Dine Brands Revenue Climbs To $248.9 Million On Restaurant Buys, While Profit Slips
Third-quarter adjusted EBITDA held at $49.0 million, and nine-month operating cash flow fell to $37.8 million from $83.3 million.
Dine Brands, which owns and franchises Applebee's, IHOP and Fuzzy's Taco Shop, said third-quarter revenue rose to $248.9 million from $216.1 million a year earlier, lifted by company-owned restaurants it bought and opened. Net income available to common stockholders fell to $4.5 million, according to an 8-K filed Wednesday.
Revenue up, earnings down
Company-owned restaurant revenue rose $36.9 million, to $64.4 million from $27.5 million, and the company said that accounted for most of the revenue gain. Franchise revenue slipped to $159.0 million from $161.3 million.
Earnings were $0.37 per diluted share, against $0.48 a year earlier. On an adjusted basis, earnings rose to $0.82 per share from $0.73, and adjusted EBITDA was flat at $49.0 million. Income before taxes fell to $6.7 million from $10.0 million.
General and administrative expenses rose to $51.6 million from $50.2 million, which the company tied to professional fees and employee costs from its company-owned and dual-brand push.
CEO John Peyton said both Applebee's and IHOP "achieved positive growth." Comparable domestic same-restaurant sales rose 0.9% at Applebee's and 0.8% at IHOP, with off-premise sales at 23% and 21% of the mix.
Cash generation shrinks
For the first nine months, operating cash flow fell to $37.8 million from $83.3 million. The company cited the timing of marketing spend, higher performance pay and interest, and remodel and development incentives paid to franchisees.
Adjusted free cash flow dropped to $12.8 million from $68.2 million, which also reflects higher capital spending. Nine-month revenue rose to $715.0 million from $661.7 million, but net income available to common stockholders fell to $15.9 million from $28.1 million and adjusted EBITDA slipped to $154.0 million from $159.9 million.
The nine-month gain came from buying 12 Applebee's restaurants in February 2026 and 48 in June 2026, along with earlier purchases of IHOP and Applebee's units.
Cash, debt and shareholder returns
The company, which as of September 27, 2026 had nearly 3,500 restaurants across its three brands, ended the quarter with about $91.1 million of unrestricted cash and about $224.5 million of borrowing capacity under its variable funding senior notes.
In the quarter it repurchased about $6.5 million of stock and paid about $2.4 million in dividends. It opened 23 restaurants and closed 28, including seven dual-branded openings; it had 49 domestic dual-branded locations at quarter-end.
Chief Financial Officer Vance Chang said the company's asset-light model gives it flexibility to invest while returning capital to shareholders. Management holds its earnings call at 11:00 a.m. Eastern on Wednesday.
Peyton said the company is focused on expanding its dual-brand program, improving its company-owned portfolio and accelerating its remodel pipeline.
Sources
- 8-K Filing — Dine Brands Global, Inc. (DIN) — SEC EDGAR
- Exhibit d124239dex991.htm — Dine Brands Global, Inc. 8-K exhibit — SEC EDGAR
