Dine Brands Global, the parent company of Applebee’s, Ihop, and Fuzzy’s Taco Shop, has reported a third quarter characterised by rising sales but falling profitability.

Revenue climbed from $195 million in the same period last year to $216.2 million, fueled primarily by stronger performance at company-owned restaurants.

Applebee’s saw a 3.1 per cent increase in same-restaurant sales, with off-premise channels now accounting for 22.9 per cent of revenue, reflecting continued consumer demand for delivery and takeout. 

Ihop, by contrast, experienced a 1.5 per cent decline in same-restaurant sales, with off-premise orders making up 20.4 per cent of sales.

“In the third quarter, Dine Brands sustained positive sales and traffic trends, driven by our everyday value platforms, innovative new menu offerings, and high-impact marketing that continues to resonate with guests,” said CEO John Peyton.

Despite the revenue gains, profits took a hit. GAAP net income fell to $7 million, down from $18.5 million a year ago, while adjusted net income totalled $10.5 million, compared with $21.4 million in Q3 2024. 

The decline was largely due to higher operating costs, including investments in restaurant remodels and brand conversions. Adjusted EBITDA decreased to $49 million from $61.9 million.

With nearly 3500 restaurants in 20 international markets, Dine Brands says it is navigating a competitive casual dining environment, balancing the growing off-premise segment with continued investments in the in-restaurant experience and brand development.