Dine Brands Reports Decline in Fourth Quarter Earnings in Challenging Market

Pasadena-headquartered Dine Brands Global, Inc., the parent company of Applebee’s, IHOP and Fuzzy’s Taco Shop restaurants, announced a decline in fourth quarter and fiscal year 2024 earnings Wednesday, reflecting ongoing challenges in the restaurant industry.

In a statement, the company reported lower comparable same-restaurant sales at its flagship brands while emphasizing its continued financial stability.

Applebee’s domestic comparable same-restaurant sales declined 4.7% for the fourth quarter of 2024, while IHOP experienced a 2.8% decrease during the same period. Total revenues for the quarter reached $204.8 million, down slightly from $206.3 million for the fourth quarter of 2023.

“Our financial results have demonstrated that this continues to be a dynamic operating environment and underscores our commitment to refreshing, reinvesting, and reinforcing our brands in the year ahead,” said John Peyton, Dine Brands Global, Inc. CEO.

GAAP net income available to common stockholders was $5 million for the fourth quarter, or earnings per diluted share of $0.34, compared to $32.3 million, or $2.14 per diluted share, for the same period in 2023. The company attributed the decline primarily to a prior year income tax benefit and an increase in closure and impairment charges.

Vance Chang, Chief Financial Officer, emphasized the company’s financial stability despite market challenges.

“Against a backdrop of market volatility, Dine continued to generate strong free cash flow in 2024. It speaks to our overall financial stability and highlights the resilience of the Dine platform through market cycles,” Chang said.

For the full year 2024, Dine Brands reported total revenues of $812.3 million compared to $831.1 million for the prior year. GAAP net income available to common stockholders was $63.0 million, down from $94.9 million in 2023.

Off-premise sales continued to represent a significant portion of business, accounting for 21.6% of Applebee’s sales mix and 20.4% of IHOP’s sales mix in the fourth quarter.

For all of 2024, the company opened 65 new restaurants and closed 83. The company also acquired 47 Applebee’s restaurants from franchisees in the fourth quarter.

Looking ahead to 2025, the company’s statement suggests a cautious outlook. Applebee’s domestic system-wide comparable same-restaurant sales are expected to range between negative 2% and positive 1%, while IHOP’s performance is projected between negative 1% and positive 2%.

Consolidated adjusted EBITDA is expected to range between approximately $235 million and $245 million for 2025.

“Going into 2025, we will remain prudent with our capital and make the necessary investments and changes to drive improved performance,” Chang said.

The company’s Board of Directors declared a quarterly cash dividend of $0.51 per share of common stock, payable on April 4, 2025. During 2024, Dine Brands repurchased approximately $12 million of its common stock and paid about $31 million in dividends.

Based in Old Pasadena, Dine Brands Global supports and operates over 3,500 restaurants across 19 international markets.