Dine Brands Global, Inc. (NYSE:DIN), the parent company of Applebee’s Neighborhood Grill + Bar and IHOP, reported third-quarter fiscal 2025 revenue of $216.2 million, up 10.9% from $195.0 million a year earlier, missing analyst estimates of $219.684 million.
The company reported GAAP earnings of 48 cents per diluted share, down from $1.24 a year ago, and adjusted earnings of 73 cents per diluted share, which fell short of the $1.07 analyst estimate.
Applebee's Delivers Steady Sales Growth
Applebee's domestic comparable same-restaurant sales increased 3.1% year over year, with off-premise sales accounting for 22.9% of the mix and averaging about $12,000 in weekly sales per restaurant.
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IHOP Faces Dip in Comparable Sales
IHOP's domestic comparable same-restaurant sales decreased 1.5%, with off-premise sales representing 20.4% of the mix and averaging about $7,500 per week. Franchise development activity during the quarter included 17 openings and 12 closures.
Consolidated adjusted EBITDA totaled $49.0 million, down from $61.9 million in the prior year, reflecting higher general and administrative expenses and temporary restaurant closures for remodels and dual-brand conversions.
For the first nine months of 2025, total revenue was $661.7 million, up from $607.5 million in 2024. GAAP EPS fell to $1.90 from $3.88, and adjusted EPS declined to $2.94 from $4.48.
Operating cash flow increased to $83.3 million from $77.7 million, while adjusted free cash flow was $68.2 million, down from $77.8 million.
Balance Sheet and Capital Returns
The company ended the quarter with $251.1 million in total cash, including $168.0 million in unrestricted cash, and more than $224 million in borrowing capacity.
During the quarter, Dine Brands repurchased $22.5 million of its stock and paid $7.8 million in dividends. The company announced a revised capital return framework, committing to repurchase $50 million of shares over the next two quarters. It also declared a 19 cents per-share quarterly dividend, payable on January 7, 2026, to shareholders of record as of December 23, 2025.
Executive Commentary
CEO John Peyton said the company "sustained positive sales and traffic trends, driven by our everyday value platforms, innovative new menu offerings, and high-impact marketing that continues to resonate with guests."
He added that the dual-brand concept "continues to gain momentum" and that Dine Brands is on track to exceed its 2025 domestic target with about 30 new locations opened or under construction by year-end.
CFO Vance Chang said Dine Brands "continues to generate strong cash flow" and reiterated management's belief that "our shares are undervalued."
Price Action: DIN shares were trading higher by 2.56% to $25.23 at last check Wednesday.
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