Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation

By Reuters News


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


Reuters Recommended Reads

  • Nov 4 - McDonald's US sales decline for first time in six quarters despite value push

  • Nov 3 - Yum says Taco Bell rebounding after cyclosporiasis outbreak hit Q3 sales

  • Nov 3 - First Watch Q3 revenue slightly beats estimates on new restaurant openings


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.