CORRECTING and REPLACING Dine Brands Global, Inc. Reports First Quarter 2022 Results
Consolidated Revenues Increased
Gross Profit Improved by
Company Repurchased
Applebee’s and IHOP Franchisees Opened 11
Historical Domestic System-Wide Comparable Same-Restaurant Sales Relative to the Prior Year (Graphic: Business Wire)
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
instead of:
Consolidated Statements of Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
The updated release reads:
Consolidated Revenues Increased
Gross Profit Improved by
Company Repurchased
Applebee’s and IHOP Franchisees Opened 11
“Our first-quarter financial results reflect the continued improvement in our business and the proven stability of our asset-light model. We continue to focus on taking an aggressive approach to innovation and investments in technology, new restaurant formats, and developing incremental growth channels. We have a clear vision, a solid strategy in place, and are positioned to win in a fast-changing environment,” said
Domestic System-Wide Comparable Same-Restaurant Sales Relative to the First Quarter of 2021
| Domestic Same-Restaurant Sales (Fiscal Month) | ||||||||
January |
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February |
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March |
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Q1 2022 |
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| Applebee's |
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| IHOP |
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-
Applebee’s year-over-year comparable same-restaurant sales increased
14.3% for the first quarter of 2022. -
IHOP’s year-over-year comparable same-restaurant sales increased
18.1% for the first quarter of 2022.
Off-Premise Sales Mix for the First Quarter of 2022
-
Applebee’s off-premise sales accounted for
27.6% of sales mix for the first quarter of 2022, with average weekly sales of approximately$14,700 -
IHOP’s off-premise sales accounted for
24.6% of sales mix for the first quarter of 2022, with average weekly sales of approximately$8,900
First Quarter of 2022 Summary
-
GAAP earnings per diluted share of
$1.45 $1.51 -
Adjusted earnings per diluted share of
$1.54 $1.75 -
General and administrative expenses for the first quarter of 2022 were
$41.5 million $39.9 million -
Consolidated adjusted EBITDA for the first quarter of 2022 was
$65.2 million $58.1 million -
The Company had adjusted free cash outflow of
$10.1 million $30.7 million -
Cash flows from operating activities for the first quarter of 2022 resulted in cash used of
$7.8 million $30.6 million - Development activity by Applebee’s and IHOP franchisees for the first quarter of 2022 resulted in the opening of 11 new restaurants and the closure of 11 restaurants.
Cash Position as of
The Company had
The Company’s leverage ratio was 4.05x compared to 3.86x as of
The Company’s debt service coverage ratio was approximately 4.6x compared to approximately 4.7x as of
There were no outstanding borrowings under the revolving credit facility. As of
GAAP Effective Tax Rate
The Company’s effective tax rate for the first quarter of 2022 was a
Capital Return to Shareholders
The Company repurchased 588,108 shares of its common stock in the first quarter of 2022 for a total of approximately
On
Effective
Financial Performance Guidance for 2022
The Company’s guidance assumes there are no significant disruptions to its business due to COVID-19 during 2022, except for the impact from Omicron in the first quarter. The projections are as of this date. The Company assumes no obligation to update or supplement this information.
-
The Company reiterates expectations for general and administrative expenses to range between approximately
$188 million $198 million $30 million -
The Company reiterates expectations for capital expenditures to range between
$33 million $38 million - The Company reiterates expectations for domestic development activity by IHOP franchisees and area licensees to result in net new openings between 50 and 65 restaurants.
- The Company reiterates expectations for domestic development activity by Applebee’s franchisees to result in between 5 and 15 net fewer restaurants. In 2021, Applebee’s concluded a strategic initiative to close underperforming domestic restaurants to improve the performance of the franchised system.
