Bankruptcy of Applebee's Franchisee Affects Parent Dine Brands Global
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DIN?
Source: seekingalpha
- Franchise Bankruptcy: Neighborhood Restaurant Partners Florida filed for Chapter 11 on March 25, operating over 50 Applebee's locations, highlighting the impact of prolonged weak sales and high operating costs.
- Asset and Liability Status: The franchisee reported assets between $1M and $10M, with liabilities ranging from $10M to $50M, indicating a challenging financial situation.
- Strategic Acquisition Opportunity: Dine Brands (DIN) plans to act as a stalking-horse bidder to acquire remaining restaurants and leases, with CEO John Peyton emphasizing that this move will support the long-term health of the system.
- Brand Strength: Despite the challenges, Peyton believes the Applebee's brand remains strong, indicating the company's confidence in future prospects.
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Analyst Views on DIN
Wall Street analysts forecast DIN stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 26.060
Low
34.00
Averages
36.33
High
40.00
Current: 26.060
Low
34.00
Averages
36.33
High
40.00
About DIN
Dine Brands Global, Inc., together with its subsidiaries, owns and franchises the Applebee’s Neighborhood Grill + Bar (Applebee’s) concept in the American full-serve restaurant segment within the casual dining category of the restaurant industry. The Company also owns and franchises the International House of Pancakes (IHOP) concept in the midscale full-service restaurant segment within the family dining category of the restaurant industry and Fuzzy’s Taco Shop (Fuzzy’s) concept in the Mexican limited-service restaurant segment. Its segments include franchise operations, Rental operations, Financing operations and Company restaurant operations. The franchise operations segment consists of approximately 1,567 Applebee’s franchised restaurants; 1,824 IHOP franchised and area licensed restaurants, and 116 Fuzzy's franchised restaurants. The Rental operations segment consists of lease or sublease agreements covering 554 IHOP franchised restaurants and two Applebee’s franchised restaurants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bankruptcy of Applebee's Franchisee Affects Parent Dine Brands Global
- Franchise Bankruptcy: Neighborhood Restaurant Partners Florida filed for Chapter 11 on March 25, operating over 50 Applebee's locations, highlighting the impact of prolonged weak sales and high operating costs.
- Asset and Liability Status: The franchisee reported assets between $1M and $10M, with liabilities ranging from $10M to $50M, indicating a challenging financial situation.
- Strategic Acquisition Opportunity: Dine Brands (DIN) plans to act as a stalking-horse bidder to acquire remaining restaurants and leases, with CEO John Peyton emphasizing that this move will support the long-term health of the system.
- Brand Strength: Despite the challenges, Peyton believes the Applebee's brand remains strong, indicating the company's confidence in future prospects.
See More
Dine Brands Stock Shows Oversold Signal
- Oversold Indicator: Dine Brands Global Inc (Ticker: DIN) hit an RSI of 29.8 during Wednesday's trading, indicating an oversold condition that suggests recent heavy selling may be exhausting, prompting investors to seek buying opportunities.
- Price Fluctuation: DIN shares reached a low of $26.01, with the current trading price at $26.49, showing a significant recovery from the 52-week low of $18.63, yet still far below the 52-week high of $39.68, reflecting market volatility.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 38.3, DIN's oversold status may attract bullish investors, signaling potential rebound opportunities in the stock.
- Investor Sentiment: In the current market environment, DIN's oversold signal may lead investors to reassess their strategies, especially as the stock approaches its 52-week low, potentially drawing increased buying interest.
See More
Dine Brands and Starwood Options Trading Active
- Dine Brands Options Volume: Dine Brands Global Inc (Ticker: DIN) saw an options trading volume of 2,683 contracts today, representing approximately 268,300 shares, which is about 61.1% of its average daily trading volume of 439,265 shares over the past month, indicating a significant increase in market interest in the stock.
- High Call Option Activity: Among DIN's options, the $25 strike call option is particularly active, with 800 contracts traded today, representing about 80,000 shares, suggesting that investors are increasingly optimistic about the stock's future price movements, which could influence its market performance.
- Starwood Options Trading Overview: Starwood Property Trust Inc (Ticker: STWD) has recorded an options trading volume of 21,531 contracts today, equating to approximately 2.2 million shares, or 60.9% of its average daily trading volume of 3.5 million shares over the past month, reflecting sustained investor interest in the company.
- High Put Option Activity: For STWD, the $12 strike put option has seen a trading volume of 10,500 contracts today, representing around 1.1 million shares, indicating market concerns regarding potential downside risks for the company, which may affect investor sentiment and decision-making.
See More
Burger King Enhances Whopper for First Time in a Decade
- Whopper Improvement: Burger King is enhancing the Whopper for the first time in a decade by introducing a premium bun and better-tasting mayo, aiming to boost customer satisfaction and strengthen brand competitiveness.
- AI Tool Implementation: Parent company Restaurant Brands International is deploying the AI tool “Patty” to facilitate real-time communication through employee headsets, enhancing customer service quality and operational efficiency, which is expected to positively impact sales.
- Employee Training Innovation: The AI system tracks the frequency of polite language used by employees, assisting management in providing feedback and training, with the goal of reinforcing human-centric service to improve customer relations and enhance brand loyalty.
- Stock Performance: Restaurant Brands International's stock rose 2.6% to $71.71, with a year-to-date increase of 5.3%, reflecting positive market sentiment towards its new strategies, which may further drive future sales growth.
See More
Dine Brands Global Reports Q4 2025 Earnings Highlights
- Revenue Growth: Dine Brands reported total revenues of $217.6 million in Q4 2025, a 6.2% increase from $204.8 million in the prior year, primarily driven by the timing of reclaiming restaurants from franchisees, indicating a recovery potential in the market.
