Dine Brands Global has reported net income of $17m for the first quarter (Q1) of 2024, down 36.3% from $26.7m a year previously.  

The company, which owns the Applebee’s, IHOP and Fuzzy’s brands, reported a 3.55% dip in total revenues to $206.2m from $213.8m in Q1 2023.

Negative comparable same-restaurant sales growth at Applebee’s and IHOP has been cited as the primary reason for the decline in revenues.

For Q1 2024, Applebee’s domestic comparable same-restaurant sales decreased 4.6% year-on-year. Its off-premise sales mix accounted for 22.1% compared to 23.1% in Q1 2023.

IHOP’s year-over-year domestic comparable same-restaurant sales fell 1.7% in Q1 2024.

The company’s total cost of revenues stood at $108.8m as against $110.1m in the same quarter of the previous year.

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Adjusted Q1 earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 8.3% to $60.8m from $66.35m in Q1 2023.

Dine Brands Global CEO John Peyton said: “While we are not content with the start of the year, we are encouraged by the response of our value offerings and targeted promotions which drove improved performance as the quarter progressed.

“This quarter is an important reminder that our guests are craving abundant value and we are committed to meeting their needs through our upcoming campaigns and new menu items while leveraging the resources of our platform to support franchisees.”

Dine Brands reiterated its fiscal year 2024 guidance, expecting Applebee’s domestic system-wide comparable same-restaurant sales to range between 0% and 2%, with franchisees anticipated to close between 25 and 35 net fewer restaurants.

IHOP’s comparable sales are projected to be between 1% and 3%, with franchisees and area licensees planning between 15 and 25 net new openings.

The company forecasts a consolidated adjusted EBITDA between $255m and $265m. Gross capital expenditures are expected to be between $15m and $20m.