Dine Brands Global, Inc.
For the period ended Jun 28, 2026. Filed Aug 5, 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.
Jun 28, 2026 · Filed Aug 5, 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 2026-03-29; filed 2026-05-06.
0001628280-26-030905
Item 2. —Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-28; filed 2026-08-05.
0001628280-26-052924
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 88 previous paragraphs and 105 current paragraphs.
44 unchanged; 37 reworded; 19 added; 5 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 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 (19)
Current report
Total revenues for the six months ended June 28, 2026 increased $20.6 million compared to the prior year period, driven by a $30.9 million increase in company-owned restaurant revenues from restaurants acquired and opened since the second quarter of 2025. This increase was partially offset by a $9.0 million decrease in franchise revenues from lower franchisee termination fees, lower proprietary product sales due to a decrease in the types of product offerings, and a reduction in the number of franchised restaurants. The reduction in the number of franchised restaurants was primarily driven by acquisitions completed since the second quarter of 2025 and closures. Total cost of revenues increased $24.6 million primarily due to an increase in company-owned restaurants, partially offset by a decrease in bad debt expense compared to the prior year period.
Current report
(b) For the six months ended June 29, 2025, IHOP franchise closures and company-owned openings included 10 restaurants acquired in March 2025. Applebee’s franchise closures and company-owned openings included 12 restaurants acquired in May 2025 for the three and six months ended June 29, 2025; 12 acquired in February 2026 for the six months ended June 28, 2026; and 48 acquired in June 2026 for the three and six months ended June 28, 2026.
Current report
During the six months ended June 28, 2026, we had five existing company-owned Applebee's restaurants which added the IHOP brand, six existing Applebee's franchised restaurants which added the IHOP brand, three existing IHOP franchised restaurants which added the Applebee's brand, and three new franchised restaurants which added to both brands. This totaled 20 dual-branded domestic openings.
Current report
During the six months ended June 28, 2026, we had five new franchised restaurants which added both brands, and one dual-brand international closure. This totaled 10 dual-branded international openings and one dual-branded international closure.
Current report
During the six months ended June 29, 2025, we had two existing Applebee's franchised restaurants which added the IHOP brand for a total of two dual-branded international openings.
Current report
For the three months ended June 28, 2026 our total franchise segment profit decreased $2.1 million as compared to the prior year quarter.
Current report
•Applebee's franchise revenue decreased $4.7 million primarily due to a decrease in franchise termination fees, a decrease in the number of franchise restaurants, and a decrease in same restaurant sales change. The decrease in franchise termination fees was due to fewer closures in the current year quarter. The decrease in the number of franchise restaurants was the result of the acquisition of 12 Applebee's restaurants in February 2026, 48 Applebee's restaurants in June 2026, and closures.
Current report
Franchise expenses decreased as a result of the following:
Current report
•IHOP franchise expenses decreased $0.7 million primarily due to a decrease in the cost of proprietary product sales and a decrease in bad debt expense as compared to the respective prior year quarter.
Current report
•Applebee's franchise expenses decreased $3.3 million primarily due to expenses incurred in the prior year quarter related to transaction costs of refranchising restaurants and bad debt expense.
Current report
•IHOP franchise revenue decreased $2.6 million primarily due to a decrease in franchisee termination fees and proprietary product sales, partially offset by an increase in the number of franchise restaurants. The decrease in franchise termination fees was the result of fewer franchisee restaurant closures as compared to the prior year period. The decrease in proprietary product sales was primarily due to changes to product offerings.
Current report
•Advertising revenue decreased $1.0 million due to a decrease in the number of Applebee's and Fuzzy's franchise restaurants, partially offset by an increase in the number of IHOP franchise restaurants and a 0.8% increase in IHOP domestic same-restaurant sales.
Current report
Franchise expenses decreased as a result of the following:
Current report
•Applebee’s franchise expenses decreased $3.8 million primarily due to a decrease in bad debt expense as compared to the prior year period.
