Dine Brands Global ( NYSE: DIN ) stock slid on Wednesday as Q4 sales missed expectations.
For the quarter reported, the IHOP and Applebee’s parent posted $1.34 in earnings per share, beating expectations by $0.11. However, a 9.4% decline in revenue from the prior year to $207.97M was steeper than anticipated. Management added that sale of the 69 company-operated Applebee’s units in October 2022 was a key adverse impact on the quarter.
Comparable sales at Applebee’s came in at 1.7%, slightly better than half the 3.29% expectation. IHOP comparable sales at 2% for the quarter was also short of the 2.21% consensus forecast.
‘We remain encouraged by the strength of our asset-light business model and even in the face of macro-challenges, we were able to achieve EBITDA above our guidance, return capital to shareholders and retire long-term debt under par,” CFO Vance Chang said.
Moving forward into 2023, the company expects consolidated adjusted EBITDA in the range of between $243M and $255M, essentially in-line with a $250.6M consensus expectation on the Street. However, gross capital expenditures are expected to range between $33M and $38M, above the $28.3M expected by analysts.
Shares of the restaurant operator fell 3.23% on lighter than typical trading volume on Wednesday. The California-based company’s stock slid over 7% at an intraday low near the market open before rebounding to a more modest loss.
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Dine Brands stock dips as Q4 sales fail to satiate expectations