Dine Brands Global, Inc.
For the period ended Mar 29, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2026 · Filed May 6, 2026
DIN$35.85-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001628280-25-049239
Item 2. —Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-29; filed 2026-05-06.
0001628280-26-030905
Item 2. —Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 137 previous paragraphs and 88 current paragraphs.
13 unchanged; 19 reworded; 54 added; 104 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 22 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (54)
Current report
Management's Discussion and Analysis of our results of operations and financial condition should be read in conjunction with the Condensed Consolidated Financial Statements included in this Form 10-Q. This Item 2 is organized as follows:
Current report
•Consolidated Results
Current report
•Segment Results
Current report
•Non-Segment Results
Current report
•Critical Accounting Estimates
Current report
Consolidated Results
Current report
Total revenues increased $10.4 million, largely driven by an $11.9 million increase from the company-owned restaurant revenues from restaurants acquired since the first quarter of 2025. This increase was partially offset by a $1.3 million decrease in franchise revenues primarily driven by lower proprietary product sales due to timing, weaker international franchisee performance and a decrease in franchise termination fees recognized in the current period as compared to the prior year period. In addition, franchise revenues were impacted by a reduction in the number of franchised restaurants due in part to the acquisition of 12 Applebee's restaurants in May 2025 and 12 Applebee's restaurants in February 2026. Total cost of revenues increased $13.3 million primarily due to the increase in company-owned restaurants.
Current report
Income before income taxes in the three months ended March 29, 2026 decreased largely due to a decrease in gross profit, increase in interest expense and an increase in general and administrative expenses, partially offset by a decrease in closure and impairment charges and the gain on disposition of assets. The increase in interest expense is primarily the result of the refinancing of our 2025 Class A-2 Notes completed in June 2025 which resulted in increased principal and a higher interest rate. The increase in general and administrative expenses is primarily due to our investment in our dual-branded and company-owned restaurant initiatives. Closure and impairment charges decreased as a result of less one-time lease termination and lease asset impairment costs incurred in the current year as compared to the respective prior year period. Gain on disposition of assets was related to the sale of land and building of two IHOP restaurants.
Current report
Key Performance Indicators
Current report
In addition to revenues, cost of revenues, and gross profit in evaluating the performance of each of our brands, management also considers the following key performance indicators in evaluating our business:
Current report
"Domestic average weekly unit sales" represents the average sales generated per restaurant per operating week during the reporting period. This is calculated by dividing total restaurant sales by the number of operating weeks for all restaurants open during the period. For restaurants that were open for only part of the period, adjustments are made to the number of operating weeks to correspond to the period there were restaurant sales.
Current report
"Net development" refers to the overall change in the number of restaurants during a period, calculated as total openings less total closures.
Current report
(a) The calculation of franchise sales percentage change and average weekly unit sales excludes restaurants that were closed or acquired by the Company.
Current report
(b) Included in the IHOP franchise restaurants closed and IHOP company-owned restaurants opened are 10 restaurants acquired by the Company in March 2025. Included in the Applebee's franchise restaurants closed and Applebee's company-owned restaurants opened are 12 restaurants acquired by the Company in February 2026.
Current report
Dual-branded restaurants are defined as restaurants that operate our IHOP and Applebee's restaurant concepts under two separate franchise agreements but within one restaurant location. Because of this, each dual-branded restaurant is counted in both IHOP and Applebee’s restaurant count and activity.
Current report
As of March 29, 2026, we had 35 dual-branded domestic IHOP and Applebee's restaurant locations. During the three months ended March 29, 2026, we had two existing company-owned Applebee's restaurants which added the IHOP brand, three existing Applebee's franchises which added the IHOP brand, one existing IHOP franchise which added the Applebee's brand, and two new franchise restaurants which added to both brands. This totaled 10 dual-branded domestic openings.
Current report
During the three months ended March 30, 2025, we had one existing IHOP franchise which added the Applebee's brand for a total of one dual-branded opening.
Current report
As of March 29, 2026, we had 37 dual-branded international IHOP and Applebee's restaurant locations. During the three months ended March 29, 2026, we had five new franchise restaurants which added both brands. This totaled 10 dual-branded international openings.
