Company Website: https://www.dinebrands.com/en
PASADENA, Calif. -- (Business Wire)

Dine Brands Global, Inc. (NYSE: DIN) (the “Company” or “Dine Brands”), the parent company of Applebee’s Neighborhood Grill + Bar^®, IHOP^® and Fuzzy’s Taco Shop^® restaurants, today announced financial results for the third quarter of fiscal year 2026.

"This quarter, Applebee's and IHOP both achieved positive growth due to our everyday value, menu innovation, culturally relevant marketing, and sharper operational execution,” said John Peyton, Chief Executive Officer of Dine Brands. “We're focused on supporting the future of our brands, including expanding our dual-brand program, improving our company-owned portfolio, and accelerating our remodel pipeline. We remain confident in the strategy we've laid out - building long-term value through consistent execution today and disciplined investment in our future growth."

Vance Chang, Chief Financial Officer of Dine Brands, added, "Our scale, capital structure and asset-light model continue to generate the financial and strategic flexibility for us to invest across the business while returning capital to our shareholders. We are committed to our disciplined capital allocation priorities with the goal of generating long term shareholder value."

Domestic Restaurant Sales for the Third Quarter of 2026

• Applebee’s year-over-year comparable domestic same-restaurant sales increased 0.9% for the third quarter of 2026. Off-premise sales accounted for 23% of sales mix in the third quarter of 2026.
  

• IHOP’s year-over-year comparable domestic same-restaurant sales increased 0.8% for the third quarter of 2026. Off-premise sales accounted for 21% of sales mix in the third quarter of 2026.

Third Quarter of 2026 Summary

• Total revenues for the third quarter of 2026 were $248.9 million compared to $216.1 million for the third quarter of 2025. The increase was primarily driven by a $36.9 million increase in company-owned restaurant revenues from restaurants acquired and opened since the third quarter of 2025.

• General and administrative expenses for the third quarter of 2026 were $51.6 million compared to $50.2 million for the third quarter of 2025. The increase was driven by higher professional services fees and higher employee-related costs associated with our investment in company-owned and dual-brand restaurant initiatives.

• Net income available to common stockholders was $4.5 million, or earnings per diluted share of $0.37, for the third quarter of 2026 compared to net income available to common stockholders of $7.0 million, or earnings per diluted share of $0.48 for the third quarter of 2025.

• Non-GAAP¹ net income available to common stockholders, as adjusted, was $10.1 million, or adjusted earnings per diluted share of $0.82, for the third quarter of 2026, compared to net income available to common stockholders, as adjusted, of $10.5 million, or adjusted earnings per diluted share of $0.73, for the third quarter of 2025.

• Income before income taxes for the third quarter of 2026 was $6.7 million compared to income before income taxes of $10.0 million for the third quarter of 2025.

• Adjusted EBITDA¹ for the third quarter of 2026 was $49.0 million compared to $49.0 million for the third quarter of 2025.

• Development activity by Applebee’s and IHOP for the third quarter of 2026 resulted in 23 new restaurant openings and 28 restaurant closures, which includes seven dual-branded openings ².

First Nine Months of 2026 Summary

• Total revenues for the first nine months of 2026 were $715.0 million compared to $661.7 million for the first nine months of 2025. The increase was primarily driven by a $67.8 million increase in company-owned restaurant revenues from the acquisition of 12 Applebee’s restaurants in February 2026 and 48 Applebee’s restaurants in June 2026, and from the acquisition of 10 IHOP restaurants in March 2025 and 12 Applebee’s restaurants in May 2025.

• General and administrative expenses for the first nine months of 2026 were $160.3 million compared to $152.3 million for the first nine months of 2025. The increase was driven by higher employee-related costs associated with our investment in company-owned and dual-brand restaurant initiatives, higher professional services fees, and higher incentive compensation due to increased headcount and higher performance expectations for the remainder of the year as compared to the prior year.

• Net income available to common stockholders was $15.9 million, or earnings per diluted share of $1.29, for the first nine months of 2026 compared to net income available to common stockholders of $28.1 million, or earnings per diluted share of $1.90 for the first nine months of 2025.

• Non-GAAP³ net income available to common stockholders, as adjusted, was $35.1 million, or adjusted earnings per diluted share of $2.85, for the first nine months of 2026, compared to net income available to common stockholders, as adjusted, of $43.3 million, or adjusted earnings per diluted share of $2.94, for the first nine months of 2025.

• Income before income taxes for the first nine months of 2026 was $22.9 million compared to income before income taxes of $41.8 million for the first nine months of 2025.

• Adjusted EBITDA³ for the first nine months of 2026 was $154.0 million compared to $159.9 million for the first nine months of 2025.

• Cash flows provided by operating activities for the first nine months of 2026 were $37.8 million. This compares to cash flows provided by operating activities of $83.3 million for the first nine months of 2025. The decrease was primarily driven by the timing of marketing spend, higher payments related to performance-based compensation and interest, as well as remodel and development incentives paid to our franchisees.

