DIN - Dine Brands Global Inc. (DIN) Q1 2024 Earnings Call Transcript
2024-05-08 12:34:08 ET
Dine Brands Global, Inc. (DIN)
Q1 2024 Results Conference Call
May 08, 2024 09:00 AM ET
Company Participants
Matt Lee - SVP, Finance and IR
John Peyton - CEO
Vance Chang - CFO
Tony Moralejo - President, Applebee's
Jay Johns - President, IHOP
Conference Call Participants
Eric Gonzalez - KeyBanc
Nick Setyan - Wedbush
Dennis Geiger - UBS
Todd Brooks - The Benchmark Company
Brian Vaccaro - Raymond James
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Dine Brands First Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Matt Lee, Senior Vice President, Finance and Investor Relations. Please go ahead.
Matt Lee
Good morning. And welcome to Dine Brands Global's first quarter fiscal 2024 conference call. This morning's call will include prepared remarks from John Peyton, CEO; and Vance Chang, CFO. Following those prepared remarks, Tony Moralejo, President of Applebee's and Jay Johns, President of IHOP, will also be available to address questions from the investment community during the Q&A portion of the call. Please remember our safe harbor regarding forward-looking information. During the call, management will discuss information that is forward-looking and involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release and 10-Q filing. The forward-looking statements are as of today and we assume no obligation to update or supplement these statements. We will refer to certain non-GAAP financial measures, which are described in our press release and available on Dine Brands' Investor Relations Web site. For calendar planning purposes, we are tentatively scheduled to release our Q2 2024 earnings before the market opens on August 7, 2024, and to host a conference call that morning to discuss the results. With that, it is my pleasure to turn the call over to Dine Brands' CEO, John Peyton.
John Peyton
Good morning, everyone. And thank you for joining us for our first quarter earnings call. Today, I'll share Dine's Q1 results and discuss trends in consumer behavior, and discuss operational highlights across our portfolio. I'll also provide an update on our development strategy. And then Vance will discuss our financial results and capital allocation plans in more detail. During the first quarter, like others in our industry, we saw large areas of the country experience poor weather impacting sales and traffic. And consumer caution with respect to economic conditions persisted in the post holiday period. As a result, the consumer has become more price sensitive as indicated by the response to our limited time promotions. For example, at Applebee's 28% of our transactions were tied to a limited time offer or promotion, which was up from 19% in the previous quarter as well as the prior year. We also continue to see guests trade down from higher priced items at both IHOP and Applebee's, another indicator that guests are managing their wallet. Despite the volatile macro environment causing a slower start to 2024 than we anticipated, we are encouraged to see that our value driven strategy helped to mitigate some of the challenges in Q1 and importantly, drive sequential improvements throughout the quarter. Our approach was validated by guest response to our LTOs and enthusiastic reactions to our continued menu innovation and reinforced by strong marketing calendars and brand relevancy....
Dine Brands Global, Inc. (DIN) Q1 2024 Earnings Call Transcript