Dine Brands Global Files Q3 2024 10-Q

TL;DR

Dine Brands (DIN) Q3 10-Q filed. Financials look steady, check lease obligations.

AI Summary

Dine Brands Global, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and obligations, including lease and financing obligations. The company operates restaurants under brands like IHOP and Applebee's, with its fiscal year ending on December 31st.

Why It Matters

This filing provides investors and analysts with a detailed look at Dine Brands Global's financial health and operational status for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-09-30 — Period End Date (The end date of the reporting period for this 10-Q filing.)
• 2024-11-06 — Filing Date (The date this 10-Q filing was submitted to the SEC.)

Key Players & Entities

• Dine Brands Global, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — Period of report for the 10-Q
• 2024-11-06 (date) — Filing date of the 10-Q
• IHOP (company) — Brand operated by Dine Brands Global
• Applebee's (company) — Brand operated by Dine Brands Global

FAQ

Key Financial Figures

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

Filing Documents

• din-20240930.htm (10-Q) — 1900KB
• din-20240930xex311.htm (EX-31.1) — 10KB
• din-20240930xex312.htm (EX-31.2) — 14KB
• din-20240930xex321.htm (EX-32.1) — 7KB
• din-20240930xex322.htm (EX-32.2) — 7KB
• din-20240930_g1.jpg (GRAPHIC) — 22KB
• din-20240930_g2.jpg (GRAPHIC) — 31KB
• din-20240930_g3.jpg (GRAPHIC) — 73KB
• din-20240930_g4.jpg (GRAPHIC) — 71KB
• 0001628280-24-045455.txt ( ) — 10052KB
• din-20240930.xsd (EX-101.SCH) — 61KB
• din-20240930_cal.xml (EX-101.CAL) — 109KB
• din-20240930_def.xml (EX-101.DEF) — 245KB
• din-20240930_lab.xml (EX-101.LAB) — 798KB
• din-20240930_pre.xml (EX-101.PRE) — 526KB
• din-20240930_htm.xml (XML) — 1551KB

—Financial Statements

Item 1—Financial Statements 3 Consolidated Balance Sheets - September 30, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Comprehensive Income (unaudited) - Three and Nine Months Ended September 30, 2024 and 2023 4 Consolidated Statements of Stockholders' Deficit (unaudited) - Three and Nine Months Ended September 30, 2024 and 2023 5 Consolidated Statements of Cash Flows (unaudited) - Nine Months Ended September 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 26

—Quantitative and Qualitative Disclosures about Market Risk

Item 3—Quantitative and Qualitative Disclosures about Market Risk 41

—Controls and Procedures

Item 4—Controls and Procedures 41 PART II. OTHER INFORMATION 42

—Legal Proceedings

Item 1—Legal Proceedings 42

—Risk Factors

Item 1A—Risk Factors 42

—Unregistered Sales of Equity Securities and Use of Proceeds

Item 2—Unregistered Sales of Equity Securities and Use of Proceeds 42

—Defaults Upon Senior Securities

Item 3—Defaults Upon Senior Securities 42

—Mine Safety Disclosures

Item 4—Mine Safety Disclosures 42

—Other Information

Item 5—Other Information 42

Signatures

Signatures 44 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) September 30, 2024 December 31, 2023 Assets (Unaudited) Current assets: Cash and cash equivalents $ 169,636 $ 146,034 Receivables, net of allowance of $ 2,993 (2024) and $ 4,462 (2023) 83,414 127,937 Restricted cash 45,974 35,058 Prepaid gift card costs 23,493 29,545 Prepaid income taxes 806 3,445 Other current assets 8,108 15,759 Total current assets 331,431 357,778 Non-current restricted cash 19,500 19,500 Property and equipment, net 154,932 161,891 Operating lease right-of-use assets 282,202 275,214 Deferred rent receivable 26,721 33,326 Long-term receivables, net of allowance of $ 636 (2024) and $ 5,002 (2023) 33,508 35,602 Goodwill 254,062 254,062 Other intangible assets, net 578,309 586,033 Other non-current assets, net 18,874 16,881 Total assets $ 1,699,539 $ 1,740,287 Liabilities and Stockholders' Deficit Current liabilities: Current maturities of long-term debt $ 100,000 $ 100,000 Accounts payable 35,455 36,193 Gift card liability 137,020 175,640 Current maturities of operating lease obligations 61,181 63,498 Current maturities of finance lease and financing obligations 6,713 7,243 Accrued employee compensation and benefits 12,063 23,211 Accrued advertising expenses 3,616 9,446 Dividends payable 7,790 7,827 Other accrued expenses 23,012 37,394 Total current liabilities 386,850 460,452 Long-term debt, net, less current maturities 1,086,026 1,084,502 Operating lease obligations, less current maturities 271,283 269,097 Finance lease obligations, less current maturities 35,720 34,389 Financing obligations, less current maturities 24,940 26,984 Deferred income taxes, net 57,493 60,829 Deferred franchise revenue, long-term 37,681 38,658 Other non-current liabilities 16,216 16,350 Total liabilities 1,916,209 1,991,261 Commitments and contingencies Stock

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 nine months ended September 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, the second fiscal quarter of 2024 ended on June 30, 2024, and the third fiscal quarter of 2024 ended on September 29, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023, the second fiscal quarter of 2023 ended on July 2, 2023, and the third fiscal quarter of 2023 ended on Oc

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 in the Company's 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 symbo

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View this 10-Q filing on SEC EDGAR