Dine Brands Revenues Rise as Same-Store Sales Diverge
The restaurant franchisor reported total revenues of $240.9 million for the second quarter.
Dine Brands Global (DIN) reported second-quarter total revenues of $240.9 million, up from $230.8 million in the same period last year. The restaurant franchisor attributed the increase primarily to higher sales from company-owned restaurants following acquisitions from franchisees.
Performance across the company's primary brands showed a divergence in consumer demand. Applebee’s year-over-year comparable domestic same-restaurant sales decreased 1.8%. This result marked a reversal from the 1.9% increase the company reported in the first quarter of 2026.
IHOP saw a different trajectory, with year-over-year comparable domestic same-restaurant sales increasing 1.5%. This represented an improvement over the flat growth reported in the prior quarter.
Profitability declined despite the revenue growth. Net income available to common stockholders fell to $4.2 million from $13.2 million in the second quarter of 2025. Non-GAAP adjusted net income available to common stockholders also decreased to $14.0 million from $17.4 million in the prior-year period.
Adjusted EBITDA for the quarter was $54.2 million, down from $56.2 million a year earlier. General and administrative expenses rose to $55.6 million from $50.8 million. Employee costs for company-owned and dual-brand initiatives, reorganization, and transaction costs drove the expense increase.
Cash flow saw a significant contraction in the first half of the year. Adjusted free cash flow for the first six months of 2026 was $3.7 million, compared to $48.7 million for the same period in 2025. The drop was due to lower operating cash flows and higher capital expenditures for company-owned restaurants.
Development activity in the second quarter resulted in 13 new restaurant openings and 30 closures, which included nine net dual-branded openings.
Dine Brands maintained its fiscal 2026 financial performance guidance. On May 14, 2026, the company approved a new share repurchase program of up to $100 million to run alongside an existing program established in February 2022.