Current report
As of March 30, 2025, we had 19 dual-branded international IHOP and Applebee's restaurant locations. During the three months ended March 30, 2025, we had one existing Applebee's franchise which added the IHOP brand for a total of one dual-branded international opening.
Current report
The following table shows the effects of the domestic and international restaurant count methodology described above:
Current report
As our dual-branded business expands, we may reevaluate how these restaurants are counted in future disclosures.
Current report
IHOP's system domestic same-restaurant sales remained flat for the three months ended March 29, 2026 as compared to the respective prior year period, due to an increase in average check offset by a decrease in traffic.
Current report
According to Black Box, the family dining category experienced a decrease in same-restaurant sales resulting from a decrease in customer traffic, partially offset by an increase in average customer check for the three months ended March 29, 2026.
Current report
IHOP's off-premise sales for the three months ended March 29, 2026 increased by $1.9 million, as compared to the respective prior year period primarily due to the brand's focus on proven delivery promotions.
Current report
Based on data from Black Box, Applebee's domestic same-restaurant sales for the three months ended March 29, 2026 outperformed the casual dining category (excluding Applebee's). Black Box reported the casual dining category experienced a same-restaurant sales increase for the three months ended March 29, 2026 driven by an increase in average customer check, partially offset by a decrease in customer traffic.
Current report
Applebee's off-premise sales for the three months ended March 29, 2026 increased $5.9 million as compared to the respective prior year period primarily due to limited time offers paired with delivery and digital promotions.
Current report
Fuzzy's system domestic same-restaurant sales increased 2.4% for the three months ended March 29, 2026 as compared to the respective prior year period. The increase was primarily due to an increase in average check resulting primarily from menu price increases, partially offset by a decrease in traffic.
Current report
Segment Results
Current report
Our total franchise segment profit decreased $2.6 million in the three months ended March 29, 2026 as compared to the same respective period of 2025.
Current report
Franchise revenues decreased as a result of the following:
Current report
•IHOP franchise revenue decreased $1.7 million primarily due to a decrease in proprietary product sales, decreased performance of international franchisees and less fees related to franchisee terminations in the current year. The decrease in proprietary product sales was primarily due to timing of sales to our distribution partners. The decrease in franchise termination fees was primarily due to fewer franchisee restaurant closures as compared to the respective prior year period of 2025.
Current report
•Applebee’s franchise revenue decreased $0.1 million primarily due to a decrease in the number of franchise restaurants due in part to the acquisition of 12 Applebee’s restaurants in May 2025 and 12 Applebee's restaurants in February 2026. The decrease was partially offset by a 1.9% increase in franchise domestic same-restaurant sales and an increase in forfeited franchise fees due to restaurant closures.
Current report
•Fuzzy’s franchise revenue decreased $0.2 million primarily due to a decrease in royalty revenues and proprietary product sales as a result of a decrease in the number of franchise restaurants.
Current report
•Advertising revenue increased $0.5 million due to a 1.9% increase in Applebee's domestic same-restaurant sales and a 2.4% increase in Fuzzy's domestic same-restaurant sales, partially offset by a decrease in the number of Applebee's and Fuzzy's franchise restaurants.
Current report
Franchise expenses increased as a result of the following:
Current report
•IHOP franchise expenses increased $0.8 million primarily due to an increase in bad debt reserves, partially offset by a decrease in the cost of proprietary product sales.
Current report
•Applebee’s franchise expenses decreased $0.4 million primarily due to a decrease in bad debt reserves as compared to the respective prior year period of 2025.
Current report
•Fuzzy’s franchise expense increased $0.2 million primarily due to an increase in bad debt reserves.
Current report
•Advertising expenses increased $0.5 million given the increase in advertising revenue.
Current report
In February 2026, the Company acquired 12 Applebee's restaurants from a franchisee. As of March 29, 2026, the Company owned 86 restaurants compared to 58 restaurants as of March 30, 2025. The change in company-owned restaurant revenue and expenses is primarily driven by the increase in the number and timing of restaurants acquired since Q1 2025. Company-owned restaurant segment loss for the three months ended March 29, 2026 was primarily due to costs of transitioning the restaurants, including closures from remodeling activities.