-
The Company reiterates expectations for consolidated adjusted EBITDA to range between approximately
$235 million $250 million
First Quarter of 2022 Earnings Conference Call Details
Dine Brands will host a conference call to discuss its results on
A live webcast of the call will be available on www.dinebrands.com and may be accessed by visiting Events and Presentations under the site’s Investors section. Participants should allow approximately ten minutes prior to the call’s start time to visit the site and download any streaming media software needed to listen to the webcast. A telephonic replay of the call may be accessed from
About
Based in
Forward-Looking Statements
Statements contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “goal” and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: uncertainty regarding the duration and severity of the ongoing COVID-19 pandemic and its ultimate impact on the Company; the effectiveness of related containment measures; general economic conditions; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of restaurant development plans; our dependence on our franchisees; the concentration of our Applebee’s franchised restaurants in a limited number of franchisees; the financial health of our franchisees; our franchisees’ and other licensees’ compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands’ reputation; possible future impairment charges; the effects of tax reform; trading volatility and fluctuations in the price of our stock; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; natural disasters, pandemics, epidemics, or other serious incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; and other factors discussed from time to time in the Corporation’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Corporation’s other filings with the
Non-GAAP Financial Measures
This press release includes references to the Company's non-GAAP financial measure “adjusted net income available to common stockholders”, “adjusted earnings per diluted share (Adjusted EPS)”, “Adjusted EBITDA” and “Adjusted free cash flow.” Adjusted EPS is computed for a given period by deducting from net income or loss available to common stockholders for such period the effect of any closure and impairment charges, any gain or loss related to debt extinguishment, any intangible asset amortization, any non-cash interest expense, any gain or loss related to the disposition of assets, and other items deemed not reflective of current operations. This is presented on an aggregate basis and a per share (diluted) basis. Adjusted EBITDA is computed for a given period by deducting from net income or loss for such period the effect of any closure and impairment charges, any interest charges, any income tax provision or benefit, any non-cash stock-based compensation, any depreciation and amortization, any gain or loss related to the disposition of assets and other items deemed not reflective of current operations. “Adjusted free cash flow” for a given period is defined as cash provided by operating activities, plus receipts from notes and equipment contracts receivable, less capital expenditures. Management may use certain of these non-GAAP financial measures along with the corresponding
Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) (Unaudited) |
||||||||
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Three Months Ended |
||||||
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||||||
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2022 |
|
2021 |
||||
Revenues: |
|
|
|
|
||||
Franchise revenues: |
|
|
|
|
||||
Royalties, franchise fees and other |
|
$ |
90,349 |
|
|
$ |
80,091 |
|
