The EPS beat is positive but the cash flow deterioration and negative FCF are concerning for a franchise-heavy model. With guidance reiterated and no upward revision, the stock may trade sideways. Watch for commentary on the cash burn trajectory and dual-brand development progress on the earnings call.
Price Chart
Executive Summary
Dine Brands reported Q1 2026 GAAP EPS of $0.57, beating the $0.53 consensus, and total revenue of $225.2M, slightly above the $222.1M estimate. However, adjusted EBITDA fell to $50.8M from $54.7M YoY, operating cash flow halved to $7.5M, and adjusted free cash flow turned negative at -$3.0M, signaling deteriorating cash generation despite a modest top-line beat.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.57 vs $0.53 consensus — a 7.5% beat
- Total revenue of $225.2M vs $222.1M consensus — a 1.4% beat
- Total revenue grew 4.8% YoY to $225.2M from $214.8M, driven by company-owned restaurant acquisitions
- Adjusted EBITDA fell 7.1% YoY to $50.8M from $54.7M
- Operating cash flow dropped 53.4% YoY to $7.5M from $16.1M
- Adjusted free cash flow turned negative at -$3.0M vs +$14.6M a year ago
- Applebees domestic same-restaurant sales increased 1.9% YoY; IHOP flat
- Company reiterated all 2026 guidance metrics — no change
- Net restaurant count declined by 16 (24 openings, 40 closures)
- Repurchased $22M of stock and paid $2.5M in dividends during the quarter
Financial Impact
GAAP EPS beat consensus by $0.04 (+7.5%); adjusted EBITDA declined $3.9M YoY; operating cash flow fell $8.6M; FCF swung from +$14.6M to -$3.0M
Risk Factors
- Negative adjusted free cash flow of -$3.0M signals potential liquidity pressure
- Operating cash flow halved to $7.5M — sustainability of dividend and buyback at risk
- Net restaurant closures outpaced openings by 16, indicating franchisee stress
- IHOP same-restaurant sales flat — no growth catalyst from the brand
- High leverage: long-term debt of $1.19B vs equity deficit of -$290M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-207550 |
| Document: d151134d8k.htm | 0001193125-26-207550 |
| Document: 0001193125-26-207550-index-headers.html | 0001193125-26-207550 |
| Document: 0001193125-26-207550-index.html | 0001193125-26-207550 |
| Document: 0001193125-26-207550.txt | 0001193125-26-207550 |
| 8-K Data (Synthetic) | 0001193125-26-207550 |
Track record builds as more directional reports settle.
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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