Showing the first 40 of 54 passages. Open the source sections for the rest.
Removed paragraphs (104)
Previous report
You should read the following Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) in conjunction with the condensed consolidated financial statements and the related notes that appear elsewhere in this report and the MD&A contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Statements contained in this report may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please refer to the section of this report under the heading “Cautionary Statement Regarding Forward-Looking Statements” for more information. Except where the context indicates otherwise, the words “we,” “us,” “our,” “Dine Brands Global” and the “Company” refer to Dine Brands Global, Inc., together with its subsidiaries that are consolidated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).
Previous report
Overview
Previous report
Through various subsidiaries, we own and franchise the Applebee's Neighborhood Grill & Bar® (“Applebee's”) concept in the American full-service segment within the casual dining category of the restaurant industry, the International House of Pancakes® (“IHOP”) concept in the mid-scale full-service restaurant segment within the family dining category of the restaurant industry, and the Fuzzy's Taco Shop®(“Fuzzy's”) concept in the Mexican limited-service restaurant segment within the fast-casual dining category of the restaurant industry. References herein to Applebee's®, IHOP® and Fuzzy's Taco Shop® restaurants are to these three restaurant concepts, whether operated by franchisees, area licensees and their sub-licensees (collectively, “area licensees”) or by us. With close to 3,500 restaurants, we are one of the largest full-service restaurant companies in the world.
Previous report
We identify our business segments based on the organizational units used by management to monitor performance and make operating decisions. We currently have six operating segments: Applebee's franchise operations, IHOP franchise operations, Fuzzy's franchise operations, rental operations, financing operations, and company-owned restaurant operations. We have four reportable segments: franchise operations (an aggregation of each restaurant concept's franchise operations), rental operations, financing operations, and company-owned restaurant operations.
Previous report
Key Financial Results
Previous report
The financial tables appearing in this MD&A present amounts in millions of dollars that are rounded from our condensed consolidated financial statements presented in thousands of dollars. As a result, the tables may not foot or crossfoot due to rounding.
Previous report
The following table highlights the primary components of the decrease in our income before income taxes for the three and nine months ended September 30, 2025, compared to our income before income taxes for the comparable prior year periods (in millions):
Previous report
Total gross profit for the three months ended September 30, 2025 decreased compared with the same period of the prior year due to company restaurant and franchise operations. The company restaurant operations gross profit decreased primarily due to the operation of the 59 Applebee's restaurants and ten IHOP restaurants acquired over the last 11 months. The franchise operations gross profit decreased primarily due to a lower number of effective franchise restaurants and decreases in IHOP and Fuzzy’s domestic franchise same-restaurant sales as well as a decrease in IHOP’s proprietary product gross profit, offset by a 3.1% increase in Applebee’s domestic franchise same-restaurant sales (see Franchise Operations section below for further details).
Previous report
In addition, income before income taxes for the three months ended September 30, 2025 decreased compared with the prior year period primarily due to a decrease in gross profit, an increase in G&A expenses and an increase in interest expense in the current period. The increase in G&A expenses is primarily attributable to an increase in compensation-related expenses (predominantly incentive compensation) and an increase in travel and conference expenses. The increase in interest expense is primarily due to a refinancing transaction completed in June 2025.
Previous report
Total gross profit for the nine months ended September 30, 2025 decreased compared with the same period of the prior year due to franchise, company restaurant and rental operations. The franchise operations gross profit decreased primarily due to a lower number of effective franchise restaurants and decreases in IHOP and Fuzzy’s domestic franchise same-restaurant sales as well as increases in bad debt expense and refranchising costs and a decrease in IHOP’s proprietary product gross profit, offset by a 1.9% increase in Applebee’s domestic franchise same-restaurant sales, an increase in termination fees and a decrease in franchisor advertising contribution (see Franchise Operations section below for further details). The company restaurant operations gross profit decreased primarily due to the operation of the 59 Applebee's restaurants and ten IHOP restaurants acquired over the last 11 months as mentioned above (see Franchise Operations section below for further details). Rental operations gross profit decreased primarily due to lease terminations and a decrease in percentage rent due to lower system sales.
