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Dine Brands Global (NYSE:DIN) reported a 7.1% drop in revenue in Q1 to $214M. The decline compared to a year ago was primarily due to the refranchising of the 69 company-operated Applebee’s units in October 2022, partially offset by the positive comparable same-restaurant sales growth at Applebee’s and IHOP
Applebee’s comparable same-restaurant sales increased 6.1% year-over-year for the quarter vs. +4.9% consensus. Off-premise sales accounted for 23.1% of sales mix, representing per restaurant average weekly sales of approximately $12,900.
IHOP’s domestic comparable same-restaurant sales increased 8.7% for the quarter vs. +6.8% consensus. Off-premise sales accounted for 21.7% of sales mix, representing per restaurant average weekly sales of approximately $7,400
Net income for the quarter was $27.4M vs. $24.9M a year ago. The increase was primarily due to higher gross margin and a gain on extinguishment of debt, partially offset by higher G&A expenses. Consolidated adjusted EBITDA for DIN was $66.4M vs. $65.2M a year ago. EPS came in at $1.97 to sail past the consensus mark of $1.70.
Dine Brands (DIN) reiterated prior guidance for consolidated adjusted EBITDA to be in the range of between approximately $243M and $255M. On the development front, domestic development activity by Applebee’s franchisees of between 10 and 20 net fewer restaurants is anticipated and domestic development activity by IHOP franchisees and area licensees of between 45 and 60 net new openings.
Shares of Dine Brands (DIN) rallied 4.17% in premarket trading on Wednesday to $63.36 vs. the 52-week range of $61.03 to $82.43.