Current report
•Advertising expenses decreased $1.0 million given the decrease in advertising revenue.
Current report
Rental revenues for the three and six months ended June 28, 2026 decreased as compared to the prior year periods, primarily due to closures. Rental expenses for the three and six months ended June 28, 2026 decreased as compared with the same prior year period primarily due to lease terminations.
Current report
Total general and administrative expenses for the three months ended June 28, 2026 increased $4.8 million, primarily due to higher employee-related costs associated with the expansion of company-owned restaurants and dual-brand operations, increased reorganization costs, and higher professional services from the acquisition of 48 Applebee's restaurants in June 2026.
Current report
Total general and administrative expenses for the six months ended June 28, 2026 increased $6.6 million, primarily due to higher employee-related costs associated with the expansion of company-owned restaurants and dual-brand operations, increased year to date incentive compensation due to an increase in the number of employees and higher expectations for the remainder of the year as compared to the prior year, and higher long-term incentive compensation expense driven by an increase in the Company's share price.
Current report
The effective tax rate for the three months ended June 28, 2026 was higher than the rate of the prior year quarter primarily due to higher non-deductible executive compensation partially offset by increased income tax credits.
Removed paragraphs (5)
Previous 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.
Previous report
Franchise expenses increased as a result of the following:
Previous 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.
Previous report
Rental segment profit for the three months ended March 29, 2026 increased compared to the respective prior year period, primarily due to a non-recurring impairment of a lease asset in the respective prior year period.
Previous report
Total general and administrative expenses for the three months ended March 29, 2026 increased $1.8 million, primarily due to an increase in employee costs as we invest in training, development, and operations related to dual-branded and company-owned restaurants, partially offset by a decrease in professional service fees due to higher litigation expenses incurred in the prior year period.
Reworded paragraphs (37)
Previous wording
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 wording
Total revenues for the three months ended June 28, 2026 increased $10.1 million compared to the prior year quarter. The increase was driven by a $19.1 million increase in company-owned restaurant revenues from restaurants acquired and opened since the second quarter of 2025. This increase was partially offset by a $7.8 million decrease in franchise revenue from lower proprietary product sales, international franchise performance, less franchise termination fees recognized in the current period, and a decrease in Applebee's same restaurant sales change. In addition, franchise revenues decreased as a result of closures and the acquisition of 12 Applebee's restaurants in February 2026 and 48 Applebee's restaurants in June 2026. Total cost of revenues increased $11.1 million primarily due to the increase in company-owned restaurants, partially offset by lower bad debt expense as compared to the prior year quarter.
Previous wording
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 wording
Income before income taxes in the six months ended June 28, 2026, was lower due to a decrease in gross profit, increase in interest expense and an increase in general and administrative expenses, partially offset by a 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 company-owned and dual-branded restaurant initiatives and higher year to date incentive compensation due to an increase in the number of employees and higher expectations for the remainder of the year as compared to the prior year period. Gain on disposition of assets was primarily related to the sale of land and building of two IHOP restaurants.
Previous wording
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 wording
As of June 28, 2026, we had 44 dual-branded domestic IHOP and Applebee's restaurant locations. During the three months ended June 28, 2026, we had three existing company-owned Applebee's restaurants which added the IHOP brand, three existing Applebee's franchised restaurants which added the IHOP brand, two existing IHOP franchised restaurants which added the Applebee's brand, and one new franchised restaurant which added to both brands. This totaled 10 dual-branded domestic openings.
Previous wording
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 wording
During the three and six months ended June 29, 2025, we had one existing IHOP franchised restaurant which added the Applebee's brand for a total of one dual-branded opening.
Previous wording
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 wording
As of June 28, 2026, we had 37 dual-branded international IHOP and Applebee's restaurant locations. During the three months ended June 28, 2026, we had one dual-branded international opening and two dual-branded international closures.
Previous wording
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 wording
As of June 29, 2025, we had 20 dual-branded international IHOP and Applebee's restaurant locations. During the three months ended June 29, 2025, we had one existing Applebee's franchised restaurant which added the IHOP brand for a total of one dual-branded international opening.