Previous report
In addition, income before income taxes for the nine months ended September 30, 2025 decreased compared with the prior year period due to a decrease in gross profit, an increase in G&A expenses, an increase in closure and impairment charges and an increase in interest expense. The increase in G&A expenses is primarily due to an increase in professional service and legal fees, an increase in travel and conference expenses and an increase in compensation-related expenses (predominantly incentive compensation offset by a decrease in severance expense) as well as costs related to company restaurant operations and our dual brand initiative, partially offset by a decrease in software maintenance costs. The increase in closure and impairment charges was primarily attributable to the strategic realignment of the IHOP Cincinnati market resulting in the acquisition and closure of certain IHOP restaurants in March 2025 and revisions to existing closure reserves. The increase in interest expense is primarily due to a refinancing transaction completed in June 2025.
Previous report
Increases in commodity, labor and other restaurant operating costs experienced at restaurants owned and operated by our franchisees could impact us to the extent our franchisees are adversely impacted by a sustained decline in their operating margins. At company-owned restaurants, when applicable, increases in commodity, labor and other restaurant operating costs impact us directly.
Previous report
See“Consolidated Results of Operations - Comparison of the Three and Nine Months Ended September 30, 2025 and 2024” for additional discussion of the changes shown above.
Previous report
In evaluating the performance of each restaurant concept, we consider the key performance indicators to be the system-wide sales percentage change, the percentage change in domestic system-wide same-restaurant sales (“domestic same-restaurant sales”), net franchise restaurant development and the change in effective restaurants. Changes in both domestic same-restaurant sales and in the number of Applebee's, IHOP and Fuzzy's restaurants will impact our system-wide retail sales that drive franchise royalty revenues. Restaurant development also impacts franchise revenues in the form of initial franchise fees and, in the case of IHOP and Fuzzy's restaurants, sales of proprietary products.
Previous report
Our key performance indicators for the three and nine months ended September 30, 2025 were as follows:
Previous report
(1) Franchise and area license restaurant closings, net of openings, during the three and nine months ended September 30, 2025.
Previous report
(2) Change in the weighted average number of franchise, area license and company-owned restaurants open during the three and nine months ended September 30, 2025, compared to the weighted average number of those open during the same periods of 2024.
Previous report
The change in total effective restaurants for each brand reflects both permanent closures, net of openings, over the past 12 months as well as the weighted effect of restaurants temporarily closed during each period.
Previous report
IHOP's system-wide domestic same-restaurant sales decreased 1.5% for the three months ended September 30, 2025 as compared to the same period of 2024, primarily due to a decrease in average check. IHOP's system-wide domestic same-restaurant sales decreased 2.2% for the nine months ended September 30, 2025 as compared to the same period of 2024, primarily due to a decrease in average check, partially offset by an increase in traffic.
Previous report
Based on data from Black Box, IHOP's same-restaurant sales for the three and nine months ended September 30, 2025 underperformed the family dining category of the restaurant industry (excluding IHOP) as compared with the same respective periods of 2024.
Previous report
Fuzzy's system-wide domestic same-restaurant sales decreased 1.5% for the three months ended September 30, 2025 and 8.7% for the nine months ended September 30, 2025 as compared to the same respective periods of 2024. The decrease in same-restaurant sales was primarily due to a decrease in traffic, partially offset by an increase in average check.
Previous report
Restaurant Data
Previous report
The following table sets forth the number of “Effective Restaurants” in the Applebee’s, IHOP and Fuzzy's systems and information regarding the percentage change in sales at those restaurants compared to the same period of the prior year. Sales at restaurants that are owned by franchisees and area licensees are not revenues of the Company. However, franchisees and area licensees pay us royalties and advertising fees that are based on a percentage of their sales, and, where applicable, rental payments under leases that are based on a percentage of their sales. Management also uses this information to make decisions about plans for future development of additional restaurants as well as evaluation of current operations.