Advertising revenues |
|
|
70,883 |
|
|
|
60,885 |
|
Total franchise revenues |
|
|
161,232 |
|
|
|
140,976 |
|
Company restaurant sales |
|
|
39,416 |
|
|
|
35,949 |
|
Rental revenues |
|
|
28,807 |
|
|
|
26,142 |
|
Financing revenues |
|
|
968 |
|
|
|
1,132 |
|
Total revenues |
|
|
230,423 |
|
|
|
204,199 |
|
Cost of revenues: |
|
|
|
|
||||
Franchise expenses: |
|
|
|
|
||||
Advertising expenses |
|
|
70,883 |
|
|
|
60,885 |
|
Bad debt credit |
|
|
(299 |
) |
|
|
(1,993 |
) |
Other franchise expenses |
|
|
7,448 |
|
|
|
6,051 |
|
Total franchise expenses |
|
|
78,032 |
|
|
|
64,943 |
|
Company restaurant expenses |
|
|
37,408 |
|
|
|
32,884 |
|
Rental expenses: |
|
|
|
|
||||
Interest expense from finance leases |
|
|
768 |
|
|
|
962 |
|
Other rental expenses |
|
|
21,355 |
|
|
|
19,996 |
|
Total rental expenses |
|
|
22,123 |
|
|
|
20,958 |
|
Financing expenses |
|
|
107 |
|
|
|
128 |
|
Total cost of revenues |
|
|
137,670 |
|
|
|
118,913 |
|
Gross profit |
|
|
92,753 |
|
|
|
85,286 |
|
General and administrative expenses |
|
|
41,548 |
|
|
|
39,911 |
|
Interest expense, net |
|
|
15,533 |
|
|
|
16,496 |
|
Closure and impairment charges |
|
|
146 |
|
|
|
2,010 |
|
Amortization of intangible assets |
|
|
2,665 |
|
|
|
2,688 |
|
(Gain) loss on disposition of assets |
|
|
(1,296 |
) |
|
|
167 |
|
Income before income taxes |
|
|
34,157 |
|
|
|
24,014 |
|
Income tax (provision) benefit |
|
|
(9,307 |
) |
|
|
1,589 |
|
Net income |
|
$ |
24,850 |
|
|
$ |
25,603 |
|
Net income available to common stockholders: |
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|
|
|
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Net income |
|
$ |
24,850 |
|
|
$ |
25,603 |
|
Less: Net income allocated to unvested participating restricted stock |
|
|
(598 |
) |
|
|
(548 |
) |
Net income available to common stockholders |
|
$ |
24,252 |
|
|
$ |
25,055 |
|
Net income available to common stockholders per share: |
|
|
|
|
||||
Basic |
|
$ |
1.45 |
|
|
$ |
1.52 |
|
Diluted |
|
$ |
1.45 |
|
|
$ |
1.51 |
|
Weighted average shares outstanding: |
|
|
|
|
||||
Basic |
|
|
16,722 |
|
|
|
16,460 |
|
Diluted |
|
|
16,758 |
|
|
|
16,630 |
|
|
|
|
|
|
||||
Dividends declared per common share |
|
$ |
0.46 |
|
|
$ |
— |
|
Dividends paid per common share |
|
$ |
0.86 |
|
|
$ |
— |
|
|
|
|
|
|
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|
||||||||
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|
|
|||||
Assets |
|
(Unaudited) |
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
294,738 |
|
|
$ |
361,412 |
|
Receivables, net of allowance of |
|
|
94,009 |
|
|
|
119,968 |
|
Restricted cash |
|
|
47,168 |
|
|
|
47,541 |
|
Prepaid gift card costs |
|
|
23,981 |
|
|
|
28,175 |
|
Prepaid income taxes |
|
|
6,867 |
|
|
|
10,529 |
|
Other current assets |
|
|
10,092 |
|
|
|
6,728 |
|
Total current assets |
|
|
476,855 |
|
|
|
574,353 |
|
Other intangible assets, net |
|
|
536,812 |
|
|
|
539,390 |
|
Operating lease right-of-use assets |
|
|
329,895 |
|
|
|
335,428 |
|
|
|
|
251,628 |
|
|
|
251,628 |
|
Property and equipment, net |
|
|
175,515 |
|
|
|
179,411 |
|
Deferred rent receivable |
|
|
48,280 |
|
|
|
50,257 |
|
Long-term receivables, net of allowance of |
|
|
42,651 |
|
|
|
42,493 |
|
Non-current restricted cash |
|
|
16,400 |
|
|
|
16,400 |
|
Other non-current assets, net |
|
|
10,247 |
|
|
|
10,006 |
|
Total assets |
|
$ |
1,888,283 |
|
|
$ |
1,999,366 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
38,421 |
|
|
$ |
55,956 |
|
Gift card liability |
|
|
137,123 |
|
|
|
165,530 |
|
Current maturities of operating lease obligations |
|
|
72,451 |
|
|
|
72,079 |
|
Current maturities of finance lease and financing obligations |
|
|
10,692 |
|
|
|
10,693 |