• Adjusted free cash flow⁴ was $12.8 million for the first nine months of 2026. This compares to adjusted free cash flow of $68.2 million for the first nine months of 2025. The decrease was primarily driven by the decrease in cash provided by operating activities and an increase in capital expenditures.

Effective Tax Rate

The Company’s effective tax rate was 28.8% for the nine months ended September 27, 2026, as compared to 29.8% for the nine months ended September 28, 2025.

Key Balance Sheet Metrics

• Total cash, cash equivalents and restricted cash of approximately $173.6 million, of which approximately $91.1 million was unrestricted cash.

• Available borrowing capacity under the 2025 Variable Funding Senior Notes, Class A-1 was approximately $224.5 million.

Capital Returns to Equity Holders

During the third quarter of 2026, the Company repurchased approximately $6.5 million of its common stock and paid approximately $2.4 million in dividends.

Third Quarter of 2026 Earnings Conference Call Details

Dine Brands will host a conference call to discuss its results on November 4, 2026, at 11:00 a.m. Eastern time. A live webcast of the call, along with a replay will be available for a limited time at https://investors.dinebrands.com. Participants should allow approximately ten minutes prior to the call’s start time to visit the site and download any streaming media software needed to listen to the webcast. An online archive of the webcast will also be available on Events & Presentations under the Investors section of the Company’s website.

About Dine Brands Global, Inc.

Based in Pasadena, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries and franchisees, supports and operates restaurants under the Applebee's Neighborhood Grill + Bar®, IHOP®, and Fuzzy’s Taco Shop® brands. As of September 27, 2026, these three brands comprised nearly 3,500 restaurants. Dine Brands is one of the largest full-service restaurant companies in the world and in 2022 expanded into the Fast Casual segment. For more information on Dine Brands, visit the Company’s website located at www.dinebrands.com.

Forward-Looking Statements

Statements contained in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “goal” and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: general economic conditions, including the impact of inflation on us and our franchisees directly; cost pressures, including rising costs for commodities, labor, health care and utilities; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of corporate strategies, including restaurant development plans; our dependence on our franchisees; the concentration of our Applebee’s franchised restaurants in a limited number of franchisees; the financial health of our franchisees, including any insolvency or bankruptcy; credit risks from our IHOP franchisees operating under our previous IHOP business model in which we built and equipped IHOP restaurants and then franchised them to franchisees; insufficient insurance coverage to cover potential risks associated with the ownership and operation of restaurants; our franchisees’ and other licensees’ compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands’ reputation; risks of food-borne illness or food tampering; possible future impairment charges; trading volatility and fluctuations in the price of our shares; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; changes in U.S. government regulations and trade policies, including the imposition of tariffs and other trade barriers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; the implementation and use of artificial intelligence and related technologies; delivery initiatives and use of third-party delivery vendors; our allocation of human capital and our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; risks of major natural disasters, including earthquake, wildfire, tornado, flood or a man-made disaster, including terrorism, civil unrest or a cyber incident; risks of volatile or adverse weather conditions as a result of climate change; pandemics, epidemics, or other serious incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; changes in tax laws; failure to meet investor and stakeholder expectations regarding business responsibility matters; and other factors discussed from time to time in the Company’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company’s other filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances.

Non-GAAP Financial Measures

This press release includes references to the Company's non-GAAP financial measures “adjusted net income available to common stockholders”, “adjusted earnings per diluted share (Adjusted EPS)”, “Adjusted EBITDA” and “Adjusted free cash flow.” Adjusted EPS is computed for a given period by deducting from net income or loss available to common stockholders for such period the effect of any closure and impairment charges, any intangible asset amortization, any non-cash interest expense, any gain or loss related to the disposition of assets, any gain or loss related to debt extinguishment, and other items deemed not reflective of current operations. This is presented on an aggregate basis and a per share (diluted) basis. Adjusted EBITDA is computed for a given period by deducting from net income or loss for such period the effect of any interest expense, any income tax provision or benefit, any depreciation and amortization, any non-cash stock-based compensation, any closure and impairment charges, any gain or loss related to debt extinguishment, any gain or loss related to the disposition of assets, and other items deemed not reflective of current operations. “Adjusted free cash flow” for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less capital expenditures. Management may use certain of these non-GAAP financial measures along with the corresponding U.S. GAAP measures to evaluate the performance of the business and to make certain business decisions. Management uses adjusted free cash flow in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock, and we believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes. Management believes that these non-GAAP financial measures provide additional meaningful information that should be considered when assessing the business and the Company’s performance compared to prior periods and the marketplace. Adjusted EPS, adjusted EBITDA, and adjusted free cash flow are supplemental non-GAAP financial measures and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.

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