Previous report
(a) “Effective Restaurants” are the weighted average number of restaurants open in each fiscal period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all Effective Restaurants in the Applebee’s, IHOP and Fuzzy's systems, which consist of restaurants owned by franchisees and area licensees as well as those owned by the Company.
Previous report
(c) “Sales percentage change” reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior year period for all restaurants in that category.
Previous report
(e) The franchise sales percentage change for 2025 was impacted by the acquisition of 47 Applebee's restaurants in November 2024, 10 IHOP restaurants in March 2025, and 12 Applebee's restaurants in May 2025 now reported as company-owned.
Previous report
The restaurant counts and activity presented above include 23 dual branded international and six dual branded domestic Applebee's and IHOP restaurants at September 30, 2025, and 13 dual branded international and no dual branded domestic Applebee's and IHOP restaurants at September 30, 2024, which are separately counted in each of our brands' restaurant counts and activity. Dual branded restaurants are defined as restaurants that reside in one location and operate two of our restaurant concepts under two separate franchise agreements.
Previous report
The closures presented in the tables above represent permanent closures of restaurants. Temporary closures, which can occur for a variety of reasons, are not reflected as reductions in this table and are included in the summary counts at the beginning and end of each period shown. Temporary closures are reflected in the weighted calculation of Effective Restaurants presented in the preceding Restaurant Data table.
Previous report
Closures of restaurants adversely impact our system-wide retail sales that drive our franchise royalty revenues as well as, in the case of IHOP and Fuzzy's restaurants, sales of proprietary products. Further, with certain restaurants, we own or lease the underlying property and sublease it to the applicable franchisee. Thus, our rental income also could be adversely affected due to the loss of such income, as well as our obligation to make rental or other payments for such properties.
Previous report
CONSOLIDATED RESULTS OF OPERATIONS
Previous report
Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
Previous report
Events Impacting Comparability of Financial Information
Previous report
Acquisition of Franchise Restaurants
Previous report
During the three and nine months ended September 30, 2025, we owned 47 Applebee's restaurants across Georgia, Texas, Arkansas, Illinois, Kentucky, Tennessee, Mississippi and Missouri acquired in November 2024, 10 IHOP restaurants in Ohio and Kentucky in March 2025, and 12 Applebee's restaurants across Kentucky, Indiana, Arkansas and Oklahoma acquired in May 2025. Including our one Fuzzy's company-owned restaurant, our total number of company-owned restaurants represents 2% of total system restaurant count as of September 30, 2025. During the three and nine months ended September 30, 2024, we did not own any Applebee's or IHOP restaurants.
Previous report
While we currently intend to own and operate these restaurants for the near term, we will assess and monitor opportunities to refranchise these restaurants under favorable circumstances. From time to time, we may acquire restaurants from franchisees for a variety of reasons which is consistent with, and should not be considered a change in, our business strategy to operate largely as a franchisor.
Previous report
Financial Results
Previous report
Total revenue for the three and nine months ended September 30, 2025 increased compared with the same periods of the prior year, primarily due to the operation of 47 Applebee's restaurants acquired in November 2024 and ten IHOP restaurants acquired in March 2025 (and to a lesser extent for the nine-month period, 12 Applebee's restaurants acquired in May 2025), partially offset by the decreases in franchise and rental operations revenue. The decrease in franchise operations revenue was primarily attributable to the decreases in IHOP and Fuzzy's domestic same-restaurant sales, the decrease in the number of effective franchise restaurants and the decrease in proprietary product sales, partially offset by an increase in Applebee's domestic same-restaurant sales. Rental operations revenue for the three and nine months ended September 30, 2025 decreased compared with the same periods of the prior year, primarily due to operating lease terminations.
