Dine Brands Global, Inc.

1. Basis of Presentation

The accompanying unaudited interim Condensed Consolidated Financial Statements of Dine Brands Global, Inc. (the "Company," "Dine Brands Global," "we," "us," or "our") have been prepared in accordance with accounting principles accepted in the United States of America ("U.S. GAAP") for interim financial information and 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. We believe that all adjustments consisting of normal recurring accruals considered necessary for a fair presentation have been included. The operating results for the three months ended March 29, 2026 are not necessarily indicative of the results that may be expected for the twelve months ending January 3, 2027.

These Condensed 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 28, 2025.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, if any, at the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates.

Allowance for Credit Losses

The Company's receivables and long-term receivables balances are primarily comprised of receivables from franchisees, distributors, and gift card vendors. Generally, accounts receivables are due from franchisees for royalty, advertising and other franchise-related fees, and from distributors related to the sale of proprietary products to franchisees through the Company's network of suppliers and distributors. Gift card receivables primarily consist of amounts due from third-party vendors for cash collected on purchased cards. Notes receivable balances primarily relate to the conversion of certain past due franchisee accounts receivable, cash loans to franchisees for working capital purposes, or financing of the sale of IHOP and Applebee's company restaurants and franchise fees. Interest accrues on notes receivable based on the contractual terms. Leases receivable primarily relate to IHOP franchise restaurants that were developed prior to 2003.

The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on historical collection experience, credit quality, and current market conditions.

Net Income Available to Common Shareholders Per Share

Net income available to common shareholders per share is calculated using the treasury stock method. Basic net income per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding and dilutive potential shares of common stock. Dilutive potential common shares are reduced by the number of shares that could be purchased by the Company assuming the amount of unvested restricted stock awards would be received as proceeds.

2. Recent Accounting Pronouncements

Newly Issued Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, "Disaggregation of Income Statement Expenses," which requires public business entities to provide, in the footnotes to the financial statements, disaggregated disclosures of certain expense categories that are included in expense line items on the face of the income statement. The guidance is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027 with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU to our disclosures.

3. Cash, Cash Equivalents and Restricted Cash

Cash and Cash Equivalents

The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds.

Notes to Consolidated Financial Statements (Continued)

3. Cash, Cash Equivalents and Restricted Cash (Continued)

The components of cash and cash equivalents were as follows:

Current Restricted Cash

Current restricted cash primarily consisted of cash required to be held in trust in connection with the Company's securitized debt and cash for Applebee's and Fuzzy's advertising funds. The components of current restricted cash were as follows:

Non-current Restricted Cash

Non-current restricted cash of $22.0 million as of March 29, 2026 and December 28, 2025, respectively, represents interest reserves contractually restricted as required under the terms of our debt agreements.

4. Revenues

The following table disaggregates our franchise revenues by major type:

Changes in the Company's contract liability for deferred franchise and development fees during the three months ended March 29, 2026 were as follows:

4. Revenues (Continued)

The balance of deferred franchise revenue as of March 29, 2026 is expected to be recognized as follows:

5. Receivables

Total receivables balances at March 29, 2026 and December 28, 2025 were as follows:

Changes in the allowance for credit losses during the three months ended March 29, 2026 were as follows:

The $2.2 million of bad debt expense recorded for the three months ended March 29, 2026 is primarily due to $1.5 million recorded for accounts receivable and $0.6 million recorded for notes receivable. The Company's primary credit quality indicator for all portfolio segments is delinquency.

5. Receivables (Continued)

The year of origination of the Company's notes and financing receivables at March 29, 2026 is as follows:

6. Leases

The Company currently leases from third parties the real property for certain company-owned restaurants and leases and subleases to franchisees for certain franchise operated restaurants. The Company also leases office space for its principal corporate office in Pasadena, California. The Company does not have a significant amount of non-real estate leases.

The Company's leases and subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms offive to 20 years. Option periods were not included in determining lease liabilities and right-of-use assets related to operating leases. Certain leases also include variable rental payments based on a percentage of restaurant sales if certain restaurant sales thresholds are met.

During the three months ended March 29, 2026 and three months ended March 30, 2025, the Company made the following cash payments for operating leases:

The Company's income from operating leases for the three months ended March 29, 2026 and three months ended March 30, 2025 was as follows:

7. Long-Term Debt

The Company's long-term debt consists of the following:

(a) Variable interest rate of 6.18% and 6.56% at March 29, 2026 and December 28, 2025, respectively.