|
Accrued employee compensation and benefits |
|
|
14,240 |
|
|
|
40,785 |
|
Accrued advertising |
|
|
40,681 |
|
|
|
33,752 |
|
Deferred franchise revenue, short-term |
|
|
7,028 |
|
|
|
7,246 |
|
Dividends payable |
|
|
— |
|
|
|
6,919 |
|
Other accrued expenses |
|
|
14,134 |
|
|
|
17,770 |
|
Total current liabilities |
|
|
334,770 |
|
|
|
410,730 |
|
Long-term debt, net, less current maturities |
|
|
1,280,182 |
|
|
|
1,279,623 |
|
Operating lease obligations, less current maturities |
|
|
313,634 |
|
|
|
320,848 |
|
Finance lease obligations, less current maturities |
|
|
61,223 |
|
|
|
59,625 |
|
Financing obligations, less current maturities |
|
|
30,147 |
|
|
|
31,967 |
|
Deferred income taxes, net |
|
|
73,634 |
|
|
|
76,228 |
|
Deferred franchise revenue, long-term |
|
|
45,141 |
|
|
|
46,100 |
|
Other non-current liabilities |
|
|
14,724 |
|
|
|
17,052 |
|
Total liabilities |
|
|
2,153,455 |
|
|
|
2,242,173 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
250 |
|
|
|
250 |
|
Additional paid-in-capital |
|
|
250,150 |
|
|
|
256,189 |
|
Retained earnings |
|
|
52,516 |
|
|
|
35,415 |
|
Accumulated other comprehensive loss |
|
|
(60 |
) |
|
|
(59 |
) |
|
|
|
(568,028 |
) |
|
|
(534,602 |
) |
Total stockholders’ deficit |
|
|
(265,172 |
) |
|
|
(242,807 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
1,888,283 |
|
|
$ |
1,999,366 |
|
Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
24,850 |
|
|
$ |
25,603 |
|
Adjustments to reconcile net income to cash flows (used in) provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
9,938 |
|
|
|
9,995 |
|
Non-cash stock-based compensation expense |
|
|
4,341 |
|
|
|
3,094 |
|
Non-cash closure and impairment charges |
|
|
45 |
|
|
|
1,959 |
|
Non-cash interest expense |
|
|
714 |
|
|
|
712 |
|
Deferred income taxes |
|
|
(873 |
) |
|
|
(8,267 |
) |
Deferred revenue |
|
|
(1,177 |
) |
|
|
(1,565 |
) |
(Gain) loss on disposition of assets |
|
|
(1,296 |
) |
|
|
167 |
|
Other |
|
|
(1,766 |
) |
|
|
1,058 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
(3,567 |
) |
|
|
(4,323 |
) |
Deferred rent receivable |
|
|
1,977 |
|
|
|
1,736 |
|
Current income tax receivables and payables |
|
|
2,352 |
|
|
|
(552 |
) |
Gift card receivables and payables |
|
|
(2,180 |
) |
|
|
(3,246 |
) |
Other current assets |
|
|
(3,365 |
) |
|
|
(3,072 |
) |
Accounts payable |
|
|
(11,683 |
) |
|
|
809 |
|
Operating lease assets and liabilities |
|
|
(2,909 |
) |
|
|
(4,374 |
) |
Accrued employee compensation and benefits |
|
|
(26,646 |
) |
|
|
(6,968 |
) |
Accrued advertising expenses |
|
|
6,929 |
|
|
|
22,836 |
|
Other current liabilities |
|
|
(3,474 |
) |
|
|
(5,037 |
) |
Cash flows (used in) provided by operating activities |
|
|
(7,790 |
) |
|
|
30,565 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Principal receipts from notes, equipment contracts and other long-term receivables |
|
|
4,848 |
|
|
|
4,651 |
|
Net additions to property and equipment |
|
|
(5,298 |
) |
|
|
(2,357 |
) |
Proceeds from sale of property and equipment |
|
|
2,862 |
|
|
|
946 |
|
Additions to long-term receivables |
|
|
(669 |
) |
|
|
— |
|
Other |
|
|
(30 |
) |
|
|
(110 |
) |
Cash flows provided by investing activities |
|
|
1,713 |
|
|
|
3,130 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Repayment of long-term debt |
|
|
— |
|
|
|
(3,250 |
) |
Repayment of revolving credit facility |
|
|
— |
|
|
|
(220,000 |
) |
Dividends paid on common stock |
|
|
(14,588 |
) |
|
|
— |
|
Repurchase of common stock |
|
|
(41,585 |
) |
|
|
— |
|
Principal payments on finance lease obligations |
|
|
(2,340 |
) |
|
|
(2,621 |
) |
Proceeds from stock options exercised |
|
|
241 |
|
|
|
19,484 |
|
