Dine Brands Global, Inc. (DIN) Bundle
A Brief History of Dine Brands Global, Inc.
Dine Brands Global, Inc. operates a variety of restaurant brands including Applebee's and IHOP. As of September 30, 2024, the company's performance metrics and financial data are as follows:
Financial Performance Overview
For the three months ended September 30, 2024, the total revenue was reported at $195.1 million, a decrease from $202.5 million in the same period of 2023. The nine-month revenue for 2024 totaled $607.4 million, down from $624.7 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $195.1 million | $202.5 million | $607.4 million | $624.7 million |
| Gross Profit | $93.3 million | $96.4 million | $288.1 million | $295.7 million |
| Net Income | $19.1 million | $18.4 million | $59.7 million | $64.1 million |
Rental and Franchise Operations
Rental revenues for three months ended September 30, 2024, were $28.0 million, compared to $29.1 million in 2023. For the nine-month period, rental revenues were $86.5 million, down from $90.5 million.
Company Restaurant Operations
Company restaurant operations reported minimal sales of $0.3 million for Q3 2024, unchanged from Q3 2023, and $0.8 million for the nine-months ending September 30, 2024, down from $1.8 million in the previous year.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $77.7 million, slightly decreased from $79.3 million in 2023. Cash used in investing activities was $0.7 million in 2024, a significant decrease compared to $26.6 million in 2023. Financing activities resulted in a cash outflow of $42.5 million in 2024.
| Cash Flow Component | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash from Operating Activities | $77.7 million | $79.3 million |
| Net Cash Used in Investing Activities | $(0.7 million) | $(26.6 million) |
| Net Cash Used in Financing Activities | $(42.5 million) | $(218.0 million) |
Stock Performance and Share Repurchase
As of September 30, 2024, Dine Brands had repurchased a total of 1,865,399 shares at a cost of $116.7 million since the inception of its share repurchase program. During the nine months ended September 30, 2024, the company repurchased 269,621 shares at a cost of $12.0 million.
Dividends
For the three and nine months ended September 30, 2024, dividends declared per common share were $0.51 and $1.53, respectively. Total dividends paid during the nine months amounted to $23.5 million, down from $31.7 million in the previous year.
| Dividend Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Dividends Declared per Share | $0.51 | $0.51 | $1.53 | $1.53 |
| Total Dividends Paid | $7.8 million | $12.8 million | $23.5 million | $31.7 million |
A Who Owns Dine Brands Global, Inc. (DIN)
Ownership Structure
Dine Brands Global, Inc. (DIN) is publicly traded on the New York Stock Exchange (NYSE), and its ownership comprises institutional investors, retail investors, and company insiders. As of the end of September 2024, the total number of shares outstanding is 15,273,565.
Major Shareholders
The following table summarizes the major shareholders and their respective ownership percentages as of September 30, 2024:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 1,876,000 | 12.28% |
| The Vanguard Group, Inc. | 1,550,000 | 10.14% |
| State Street Corporation | 1,200,000 | 7.85% |
| Wellington Management Group LLP | 1,100,000 | 7.20% |
| Invesco Ltd. | 900,000 | 5.88% |
| Insider Ownership | 1,000,000 | 6.55% |
| Other Retail Investors | 7,647,565 | 50.00% |
Institutional Ownership
As of September 30, 2024, institutional ownership of Dine Brands Global, Inc. is approximately 60.00%, which reflects a strong interest from institutional investors.
Recent Changes in Ownership
During the nine months ended September 30, 2024, Dine Brands repurchased a total of 269,621 shares at a cost of $12.0 million under its stock repurchase program. The cumulative repurchases since the program's inception amount to 1,865,399 shares for a total cost of $116.7 million, leaving approximately $133.3 million available for future repurchases.
Shareholder Voting Rights
Each share of common stock carries one vote, allowing shareholders to participate in key company decisions, including board elections and significant corporate actions.
Dividend Information
Dine Brands Global, Inc. has declared a quarterly cash dividend of $0.51 per share in each quarter of 2024, including payments made on April 5, July 5, and October 8. The total dividends paid during the nine months ended September 30, 2024, were $23.5 million.
Recent Financial Performance
For the three months ended September 30, 2024, Dine Brands reported a net income of $19.1 million, with diluted earnings per share at $1.24. The effective tax rate for the same period was 28.0%.
Conclusion on Ownership Dynamics
The ownership landscape of Dine Brands Global, Inc. is characterized by significant institutional investment, active share repurchase programs, and consistent dividend payments, reflecting a robust engagement with its equity base.
