These restaurant companies are expected to show the fastest growth through 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 10 2024
0mins
Source: MarketWatch
- Restaurant Industry Performance: The U.S. restaurant industry has underperformed in the past five years before the COVID-19 pandemic.
- Bright Future: Despite past challenges, the future of the restaurant industry in the U.S. looks promising.
- Real Estate Trend: Restaurants are now considered desirable tenants by retail landlords, indicating a shift in the real estate market.
- Record Revenue: The restaurant industry is experiencing record revenue, attracting more attention from investors and landlords.
- Consumer Behavior: 53% of U.S. consumers prefer dining out, contributing to the increased demand for restaurants as tenants.
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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: 27.260
Low
34.00
Averages
36.33
High
40.00
Current: 27.260
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.
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
Dine Brands Q4 Earnings Beat Expectations, Cautious Outlook Ahead
- Earnings Highlights: Dine Brands reported a Q4 non-GAAP EPS of $1.46, exceeding expectations by $0.40, indicating strong profitability; however, revenue of $217.6 million, while up 6.3% year-over-year, fell short of expectations by $8.67 million, reflecting increased market competition pressures.
- Sales Outlook: Both Applebee's and IHOP are projected to have domestic same-restaurant sales growth between 0% and 2%, suggesting a cautious stance on future sales growth amid economic uncertainties that could impact overall performance.
- Development Plans: Applebee's anticipates a net reduction of 5 to 15 restaurants, while IHOP may close 10 locations while opening 10 new ones, indicating a more conservative approach to expansion strategies in response to market challenges.
- Financial Guidance: Adjusted EBITDA is expected to range between $220 million and $230 million, with G&A expenses projected at $205 million to $210 million, reflecting efforts to optimize costs and enhance profitability, while capital expenditures are estimated between $25 million and $35 million, demonstrating a cautious investment outlook for the future.
See More
Dine Brands Global Set to Announce Q4 Earnings
- Earnings Announcement Date: Dine Brands Global (DIN) is set to announce its Q4 earnings on February 25 before market open, with a consensus EPS estimate of $1.06, reflecting a 21.8% year-over-year increase, which could directly impact the stock price.
- Revenue Expectations: The anticipated revenue for Q4 is $226.27 million, representing a 10.5% year-over-year growth, and achieving this would bolster investor confidence, although the company has only beaten revenue estimates 38% of the time over the past two years.
- Estimate Revisions: Over the last three months, there have been no upward revisions to EPS estimates and three downward revisions, indicating market concerns regarding the company's profitability, which may influence investor decisions.
- Historical Performance: Dine Brands has exceeded EPS and revenue estimates 38% of the time in the past two years, but the current trend of estimate revisions could negatively affect future performance.
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
Dine Brands Q4 Earnings Beat Expectations, Cautious Outlook Ahead
- Earnings Highlights: Dine Brands reported a Q4 non-GAAP EPS of $1.46, exceeding expectations by $0.40, indicating strong profitability; however, revenue of $217.6 million, while up 6.3% year-over-year, fell short of expectations by $8.67 million, reflecting increased market competition pressures.
- Sales Outlook: Both Applebee's and IHOP are projected to have domestic same-restaurant sales growth between 0% and 2%, suggesting a cautious stance on future sales growth amid economic uncertainties that could impact overall performance.
- Development Plans: Applebee's anticipates a net reduction of 5 to 15 restaurants, while IHOP may close 10 locations while opening 10 new ones, indicating a more conservative approach to expansion strategies in response to market challenges.
- Financial Guidance: Adjusted EBITDA is expected to range between $220 million and $230 million, with G&A expenses projected at $205 million to $210 million, reflecting efforts to optimize costs and enhance profitability, while capital expenditures are estimated between $25 million and $35 million, demonstrating a cautious investment outlook for the future.
See More
Dine Brands Global Set to Announce Q4 Earnings
- Earnings Announcement Date: Dine Brands Global (DIN) is set to announce its Q4 earnings on February 25 before market open, with a consensus EPS estimate of $1.06, reflecting a 21.8% year-over-year increase, which could directly impact the stock price.
- Revenue Expectations: The anticipated revenue for Q4 is $226.27 million, representing a 10.5% year-over-year growth, and achieving this would bolster investor confidence, although the company has only beaten revenue estimates 38% of the time over the past two years.
- Estimate Revisions: Over the last three months, there have been no upward revisions to EPS estimates and three downward revisions, indicating market concerns regarding the company's profitability, which may influence investor decisions.
- Historical Performance: Dine Brands has exceeded EPS and revenue estimates 38% of the time in the past two years, but the current trend of estimate revisions could negatively affect future performance.
See More