Repurchase of restricted stock for tax payments upon vesting |
|
|
(1,745 |
) |
|
|
(1,220 |
) |
Tax payments for share settlement of restricted stock units |
|
|
(953 |
) |
|
|
(9,711 |
) |
Cash flows used in financing activities |
|
|
(60,970 |
) |
|
|
(217,318 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(67,047 |
) |
|
|
(183,623 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
425,353 |
|
|
|
456,053 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
358,306 |
|
|
$ |
272,430 |
|
Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited)
Reconciliation of net income available to common stockholders to net income available to common stockholders, as adjusted for the following items: Closure and impairment charges; amortization of intangible assets; non-cash interest expense; gain or loss on disposition of assets; and the combined tax effect of the preceding adjustments, as well as related per share data: |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
Net income available to common stockholders |
|
$ |
24,252 |
|
|
$ |
25,055 |
|
Closure and impairment charges |
|
|
146 |
|
|
|
2,010 |
|
Amortization of intangible assets |
|
|
2,665 |
|
|
|
2,688 |
|
Non-cash interest expense |
|
|
714 |
|
|
|
712 |
|
(Gain) loss on disposition of assets |
|
|
(1,296 |
) |
|
|
167 |
|
Net income tax provision for above adjustments |
|
|
(580 |
) |
|
|
(1,506 |
) |
Net income allocated to unvested participating restricted stock |
|
|
(38 |
) |
|
|
(88 |
) |
Net income available to common stockholders, as adjusted |
|
$ |
25,863 |
|
|
$ |
29,038 |
|
|
|
|
|
|
||||
Diluted net income available to common stockholders per share: |
|
|
|
|
||||
Net income available to common stockholders per share: |
|
$ |
1.45 |
|
|
$ |
1.51 |
|
Closure and impairment charges |
|
|
0.01 |
|
|
|
0.09 |
|
Amortization of intangible assets |
|
|
0.12 |
|
|
|
0.12 |
|
Non-cash interest expense |
|
|
0.03 |
|
|
|
0.03 |
|
(Gain) loss on disposition of assets |
|
|
(0.06 |
) |
|
|
0.01 |
|
Net income allocated to unvested participating restricted stock |
|
|
(0.00 |
) |
|
|
(0.01 |
) |
Rounding |
|
|
(0.01 |
) |
|
|
— |
|
Diluted net income available to common stockholders per share, as adjusted |
|
$ |
1.54 |
|
|
$ |
1.75 |
|
|
|
|
|
|
||||
Numerator for basic EPS - net income available to common stockholders, as adjusted |
|
$ |
25,863 |
|
|
$ |
29,038 |
|
Effect of unvested participating restricted stock using the two-class method |
|
|
1 |
|
|
|
7 |
|
Numerator for diluted EPS - net income available to common stockholders, as adjusted |
|
$ |
25,864 |
|
|
$ |
29,045 |
|
|
|
|
|
|
||||
Denominator for basic EPS - weighted-average shares |
|
|
16,722 |
|
|
|
16,460 |
|
Dilutive effect of stock options |
|
|
36 |
|
|
|
170 |
|
Denominator for diluted EPS - weighted-average shares |
|
|
16,758 |
|
|
|
16,630 |
|
Non-GAAP Financial Measures (Unaudited)
Reconciliation of the Company's cash flows provided by operating activities to “adjusted free cash flow” (cash flows (used in) provided by operating activities, plus receipts from notes and equipment contracts receivable, 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. |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
|
|
(In millions) |
||||||
Cash flows (used in) provided by operating activities |
|
$ |
(7.8 |
) |
|
$ |
30.6 |
|
Receipts from notes and equipment contracts receivable |
|
|
3.0 |
|
|
|
2.5 |
|
Net additions to property and equipment |
|
|
(5.3 |
) |
|
|
(2.4 |
) |
Adjusted free cash flow |
|
|
(10.1 |
) |
|
|
30.7 |
|
Dividends paid on common stock |
|
|
(14.6 |
) |
|
|
— |
|
Repurchase of common stock |
|
|
(41.6 |
) |
|
|
— |
|
|
|
$ |
(66.3 |
) |
|
$ |
30.7 |
|