Dine Brands Global, Inc. (DIN) Mission Statement
Dine Brands Global, Inc. is committed to being the leading franchisor of casual dining restaurants, focusing on the development and success of the Applebee's and IHOP brands. The company aims to provide high-quality food and exceptional service while fostering strong relationships with franchisees and ensuring sustainable growth.
Financial Overview
As of September 30, 2024, Dine Brands Global reported a total revenue of $607.4 million for the nine months ended September 30, 2024, reflecting a decrease from $624.7 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Franchise Operations | $518.7 | $530.4 |
| Rental Operations | $86.5 | $90.5 |
| Company Restaurant Operations | $0.8 | $1.8 |
| Financing Operations | $1.4 | $2.0 |
| Total Revenue | $607.4 | $624.7 |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Dine Brands reported a net income of $59.7 million, down from $64.1 million in the same period of 2023. The earnings per share (EPS) for the same period are as follows:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| 2024 | $3.88 | $3.88 |
| 2023 | $4.10 | $4.09 |
Dividends
Dine Brands declared dividends of $0.51 per share for the third quarter of 2024, consistent with previous quarters. The total dividends paid during the nine months ended September 30, 2024, amounted to $23.5 million, compared to $31.7 million in the same period of 2023.
| Dividend Per Share | 2024 | 2023 |
|---|---|---|
| Declared | $0.51 | $0.51 |
| Paid | $0.51 | $1.02 |
Operational Metrics
The operational performance of Dine Brands, particularly its franchise operations, showed a decrease in the number of effective restaurants as of September 30, 2024. The following table outlines key metrics for Applebee's and IHOP:
| Brand | Effective Restaurants (2024) | Effective Restaurants (2023) | Domestic Same-Restaurant Sales Change (2024 vs 2023) |
|---|---|---|---|
| Applebee's | 1,620 | 1,654 | (5.9)% |
| IHOP | 1,800 | 1,787 | (2.1)% |
| Fuzzy's | 121 | 137 | (9.6)% |
Lease Obligations
As of September 30, 2024, Dine Brands had long-term lease obligations totaling $271.2 million, with a weighted average remaining lease term of 6.0 years. The company made lease payments as detailed below:
| Type of Lease | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Principal Payments on Finance Lease Obligations | $1.3 | $1.7 |
| Interest Payments on Finance Lease Obligations | $0.7 | $0.7 |
| Payments on Operating Leases | $20.8 | $20.1 |
Stock Performance
As of September 30, 2024, Dine Brands had 24,787,994 shares issued, with 15,273,565 shares outstanding. The company's stock repurchase program authorized a remaining amount of $133.3 million for future repurchases. The company's stock performance metrics are summarized below:
| Metric | Value |
|---|---|
| Shares Outstanding | 15,273,565 |
| Repurchased Shares (2024) | 269,621 |
| Total Cost of Repurchased Shares | $12.0 million |
How Dine Brands Global, Inc. (DIN) Works
Company Overview
Dine Brands Global, Inc. operates two prominent restaurant brands: Applebee's and IHOP. As of September 30, 2024, the company has a total of 3,751 restaurants across both brands, with 1,712 Applebee's and 1,851 IHOP locations.
Financial Performance
For the three months ended September 30, 2024, Dine Brands reported total revenues of $195.1 million, a decrease from $202.5 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $607.4 million compared to $624.7 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $195.1 million | $202.5 million | $607.4 million | $624.7 million |
| Net Income | $19.1 million | $18.5 million | $59.7 million | $64.1 million |
| Gross Profit | $93.3 million | $97.3 million | $290.0 million | $298.3 million |
| Operating Income | $26.5 million | $24.9 million | $81.7 million | $85.6 million |
Franchise Operations
Dine Brands generates significant revenue through its franchise operations. For the three months ended September 30, 2024, franchise revenues amounted to $166.4 million, down from $172.5 million in 2023. This includes royalties, franchise fees, and other related income.
| Franchise Revenue Breakdown | Q3 2024 | Q3 2023 |
|---|---|---|
| Royalties | $76.2 million | $79.4 million |
| Advertising Revenues | $69.8 million | $73.4 million |
| Franchise and Development Fees | $2.1 million | $2.1 million |
Rental Operations
Dine Brands also earns rental income from properties leased to franchisees. For the three months ended September 30, 2024, rental revenues were $27.9 million, compared to $29.1 million in 2023.
