Dine Brands Expands Global Footprint With New Deals and First Dual-Branded Applebee’s® and IHOP® Location in Honduras

Rhea-AI Summary

Dine Brands International, an affiliate of Dine Brands Global, Inc. (NYSE: DIN), is expanding its global footprint with a new dual-branded Applebee's® and IHOP® location in Honduras. The company has signed a multi-unit development agreement with franchisee BLT Global Brands to open the first dual-branded restaurant in San Pedro Sula on September 16, 2024. This expansion marks Dine Brands' entry into Honduras and brings the total number of international dual-branded restaurants to 13 locations across 7 markets.

The company has also secured agreements to develop at least 21 new locations, 13 of which will be dual-branded, in various international markets. Dine Brands is actively seeking qualified Master Franchisees and Developers for further expansion in select markets in Asia, Europe, Brazil, Mexico, and Canada.

Positive

• Expansion into new international market (Honduras) with dual-branded concept
• Secured agreements to develop at least 21 new locations internationally
• Dual-branded concept improving overall performance and returns
• Potential for further international expansion in various markets

Negative

• None.

Insights

Market Research Analyst

The expansion of Dine Brands into Honduras with a dual-branded Applebee's and IHOP location represents a strategic move in the company's international growth. This approach allows for operational efficiencies and broader market appeal by covering multiple dayparts. The planned opening of 21 new locations, including 13 dual-branded restaurants, indicates strong franchisee interest and potential for revenue growth.

However, investors should note that international expansion comes with risks, including cultural adaptation and economic volatility in emerging markets. The success of this strategy will depend on local market reception and the ability to maintain brand consistency across diverse locations. While the dual-brand concept shows promise, its long-term profitability and scalability remain to be proven in various international markets.

Financial Analyst

Dine Brands' international expansion strategy, particularly the dual-branded concept, presents an intriguing opportunity for revenue diversification. By combining Applebee's and IHOP under one roof, the company can potentially increase operational efficiency and reduce costs, which could lead to improved profit margins. The planned opening of 21 new locations suggests a significant investment in growth, which could positively impact future earnings.

However, investors should consider the capital expenditure required for this expansion and its impact on short-term financials. The success of this strategy will be important to monitor in upcoming quarterly reports, particularly focusing on same-store sales growth and franchise revenue from international markets. While promising, the financial benefits of this expansion may take time to materialize, requiring patience from investors.

Parent company of the world’s favorite restaurant brands extends dual-branded strategy to new international market.

PASADENA, Calif.--(BUSINESS WIRE)-- Dine Brands International, an affiliate of Dine Brands Global, Inc., the parent company of Applebee’s^®, IHOP^®, and Fuzzy’s Taco Shop^® restaurants, is further expanding its global footprint and unique dual-branded Applebee’s and IHOP concept to new international markets. Through a multi-unit development agreement with franchisee BLT Global Brands, the first dual-branded restaurant in San Pedro Sula, Honduras is planned to open on September 16, 2024.

Dine Brands' entry into Honduras marks a significant milestone in the company's international expansion strategy. This new location showcases the innovative dual-branded restaurant concept, which presents guests with two distinct IHOP and Applebee’s branded dining areas to choose from, while providing efficiencies in prototype design and operating model for franchisees. The unique dining experience allows guests to enjoy the best of both beloved brands, from IHOP's world-famous breakfast offerings to Applebee's diverse menu of casual dining favorites.

“We’re excited to bring IHOP and Applebee’s to Honduras. The country’s vibrant culture and growing economy make it an ideal location for this dual-branded concept, offering a unique blend of comfort and quality in a lively and inviting dining atmosphere,” said Thomas Christopher Talarico, CEO of BLT Global Brands.

“I am incredibly proud of the progress we are making to connect with and to expand to new guests around the world with the support of our franchisees,” added Scott Gladstone, Chief Development Officer, and President, International at Dine Brands Global. “By leveraging IHOP’s morning popularity and Applebee’s evening appeal, we can cover all day parts and bring delicious and memorable dining experiences with world-class service to guests every day. So far, we have been pleased with the improved overall performance and returns of our dual-branded restaurants.”

With this opening, the total number of international dual-branded restaurants will reach 13 locations across 7 markets: Mexico, Canada, UAE, Kuwait, Saudi Arabia, Peru and Honduras. Leveraging this innovative concept, Dine Brands International has recently secured agreements to develop at least 21 new locations, 13 of which will be dual-branded, in various international markets. These commitments represent both conversions of existing single-branded restaurants as well as new restaurants in both traditional and non-traditional channels, including airports and travel centers.

Dine Brands is seeking qualified Master Franchisees and Developers across select markets in Asia, including South Korea and Japan; select markets in Europe, including Spain; Brazil; and select territories in Mexico and Canada. For franchising opportunities, please visit https://franchise.ihop.com/en/applebees-co-branded-franchising.

About Dine Brands Global, Inc.

Based in Pasadena, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries and franchisees, supports and operates restaurants under the Applebee’s Neighborhood Grill + Bar®, IHOP®, and Fuzzy’s Taco Shop® brands. As of June 30, 2024, these three brands consisted of close to 3,600 restaurants across 18 international markets. Dine Brands is one of the largest full-service restaurant companies in the world and in 2022 expanded into the Fast Casual segment. For more information on Dine Brands, visit the company’s website located at www.dinebrands.com.

BR-INTL

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909342681/en/

Media Contact

Heather Mann

Director, Global Communications

Dine Brands Global, Inc.

Heather.mann@dinebrands.com

Source: Dine Brands Global, Inc.

FAQ

When will the first dual-branded Applebee's and IHOP restaurant open in Honduras?

The first dual-branded Applebee's and IHOP restaurant in Honduras is planned to open on September 16, 2024, in San Pedro Sula.

How many international dual-branded restaurants does Dine Brands (DIN) currently have?

With the planned opening in Honduras, Dine Brands will have a total of 13 international dual-branded restaurants across 7 markets.

How many new locations has Dine Brands (DIN) secured agreements for in international markets?

Dine Brands has secured agreements to develop at least 21 new locations, 13 of which will be dual-branded, in various international markets.

Which countries is Dine Brands (DIN) targeting for further expansion?

Dine Brands is seeking qualified Master Franchisees and Developers in select markets in Asia (including South Korea and Japan), Europe (including Spain), Brazil, and select territories in Mexico and Canada.