Previous report
Total gross profit for the three months ended September 30, 2025 decreased compared with the same period of the prior year, primarily due to company restaurant and franchise operations. The company restaurant operations gross profit decreased primarily due to the operation of the 59 Applebee's restaurants and ten IHOP restaurants acquired over the last 11 months as mentioned above which the Company is investing. The franchise operations gross profit decreased primarily due to a lower number of effective franchise restaurants and decreases in IHOP and Fuzzy’s domestic franchise same-restaurant sales as well as a decrease in IHOP’s proprietary product gross profit, offset by a 3.1% increase in Applebee’s domestic franchise same-restaurant sales (see Franchise Operations section below for further details).
Previous report
Total gross profit for the nine months ended September 30, 2025 decreased compared with the same period of the prior year, primarily due to franchise operations, company restaurant and rental operations. The franchise operations gross profit decreased primarily due to a lower number of effective franchise restaurants and decreases in IHOP and Fuzzy’s domestic franchise same-restaurant sales as well as increases in bad debt expense and refranchising costs and a decrease in IHOP’s proprietary product gross profit, offset by a 1.9% increase in Applebee’s domestic franchise same-restaurant sales, an increase in termination fees and a decrease in franchisor advertising contribution (see Franchise Operations section below for further details). The company restaurant operations gross profit decreased primarily due to the operation of the 59 Applebee's restaurants and ten IHOP restaurants acquired over the last 11 months as mentioned above. The decrease in rental operations gross profit for the nine months ended September 30, 2025 was primarily due to decreased rental revenue as described above.
Previous report
(1)Effective Franchise Restaurants are the weighted average number of franchise and area license restaurants open in each fiscal period, adjusted to account for restaurants open for only a portion of the period.
Showing the first 40 of 104 passages. Open the source sections for the rest.
Reworded paragraphs (19)
Previous wording
Liquidity and Capital Resources
Current wording
•Liquidity and Capital Resources of the Company
Previous wording
(b) “System-wide sales” are retail sales at Applebee’s and Fuzzy's restaurants operated by franchisees and IHOP restaurants operated by franchisees and area licensees, as reported to the Company, in addition to retail sales at company-owned Applebee's, IHOP and Fuzzy's restaurants. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. An increase in franchisees' reported sales will result in a corresponding increase in our royalty revenue, while a decrease in franchisees' reported sales will result in a corresponding decrease in our royalty revenue. Unaudited reported sales for Applebee's, IHOP and Fuzzy's franchise restaurants, IHOP area license restaurants, and Applebee's, IHOP and Fuzzy's company-owned restaurants were as follows:
Current wording
"System sales" are retail sales at IHOP, Applebee’s and Fuzzy's restaurants operated by franchisees reported to the Company and revenues generated at company-owned restaurants. Sales at restaurants that are operated by franchisees are not revenues attributable to the Company. An increase in system sales of franchised restaurants will result in a corresponding increase in our royalty revenues, while a decrease will result in a corresponding decrease in our royalty revenues.
Previous wording
(d) “Domestic same-restaurant sales percentage change” reflects the percentage change in sales in any given fiscal period, compared to the same weeks in the prior year period, for domestic restaurants that have been operated during both periods that are being compared and have been open for at least 18 months. Because of new restaurant openings and restaurant closures, the domestic restaurants open throughout both fiscal periods being compared may be different from period to period.
Current wording
"Domestic same-restaurant sales change" reflects the percentage change in sales of domestic restaurants in any given fiscal period that operated during the comparable prior year period and have been open for at least 18 months. Due to new restaurant openings and restaurant closures, the restaurants open throughout both fiscal periods being compared may be different from period to period.
Previous wording
Based on data from Black Box Intelligence, a restaurant sales reporting firm (“Black Box”), Applebee's increase in same-restaurant sales for the three and nine months ended September 30, 2025 underperformed the casual dining category of the restaurant industry (excluding Applebee's) as compared with the same respective periods of 2024.
Current wording
Based on data from Black Box Intelligence, a restaurant sales reporting firm ("Black Box"), IHOP domestic same-restaurant sales outperformed for the three months ended March 29, 2026 in the family dining category (excluding IHOP).
Previous wording
(1) Primarily to-go, delivery and catering sales for comparable 2025 and 2024 restaurants.
Current wording
(1) Primarily to-go, delivery and catering sales.