Previous wording
The following table shows the effects of the domestic and international restaurant count methodology described above:
Current wording
The following table shows the effects of the domestic and international restaurant count methodology described above as of June 28, 2026 and June 29, 2025:
Previous 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.
Current wording
IHOP's system domestic same-restaurant sales increased 1.5% for the three months ended June 28, 2026 as compared to the prior year period, due to an increase in average check partially offset by a decrease in traffic. IHOP's system domestic same-restaurant sales increased 0.8% for the six months ended June 28, 2026 as compared to the respective prior year period, due to an increase in average check partially offset by a decrease in traffic.
Previous wording
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 wording
Based on data from Black Box Intelligence, a restaurant sales reporting firm ("Black Box"), IHOP domestic same-restaurant sales outperformed for the three and six months ended June 28, 2026 in the family dining category (excluding IHOP). According to Black Box, for the three and six months ended June 28, 2026 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.
Previous wording
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 wording
IHOP's off-premise sales for the three and six months ended June 28, 2026 increased by $3.8 million and $7.1 million, respectively, as compared to the respective prior year periods primarily due to the brand's focus on delivery promotions.
Previous wording
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 wording
Applebee's system domestic same-restaurant sales decreased 1.8% for the three months ended June 28, 2026 as compared to the prior year quarter due to a decrease in traffic partially offset by an increase in average check. Applebee's system domestic same-restaurant sales remained flat for the six months ended June 28, 2026 as compared to the respective prior year period. This was the result of an increase in average check offset by a decrease in traffic.
Previous wording
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 wording
Based on data from Black Box, Applebee's domestic same-restaurant sales for the three and six months ended June 28, 2026 underperformed the casual dining category (excluding Applebee's). Black Box reported the casual dining category experienced a same-restaurant sales increase for the three and six months ended June 28, 2026 driven by an increase in average check, partially offset by a decrease in customer traffic.
Previous wording
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 wording
Applebee's off-premise sales for the three and six months ended June 28, 2026 increased $1.5 million and $7.3 million, respectively, as compared to the respective prior year periods primarily due to delivery and digital promotions.
Previous wording
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 wording
Fuzzy's system domestic same-restaurant sales increased 4.6% and 3.6% for the three and six months ended June 28, 2026, respectively, as compared to the respective prior year periods. The increase was primarily due to growth in average check resulting from menu price increases, partially offset by a decrease in traffic.
Previous wording
•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 wording
•IHOP franchise revenue decreased $0.9 million primarily due to a decrease in fees related to franchisee terminations and a decrease in proprietary product sales, partially offset by a 1.5% increase in franchise domestic same-restaurant sales. The decrease in franchise termination fees was primarily due to fewer franchisee restaurant closures as compared to the prior year quarter. The decrease in proprietary product sales was primarily due to changes to product offerings.
Previous wording
•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 wording
•Fuzzy's franchise revenue decreased $0.6 million primarily due to a decrease in royalty revenues as a result of a decrease in the number of franchise restaurants and a decrease in forfeited development fees.
Previous wording
•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 wording
•Advertising revenue decreased $1.6 million due to a 1.8% decrease in Applebee's domestic same-restaurant sales and a decrease in the number of Applebee's and Fuzzy's franchise restaurants, partially offset by a 1.5% increase in IHOP domestic same-restaurant sales.
Previous wording
•Advertising expenses increased $0.5 million given the increase in advertising revenue.
Current wording
•Advertising expenses decreased $1.6 million given the decrease in advertising revenue.
Previous wording
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 wording
For the six months ended June 28, 2026 our total franchise segment profit decreased $4.4 million as compared to the prior year period of 2025.
