2024-03-11 17:09:16 ET
Summary
- Dine Brands franchises and operates restaurants under popular brands Applebee's and IHOP, as well as the smaller Fuzzy's taco shop brand.
- The Applebee's brand is performing quite poorly with decreasing restaurant count guided for 2024 and a negative 2023 same-store sales performance.
- The company's balance sheet still includes a very large amount of long-term debt from the 2007 Applebee's acquisition, leveraging risks for investors.
- The stock is priced for very modest growth, in line with my expectations. While a better Applebee's performance could provide great upside for investors, I don't see such a scenario as a fair baseline expectation.
Dine Brands Global ( DIN ) franchises and operates restaurants under the Applebee’s, IHOP, and Fuzzy’s Taco Shop brands in the United States as well as internationally. Most of the company’s restaurants are operated by independent franchisees, with all of Applebee’s 1646 restaurants at the end of 2023 being franchised, and the overwhelming majority of 1796 IHOP restaurants being franchised as per the company’s Q4 press release ....
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Dine Brands: Unfortunate Weakness In Applebee's 2024 Guidance