Previous wording
Applebee’s system-wide domestic same-restaurant sales increased 3.1% for the three months ended September 30, 2025 and 1.9% for the nine months ended September 30, 2025 as compared to the same periods of 2024. The increase in same-restaurant sales was due to an increase in traffic and average check.
Current wording
Applebee’s system domestic same-restaurant sales increased 1.9% for the three months ended March 29, 2026 as compared to the respective prior year period. The increase was due to an increase in average check partially offset by a decrease in traffic.
Previous wording
(1)Primarily to-go, delivery and catering sales for comparable 2025 and 2024 restaurants.
Current wording
(1)Primarily to-go, delivery and catering sales.
Previous wording
The effective tax rate for the three months ended September 30, 2025 was comparable to the prior year period. The effective tax rate for the nine months ended September 30, 2025 was higher than the rate of the prior comparable period primarily due to a lower tax deduction related to stock-based compensation, resulting from the changes in our share price.
Current wording
The effective tax rate for the three months ended March 29, 2026 was lower than the rate of the prior comparable period primarily due to a higher tax deduction related to stock-based compensation resulting from an increase in our share price.
Previous wording
In summary, our cash flows for the nine months ended September 30, 2025 and 2024 were as follows:
Current wording
In summary, our cash flows for the three months ended March 29, 2026 and March 30, 2025 were as follows:
Previous wording
Key provisions of our long-term debt potentially impacting liquidity are summarized below. See Note 7 — Long-Term Debt, of the Notes to Condensed Consolidated Financial Statements, for additional detail on long-term debt, including the balances outstanding at September 30, 2025 and 2024. We believe that our unrestricted cash and cash equivalents on hand, cash flow from operations and the borrowing capacity available under our Credit Facility will provide us with adequate liquidity for at least the next twelve months.
Current wording
In addition to the below, see Note 7 — Long-Term Debt, of the Notes to Condensed Consolidated Financial Statements, for additional detail on long-term debt, including key provisions potentially impacting liquidity.
Previous wording
On February 16, 2023, the Company's Board of Directors authorized a debt repurchase program of up to $100 million. Repurchases of the Company’s debt, if any, are expected to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption. Under the authorization, the Company may make repurchases of the Company's debt from time to time in the open market or in privately negotiated transactions upon such terms and at such prices as management may determine.
Current wording
On February 16, 2023, our Company's Board of Directors authorized a debt repurchase program of up to $100 million. Repurchases of the Company's debt, if any, are expected to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption. Under the authorization, the Company may make repurchases of the Company's debt from time to time in the open market or in privately negotiated transactions upon such terms and at such prices as management may determine.
Previous wording
We may voluntarily repay the Class A-2 Notes at any time; however, if repaid prior to certain dates we would be required to pay make-whole premiums. As of September 30, 2025, the make-whole premium associated with voluntary prepayment of the 2023 Class A-2 Notes was approximately $20.9 million. As of September 30, 2025, the make-whole premium associated with the voluntary prepayment of the 2025 Class A-2 Notes was approximately $40.6 million. We also would be subject to a make-whole premium in the event of a mandatory prepayment required following certain rapid amortization events or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded that must be bifurcated for separate valuation. We estimated the fair value of these derivatives to be immaterial as of September 30, 2025, based on the probability-weighted discounted cash flows associated with either event.
Current wording
We may voluntarily repay the Class A-2 Notes at any time; however, if repaid prior to certain dates we would be required to pay make-whole premiums. As of March 29, 2026, the make-whole premium associated with voluntary prepayment of the 2023 Class A-2 Notes was approximately $12.1 million and for the 2025 Class A-2 Notes was approximately $29.8 million. We also would be subject to a make-whole premium in the event of a mandatory prepayment required following certain rapid amortization events or certain asset dispositions.
Previous wording
On February 21, 2025, the Board of Directors declared a first quarter 2025 cash dividend of $0.51 per share of common stock, paid on April 4, 2025 to the stockholders of record as of the close of business on March 17, 2025.
