DIN earnings analysis
What we found in DIN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Dine Brands delivered Q2 revenue of $240.9 million, up 4.4% year over year and above the $236.2 million consensus estimate, primarily from acquired company-owned restaurants. However, GAAP diluted EPS fell to $0.35 from $0.89, as gross profit declined to $91.2 million, G&A increased to $55.6 million, and net interest expense rose to $22.0 million. Operating cash flow fell to $19.9 million for the first six months and adjusted free cash flow dropped to $3.7 million, while Applebee's Q2 domestic comparable sales declined 1.8%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 4.4% on acquired restaurants
- Q2 revenue increased $10.1 million year over year to $240.9 million, a 4.4% increase, and rose from $225 million in Q1 2026. Growth was driven by a $19.1 million increase in company-owned restaurant revenue following restaurant acquisitions and openings.
- IHOP returned to positive comparable sales
- IHOP domestic same-restaurant sales rose 1.5% year over year, versus a 2.3% decline in the prior-year quarter. IHOP off-premise sales increased $3.8 million to $152.5 million.
- Fuzzy's produced 4.6% comparable-sales growth
- Fuzzy's domestic same-restaurant sales increased 4.6%, supported by menu-price-driven average-check growth. Its domestic average weekly unit sales increased to $32.5 thousand from $30.2 thousand.
- Company-owned loss narrowed amid expansion
- The company-owned restaurant segment loss narrowed to $1.8 million from $2.7 million despite revenue expanding to $47.3 million from $28.2 million. Company-owned restaurant count was 136 at June 28, 2026, versus 70 a year earlier.
- Rental profit increased despite lower revenue
- Rental segment profit increased $0.2 million to $6.8 million even as rental revenue declined $1.2 million to $26.7 million, reflecting lower rental expenses from lease terminations.
- Capital return authorization expanded
- The Board authorized an additional $100.0 million share-repurchase program in May 2026. The company repurchased $29.3 million of stock in the first six months, with $143.8 million remaining under repurchase authorizations.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Earnings declined sharply year over year
- GAAP diluted EPS was $0.35, down from $0.89 in Q2 2025 and $0.57 in Q1 2026. Income before taxes fell $12.9 million to $6.0 million as gross profit, G&A, interest expense, and impairment charges moved unfavorably.
- Revenue growth did not convert to margin
- Gross profit decreased $1.0 million to $91.2 million despite a $10.1 million revenue increase, reducing gross margin to 37.9% from 39.9%. Estimated operating margin was 11.5%, down from approximately 15.1% a year earlier, as G&A increased $4.8 million to $55.6 million.
- Applebee's comps and franchise base contracted
- Applebee's domestic same-restaurant sales declined 1.8%, while Applebee's franchise revenue fell $4.7 million to $41.0 million. Applebee's franchised restaurant count declined to 1,439 from 1,514 year over year.
- Cash generation weakened materially
- Six-month operating cash flow declined $33.2 million to $19.9 million, and adjusted free cash flow declined $45.0 million to $3.7 million. Capital expenditures rose $13.9 million to $23.2 million, equal to 5.0% of six-month revenue of $466.1 million.
- Liquidity declined while revolver remained drawn
- Cash and cash equivalents fell $30.7 million from $128.2 million at December 28, 2025 to $97.5 million at June 28, 2026, while revolving-credit-facility borrowings remained $100.0 million. Net cash including restricted balances declined $28.9 million to $72.8 million.
- No formal risk-factor update; international impairment
- Item 1A states there were no material changes to risk factors from the December 28, 2025 Form 10-K. Separately, Q2 included a $3.2 million trademark impairment tied to a strategic realignment of the international market.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.35
- Gross margin
- 37.9%
- Operating margin
- 11.5%
- Segment
- Franchise segment: revenue $166.9 million, down $7.8 million year over year; segment profit $86.2 million, down $2.1 million.
- Segment
- Company-owned restaurants: revenue $47.3 million, up $19.1 million year over year; segment loss improved to $1.8 million from $2.7 million.
- Segment
- Rental segment: revenue $26.7 million, down $1.2 million year over year; segment profit increased to $6.8 million from $6.6 million.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management discusses ongoing investments in company-owned and dual-branded restaurants, but gives no numerical outlook in the filing.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 6, 2026
- Dine Brands reported Q1 2026 revenues of $225.2 million, exceeding expectations of $222.4 million. However, diluted EPS of $0.57 fell below Street estimates of $1.00, demonstrating ongoing pressure on profitability…
- 10-K · February 25, 2026
- Dine Brands grew total revenues to $879.3 million in fiscal 2025 (up $67.0 million vs. 2024) driven by acquisitions that increased company-owned restaurant revenues to $104.6 million. Profitability weakened: income…
- 10-K · March 5, 2025
- Dine Brands Global's 2024 10-K report reveals a decline in system-wide sales across its restaurant brands, particularly Applebee's and Fuzzy's, which saw decreases of 5.5% and 14.7%, respectively. The company reported…
- 10-Q · August 9, 2022
- Dine Brands reported total revenue of $237.8 million for the three months ended June 30, 2022, up $4.2 million (1.8%) versus the prior-year quarter, while net income fell to $24.0 million and diluted net income per…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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