Dine Brands Global, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $214.8 million, an increase from $206.2 million in the same period last year. The company's net income for the quarter was $8.2 million, or $0.53 per diluted share, down from $17.5 million, or $1.13 per diluted share, in the prior year. This decline in profitability was attributed to a decrease in gross profit and an increase in closure and impairment charges, which rose to $5.8 million from $0.6 million in the previous year.
The company's franchise revenues, which include royalties and advertising fees, totaled $166.2 million, a decrease from $175.9 million in the prior year. This decline was primarily driven by a reduction in domestic same-restaurant sales and a decrease in the number of effective restaurants, particularly in the Applebee's and IHOP segments. The company also reported a decrease in rental revenues, which fell to $26.7 million from $29.5 million, largely due to lease terminations and lower system sales.
In terms of operational developments, Dine Brands acquired 10 IHOP restaurants in Ohio and Kentucky for $0.2 million in March 2025, as part of a strategy to enhance operations and support franchisee growth. The company also reported a net reduction of 39 effective restaurants across its brands during the quarter, with Applebee's and IHOP both experiencing closures. The total number of effective restaurants at the end of the quarter was 1,596 for Applebee's and 1,799 for IHOP.
Looking ahead, Dine Brands remains focused on navigating the challenges posed by rising commodity and labor costs, which could impact franchisee margins. The company has maintained a leverage ratio of approximately 4.15x, allowing it to suspend quarterly principal payments on its long-term debt. Dine Brands plans to continue evaluating opportunities for restaurant acquisitions and refranchising, while also managing its capital allocation strategy, which includes a dividend of $0.51 per share, consistent with the previous year. The company’s management expressed optimism about future growth, contingent on improving market conditions and operational efficiencies.
About Dine Brands Global, Inc.
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