Dine Brands Global – parent company of Applebee’s, Ihop, and Fuzzy’s Taco Shop – reported higher revenues in the second quarter, supported by stronger sales at Applebee’s.
Total revenue rose to $230.8 million, up from $206.3 million a year prior, driven by the acquisition of company-owned Applebee’s and Ihop restaurants last year.
However, franchise earnings, rental income, and adjusted EBITDA (earnings before interest, taxes, depreciation, and appreciation) fell to $56.2 million from $67.0 million last year.
Applebee’s domestic same-restaurant sales rose 4.9 per cent, fueled by promotions, new menu items, and continued investment in marketing. Off-premise sales accounted for 22 per cent of the mix.
Meanwhile, Ihop’s comparable same-restaurant sales dipped 2.3 per cent, with off-premise representing 20 per cent of sales.
“In the second quarter, we continued to build positive momentum across both Applebee’s and Ihop,” said John Peyton, CEO of Dine Brands.
“Applebee’s benefited from strong consumer response to our value-driven promotions and innovation in menu and marketing, while Ihop saw growth from its refreshed brand positioning and value strategy.”
Peyton added that the company’s dual-brand pilot is gaining traction, with the second domestic location now open and delivering strong economics.
“We remain confident that our ongoing investments will generate sustainable value for our shareholders and franchisees,” he said.
The quarter saw seven new restaurant openings and 46 closures across Applebee’s and Ihop.
In the first half of the year, revenue rose to $445.6 million, up from $412.5 million a year earlier. Adjusted EBITDA declined to $110.9 million from $127.8 million.
Spending rose as the company invested in remodeling, dual branding, and restaurant operations, pushing G&A (general and administrative) expenses to $102.1 million. Adjusted free cash flow fell to $48.7 million, while franchisees opened 16 restaurants and closed 85.
“In this quarter, we completed a refinancing transaction that strengthens our capital structure and enhances financial flexibility, positioning us well for future growth,” said Vance Chang, CFO, Dine Brands.
