Dine Brands Global, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Dine Brands Global, Inc. filed its 2023 10-K report detailing its operations as a franchisor of Applebee's and IHOP restaurants.</b>

AI Summary

Dine Brands Global, Inc. (DIN) filed a Annual Report (10-K) with the SEC on February 28, 2024. Dine Brands Global, Inc. operates as a franchisor of restaurants, primarily under the Applebee's and IHOP brands. The company's revenue streams include royalties, franchise fees, advertising revenue, and rental income. The filing covers the fiscal year ending December 31, 2023. Dine Brands Global, Inc. is incorporated in Delaware and headquartered in Pasadena, California. The company was formerly known as DineEquity, Inc. and IHOP Corp.

Why It Matters

For investors and stakeholders tracking Dine Brands Global, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Dine Brands Global's financial performance, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. Understanding the company's revenue breakdown from franchising, advertising, and rental income, as well as its historical financial data, is key to evaluating its business model and competitive positioning within the restaurant industry.

Risk Assessment

Risk Level: medium — Dine Brands Global, Inc. shows moderate risk based on this filing. The company's reliance on a franchise model means its financial performance is significantly tied to the success and operational efficiency of its franchisees, which can be subject to various external economic factors.

Analyst Insight

Investors should analyze the detailed financial statements and risk factors in the 10-K to understand the company's performance drivers and potential challenges in the upcoming fiscal year.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period for the 10-K filing.)
• 2024-02-28 — Filing Date (The date the 10-K report was filed with the SEC.)

Key Players & Entities

• Dine Brands Global, Inc. (company) — Filer of the 10-K report.
• Applebee's (company) — One of the primary restaurant brands franchised by Dine Brands Global.
• IHOP (company) — One of the primary restaurant brands franchised by Dine Brands Global.
• DineEquity, Inc. (company) — Former name of Dine Brands Global, Inc.
• IHOP Corp. (company) — Former name of Dine Brands Global, Inc.

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value DIN New York Stock Exchange
• $20 million — rily interest income from approximately $20 million of receivables for equipment leases and
• $14 million — developed before 2003 and approximately $14 million of notes receivable from franchisees; a
• $10,000 — angement calls for a development fee of $10,000 for each Applebee's restaurant that the
• $35,000 — evelop and an initial franchisee fee of $35,000 for each restaurant developed (against
• $15,000 — del include (a) a location fee equal to $15,000 for an IHOP restaurant that the franchi
• $20,000 — reement; (b) a development fee equal to $20,000 for each IHOP restaurant that the franc
• $40,000 — ) an initial franchise fee equal to (i) $40,000 (against which the $20,000 development
• $50,000 — -restaurant development agreement, (ii) $50,000 (against which the $15,000 location fee
• $5,000 — eekly gross sales, and a renewal fee of $5,000 per renewal term. We also earn revenue

Filing Documents

• din-20231231.htm (10-K) — 3083KB
• din-12312023x10kxex211.htm (EX-21.1) — 25KB
• din-12312023x10kxex231.htm (EX-23.1) — 4KB
• din-20231231x10xkxex311.htm (EX-31.1) — 10KB
• din-20231231x10xkxex312.htm (EX-31.2) — 14KB
• din-20231231x10xkxex321.htm (EX-32.1) — 7KB
• din-20231231x10xkxex322.htm (EX-32.2) — 7KB
• din-20231231x10xkex97polic.htm (EX-97) — 26KB
• din-20231231_g1.jpg (GRAPHIC) — 22KB
• din-20231231_g2.jpg (GRAPHIC) — 31KB
• din-20231231_g3.jpg (GRAPHIC) — 123KB
• din-20231231_g4.jpg (GRAPHIC) — 102KB
• din-20231231_g5.jpg (GRAPHIC) — 105KB
• 0001628280-24-007397.txt (&nbsp;) — 16178KB
• din-20231231.xsd (EX-101.SCH) — 93KB
• din-20231231_cal.xml (EX-101.CAL) — 140KB
• din-20231231_def.xml (EX-101.DEF) — 465KB
• din-20231231_lab.xml (EX-101.LAB) — 1203KB
• din-20231231_pre.xml (EX-101.PRE) — 812KB
• din-20231231_htm.xml (XML) — 2666KB

—Risk Factors

Item 1A—Risk Factors 14

—Unresolved Staff Comments

Item 1B—Unresolved Staff Comments 26

C —Cybersecurity

Item 1 C —Cybersecurity 26

—Properties

Item 2—Properties 28

—Legal Proceedings

Item 3—Legal Proceedings 30

—Mine Safety Disclosures

Item 4—Mine Safety Disclosures 30 PART II.

—Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5—Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30

—Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7—Management's Discussion and Analysis of Financial Condition and Results of Operations 32

—Quantitative and Qualitative Disclosures about Market Risk

Item 7A—Quantitative and Qualitative Disclosures about Market Risk 51

—Financial Statements and Supplementary Data

Item 8—Financial Statements and Supplementary Data 53

—Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9—Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93

—Controls and Procedures

Item 9A—Controls and Procedures 93

—Other Information

Item 9B—Other Information 95

—Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C—Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 95 PART III.

—Directors, Executive Officers and Corporate Governance

Item 10—Directors, Executive Officers and Corporate Governance 95

—Executive Compensation

Item 11—Executive Compensation 95

—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95

—Certain Relationships and Related Transactions, and Director Independence

Item 13—Certain Relationships and Related Transactions, and Director Independence 95

—Principal Accountant Fees and Services

Item 14—Principal Accountant Fees and Services 95 PART IV.

—Exhibits and Financial Statement Schedules

Item 15—Exhibits and Financial Statement Schedules 96

—Form 10-K Summary

Item 16—Form 10-K Summary 101

Signatures

Signatures 102 2 Cautionary Statement Regarding Forward-Looking Statements These statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: general economic conditions, including the impact of inflation, particularly as it may impact our franchisees directly; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of re

Business

Item 1. Business Dine Brands Global, Inc. , together with its subsidiaries (referred to as the "Company," "Dine Brands Global," "we," "our" and "us"), owns and franchises the Applebee's Neighborhood Grill + Bar ("Applebee's") concept in the American full-serve restaurant segment within the casual dining category of the restaurant industry, the International House of Pancakes ("IHOP") concept in the midscale full-service restaurant segment within the family dining category of the restaurant industry, and the Fuzzy's Taco Shop ("Fuzzy's") concept in the Mexican limited-service restaurant segment within the fast-casual dining category of the restaurant industry acquired in December 2022. References herein to Applebee's , IHOP and Fuzzy's restaurants are to these three restaurant concepts, whether operated by franchisees, area licensees and their sub-licensees or by us. As of December 31, 2023, all of our 3,588 restaurants, except for one, were franchised. We believe this highly franchised business model requires less capital investment and general and administrative overhead, generates higher gross profit margins and reduces the volatility of adjusted free cash flow performance, as compared to a business model based on owning a significant number of company-operated restaurants. We generated revenue during the year ended December 31, 2023 from four reporting segments, comprised as follows: Franchise operations - consist of Applebee's, IHOP and Fuzzy's. Royalties, advertising fees and other income from 1,642 Applebee's franchised restaurants, 1,814 IHOP franchised and area licensed restaurants, and 131 Fuzzy's franchised restaurants; Rental operations - primarily rental income derived from lease or sublease agreements covering 571 IHOP franchised restaurants and two Applebee's franchised restaurants; Financing operations - primarily interest income from approximately $20 million of receivables for equipment leases and franchise fee notes generally associated with I

View Full Filing

View this 10-K filing on SEC EDGAR