Current wording
During the three months ended March 29, 2026 and March 30, 2025, we declared and paid dividends of $2.5 million and $7.8 million on common stock as shown in Note 8 - Stockholders' Deficit, of the Notes to the Condensed Consolidated Financial Statements. On February 20, 2026, our Board of Directors declared a first quarter 2026 cash dividend of $0.19 per share of common stock, payable on April 10, 2026 to the stockholders of record as of the close of business on March 18, 2026.
Previous wording
On February 17, 2022, the Company's Board of Directors authorized a new share repurchase program, effective April 1, 2022, of up to $250 million (the “2022 Repurchase Program”).
Current wording
On February 17, 2022, the Company's Board of Directors authorized a share repurchase program, effective April 1, 2022, of up to $250 million (the "2022 Repurchase Program"). A summary of shares repurchased under the 2022 Repurchase Program, during the three months ended March 29, 2026 and cumulatively, is as follows:
Previous wording
From time to time, we also repurchase shares owned and tendered by employees to satisfy tax withholding obligations on the vesting of restricted stock awards. Shares are deemed purchased at the closing price of our common stock on the vesting date. See Part II, Item 2 for detail on this stock repurchase activity during the nine months ended September 30, 2025.
Current wording
From time to time, we also repurchase shares owned and tendered by employees to satisfy tax withholding obligations on the vesting of restricted stock awards. Shares are deemed purchased at the closing price of our common stock on the vesting date. See Part II, Item 2 of this Form 10-Q for detail of this stock repurchase activity during the three months ended March 29, 2026.
Previous wording
We define “adjusted free cash flow” for a given period as cash provided by operating activities, plus receipts from notes and equipment contract receivables, less additions to property and equipment. Management uses this liquidity measure in its periodic assessment of, among other things, payment of cash dividends on common stock and repurchases of common stock and we believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes.
Current wording
We define "adjusted free cash flow" for a given period as cash provided by operating activities, plus receipts from notes and equipment contract receivables, less additions to property and equipment. Management uses this liquidity measure in its periodic assessments of, among other things, the amount of cash dividends per share of common stock and repurchases of common stock. We believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes.
Previous wording
Adjusted free cash flow is a non-U.S. GAAP measure. This non-U.S. GAAP measure is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-U.S. GAAP measures should be considered in addition to, and not as a substitute for, the U.S. GAAP information contained within our financial statements. Reconciliation of the cash provided by operating activities to adjusted free cash flow is as follows:
Current wording
Adjusted free cash flow is a non-GAAP measure. This non-GAAP measure is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the U.S. GAAP information contained within our financial statements. Reconciliation of the cash provided by operating activities to adjusted free cash flow is as follows:
Previous wording
Adjusted free cash flow for the nine months ended September 30, 2025 decreased $9.6 million compared to the same period of the prior year primarily due to an increase in additions to property and equipment as the Company invests in its company-owned restaurants and a decrease in principal receipts from notes and equipment contracts, partially offset by higher cash flows from operating activities as discussed in the preceding section of this MD&A.
Current wording
The decrease in adjusted free cash flow for the three months ended March 29, 2026 compared to the same period of 2025 was primarily due to the increase in additions to property and equipment and the decrease in cash provided by operating activities as discussed above.
Previous wording
A summary of our critical accounting policies and estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2024. During the nine months ended September 30, 2025, there were no significant changes in our critical accounting policies or in our critical accounting estimates.
Current wording
A discussion of our critical accounting policies and estimates and the related assumptions used in their application is included in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 28, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
"Same-restaurant sales change" reflects the percentage change in sales of domestic and international restaurants in any given fiscal period that operated during the comparable prior year period and have been open for at least 18 months. Due to new restaurant openings and restaurant closures, the restaurants open throughout both fiscal periods being compared may be different from period to period.
Current report — wording carried from elsewhere
Liquidity and Capital Resources of the Company
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Our effective tax rate for the three months ended September 30, 2025 was comparable to the prior year period. Our effective tax rate for the nine months ended September 30, 2025 was higher than the rate of the prior comparable period primarily due to a lower tax deduction related to stock-based compensation, resulting from the changes in our share price.