Non-GAAP Financial Measures (in thousands) (Unaudited)
Reconciliation of the Company's net income to “adjusted EBITDA.” The Company defines adjusted EBITDA as net income or loss, adjusted for the effect of closure and impairment charges, interest charges, income tax provision or benefit, depreciation and amortization, non-cash stock-based compensation, gain or loss on disposition of assets, other non-income based taxes and other items deemed not reflective of current operations. Management may use certain non-GAAP measures along with the corresponding |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
Net income, as reported |
|
$ |
24,850 |
|
|
$ |
25,603 |
|
Closure and impairment charges |
|
|
146 |
|
|
|
2,010 |
|
Interest charges on finance leases |
|
|
1,251 |
|
|
|
1,464 |
|
All other interest charges |
|
|
16,362 |
|
|
|
17,244 |
|
Income tax provision (benefit) |
|
|
9,307 |
|
|
|
(1,589 |
) |
Depreciation and amortization |
|
|
9,930 |
|
|
|
9,987 |
|
Non-cash stock-based compensation |
|
|
4,342 |
|
|
|
3,097 |
|
(Gain) loss on disposition of assets |
|
|
(1,296 |
) |
|
|
167 |
|
Other |
|
|
312 |
|
|
|
134 |
|
Adjusted EBITDA |
|
$ |
65,204 |
|
|
$ |
58,117 |
|
Restaurant Data (Unaudited)
The following table sets forth, for the three months ended |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
Applebee's |
|
|
|
|
||||
|
|
|
|
|
||||
Franchise |
|
|
1,607 |
|
|
|
1,628 |
|
Company |
|
|
69 |
|
|
|
69 |
|
Total |
|
|
1,676 |
|
|
|
1,697 |
|
|
|
|
|
|
||||
System-wide(b) |
|
|
|
|
||||
Domestic sales percentage change(c) |
|
|
13.9 |
% |
|
|
1.2 |
% |
Domestic same-restaurant sales percentage change(d) |
|
|
14.3 |
% |
|
|
11.9 |
% |
|
|
|
|
|
||||
Franchise(b) |
|
|
|
|
||||
Domestic sales percentage change(c) |
|
|
14.1 |
% |
|
|
0.7 |
% |
Domestic same-restaurant sales percentage change(d) |
|
|
14.5 |
% |
|
|
11.5 |
% |
Average weekly domestic unit sales (in thousands) |
|
$ |
53.9 |
|
|
$ |
46.8 |
|
IHOP |
|
|
|
|
||||
|
|
|
|
|
||||
Franchise |
|
|
1,586 |
|
|
|
1,563 |
|
Area license |
|
|
155 |
|
|
|
157 |
|
Total |
|
|
1,741 |
|
|
|
1,720 |
|
|
|
|
|
|
||||
System-wide(b) |
|
|
|
|
||||
Sales percentage change(c) |
|
|
19.9 |
% |
|
|
(12.1 |
) % |
Domestic same-restaurant sales percentage change, including area license restaurants(d) |
|
|
18.1 |
% |
|
|
(0.9 |
) % |
|
|
|
|
|
||||
Franchise(b) |
|
|
|
|
||||
Sales percentage change(c) |
|
|
20.5 |
% |
|
|
(12.9 |
) % |
Domestic same-restaurant sales percentage change(d) |
|
|
18.6 |
% |
|
|
(1.9 |
) % |
Average weekly unit sales (in thousands) |
|
$ |
34.9 |
|
|
$ |
29.4 |
|
|
|
|
|
|
||||
Area License (b) |
|
|
|
|
||||
Sales percentage change(c) |
|
|
14.4 |
% |
|
|
(3.7 |
) % |
Restaurant Data (Unaudited) |
||
(a) |
|
“Global Effective Restaurants” are the weighted average number of restaurants open in a given fiscal period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all |
|
|
|
(b) |
|
“System-wide” sales are retail sales at domestic Applebee’s restaurants operated by franchisees and IHOP restaurants operated by franchisees and area licensees, as reported to the Company, in addition to retail sales at company-operated restaurants. System-wide sales do not include retail sales of ghost kitchens. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. An increase or decrease in franchisees' reported sales will result in a corresponding increase or decrease in our royalty revenue. Unaudited reported sales for Applebee's domestic franchise restaurants, Applebee's company-operated restaurants, IHOP franchise restaurants and IHOP area license restaurants for the three months ended |
|
|
Three Months Ended |
||||
|
|
|
||||
|
|
2022 |
|
2021 |
||
|
(In millions) |
|||||
