Dine Brands Global, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Dine Brands Global, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial statements and company information.</b>

AI Summary

Dine Brands Global, Inc. (DIN) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Dine Brands Global, Inc. reported financial results for the first quarter ended March 31, 2024. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Key financial statement components such as common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income are detailed for multiple periods. The company's business address is 10 West Walnut Street, 5th Floor, Pasadena, CA 91103. The filing is a 10-Q, indicating a quarterly report under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking Dine Brands Global, Inc., this filing contains several important signals. This 10-Q filing provides investors with a crucial update on Dine Brands Global's financial health and performance during the first quarter of 2024. The detailed financial statements allow stakeholders to assess revenue streams, equity structure, and changes in retained earnings, informing investment decisions.

Risk Assessment

Risk Level: — Dine Brands Global, Inc. shows moderate risk based on this filing. The filing is a standard 10-Q report, providing routine financial disclosures without immediate indicators of significant new risks or material adverse events.

Analyst Insight

Monitor future filings for trends in revenue growth and changes in equity components to assess the company's ongoing financial trajectory.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-08 — Filing Date (Filed as of date)
• 10-Q — Form Type (SEC filing form type)
• 001-15283 — SEC File Number (SEC file number for the filer)

Key Players & Entities

• Dine Brands Global, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-08 (date) — Filed as of date
• 10 West Walnut Street, 5th Floor, Pasadena, CA 91103 (address) — Business address
• IHOP CORP (company) — Former company name
• DineEquity, Inc (company) — Former company name

FAQ

Industry Context

Dine Brands Global, Inc. operates as a franchisor of restaurants, primarily known for its Applebee's and IHOP brands. The company's business model relies on franchise fees, royalties, and advertising contributions from its franchisees.

Regulatory Implications

As a publicly traded company, Dine Brands Global, Inc. is subject to the reporting requirements of the Securities Exchange Act of 1934, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the detailed financial statements within the 10-Q for revenue, net income, and balance sheet changes.
2. Analyze the equity section for changes in common stock, retained earnings, and other comprehensive income.
3. Note the company's address and other identifying information for record-keeping.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing is a 10-Q for the quarter ending March 31, 2024, and follows the standard quarterly reporting cycle. Specific comparative data from the previous year's quarter or the preceding quarter is not detailed in this header information.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value DIN New York Stock Exchange

Filing Documents

• din-20240331.htm (10-Q) — 1435KB
• din-20240331xex311.htm (EX-31.1) — 10KB
• din-20240331xex312.htm (EX-31.2) — 14KB
• din-20240331xex321.htm (EX-32.1) — 7KB
• din-20240331xex322.htm (EX-32.2) — 7KB
• din-20240331_g1.jpg (GRAPHIC) — 22KB
• din-20240331_g2.jpg (GRAPHIC) — 31KB
• din-20240331_g3.jpg (GRAPHIC) — 77KB
• din-20240331_g4.jpg (GRAPHIC) — 74KB
• 0001628280-24-021372.txt (&nbsp;) — 8917KB
• din-20240331.xsd (EX-101.SCH) — 61KB
• din-20240331_cal.xml (EX-101.CAL) — 107KB
• din-20240331_def.xml (EX-101.DEF) — 247KB
• din-20240331_lab.xml (EX-101.LAB) — 775KB
• din-20240331_pre.xml (EX-101.PRE) — 520KB
• din-20240331_htm.xml (XML) — 1270KB

—Financial Statements

Item 1—Financial Statements 3 Consolidated Balance Sheets - March 31, 2024 (unaudited) and December 31, 202 3 3 Consolidated Statements of Comprehensive Income (unaudited) - Three Months Ended March 31 , 202 4 and 202 3 4 Consolidated Statements of Stockholders' Deficit (unaudited) - Three Months Ended March 31 , 202 4 and 202 3 5 Consolidated Statements of Cash Flows (unaudited) - Three Months Ended March 31 , 202 4 and 202 3 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

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

Item 2—Management's Discussion and Analysis of Financial Condition and Results of Operations 24

—Quantitative and Qualitative Disclosures about Market Risk

Item 3—Quantitative and Qualitative Disclosures about Market Risk 38

—Controls and Procedures

Item 4—Controls and Procedures 38 PART II. OTHER INFORMATION 39

—Legal Proceedings

Item 1—Legal Proceedings 39

—Risk Factors

Item 1A—Risk Factors 39

—Unregistered Sales of Equity Securities and Use of Proceeds

Item 2—Unregistered Sales of Equity Securities and Use of Proceeds 39

—Defaults Upon Senior Securities

Item 3—Defaults Upon Senior Securities 39

—Mine Safety Disclosures

Item 4—Mine Safety Disclosures 39

—Other Information

Item 5—Other Information 39

Signatures

Signatures 41 1 Table of Contents 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, 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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Dine Brands Global, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share amounts) March 31, 2024 December 31, 2023 Assets (Unaudited) Current assets: Cash and cash equivalents $ 144,994 $ 146,034 Receivables, net of allowance of $ 4,635 (2024) and $ 4,462 (2023) 90,694 127,937 Restricted cash 47,631 35,058 Prepaid gift card costs 23,242 29,545 Prepaid income taxes — 3,445 Other current assets 10,638 15,759 Total current assets 317,199 357,778 Non-current restricted cash 19,500 19,500 Property and equipment, net 159,706 161,891 Operating lease right-of-use assets 278,056 275,214 Deferred rent receivable 31,140 33,326 Long-term receivables, net of allowance of $ 4,758 (2024) and $ 5,002 (2023) 35,439 35,602 Goodwill 254,062 254,062 Other intangible assets, net 583,373 586,033 Other non-current assets, net 16,734 16,881 Total assets $ 1,695,209 $ 1,740,287 Liabilities and Stockholders' Deficit Current liabilities: Current maturities of long-term debt $ 100,000 $ 100,000 Accounts payable 42,975 36,193 Gift card liability 146,714 175,640 Current maturities of operating lease obligations 63,110 63,498 Current maturities of finance lease and financing obligations 6,886 7,243 Accrued employee compensation and benefits 11,600 23,211 Accrued advertising expenses 2,290 9,446 Dividends payable 7,881 7,827 Other accrued expenses 28,514 37,394 Total current liabilities 409,970 460,452 Long-term debt, net, less current maturities 1,085,002 1,084,502 Operating lease obligations, less current maturities 269,913 269,097 Finance lease obligations, less current maturities 36,489 34,389 Financing obligations, less current maturities 25,657 26,984 Deferred income taxes, net 58,808 60,829 Deferred franchise revenue, long-term 37,288 38,658 Other non-current liabilities 16,887 16,350 Total liabilities 1,940,014 1,991,261 Commitments and contingencies Stockhol

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. General The accompanying unaudited consolidated financial statements of Dine Brands Global, Inc. (the "Company" or "Dine Brands Global") have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2024. The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 2. Basis of Presentation The Company's fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2024 began on January 1, 2024 and ended on March 31, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated. The p

Notes to Consolidated Financial Statements (Continued)

Notes to Consolidated Financial Statements (Continued) 3. Recent Accounting Pronouncements (Continued) The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements. 4. Revenue Franchise revenue and revenue from company-operated restaurants are recognized in accordance with current guidance for revenue recognition as codified in Accounting Standards Topic 606 ("ASC 606"). Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods. Franchise Revenues The Company franchises the Applebee's Neighborhood Grill & Bar ("Applebee's") concept in the American full-service restaurant segment within the casual dining category of the restaurant industry, the International House of Pancakes ("IHOP") concept in the family dining mid-scale full-service category of the restaurant industry, and the Fuzzy's Taco Shop ("Fuzzy's") concept in the Mexican food segment within the fast-casual dining category of the restaurant industry. The franchise arrangement for the brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brands that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company's past or ongoing activities. The nature of the Compan

Notes to Consolidated Financial Statements (Continued)

Notes to Consolidated Financial Statements (Continued) 4. Revenue (Continued) The following table disaggregates franchise revenue by major type for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (In thousands) Franchise Revenue: Royalties $ 80,212 $ 83,438 Advertising fees 75,261 77,037 Proprietary product sales and other 17,967 17,262 Franchise and development fees 2,437 2,225 Total franchise revenue $ 175,877 $ 179,962 Accounts and other receivables from franchisees as of March 31, 2024 and December 31, 2023 were $ 70.1 million (net of allowance of $ 3.0 million) and $ 68.7 million (net of allowance of $ 2.7 million), respectively, and were included in receivables, net in the Consolidated Balance Sheets. Changes in the Company's contract liability for deferred franchise and development fees during the three months ended March 31, 2024 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2023 $ 45,269 Recognized as revenue during the three months ended March 31, 2024 ( 2,306 ) Fees deferred during the three months ended March 31, 2024 723 Balance at March 31, 2024 $ 43,686 The balance of deferred revenue as of March 31, 2024 is expected to be recognized as follows: (In thousands) 2024 (remaining nine months) $ 4,868 2025 5,828 2026 5,002 2027 4,112 2028 3,146 Thereafter 20,730 Total $ 43,686 5. Current Expected Credit Losse

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