par value; shares: 40,000,000 authorized; March 31, 2019 - 24,974,665 issued, 17,650,765 outstanding; December 31, 2018 - 24,984,898 issued, 17,644,267 outstanding         250       250  
Additional paid-in-capital         239,585       237,726  
Retained earnings         24,588       10,414  
Accumulated other comprehensive loss        

(61

)

   

(60

)

Treasury stock, at cost; shares: March 31, 2019 - 7,323,900; December 31, 2018 - 7,340,631        

(455,183

)

   

(450,603

)

Total stockholders’ deficit

       

(190,821

)

   

(202,273

)

Total liabilities and stockholders’ deficit      

$

2,076,117

   

$

1,774,680

 
                     

 

Dine Brands Global, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
             
        Three Months Ended
        March 31,
        2019   2018
             
Cash flows from operating activities:            
Net income      

$

31,643

   

$

17,073

 
Adjustments to reconcile net income to cash flows provided by operating activities:            
Depreciation and amortization         10,179       7,940  
Non-cash stock-based compensation expense         4,107       3,368  
Non-cash interest expense         1,118       864  
Closure and impairment charges         194       2,594  
Deferred income taxes        

(1,149

)

   

(1,182

)

(Loss) gain on disposition of assets         109      

(1,421

)

Other        

(3,976

)

   

(6,199

)

Changes in operating assets and liabilities:            
Accounts receivable, net        

(3,210

)

   

(8,804

)

Current income tax receivables and payables        

(1,399

)

    5,529  
Gift card receivables and payables        

(890

)

   

(2,269

)

Other current assets        

(2,570

)

    5,709  
Accounts payable         1,826       65  
Accrued employee compensation and benefits        

(12,141

)

   

(3,448

)

Other current liabilities         5,088      

(3,351

)

Cash flows provided by operating activities         28,929       16,468  
Cash flows from investing activities:            
Principal receipts from notes, equipment contracts and other long-term receivables         5,260       4,930  
Additions to property and equipment        

(4,717

)

   

(3,488

)

Proceeds from sale of property and equipment         400       655  
Additions to long-term receivables        

(395

)

   

(2,325

)

Other        

(100

)

   

(27

)

Cash flows provided by (used in) investing activities         448      

(255

)

Cash flows from financing activities:            
Repayment of Variable Funding Notes        

(25,000

)

     
Repayment of long-term debt              

(3,250

)

Dividends paid on common stock        

(11,153

)

   

(17,453

)

Repurchase of common stock        

(10,802

)

   

(10,003

)

Principal payments on finance lease obligations        

(3,466

)

   

(4,536

)

Proceeds from stock options exercised         6,768       456  
Tax payments for restricted stock upon vesting        

(1,817

)

   

(1,083

)

Cash flows used in financing activities        

(45,470

)

   

(35,869

)

Net change in cash, cash equivalents and restricted cash        

(16,093

)

   

(19,656

)

Cash, cash equivalents and restricted cash at beginning of period         200,379       163,146  
Cash, cash equivalents and restricted cash at end of period      

$

184,286

   

$

143,490

 
                     

 

Dine Brands Global, Inc. and Subsidiaries

Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

 

Reconciliation of net income available to common stockholders to net income available to common stockholders, as adjusted for the following items: closure and impairment charges; amortization of intangible assets; non-cash interest expense; gain or loss on disposition of assets; nonrecurring restaurant costs; and the combined tax effect of the preceding adjustments, as well as related per share data:

             

 

      Three Months Ended
        March 31,
        2019   2018
             
Net income available to common stockholders, as reported      

$

30,532

   

$

16,505

 
Closure and impairment charges         194       2,604  
Amortization of intangible assets         2,924       2,502  
Non-cash interest expense         1,118       864  
Loss (gain) on disposition of assets         109      

(1,427

)

Nonrecurring restaurant costs         61      

 
Income tax provision        

(1,146

)

   

(1,181

)

Net income allocated to unvested participating restricted stock        

(112

)

   

(111

)

Net income available to common stockholders, as adjusted      

$

33,680

   

$

19,756

 
             
Diluted net income available to common stockholders per share:            
Net income available to common stockholders, as reported      

$

1.73

   

$

0.92

 
Closure and impairment charges         0.01       0.11  
Amortization of intangible assets         0.12       0.10  
Non-cash interest expense         0.05       0.04  
Loss (gain) on disposition of assets         0.00      

(0.06

)

Nonrecurring restaurant costs         0.00        
Net income allocated to unvested participating restricted stock        