The A-2 Notes

Our Series 2023-1 Class A-2 Notes ("2023 Class A-2 Notes") and Series 2025-1 Class A-2 Notes ("2025 Class A-2 Notes", together with the 2023 Class A-2 Notes, the "A-2 Notes" ) have a legal final maturity of March 2053 for the 2023 Class A-2 Notes and June 2055 for the 2025 Class A-2 Notes. However, it is anticipated that, unless repaid earlier to the extent permitted under the Indenture, the 2023 Class A-2 Notes will be repaid by June 2029 and the 2025 Class A-2 Notes by June 2030.

The quarterly principal payment of $1.25 million on the 2023 Class A-2 Notes and $1.5 million on the 2025 Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25 x.

As of March 29, 2026, the Company's leverage ratio was approximately 5.06 x. As a result, the Company did not make quarterly principal payments on the A-2 Notes.

The Credit Facility

The Series 2025-1 Class A-1 Notes (the "Credit Facility" and collectively with the A-2 Notes, the "Notes") generally have an interest rate for advances calculated at a per annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Term Secured Overnight Financing Rate ("SOFR") Rate, in either case, plus 2.50%. The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (a) the greatest of (A) the Prime Rate in effect from time to time, (B) the Federal Funds Rate in effect from time to time plus 0.50% and (C) Term SOFR for a one-month tenor in effect at such time plus 0.50% plus (b)2.00%.

The legal final maturity of the Credit Facility is June 2055, but rapid amortization will apply if there are outstanding amounts under the Credit Facility after June 2030. The renewal date of the Credit Facility is June 2030, subject totwo additionalone-year extensions at the option of the Company upon the satisfaction of certain conditions.

As of March 29, 2026, the outstanding balance of the Credit Facility was $100 million. The amount of $0.5 million was pledged against the Credit Facility for outstanding letters of credit, leaving $224.5 million of the Credit Facility available for borrowing at March 29, 2026. The weighted average interest rate for the period outstanding during the three months ended March 29, 2026 was 6.35%.

Covenants and Restrictions

The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including but not limited to maintaining specified reserve accounts, optional and mandatory prepayments and related redemption premiums, and certain indemnification payments. The Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure of the Securitization Entities (as defined in the Indenture) to maintain the stated debt service coverage ratio ("DSCR"), the sum of domestic retail sales for all restaurants being below certain levels on certain measurement dates, certain manager termination events, certain events of default and the failure to repay or refinance the A-2 Notes on the anticipated repayment dates. The Notes are also subject to certain events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure of the Securitization Entities to maintain the stated DSCR, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties and certain judgments.

7. Long-Term Debt (Continued)

Key DSCRs are as follows:

•DSCR less than 1.75 x - Cash Trapping Event

•DSCR less than 1.20 x - Rapid Amortization Event

•Interest-only DSCR less than 1.20 x - Manager Termination Event

•Interest-only DSCR less than 1.10 x - Default Event

The Company's DSCR for the reporting period ended March 29, 2026 was approximately 3.0 x.

8. Stockholders' Deficit

Stock Repurchase Program

During the three months ended March 29, 2026, the Company repurchased 623,592 shares of common stock at a cost of $22.0 million. Cumulatively under the 2022 Repurchase Program, the Company repurchased 4,841,627 shares at a cost of $198.9 million. As of March 29, 2026, a remaining amount of $51.2 million in the value of shares may be repurchased under the 2022 Repurchase Program.

Dividends

Dividends declared and paid per share for the three months ended March 29, 2026 and 2025 were as follows:

During the three months ended March 29, 2026 and 2025, the Company paid dividends of $2.5 million and $7.8 million, respectively.

9. Stock-Based Compensation

The following table summarizes the Company's stock-based compensation expense included as a component of general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income:

As of March 29, 2026, total unrecognized compensation cost related to restricted stock awards and restricted stock units of $22.1 million and $0.6 million related to stock options is expected to be recognized over a weighted average period of approximately 1.5 years for restricted stock and restricted stock units and 0.8 years for stock options.

