The sharp decline in GAAP net income and cash flows signals franchisee profitability stress and rising corporate cost drag from company-store acquisitions. With Applebees comps negative and guidance unchanged for the full year, Q3 trends will be critical to watch for any downward revision to EBITDA or G&A targets. The $143.8M buyback authorization provides downside support but does not offset fundamental deterioration.
Price Chart
Executive Summary
Dine Brands Q2 2026 GAAP EPS plunged 61% YoY to $0.35 and adjusted EPS of $1.16 missed consensus of $1.20 by 3.3%, while revenue of $240.9M beat estimates. Operating cash flow for the first half fell 63% to $19.9M and adjusted free cash flow collapsed to $3.7M from $48.7M, as Applebees comp sales declined 1.8% and the company-owned restaurant expansion weighed on margins. Guidance was maintained, providing a floor, but deteriorating profitability and cash generation underscore underlying franchise health concerns.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.35 vs $0.89 YoY, a 61% decline; adjusted EPS $1.16 missed consensus $1.20 by 3.3%
- Total revenue $240.9M (+4.4% YoY) beat consensus $237.3M, driven by acquired company-owned restaurants, not organic growth
- Applebees domestic same-restaurant sales declined 1.8% YoY; IHOP grew 1.5%
- Net income available to common stockholders fell to $4.2M from $13.2M YoY
- Adjusted EBITDA slipped to $54.2M from $56.2M; operating cash flow (H1) dropped to $19.9M from $53.1M
- Company maintained full-year 2026 guidance (Applebees/Ihop comps 0-2%, adj. EBITDA $220-230M, G&A $205-210M)
- Board approved new $100M share repurchase program in May; $143.8M available under existing programs as of June 28
- Company repurchased $7.4M of stock and paid $2.4M in dividends during Q2
Financial Impact
Adjusted EPS $1.16 vs consensus $1.20 (-3.3%); revenue $240.9M vs $237.3M (+1.5%); net income available to common stockholders fell 68% sequentially from Q1 to $4.2M
Risk Factors
- Further deterioration in Applebees same-store sales as consumer spending shifts to value-oriented competitors
- Company-owned restaurant acquisitions increase capital intensity and operating leverage risk
- Franchisee closures accelerating: 64 Applebees franchise closures in Q2 alone
- Rising interest expense (net interest $22.0M vs $17.7M YoY) pressures earnings in a high-debt capital structure ($1.19B long-term debt)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-333848 |
| Document: d148591d8k.htm | 0001193125-26-333848 |
| Document: 0001193125-26-333848-index-headers.html | 0001193125-26-333848 |
| Document: 0001193125-26-333848-index.html | 0001193125-26-333848 |
| Document: 0001193125-26-333848.txt | 0001193125-26-333848 |
| 8-K Data (Synthetic) | 0001193125-26-333848 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 28d ago | 8-K | $31.68 $29.01 | ▼ −8.43% | ▼ −7.22% | $29.92 (−5.56%) |
Aug 27, 2026 5w ago | 8-K | $33.34 $32.17 | ▼ −3.51% | ▼ −3.78% | $29.92 (−10.26%) |
Aug 5, 2026 8w ago | 8-K | $35.75 $36.47 | ▼ −2.01% | ▼ −1.66% | $29.92 (+16.31%) |
Jun 12, 2026 16w ago | Institutional Cluster | $34.04 $34.16 | ▲ +0.35% | ▼ −0.32% | $29.92 (−12.10%) |
Jun 2, 2026 17w ago | 8-K | $28.73 $32.48 | ▲ +13.05% | ▲ +16.87% | $29.92 (+4.14%) |
May 14, 2026 20w ago | 8-K | $31.02 $30.32 | ▼ −2.26% | ▼ −1.54% | $29.92 (−3.55%) |
May 8, 2026 21w ago | 144 | $28.38 $31.02 | ▲ +9.30% | ▲ +7.84% | $29.92 (+5.43%) |
May 6, 2026 21w ago | 8-K | $27.16 $29.64 | ▲ +9.13% | ▲ +8.00% | $29.92 (+10.16%) |
Mar 27, 2026 27w ago | DEFA14A | $25.18 $27.59 | ▲ +9.57% | ▲ +5.71% | $29.92 (+18.82%) |
Feb 25, 2026 31w ago | 8-K | $30.49 $31.01 | ▲ +1.73% | ▲ +2.83% | $29.92 (−1.86%) |
US Market Status
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