Dine Brands Global reported fourth‑quarter 2025 revenue of $217.6 million, a 6.5% increase from the $204.8 million reported in the prior quarter, but the figure fell short of the consensus estimate of $226.2 million to $230.4 million. The company’s adjusted earnings per share of $1.46 beat the consensus estimate of $1.07 by $0.39, a 36% upside, while the GAAP net loss widened to $12.2 million, or –$0.93 per share, largely due to a $29 million non‑cash impairment charge on an intangible asset.
The $29 million impairment charge, a one‑time write‑down of recently acquired restaurant assets, was the primary driver of the GAAP loss. Excluding the impairment, the company’s operating performance was stronger, with company‑owned restaurant revenue rising to $27.2 million and operating expenses increasing to $27.7 million, resulting in a modest gross profit of $4.5 million for the segment. The loss reflects the company’s ongoing investment in its dual‑brand conversion program and the transition from a franchisor to a hybrid operator.
Company‑owned restaurant revenue growth was largely driven by the acquisition of 47 Applebee’s and 10 IHOP locations in the prior year, which added $27.2 million in sales. Same‑restaurant sales were flat, with Applebee’s domestic sales down 0.4% and IHOP up 0.3%, indicating that the revenue lift is primarily from new locations rather than organic growth. The dual‑brand strategy, which pairs Applebee’s and IHOP under a single roof, is a key growth initiative that is expected to improve unit economics and attract customers throughout the day.
For fiscal 2026, Dine Brands guided for consolidated adjusted EBITDA of $220 million to $230 million, a midpoint of $225 million that is slightly below analyst expectations of $227.1 million. The company also projected comparable sales growth of 0% to 2% for both brands. CEO John Peyton said, "In 2025 our brands' performance improved as we made meaningful progress against our strategic priorities by strengthening the fundamentals of the business and positioning our brands for long-term growth." CFO Vance Chang added, "Our 2026 guidance reflects continued targeted investments in growth initiatives that are supported by improving trends across both our franchise business and our company‑owned portfolio, and we will continue to focus on efficiently deploying capital towards projects with high return on investment." Peyton also noted the expansion of dual‑brand openings, stating, "We now expect to have approximately 30 opened or under construction by year‑end and we expect to achieve at least 50 dual brand openings in 2026."
Market reaction to the results was muted. Investors focused on the revenue miss and the GAAP net loss, which were amplified by the impairment charge, while the adjusted EPS beat was not enough to offset those concerns. The company’s stock fell 2.09% in after‑hours trading, reflecting a cautious response to the mixed financial picture.
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