Dine Brands Global, Inc. reported third‑quarter 2025 results that showed a 10.9% year‑over‑year increase in total revenue to $216.2 million, driven largely by higher sales at company‑owned restaurants and the acquisition of several new locations. The jump in revenue, however, was not enough to offset a sharp decline in profitability.
Net income fell to $7.3 million, a 60% drop from the $18.5 million reported in Q3 2024. GAAP earnings per share were $0.48, down from $1.24 a year earlier. Adjusted earnings per share also slipped to $0.73 from $1.44, missing consensus estimates of $0.82–$1.12. The miss was largely caused by a $7.6 million closure and impairment charge, higher operating expenses, and a 29.8% effective tax rate.
Gross profit declined to $84.6 million, down from $93.3 million in the prior year, while adjusted EBITDA dropped to $49.0 million from $61.9 million. The adjusted EBITDA margin contracted to 39.2% from 41.8%, reflecting increased general and administrative costs and significant investments in company‑owned restaurants, including remodels and dual‑brand conversions.
Dine Brands announced a $22.5 million share‑repurchase program for the quarter and a commitment to repurchase $50 million of shares over the next two quarters. The company also declared a quarterly dividend of $0.19 per share for the fourth quarter of 2025, payable on January 7, 2026; the dividend for the third quarter was $0.51 per share, paid in October.
Management reiterated its 2025 guidance, stating that it is on track to open or have under construction 30 Applebee’s/IHOP locations by year‑end and to add 50 more in 2026. CEO John Peyton highlighted strong traffic and sales trends at core brands and the growing interest in the dual‑brand concept, while CFO Vance Chang emphasized the company’s cash‑flow strength and the rationale for the larger share‑repurchase program.
Analysts and investors reacted to the earnings miss and margin compression, with pre‑market trading showing a decline of 2.4% to 4.5%. The primary driver of the negative sentiment was the adjusted EPS miss of $0.39, a 32% shortfall relative to consensus, coupled with the contraction in adjusted EBITDA margin.
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