Previous wording
•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 wording
•Applebee's franchise revenue decreased $4.8 million primarily due to a decrease in the number of franchise restaurants and a decrease in franchisee terminations fees. The decrease in the number of franchise restaurants was primarily due to the acquisition of 12 Applebee's restaurants in May 2025, 12 Applebee's restaurants in February 2026 and 48 Applebee's restaurants in June 2026. The decrease in franchise termination fees was primarily due to fewer franchisee restaurant closures as compared to the prior year period.
Previous wording
•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 wording
•IHOP franchise expenses increased $0.2 million primarily due to an increase in bad debt expense, partially offset by a decrease in the cost of proprietary product sales.
Previous wording
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.
Current wording
The Company acquired 12 Applebee's restaurants from a franchisee in February 2026 and 48 Applebee's restaurants from a franchisee in June 2026. As of June 28, 2026, the Company owned 136 restaurants, which includes seven dual-branded restaurants, compared to 70 restaurants as of June 29, 2025. The change in company-owned restaurant revenue and expenses for the three and six months ended June 28, 2026 is primarily driven by the increase in the number and timing of restaurants acquired since the second quarter of 2025. Company-owned restaurant segment loss for the three and six months ended June 28, 2026 was primarily due to costs of transitioning the restaurants, including closures from remodeling activities.
Previous wording
Interest expense, net, increased $4.1 million for the three months ended March 29, 2026, primarily due to the refinancing of our 2025 Class A-2 Notes at a higher interest rate and an increased principal in June 2025, and a decrease to interest income due to reduced cash balances.
Current wording
Interest expense, net, increased $4.2 million and $8.3 million for the three and six months ended June 28, 2026, respectively, primarily due to the refinancing of our 2025 Class A-2 Notes at a higher interest rate and an increased principal in June 2025, and a decrease of interest income resulting from reduced cash balances.
Previous wording
For the three months ended March 29, 2026, we recorded $0.8 million of an increase in reserves related to properties for which we are the lessee but have ceased using the property in prior periods. This compares to closure and other asset impairment charges for the three months ended March 30, 2025 primarily related to the impairment of an asset upon the closure of certain IHOP restaurants in March 2025.
Current wording
For the three and six months ended June 28, 2026, we recorded a $3.2 million trademark impairment charge related to the strategic realignment of the international market. For the six months ended June 29, 2025, other asset impairment charges were primarily related to the impairment of an asset upon closure of certain IHOP restaurants in March 2025.
Previous wording
Amortization of intangible assets primarily relates to Applebee's and Fuzzy's franchise rights. Amortization increased $1.1 million compared to the same respective prior period due to the reclassification of certain indefinite-lived intangible assets to finite-lived. In addition, in the current year certain finite-lived intangible assets useful lives were shortened.
Current wording
Amortization of intangible assets primarily relates to Applebee's and Fuzzy's franchise rights and the Fuzzy's tradename. Amortization increased $1.2 million and $2.2 million for the three and six months ended June 28, 2026, respectively, compared to the prior periods due to the reclassification of certain indefinite-lived intangible assets to finite-lived in the fourth quarter of fiscal 2025. In addition, in the current year, the useful lives of certain finite-lived intangible assets were reduced.
Previous wording
The gain on disposition of assets for the three months ended March 29, 2026 primarily relates to the sale of land and building on which two IHOP properties were located.
Current wording
The gain on disposition of assets for the three months ended June 28, 2026 is related to the gain on lease terminations. The gain on disposition of assets for the six months ended June 28, 2026 primarily relates to the sale of land and building on which two IHOP properties were located.
Previous 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.
Current wording
The effective tax rate for the six months ended June 28, 2026 was lower than the rate of the prior year 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 three months ended March 29, 2026 and March 30, 2025 were as follows:
Current wording
In summary, our cash flows for the six months ended June 28, 2026 and June 29, 2025 were as follows:
Previous wording
Cash provided by operating activities decreased $8.6 million during the three months ended March 29, 2026 compared to the same period of the prior year. This decrease was primarily attributable to the impact of performance plan compensation payments. This was partially offset by a decrease in income tax payments compared to the same period of the prior year.
