Dine Brands(DIN)2025-05-07 14:00Financial Data and Key Metrics Changes - In Q1 2025, EBITDA decreased to 60.8 million in the same quarter last year [13] - Revenues increased by 4% to 206.2 million in Q1 2024 [28] - Adjusted free cash flow was 29.7 million in the prior year [30] - Adjusted diluted EPS for Q1 2025 was 1.33 in Q1 2024 [29] Business Line Data and Key Metrics Changes - Applebee's reported a 2.2% decline in comp sales, while IHOP posted a negative 2.7% in comp sales [13][32] - Off-premise comp sales at Applebee's increased by 3.7%, driven by promotions [13] - IHOP's house faves value menu contributed to traffic growth, outperforming the family dining segment [18] Market Data and Key Metrics Changes - The value mix at Applebee's increased from 28% to 34%, while IHOP's value mix rose from 16% to 19% [9] - Approximately 13% of IHOP's and 10% of Applebee's annual market basket is sourced internationally [11] Company Strategy and Development Direction - The company is focused on three key priorities: elevating guest experience, enhancing menu and value programs, and better communicating brand value [7] - The dual brand concept is being expanded, with plans for 13 additional dual brands and 10 conversions this year [21][23] - The company is committed to remodeling Applebee's restaurants and has introduced an early adopter incentive for franchisees [31][75] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has declined, affecting spending, particularly among lower-income guests [8] - Despite challenges, there was positive momentum in sales and traffic in March and April [9][94] - The company maintains its full-year financial guidance, indicating confidence in its strategic initiatives [35] Other Important Information - The company is actively monitoring global trade tensions and their potential impact on costs, with a small portion of market basket sourced internationally [10] - The company has implemented cost-saving initiatives resulting in over 14 million of annualized savings across both systems [34] Q&A Session Summary Question: Context on Applebee's performance in April - Management noted modest improvement in January, pressure in February, but a significant improvement in March that continued into April, driven by promotions and off-premise sales [41][42] Question: IHOP's same-store sales guidance - Management confirmed confidence in IHOP's guidance due to traffic momentum and successful marketing initiatives [50][56] Question: Value proposition at both brands - Management emphasized the importance of evolving the value proposition based on consumer feedback and market conditions [59][63] Question: Applebee's remodel package details - The remodel package is expected to cost between 200,000 to $300,000 per franchisee, with incentives provided for early adopters [72][75] Question: Average check growth expectations - Applebee's check increased slightly, while IHOP's check dropped due to a shift in product mix [77] Question: Operational simplification examples - Management highlighted improvements in ordering speed through technology and operational flow enhancements [81][84] Question: Future direction for Club Applebee's - The company plans to enhance Club Applebee's with more personalized marketing and exclusive offers for members [87][92]