A significant majority of the Company’s equity grants occur in the first quarter of its fiscal year. Accordingly, during the three months ended March 29, 2026, the Company granted approximately 339,000 restricted stock and 49,000 restricted stock unit awards with a weighted average grant date fair value of $30.98 and $30.96, respectively. The Company did not grant any options in this period.

For the three months ended March 29, 2026 and 2025, the Company recorded expense of $0.7 million and $0.3 million, respectively, related to liability classified awards. As of March 29, 2026 and December 28, 2025, a liability of $2.1 million and $3.3 million, respectively, was recorded as Other non-current liabilities on the Condensed Consolidated Balance Sheets.

10. Income Taxes

The Company's effective tax rate was 27.3% for the three months ended March 29, 2026, as compared to 35.9% for the three months ended March 30, 2025. The effective tax rate for the three months ended March 29, 2026 was lower than the rate of the respective comparable period primarily due to a higher tax deduction related to stock-based compensation resulting from an increase in our share price.

11. Intangible Assets

Changes in indefinite-lived intangible assets during the three months ended March 29, 2026 were as follows:

Gross and net carrying amounts of finite-lived intangible assets at March 29, 2026 and December 28, 2025 are as follows:

In the fourth quarter of 2025, the Company reclassified $28.2 million of a tradename intangible from an indefinite-lived to a finite-lived asset.

12. Fair Value Measurements

For financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value, we may use the following inputs to derive the fair value:

•Level 1 inputs are quoted prices in active markets for identical assets or liabilities.

•Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities.

•Level 3 inputs are unobservable and reflect the Company's own assumptions.

The Company believes the fair values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. The Company believes the fair value of the Credit Facility approximates its carrying value as it is based on the SOFR or prevailing benchmark rate.

The fair value of the Company's long-term debt, excluding the Credit Facility, is based on quoted market prices which represent Level 1 inputs. The fair value as of March 29, 2026 and December 28, 2025 were as follows:

Notes to Consolidated Financial Statements (Continued)

13. Reportable Segments

Information onsegments and a reconciliation of segment operating profit to income before income taxes is as follows:

Dine Brand Global, Inc. and Subsidiaries

13. Reportable Segments (Continued)

(a) Segment items include:

Franchise: Costs of proprietary products, bad debt expense, pre-opening training expenses and other franchise-related costs.

Company-owned restaurants: Operating expenses at company-owned restaurants include food, beverage, labor, benefits, utilities, rent and other operating costs.

Rental: Costs of operating leases, such as rent expense, and interest expense of finance leases on franchisee-operated restaurants.

We do not present a measure of assets for our reportable segments as this information is not used by the chief operating decision maker to allocate resources or assess performance.

14. Business Acquisition

From time to time, the Company may acquire restaurants from franchisees to invest in the system, improve operations through innovation tests and create a blueprint for franchisee success and growth.

On February 23, 2026, the Company entered into an agreement with an Applebee's franchisee to acquire 12 Applebee's restaurants across Virginia and North Carolina for $0.9 million of consideration. The results of operations of the acquired restaurants have been included in the Company's Condensed Consolidated Financial Statements from the acquisition date. The transaction was determined to be immaterial.

15. Commitments and Contingencies

Litigation, Claims and Disputes

The Company is subject to various lawsuits, governmental inspections, administrative proceedings, audits, and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages.

15. Commitment and Contingencies (Continued)

The Company is required to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of the Company's litigation are expensed as incurred. In the opinion of management, these matters are adequately covered by insurance or, if not so covered, are without merit or are of such a nature or involve amounts that would not have a material adverse impact on the Company's business or Condensed Consolidated Financial Statements. Management regularly assesses the Company's insurance deductibles, analyzes litigation information with the Company's attorneys and evaluates its loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which the Company is currently a party will ultimately have a material adverse impact on the Company, there can be no assurance that the Company will prevail in all the proceedings the Company is party to, or that the Company will not incur material losses from them.

Lease Guarantees

In connection with refranchising restaurants to franchisees, in certain cases the Company has guaranteed lease payments. As of March 29, 2026 the notional amount of lease guarantees by the Company was $313.5 million. Excluding unexercised option periods, the Company's potential liability for future payments under these leases is $81.3 million. This amount represents the maximum potential liability of future payments under these leases. These leases expire at the end of the respective lease terms, which range from 2026 through 2058. In the event of default, the indemnity and default clauses in the sale or assignment agreements govern the Company's ability to pursue and recover damages incurred.