Dine Brands Global, Inc. Reports Third Quarter 2026 Results
Dine Brands Global, Inc. (DIN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 News Release Investor Contact Matt Lee Sr. Vice President, Finance and Investor Relations Dine Brands Global, Inc. IR@dinebrands.com Media Contact Susan Nelson Sr. Vice President, Global Communications Dine Brands Global, Inc. Mediainquiries@dinebrands.com Dine Brand
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance on revenue trends and profitability, informing short‑ to medium‑term positioning.
Market read
First‑time public disclosure of Q3 2026 results, offering new data for valuation and sector comparison.
What to watch
Off‑premise sales mix and dual‑brand initiatives may drive future upside if execution improves.
Dine Brands Global, Inc. Reports Third Quarter 2026 Results
Third-quarter revenue increased to $248.9 million from $216.1 million, supported by acquired and opened company-owned restaurants, while Applebee’s and IHOP delivered positive domestic same-restaurant sales. Gross profit and Adjusted EBITDA were essentially unchanged, but GAAP net income, income before income taxes and net income available to common stockholders declined. Nine-month operating cash flow and adjusted free cash flow were also materially lower than the prior-year period.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $248.9M | – | – |
| Q3 2026 franchise revenues: royalties, franchise fees and otherGAAP | $91.7M | – | – |
| Q3 2026 franchise revenues: advertising revenuesGAAP | $67.3M | – | – |
| Q3 2026 total franchise revenuesGAAP | $159M | – | – |
| Q3 2026 company-owned restaurant revenuesGAAP | $64.4M | – | – |
| Q3 2026 rental revenuesGAAP | $25.5M | – | – |
| Q3 2026 total cost of revenuesGAAP | −$164.2M | – | – |
| Q3 2026 total franchise expensesGAAP | −$78.3M | – | – |
| Q3 2026 company-owned restaurant expensesGAAP | −$66.4M | – | – |
| Q3 2026 rental expensesGAAP | −$19.5M | – | – |
| Q3 2026 gross profitGAAP | $84.7M | – | – |
| Q3 2026 general and administrative expensesGAAP | −$51.6M | – | – |
| Q3 2026 interest expense, netGAAP | −$21.3M | – | – |
| Q3 2026 closure and impairment chargesGAAP | −$1.5M | – | – |
| Q3 2026 amortization of intangible assetsGAAP | −$4.2M | – | – |
| Q3 2026 gain on disposition of assetsGAAP | $600K | – | – |
| Q3 2026 income before income taxesGAAP | $6.7M | – | – |
| Q3 2026 income tax provisionGAAP | −$2.1M | – | – |
| Q3 2026 net incomeGAAP | $4.6M | – | – |
| Q3 2026 net income available to common stockholdersGAAP | $4.5M | – | – |
| Q3 2026 basic earnings per shareGAAP | $0.38 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $0.37 | – | – |
| Q3 2026 adjusted net income available to common stockholdersnon-GAAP | $10.1M | – | – |
| Q3 2026 adjusted earnings per diluted sharenon-GAAP | $0.82 | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $49M | – | – |
| First nine months of 2026 total revenuesGAAP | $715M | – | – |
| First nine months of 2026 total franchise revenuesGAAP | $490.9M | – | – |
| First nine months of 2026 company-owned restaurant revenuesGAAP | $145.1M | – | – |
| First nine months of 2026 rental revenuesGAAP | $79M | – | – |
| First nine months of 2026 gross profitGAAP | $263.2M | – | – |
| First nine months of 2026 general and administrative expensesGAAP | −$160.3M | – | – |
| First nine months of 2026 income before income taxesGAAP | $22.9M | – | – |
| First nine months of 2026 net incomeGAAP | $16.3M | – | – |
| First nine months of 2026 net income available to common stockholdersGAAP | $15.9M | – | – |
| First nine months of 2026 diluted earnings per shareGAAP | $1.29 | – | – |
| First nine months of 2026 adjusted net income available to common stockholdersnon-GAAP | $35.1M | – | – |
| First nine months of 2026 adjusted earnings per diluted sharenon-GAAP | $2.85 | – | – |
| First nine months of 2026 Adjusted EBITDAnon-GAAP | $154M | – | – |
| First nine months of 2026 cash flows provided by operating activitiesGAAP | $37.8M | – | – |
| First nine months of 2026 adjusted free cash flownon-GAAP | $12.8M | – | – |
| Effective tax rate for the nine months ended September 27, 2026GAAP | 28.8% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| IHOP Q3 2026 system salesDomestic same-restaurant sales change was 0.8%; off-premise sales accounted for 21% of sales mix. | $858.4M | – | – |
| Applebee’s Q3 2026 system salesDomestic same-restaurant sales change was 0.9%; off-premise sales accounted for 23% of sales mix. | $1.01B | – | – |
| Fuzzy’s Q3 2026 system salesDomestic same-restaurant sales change was (2.7)%. | $37.7M | – | – |
| IHOP first nine months of 2026 system salesDomestic same-restaurant sales change was 0.8%. | $2.61B | – | – |
| Applebee’s first nine months of 2026 system salesDomestic same-restaurant sales change was 0.3%. | $3.19B | – | – |
| Fuzzy’s first nine months of 2026 system salesDomestic same-restaurant sales change was 1.4%. | $115.4M | – | – |
Capital returns
- During the third quarter of 2026, the Company repurchased approximately $6.5 million of its common stock.