Reported sales |
|
|
|
|
||
Applebee's domestic franchise restaurant sales |
|
$ |
1,055.0 |
|
$ |
924.7 |
Applebee's company-operated restaurants |
|
|
39.4 |
|
|
35.9 |
IHOP franchise restaurant sales |
|
|
719.6 |
|
|
596.7 |
IHOP area license restaurant sales |
|
|
70.5 |
|
|
61.7 |
Total |
|
$ |
1,884.5 |
|
$ |
1,619.0 |
(c) |
|
“Sales percentage change” reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior fiscal period for all restaurants in that category. |
|
|
|
(d) |
|
“Domestic same-restaurant sales percentage change” reflects the percentage change in sales, in any given fiscal period, compared to the same weeks in the prior year for domestic restaurants that have been operated during both fiscal periods that are being compared and have been open for at least 18 months. Because of new unit openings and restaurant closures, the domestic restaurants open during both fiscal periods being compared may be different from period to period. |
Restaurant Data (Unaudited) |
||||||
|
|
Three Months Ended |
||||
|
|
|
||||
|
|
2022 |
|
2021 |
||
Applebee's Restaurant Development Activity |
|
|
|
|
||
Summary - beginning of period: |
|
|
|
|
||
Franchise |
|
1,611 |
|
|
1,640 |
|
Company |
|
69 |
|
|
69 |
|
Total Applebee's restaurants, beginning of period |
|
1,680 |
|
|
1,709 |
|
Franchise restaurants opened: |
|
|
|
|
||
Domestic |
|
1 |
|
|
2 |
|
International |
|
— |
|
|
— |
|
Total franchise restaurants opened |
|
1 |
|
|
2 |
|
Franchise restaurants closed: |
|
|
|
|
||
Domestic |
|
(4 |
) |
|
(4 |
) |
International |
|
(2 |
) |
|
(2 |
) |
Total franchise restaurants closed |
|
(6 |
) |
|
(6 |
) |
Net franchise restaurant reduction |
|
(5 |
) |
|
(4 |
) |
Summary - end of period: |
|
|
|
|
||
Franchise |
|
1,606 |
|
|
1,636 |
|
Company |
|
69 |
|
|
69 |
|
Total Applebee's restaurants, end of period |
|
1,675 |
|
|
1,705 |
|
Domestic |
|
1,575 |
|
|
1,596 |
|
International |
|
100 |
|
|
109 |
|
IHOP Restaurant Development Activity |
|
|
|
|
||
Summary - beginning of period: |
|
|
|
|
||
Franchise |
|
1,595 |
|
|
1,611 |
|
Area license |
|
156 |
|
|
158 |
|
Company |
|
— |
|
|
3 |
|
Total IHOP restaurants, beginning of period |
|
1,751 |
|
|
1,772 |
|
Franchise/area license restaurants opened: |
|
|
|
|
||
Domestic franchise |
|
7 |
|
|
8 |
|
Domestic area license |
|
1 |
|
|
— |
|
International franchise |
|
2 |
|
|
— |
|
Total franchise/area license restaurants opened |
|
10 |
|
|
8 |
|
Franchise/area license restaurants closed: |
|
|
|
|
||
Domestic franchise |
|
(3 |
) |
|
(16 |
) |
Domestic area license |
|
(1 |
) |
|
(2 |
) |
International franchise |
|
(1 |
) |
|
(9 |
) |
Total franchise/area license restaurants closed |
|
(5 |
) |
|
(27 |
) |
Net franchise/area license restaurant additions (reductions) |
|
5 |
|
|
(19 |
) |
Franchise restaurants reacquired by the Company |
|
— |
|
|
(1 |
) |
Net franchise/area license restaurant increase (decrease) |
|
5 |
|
|
(20 |
) |
Summary - end of period |
|
|
|
|
||
Franchise |
|
1,600 |
|
|
1,593 |
|
Area license |
|
156 |
|
|
156 |
|
Company |
|
— |
|
|
4 |
|
Total IHOP restaurants, end of period |
|
1,756 |
|
|
1,753 |
|
Domestic |
|
1,661 |
|
|
1,660 |
|
International |
|
95 |
|
|
93 |
|
The restaurant counts and activity presented above do not include two domestic Applebee's ghost kitchens (small kitchens with no store-front presence, used to fill off-premise orders), 10 international Applebee's ghost kitchens and 19 international IHOP ghost kitchens at
View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005444/en/
Investor Contact
Executive Director, Investor Relations
818-637-3632
Ken.Diptee@dinebrands.com
Media Contact
Vice President,
Susan.Nelson@dinebrands.com
Source:
