Dine Brands Global Files Q2 2024 10-Q

TL;DR

Dine Brands Global (DIN) filed its Q2 10-Q. Check financials for IHOP/Applebee's performance.

AI Summary

Dine Brands Global, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which operates brands like IHOP and Applebee's. Specific financial figures and operational metrics are provided within the report.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Dine Brands Global, Inc., impacting stock valuation and future investment decisions.

Risk Assessment

Risk Level: medium — Quarterly reports can reveal significant financial shifts or operational challenges that may impact a company's stock price.

Key Numbers

• 2024 Q2 — Reporting Period (Covers the second quarter of 2024)
• 12/31 — Fiscal Year End (Indicates the company's fiscal year concludes on December 31st)

Key Players & Entities

• Dine Brands Global, Inc. (company) — Filer of the 10-Q
• IHOP (company) — Brand operated by Dine Brands Global
• Applebee's (company) — Brand operated by Dine Brands Global
• 20240630 (date) — End of the reporting period
• 20240807 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• din-20240630.htm (10-Q) — 1891KB
• din-20240630xex311.htm (EX-31.1) — 10KB
• din-20240630xex312.htm (EX-31.2) — 14KB
• din-20240630xex321.htm (EX-32.1) — 7KB
• din-20240630xex322.htm (EX-32.2) — 7KB
• din-20240630_g1.jpg (GRAPHIC) — 22KB
• din-20240630_g2.jpg (GRAPHIC) — 31KB
• din-20240630_g3.jpg (GRAPHIC) — 72KB
• din-20240630_g4.jpg (GRAPHIC) — 72KB
• 0001628280-24-035379.txt ( ) — 10040KB
• din-20240630.xsd (EX-101.SCH) — 62KB
• din-20240630_cal.xml (EX-101.CAL) — 109KB
• din-20240630_def.xml (EX-101.DEF) — 249KB
• din-20240630_lab.xml (EX-101.LAB) — 800KB
• din-20240630_pre.xml (EX-101.PRE) — 531KB
• din-20240630_htm.xml (XML) — 1551KB

—Financial Statements

Item 1—Financial Statements 3 Consolidated Balance Sheets - June 30 , 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Comprehensive Income (unaudited) - Three and Six Months Ended June 30 , 2024 and 2023 4 Consolidated Statements of Stockholders' Deficit (unaudited) - Three and Six Months Ended June 30 , 2024 and 2023 5 Consolidated Statements of Cash Flows (unaudited) - Six Months Ended June 30 , 2024 and 2023 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8

—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 25

—Quantitative and Qualitative Disclosures about Market Risk

Item 3—Quantitative and Qualitative Disclosures about Market Risk 39

—Controls and Procedures

Item 4—Controls and Procedures 39 PART II. OTHER INFORMATION 41

—Legal Proceedings

Item 1—Legal Proceedings 41

—Risk Factors

Item 1A—Risk Factors 41

—Unregistered Sales of Equity Securities and Use of Proceeds

Item 2—Unregistered Sales of Equity Securities and Use of Proceeds 41

—Defaults Upon Senior Securities

Item 3—Defaults Upon Senior Securities 41

—Mine Safety Disclosures

Item 4—Mine Safety Disclosures 41

—Other Information

Item 5—Other Information 41

Signatures

Signatures 43 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; 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

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) June 30, 2024 December 31, 2023 Assets (Unaudited) Current assets: Cash and cash equivalents $ 153,534 $ 146,034 Receivables, net of allowance of $ 3,772 (2024) and $ 4,462 (2023) 83,184 127,937 Restricted cash 45,357 35,058 Prepaid gift card costs 23,501 29,545 Prepaid income taxes 2,767 3,445 Other current assets 11,259 15,759 Total current assets 319,602 357,778 Non-current restricted cash 19,500 19,500 Property and equipment, net 158,101 161,891 Operating lease right-of-use assets 280,641 275,214 Deferred rent receivable 28,888 33,326 Long-term receivables, net of allowance of $ 652 (2024) and $ 5,002 (2023) 33,720 35,602 Goodwill 254,062 254,062 Other intangible assets, net 580,793 586,033 Other non-current assets, net 18,195 16,881 Total assets $ 1,693,502 $ 1,740,287 Liabilities and Stockholders' Deficit Current liabilities: Current maturities of long-term debt $ 100,000 $ 100,000 Accounts payable 31,512 36,193 Gift card liability 142,206 175,640 Current maturities of operating lease obligations 62,216 63,498 Current maturities of finance lease and financing obligations 6,630 7,243 Accrued employee compensation and benefits 14,173 23,211 Accrued advertising expenses 494 9,446 Dividends payable 7,805 7,827 Other accrued expenses 29,135 37,394 Total current liabilities 394,171 460,452 Long-term debt, net, less current maturities 1,085,510 1,084,502 Operating lease obligations, less current maturities 271,100 269,097 Finance lease obligations, less current maturities 37,090 34,389 Financing obligations, less current maturities 25,304 26,984 Deferred income taxes, net 58,898 60,829 Deferred franchise revenue, long-term 37,201 38,658 Other non-current liabilities 15,930 16,350 Total liabilities 1,925,204 1,991,261 Commitments and contingencies Stockhold

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 six months ended June 30, 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, and the second fiscal quarter of 2024 ended on June 30, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023, and the second fiscal quarter of 2023 ended on July 2, 2023. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries tha

Notes to Consolidated Financial Statements (Continued)

Notes to Consolidated Financial Statements (Continued) 3. Recent Accounting Pronouncements (Continued) adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of adopting this ASU on our disclosures. 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. Revenues Franchise revenues and revenues 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 intell

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View this 10-Q filing on SEC EDGAR