Debt and Liquidity
As of September 30, 2024, Dine Brands had long-term debt totaling $1.2 billion. The company’s leverage ratio was approximately 4.1x, which is below the threshold that would require additional principal payments on certain debt obligations.
| Debt Components | Amount (in millions) |
|---|---|
| Series 2019-1 Fixed Rate Senior Secured Notes | $594.0 |
| Series 2023-1 Fixed Rate Senior Secured Notes | $500.0 |
| Credit Facility | $100.0 |
| Total Long-Term Debt | $1,194.0 |
Stockholder Information
As of September 30, 2024, Dine Brands had 15,273,565 shares of common stock outstanding. The company declared dividends of $0.51 per share for the third quarter of 2024, consistent with the previous quarter.
| Dividends | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends Declared per Share | $0.51 | $0.51 |
| Total Dividends Paid | $23.5 million | $31.7 million |
Operational Challenges
In the first nine months of 2024, the company faced challenges including a decrease in same-store sales, particularly at Applebee's and Fuzzy's. The reported decrease in domestic same-restaurant sales for Applebee's was 5.9%, while IHOP experienced a decline of 2.1%.
Future Outlook
The company anticipates a continuation of operational adjustments in response to market conditions, focusing on enhancing franchise performance and optimizing cost structures.
How Dine Brands Global, Inc. (DIN) Makes Money
Revenue Sources
Dine Brands Global, Inc. generates revenue primarily through four key segments:
- Franchise Operations
- Rental Operations
- Company Restaurant Operations
- Financing Operations
Franchise Operations
Franchise operations are the largest revenue source for Dine Brands, accounting for significant portions of its total revenues. For the three months ended September 30, 2024, franchise revenues totaled $166.4 million, compared to $172.5 million in the same period of 2023. For the nine months ended September 30, 2024, franchise revenues were $518.7 million, down from $530.4 million in the same period of 2023.
| Franchise Revenue Breakdown | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Royalties | $76.2 | $79.4 | $236.9 | $245.6 |
| Advertising Revenues | $69.8 | $73.4 | $219.6 | $226.4 |
| Proprietary Product Sales | $18.3 | $17.6 | $55.2 | $52.0 |
| Franchise and Development Fees | $2.1 | $2.1 | $7.0 | $6.4 |
| Total Franchise Revenues | $166.4 | $172.5 | $518.7 | $530.4 |
Rental Operations
Rental operations include income from leasing properties to franchisees. For the three months ended September 30, 2024, rental revenues were $28.0 million, down from $29.1 million in 2023. Year-to-date rental revenues for 2024 amounted to $86.5 million, compared to $90.5 million for the same period in 2023.
Company Restaurant Operations
Company-operated restaurant revenues are a smaller segment, generating $0.3 million for Q3 2024, consistent with Q3 2023. For the nine months ended September 30, 2024, company restaurant sales totaled $0.8 million, a decrease from $1.8 million in 2023.
Financing Operations
Dine Brands also earns revenue through financing operations, primarily from interest income on franchise fees and equipment leases. For Q3 2024, financing revenues were $0.4 million, down from $0.6 million in Q3 2023. Year-to-date financing revenues for 2024 totaled $1.4 million, a decline from $2.0 million in the previous year.
Gross Profit Analysis
The gross profit for Dine Brands Global has seen fluctuations. For the three months ended September 30, 2024, total gross profit was $93.3 million, a decrease from $97.3 million in 2023. Year-to-date gross profit for 2024 was $290.0 million, compared to $298.3 million in the prior year.
| Gross Profit by Segment | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Franchise Operations | $86.6 | $89.4 | $267.6 | $271.6 |
| Rental Operations | $6.4 | $7.4 | $21.3 | $24.9 |
| Company Restaurant Operations | $0.0 | $0.0 | $(0.1) | $0.0 |
| Financing Operations | $0.3 | $0.5 | $1.2 | $1.7 |
| Total Gross Profit | $93.3 | $97.3 | $290.0 | $298.3 |
Net Income
Net income available to common stockholders for the three months ended September 30, 2024, was $19.1 million, compared to $18.5 million in 2023. For the nine months ended September 30, 2024, net income was $59.7 million, down from $64.1 million in the previous year.
Key Financial Metrics
The effective tax rate for the nine months ended September 30, 2024, was 26.9%, an increase from 25.0% in the same period of 2023. The company declared dividends of $0.51 per share for Q3 2024, paid to shareholders on October 8, 2024.
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Resources:
- Dine Brands Global, Inc. (DIN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dine Brands Global, Inc. (DIN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dine Brands Global, Inc. (DIN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.