Applebee’s Comp Sales Turn Positive at Dine Brands

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter revenue reached $248.9 million as company-owned restaurant sales more than doubled from a year earlier.

Dine Brands Global, Inc. (DIN), the parent of Applebee’s, IHOP and Fuzzy’s Taco Shop, reported third-quarter 2026 revenue of $248.9 million, up from $216.1 million a year earlier. The company said the increase was driven primarily by a $36.9 million rise in company-owned restaurant revenues from locations acquired and opened since the third quarter of 2025.

Applebee’s year-over-year comparable domestic same-restaurant sales increased 0.9% in the third quarter of 2026, reversing a 1.8% decline in the second quarter. IHOP’s comparable domestic same-restaurant sales increased 0.8%. Chief Executive Officer John Peyton said both brands achieved positive growth due to everyday value, menu innovation, culturally relevant marketing and sharper operational execution.

Company-owned restaurant revenues were $64.4 million in the quarter. Franchise revenues were $159.0 million. Rental revenues were $25.5 million. Gross profit was $84.7 million. General and administrative expenses were $51.6 million, which the company attributed to higher professional services fees and employee-related costs tied to company-owned and dual-brand initiatives.

Net income available to common stockholders was $4.5 million, or $0.37 a share, compared with $7.0 million, or $0.48 a share, a year earlier. Adjusted net income available to common stockholders was $10.1 million, or $0.82 a share. Adjusted EBITDA was $49.0 million. Income before income taxes was $6.7 million.

IHOP system sales were $858.4 million in the three months ended September 27, 2026. Applebee’s system sales were $1,013.5 million. Fuzzy’s system sales were $37.7 million, with domestic same-restaurant sales down 2.7%. Off-premise sales accounted for 23% of Applebee’s mix and 21% of IHOP’s mix.

Development activity by Applebee’s and IHOP produced 23 new openings and 28 closures in the quarter, including seven dual-branded openings. As of September 27, 2026, the company had 49 dual-branded domestic IHOP and Applebee’s locations. Peyton said the company is focused on expanding the dual-brand program, improving the company-owned portfolio and accelerating the remodel pipeline.

During the third quarter, Dine Brands repurchased approximately $6.5 million of common stock and paid approximately $2.4 million in dividends. Total cash, cash equivalents and restricted cash was approximately $173.6 million, of which about $91.1 million was unrestricted. Available borrowing capacity under the 2025 Variable Funding Senior Notes, Class A-1, was approximately $224.5 million.

For the first nine months of 2026, total revenues were $715.0 million. Net income available to common stockholders was $15.9 million, or $1.29 a share. Adjusted EBITDA was $154.0 million. Cash provided by operating activities was $37.8 million, and adjusted free cash flow was $12.8 million. The company said the decline in operating cash flow versus a year earlier was driven by the timing of marketing spend, higher payments related to performance-based compensation and interest, and remodel and development incentives paid to franchisees.