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…
Earnings analysis · 10-Q
DIN earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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%.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.35
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.