- During the third quarter of 2026, the Company paid approximately $2.4 million in dividends.
- For the nine months ended September 27, 2026, dividends paid on common stock were $(7.2) million.
- For the nine months ended September 27, 2026, repurchase of common stock was $(35.9) million.
What drove it
- Total-revenue growth in the third quarter was primarily driven by a $36.9 million increase in company-owned restaurant revenues from restaurants acquired and opened since the third quarter of 2025.
- First-nine-month revenue growth was primarily driven by a $67.8 million increase in company-owned restaurant revenues from the acquisition of 12 Applebee’s restaurants in February 2026 and 48 Applebee’s restaurants in June 2026, and from acquisitions in 2025.
- Applebee’s and IHOP both reported positive year-over-year comparable domestic same-restaurant sales in the third quarter of 2026.
- Applebee’s and IHOP development activity resulted in 23 new restaurant openings and 28 restaurant closures in the third quarter of 2026, including seven dual-branded openings.
- As of September 27, 2026, the Company had 49 dual-branded domestic IHOP and Applebee’s restaurant locations and 41 dual-branded international IHOP and Applebee’s restaurant locations.
Concerns
- Q3 2026 net income available to common stockholders was $4.5 million compared to $7.0 million in Q3 2025.
- Q3 2026 income before income taxes was $6.7 million compared to $10.0 million in Q3 2025.
- Q3 2026 general and administrative expenses were $(51.6) million compared to $(50.2) million in Q3 2025, driven by higher professional services fees and higher employee-related costs.
- First-nine-month cash flows provided by operating activities were $37.8 million compared to $83.3 million, primarily reflecting timing of marketing spend, higher payments related to performance-based compensation and interest, and remodel and development incentives paid to franchisees.
- First-nine-month adjusted free cash flow was $12.8 million compared to $68.2 million, driven by lower cash provided by operating activities and increased capital expenditures.
- Fuzzy’s domestic same-restaurant sales change was (2.7)% in Q3 2026.
What to watch
- Applebee’s and IHOP comparable domestic same-restaurant sales and off-premise sales mix.
- The contribution and expenses associated with acquired company-owned restaurants.
- Execution of the dual-brand expansion, company-owned portfolio improvement and remodel pipeline.
- Restaurant openings, closures and net development across IHOP, Applebee’s and Fuzzy’s.
- Operating cash flow, adjusted free cash flow, capital expenditures and returns of capital to equity holders.
Balance sheet and cash flow
- Total cash, cash equivalents and restricted cash was approximately $173.6 million as of September 27, 2026, of which approximately $91.1 million was unrestricted cash.
- Available borrowing capacity under the 2025 Variable Funding Senior Notes, Class A-1 was approximately $224.5 million.
- Long-term debt, net was $1,190.1 million as of September 27, 2026, compared to $1,188.2 million as of December 28, 2025.
- Total assets were $1,754.0 million as of September 27, 2026, compared to $1,737.7 million as of December 28, 2025.
- Total liabilities were $2,047.1 million as of September 27, 2026, compared to $2,011.5 million as of December 28, 2025.