Current wording
Net cash provided by operating activities decreased $33.2 million during the six months ended June 28, 2026 compared to the same period of the prior year. The decrease was primarily driven by timing of marketing spend, higher payments related to performance-based compensation and interest, in addition to lower segment profit.
Previous wording
Investing activities used net cash of $7.7 million for the three months ended March 29, 2026 compared to using net cash of $1.9 million during the comparable prior period. The increase in cash used in investing activities is largely driven by the remodels and construction of the company-owned restaurants partially offset by the sale of two properties.
Current wording
Net cash used in investing activities was $9.0 million for the six months ended June 28, 2026 compared to net cash used of $5.1 million during the comparable prior period. The increase in cash used was primarily attributable to capital expenditures for the remodeling of company-owned restaurants, partially offset by the net cash acquired from the acquisition of restaurants from franchisees, principal collections on notes and equipment receivables and proceeds from the sale of two properties.
Previous wording
Cash flows used in financing activities increased $16.2 million for the three months ended March 29, 2026. The increase in cash used in financing activities was primarily due to $22.0 million in repurchases of common stock, partially offset by a decrease in dividends paid.
Current wording
Net cash used in financing activities increased $6.5 million for the six months ended June 28, 2026. The increase in cash used in financing activities was primarily due to $29.3 million in common stock repurchases, partially offset by a decrease in dividends paid and the debt issuance cost.
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 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.
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 June 28, 2026, the make-whole premium associated with voluntary prepayment of the 2023 Class A-2 Notes was approximately $7.1 million and for the 2025 Class A-2 Notes was approximately $22.8 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
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.
Current wording
During the six months ended June 28, 2026 and June 29, 2025, we declared and paid dividends on common stock as shown in Note 8 - Stockholders' Deficit, of the Notes to the Condensed Consolidated Financial Statements. On May 14, 2026, our Board of Directors declared a second quarter 2026 cash dividend of $0.19 per share of common stock, payable on July 10, 2026 to the stockholders of record as of the close of business on June 24, 2026.
Previous 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:
Current wording
On May 14, 2026, the Company's Board of Directors authorized a share repurchase program of up to $100 million (the "2026 Repurchase Program") in addition to the Corporation’s existing share repurchase program, approved in February 2022 (together with the 2026 Repurchase Program, the "Repurchase Programs"). A summary of shares repurchased under the Repurchase Programs, during the six months ended June 28, 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 of this Form 10-Q for detail of this stock repurchase activity during the three months ended March 29, 2026.
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 six months ended June 28, 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 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.
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 the amount of 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
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.
Current wording
The decrease in adjusted free cash flow for the six months ended June 28, 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. Additionally, we continue to provide remodel and development incentives to our franchisees which also had a negative impact on adjusted free cash flow for the period.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Income before income taxes in the three months ended June 28, 2026, was lower due to a decrease in gross profit, increase in general and administrative expenses, increase in interest expense and an increase in closure and impairment charges. The increase in general and administrative expenses is primarily due to our investment in company-owned and dual-branded restaurant initiatives, increased reorganization costs, and higher professional service fees from the acquisition of additional company-owned restaurants. The increase in interest expense is primarily the result of the refinancing of our 2025 Class A-2
Current report — wording carried from elsewhere
Notes completed in June 2025 which resulted in increased principal and a higher interest rate. Closure and impairment charges increased primarily due to the impairment of trademarks.
Current report — wording carried from elsewhere
Franchise revenues decreased as a result of the following:
Current report — wording carried from elsewhere
•Fuzzy's franchise revenue decreased $0.7 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, partially offset by a 3.6% increase in Fuzzy's domestic same-restaurant sales.
Current report — wording carried from elsewhere
For the three and six months ended June 28, 2026 and June 29, 2025, we recorded closure charges primarily related to properties for which we are the lessee but have ceased using in prior periods.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
•Fuzzy’s franchise expense increased $0.2 million primarily due to an increase in bad debt reserves.