Dine Brands Posts Q1 Sales Lift, Keeps Outlook as Remodel Work Weighs on Profit

Overview

• Dine Brands reported Q1 consolidated revenue up 4.8%, driven by acquired company-operated restaurants, with Applebee's comparable sales up 1.9% and IHOP flat.
• Management maintained full-year guidance and said more than 75 closure days from remodels and conversions hurt Q1 EBITDA but should ease as restaurants return to normal operations.
• The company is accelerating dual-brand Applebee's–IHOP locations, targeting about 80 U.S. sites by the end of 2026 and citing a longer-term opportunity near 900.
• To stabilize the system, Dine Brands acted as a stalking-horse bidder for 53 restaurants tied to a bankrupt franchisee, a first bid that sets a floor price and helps keep units from closing.
• Menu and value plays lifted engagement, with Applebee's OM Cheeseburger setting a single-day sales record, even as traffic stayed negative and beef-driven food costs remained high.