- Total stockholders’ deficit was $(293.1) million as of September 27, 2026, compared to $(273.9) million as of December 28, 2025.
- Additions to property and equipment were $(31.0) million for the first nine months of 2026, compared to $(21.3) million for the first nine months of 2025.
Analysis
Dine Brands reported third-quarter total revenues of $248.9 million, compared with $216.1 million in the third quarter of 2025. The release attributes the increase primarily to a $36.9 million increase in company-owned restaurant revenues from restaurants acquired and opened since the prior-year quarter. Company-owned restaurant revenues were $64.4 million compared with $27.5 million, while total franchise revenues were $159.0 million compared with $161.3 million and rental revenues were $25.5 million compared with $27.3 million.
Underlying domestic sales trends were positive at Applebee’s and IHOP. Applebee’s domestic same-restaurant sales change was 0.9% and IHOP’s was 0.8% in the quarter. Off-premise sales accounted for 23% of Applebee’s sales mix and 21% of IHOP sales mix. Fuzzy’s domestic same-restaurant sales change was (2.7)%. Development activity by Applebee’s and IHOP produced 23 new restaurant openings and 28 restaurant closures, including seven dual-branded openings.
Profitability was mixed. Gross profit was $84.7 million compared with $84.6 million, and Adjusted EBITDA was unchanged at $49.0 million. However, general and administrative expenses increased to $(51.6) million from $(50.2) million, reflecting higher professional services fees and employee-related costs associated with company-owned and dual-brand initiatives. Income before income taxes was $6.7 million compared with $10.0 million, while GAAP net income available to common stockholders was $4.5 million, or $0.37 per diluted share, compared with $7.0 million, or $0.48 per diluted share. Adjusted EPS was $0.82 compared with $0.73.
For the first nine months, total revenues were $715.0 million compared with $661.7 million, but Adjusted EBITDA was $154.0 million compared with $159.9 million and adjusted net income available to common stockholders was $35.1 million compared with $43.3 million. Operating cash flow was $37.8 million compared with $83.3 million, and adjusted free cash flow was $12.8 million compared with $68.2 million. The Company cited marketing-spend timing, higher performance-based compensation and interest payments, franchisee remodel and development incentives, and increased capital expenditures. During the quarter, the Company repurchased approximately $6.5 million of common stock and paid approximately $2.4 million in dividends. No forward financial guidance was provided in the filing.
Management, verbatim
This quarter, Applebee’s and IHOP both achieved positive growth due to our everyday value, menu innovation, culturally relevant marketing, and sharper operational execution.
John Peyton, Chief Executive Officer of Dine Brands
We’re focused on supporting the future of our brands, including expanding our dual-brand program, improving our company-owned portfolio, and accelerating our remodel pipeline.
John Peyton, Chief Executive Officer of Dine Brands
Our scale, capital structure and asset-light model continue to generate the financial and strategic flexibility for us to invest across the business while returning capital to our shareholders.
Vance Chang, Chief Financial Officer of Dine Brands
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Prior-period gross margin was not reported as a gross-margin percentage.
- Q3 2026 operating income was not reported as a separate line item.
- Q3 2026 operating cash flow was not reported.
- Q3 2026 free cash flow or adjusted free cash flow was not reported.
- Prior-quarter comparisons were not reported for the key financial metrics.
- Explicit year-over-year percentage changes were not reported for most financial statement line items.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC Form 8‑K earnings release for Dine Brands Global, parent of Applebee’s, IHOP and Fuzzy’s Taco Shop.
Ticker impact
Dine Brands Global reported Q3 2026 results with revenue of $248.9M and EPS of $0.37, the first public disclosure of these figures.
likely modest pressure as the market prices in mixed earnings and lower EPS.
The new numbers show revenue growth but declining net income, which may temper investor enthusiasm.
Market effects
Provides a snapshot of the casual dining sector's performance, highlighting modest growth and pressure on margins.
Limited to U.S. consumer discretionary investors.
Low, as the company is primarily U.S.-focused.
Counterpoint
Despite revenue growth, the decline in net income could signal deeper margin issues, presenting a short opportunity.
Key entities
- companyDine Brands Global, Inc.
Parent company of Applebee’s, IHOP and Fuzzy’s Taco Shop.