(0.01

)

   

(0.00

)

Rounding                
Diluted net income available to common stockholders per share, as adjusted      

$

1.90

   

$

1.11

 
             
Numerator for basic EPS-income available to common stockholders, as adjusted      

$

33,680

   

$

19,756

 
Effect of unvested participating restricted stock using the two-class method         15       1  
Numerator for diluted EPS-income available to common stockholders after assumed conversions, as adjusted      

$

33,695

   

$

19,757

 
             
Denominator for basic EPS-weighted-average shares         17,343       17,703  
Dilutive effect of stock options         347       142  
Denominator for diluted EPS-weighted-average shares and assumed conversions         17,690       17,845  
                     

 

Dine Brands Global, Inc. and Subsidiaries
Non-GAAP Financial Measures
(Unaudited)
             

Reconciliation of the Company's cash provided by operating activities to “adjusted free cash flow” (cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less additions to property and equipment). Management uses this liquidity measure in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock. We believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes.

             
        Three Months Ended
        March 31,
        2019   2018
        (In millions)
Cash flows provided by operating activities      

$

28.9

   

$

16.5

 
Receipts from notes and equipment contracts receivable         3.5       2.3  
Additions to property and equipment        

(4.7

)

   

(3.5

)

Adjusted free cash flow         27.7       15.3  
Dividends paid on common stock        

(11.2

)

   

(17.5

)

Repurchase of Dine Brands Global common stock        

(10.8

)

   

(10.0

)

       

$

5.7

   

$

(12.2

)

                     

 

Dine Brands Global, Inc. and Subsidiaries
Non-GAAP Financial Measures
(Unaudited)
             

Reconciliation of the Company's net income to “adjusted EBITDA.” The Company defines adjusted EBITDA as net income, adjusted for the effect of any closure and impairment charges, any interest charges, any income tax provision or benefit, any non-cash stock-based compensation, any depreciation and amortization, any gain or loss related to the disposition of assets, other non-income based taxes and other items deemed not reflective of current operations. Management may use certain non-GAAP measures along with the corresponding U. S. GAAP measures to evaluation the performance of the company and to make certain business decisions.

             
        Three Months Ended
        March 31,
        2019   2018
             
Net income, as reported      

$

31,643

 

$

17,073

 
Interest charges on finance leases         2,083     1,877  
All other interest charges         16,642     15,950  
Income tax provision         9,489     5,638  
Depreciation and amortization         10,179     7,940  
Non-cash stock-based compensation         4,107     3,369  
Closure and impairment charges         194     2,604  
Loss (gain) on disposition of assets         109    

(1,427

)

Other taxes         203     145  
Adjusted EBITDA      

$

74,649

 

$

53,169

 
                   

 

Dine Brands Global, Inc. and Subsidiaries
Restaurant Data
(Unaudited)
             

The following table sets forth, for the three months ended March 31, 2019 and 2018, the number of “Effective Restaurants” in the Applebee’s and IHOP systems and information regarding the percentage change in sales at those restaurants compared to the same periods in the prior year and, as such, the percentage change in sales at Effective Restaurants is based on non-GAAP sales data. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. However, we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales, and, where applicable, rental payments under leases that partially may be based on a percentage of their sales. Management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations.

             
        Three Months Ended
        March 31,
        2019   2018
             
Applebee's            
Effective Restaurants(a)            
Franchise         1,762       1,923  
Company         69        
Total         1,831       1,923  
             
System-wide(b)            
Domestic sales percentage change(c)        

(1.4

)%

   

0.9

%

Domestic same-restaurant sales percentage change(d)        

1.8

%

   

3.3

%

             
Franchise(b)            
Domestic sales percentage change(c)        

(4.7

)%

   

0.9

%

Domestic same-restaurant sales percentage change(d)        

1.6

%

   

3.3

%

Average weekly domestic unit sales (in thousands)      

$

49.6

   

$

47.6

 
             

IHOP

           

Effective Restaurants(a)

           

Franchise

       

1,657

     

1,619

 

Area license

       

156

     

164

 

Total

       

1,813

     

1,783

 
             

System-wide(b)

     

 

 

 

Sales percentage change(c)

       

2.4

%

   

3.9

%

Domestic same-restaurant sales percentage change, including area license restaurants(d)

       

1.2

%

   

1.0

%

Domestic same-restaurant sales percentage change, excluding area license restaurants(d)

       

1.1

%

   

1.0

%

             

Franchise(b)

           

Sales percentage change(c)

       

2.3

%

   

4.9

%

Domestic same-restaurant sales percentage change(d)

       

1.1

%

   

1.0

%

Average weekly unit sales (in thousands)

     

$

37.1

   

$

37.1

 
             

Area License(b)

           

Sales percentage change(c)

       

2.7

%

   

(0.2

)%

                     

 

Dine Brands Global, Inc. and Subsidiaries
Restaurant Data
     
(a)   “Effective Restaurants” are the weighted average number of restaurants open in a given fiscal period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all Effective Restaurants in the Applebee’s and IHOP systems, which includes restaurants owned by franchisees and area licensees as well as those owned by the Company.
     
