Dine Brands Global ( NYSE: DIN ) rallied in early trading on Wednesday after cruising past consensus expectations with its Q3 earnings report.
Comparable same-restaurant sales increased 3.8% for the Applebee's chain and were up 1.9% for the IHOP chain. Both those marks came in ahead of the consensus expectation.
Consolidated adjusted EBITDA was $63.6M vs. $63.3M a year ago. The increase in Dine Brands ( DIN ) revenue during the quarter was offset by ongoing inflation across company restaurants and higher franchise-level expenses.
CEO update: "Our results continued to display the strength of our asset-light business model. With less than one quarter remaining in 2022, we have narrowed our EBITDA and G&A guidance to better incorporate our year-to-date progress and our prospects for the remainder of the year."
On the development front, the restaurant operator said it opened 10 new restaurants and closed 11.
The balance sheet at the end of the quarter showed a cash position of $424.2M for Dine Brands ( DIN ), of which $355.3M was unrestricted cash. The leverage ratio was 3.90X compared to 4.27X as of June 30, 2022. Debt service coverage ratio was 4.15X compared to 4.31X as of June 30, 2022. Capacity under the revolving credit facility showed $221.6M available, with a $100M draw down in August 2022 and $3.4M pledged.
Shares of Dine Brands ( DIN ) moved up 2.30% in premarket trading to $72.00 following the earnings report.
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Dine Brands gains after both Applebee's and IHOP outperform