- Adjusted EBITDA Increase: Q4 adjusted EBITDA rose to $59.8 million from $50.1 million in 2024, reflecting benefits from the national advertising fund, showcasing effective strategies in cost control and revenue growth.
- Dual Brand Strategy Expansion: The company has opened 32 dual brand restaurants in the U.S. and projects at least 50 more openings in 2026, with dual brand locations generating 1.5 to 2.5 times the revenue of single brand locations, highlighting the success of this strategy.
- Shareholder Returns: In 2025, Dine Brands returned $92 million to shareholders through buybacks and dividends, with $31 million repurchased in Q4, representing over 7% of outstanding shares, demonstrating the company's commitment to shareholder value and ongoing capital management capabilities.
See More
Dine Brands (DIN) Q4 2025 Earnings Call Transcript
See More
Bankruptcy of Applebee's Franchisee Affects Parent Dine Brands Global
- Franchise Bankruptcy: Neighborhood Restaurant Partners Florida filed for Chapter 11 on March 25, operating over 50 Applebee's locations, highlighting the impact of prolonged weak sales and high operating costs.
- Asset and Liability Status: The franchisee reported assets between $1M and $10M, with liabilities ranging from $10M to $50M, indicating a challenging financial situation.
- Strategic Acquisition Opportunity: Dine Brands (DIN) plans to act as a stalking-horse bidder to acquire remaining restaurants and leases, with CEO John Peyton emphasizing that this move will support the long-term health of the system.
- Brand Strength: Despite the challenges, Peyton believes the Applebee's brand remains strong, indicating the company's confidence in future prospects.
See More
Dine Brands Stock Shows Oversold Signal
- Oversold Indicator: Dine Brands Global Inc (Ticker: DIN) hit an RSI of 29.8 during Wednesday's trading, indicating an oversold condition that suggests recent heavy selling may be exhausting, prompting investors to seek buying opportunities.
- Price Fluctuation: DIN shares reached a low of $26.01, with the current trading price at $26.49, showing a significant recovery from the 52-week low of $18.63, yet still far below the 52-week high of $39.68, reflecting market volatility.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 38.3, DIN's oversold status may attract bullish investors, signaling potential rebound opportunities in the stock.
- Investor Sentiment: In the current market environment, DIN's oversold signal may lead investors to reassess their strategies, especially as the stock approaches its 52-week low, potentially drawing increased buying interest.
See More
Dine Brands and Starwood Options Trading Active
- Dine Brands Options Volume: Dine Brands Global Inc (Ticker: DIN) saw an options trading volume of 2,683 contracts today, representing approximately 268,300 shares, which is about 61.1% of its average daily trading volume of 439,265 shares over the past month, indicating a significant increase in market interest in the stock.
- High Call Option Activity: Among DIN's options, the $25 strike call option is particularly active, with 800 contracts traded today, representing about 80,000 shares, suggesting that investors are increasingly optimistic about the stock's future price movements, which could influence its market performance.
- Starwood Options Trading Overview: Starwood Property Trust Inc (Ticker: STWD) has recorded an options trading volume of 21,531 contracts today, equating to approximately 2.2 million shares, or 60.9% of its average daily trading volume of 3.5 million shares over the past month, reflecting sustained investor interest in the company.
- High Put Option Activity: For STWD, the $12 strike put option has seen a trading volume of 10,500 contracts today, representing around 1.1 million shares, indicating market concerns regarding potential downside risks for the company, which may affect investor sentiment and decision-making.
See More
Burger King Enhances Whopper for First Time in a Decade
- Whopper Improvement: Burger King is enhancing the Whopper for the first time in a decade by introducing a premium bun and better-tasting mayo, aiming to boost customer satisfaction and strengthen brand competitiveness.
- AI Tool Implementation: Parent company Restaurant Brands International is deploying the AI tool “Patty” to facilitate real-time communication through employee headsets, enhancing customer service quality and operational efficiency, which is expected to positively impact sales.
- Employee Training Innovation: The AI system tracks the frequency of polite language used by employees, assisting management in providing feedback and training, with the goal of reinforcing human-centric service to improve customer relations and enhance brand loyalty.
- Stock Performance: Restaurant Brands International's stock rose 2.6% to $71.71, with a year-to-date increase of 5.3%, reflecting positive market sentiment towards its new strategies, which may further drive future sales growth.
See More
Dine Brands Global Reports Q4 2025 Earnings Highlights
- Revenue Growth: Dine Brands reported total revenues of $217.6 million in Q4 2025, a 6.2% increase from $204.8 million in the prior year, primarily driven by the timing of reclaiming restaurants from franchisees, indicating a recovery potential in the market.
- Adjusted EBITDA Increase: Q4 adjusted EBITDA rose to $59.8 million from $50.1 million in 2024, reflecting benefits from the national advertising fund, showcasing effective strategies in cost control and revenue growth.
- Dual Brand Strategy Expansion: The company has opened 32 dual brand restaurants in the U.S. and projects at least 50 more openings in 2026, with dual brand locations generating 1.5 to 2.5 times the revenue of single brand locations, highlighting the success of this strategy.
- Shareholder Returns: In 2025, Dine Brands returned $92 million to shareholders through buybacks and dividends, with $31 million repurchased in Q4, representing over 7% of outstanding shares, demonstrating the company's commitment to shareholder value and ongoing capital management capabilities.
See More
Dine Brands (DIN) Q4 2025 Earnings Call Transcript
See More