(b)   “System-wide” sales are retail sales at domestic Applebee’s restaurants operated by franchisees and IHOP restaurants operated by franchisees and area licensees, as reported to the Company, in addition to retail sales at company-operated restaurants. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. An increase or decrease in franchisees' reported sales will result in a corresponding increase or decrease in our royalty revenue. Unaudited reported sales for Applebee's domestic franchise restaurants, IHOP franchise restaurants and IHOP area license restaurants for the three months ended March 31, 2019 and 2018 and sales by company-operated restaurants were as follows:
     
        Three Months Ended
        March 31,
        2019   2018
       

(In millions)

Reported sales

           
Applebee's domestic franchise restaurant sales      

$

1,044.2

 

$

1,095.6

Applebee's company-operated restaurants         35.7    

IHOP franchise restaurant sales         798.8     780.6
IHOP area license restaurant sales         74.3     72.3
Total      

$

1,953.0

 

$

1,948.5

                 

(c)

  “Sales percentage change” reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior fiscal period for all restaurants in that category.
     
(d)   “Domestic same-restaurant sales percentage change” reflects the percentage change in sales, in any given fiscal period, compared to the same weeks in the prior year for domestic restaurants that have been operated throughout both fiscal periods that are being compared and have been open for at least 18 months. Because of new unit openings and restaurant closures, the domestic restaurants open throughout both fiscal periods being compared may be different from period to period.
     

 

Dine Brands Global, Inc. and Subsidiaries
Restaurant Data
(Unaudited)
 

The following table summarizes our restaurant development activity:

             
        Three Months Ended
        March 31,
        2019   2018

Applebee's Restaurant Development Activity

           
Summary - beginning of period:            
Franchise       1,768     1,936  
Company restaurants       69    

 
Beginning of period       1,837     1,936  
Franchise restaurants opened:            
International          

2

 
Total franchise restaurants opened           2  
Franchise restaurants closed:            
Domestic      

(4

)

 

(22

)

International      

(3

)

 

(4

)

Total franchise restaurants closed      

(7

)

 

(26

)

Net franchise restaurant reduction      

(7

)

 

(24

)

Summary - end of period:            
Franchise       1,761     1,912  
Company       69    

 
Total Applebee's restaurants, end of period       1,830     1,912  
Domestic       1,689     1,760  
International       141     152  

 

           

IHOP Restaurant Development Activity

           

Summary - beginning of period:

           

Franchise

     

1,669

   

1,622

 

Area license

     

162

   

164

 

Total IHOP restaurants, beginning of period

     

1,831

   

1,786

 

Franchise/area license restaurants opened:

           

Domestic franchise

     

6

   

13

 

International franchise

     

   

3

 

Total franchise/area license restaurants opened

     

6

   

16

 

Franchise/area license restaurants closed:

           

Domestic franchise

     

(11

)

 

(5

)

Domestic area license

     

(3

)

 

 

International franchise

     

(1

)

 

(6

)

Total franchise/area license restaurants closed

     

(15

)

 

(11

)

Net franchise/area license restaurant (reduction) development

     

(9

)

 

5

 

Refranchised from Company restaurants

     

   

1

 

Franchise restaurants reacquired by the Company

     

   

(1

)

Net franchise/area license restaurant (reductions) additions

     

(9

)

 

5

 

Summary - end of period

           

Franchise

     

1,663

   

1,627

 

Area license

     

159

   

164

 

Total IHOP restaurants, end of period

     

1,822

   

1,791

 

Domestic

     

1,697

   

1,679

 

International

     

125

   

112

 

Contacts:

Ken Diptee
Executive Director, Investor Relations
Dine Brands Global, Inc.
818-637-3632

Thien Ho
Media Relations
Executive Director, Communications
Dine Brands Global, Inc.
818-549-4238

SOURCE Dine Brands Global, Inc.

###

Comments:

comments powered by Disqus
Share This Page

Subscribe to Our Newsletters