Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation
Overview
U.S. restaurant franchisor's Q3 revenue rose and beat analyst expectations
Adjusted EPS for Q3 increased year-over-year to $0.82
Company repurchased $6.5 mln in stock during the quarter
Outlook
Company did not provide specific financial guidance for the current quarter or full year
Result Drivers
COMPANY-OWNED RESTAURANTS - Co said revenue growth was primarily driven by increased company-owned restaurant revenues from acquisitions and openings since Q3 2025
MENU INNOVATION AND MARKETING - CEO said positive growth at Applebee's and IHOP was attributed to everyday value, menu innovation, culturally relevant marketing, and sharper operational execution
DUAL-BRAND INITIATIVES - Co invested in expanding dual-brand program and accelerating remodel pipeline, contributing to operational focus
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $248.90 mln | $239.71 mln (6 Analysts) |
Q3 EPS | $0.37 | ||
Q3 Adjusted EBITDA | $49 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Dine Brands Global, Inc. is $36.50, about 3.4% above its November 3 closing price of $35.31
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)