Full-service restaurants company Dine Brands Global has reported total revenues of $214.8m the first quarter (Q1) of the fiscal year 2025 (FY25), up from $206.2m posted in the same period of the previous year.
Dine Brands Global is the parent company of Applebee’s Neighborhood Grill & Bar, IHOP and Fuzzy’s Taco Shop restaurants.
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The Pasadena, California-based company states that its revenue rose mainly due to acquiring 47 Applebee’s restaurants in late 2024, partially offset by lower franchise revenues from declining same-store sales and fewer Applebee’s and IHOP franchise locations.
However, despite the revenue growth, Dine Brands experienced a drop in adjusted net income available to common stockholders, which stood at $15.4m, or $1.03 per diluted share, compared to $19.9m – $1.33 per diluted share – in Q1 FY24.
The decline was due to a decrease in segment profit, partially mitigated by reduced general and administrative expenses and lower cash interest expense.
The company’s consolidated adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) for the first quarter also fell to $54.7m from $60.8m in the same period of the year before.
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By GlobalDataAdjusted free cash flow also declined to $14.6m compared to the previous year’s $29.7m.
Dine Brands repurchased approximately $1.6m of its common stock and distributed $7.8m in dividends during the quarter.
In its fiscal 2025 guidance, the company anticipates that Applebee’s domestic system-wide comparable same-restaurant sales will vary between a 2% decline and a 1% increase.
IHOP will see a range between a 1% decrease and a 2% increase in similar metrics.
Franchise development activities are projected to result in a net reduction of between 20 and 35 restaurants for Applebee’s and a net change ranging from ten fewer to ten new restaurants for IHOP.
The consolidated adjusted EBITDA forecast remains from $235m to $245m.
Dine Brands Global CEO John Peyton stated: “As we navigate the current operating environment, the fundamentals of our business remain strong, and since the second half of the quarter, we’re seeing steady improvement across sales, traffic and our development pipeline. We’re advancing our long-term strategy by executing the near-term priorities outlined last quarter — enhancing the guest experience, strengthening our menu and value platforms, and driving clearer value messaging through marketing. We’re making great progress, and our team and franchisees are focused on continuing the positive momentum.”
