Dine Brands Global (DIN) Barclays 19th Annual Global Consumer Conference summary

Consumer trends and value positioning

• Guests across both brands have household incomes between $50,000 and $100,000, with IHOP skewing urban and Applebee's more rural/suburban.

• Consumer behavior has remained consistent for several years, with a strong focus on value offerings like IHOP's $6 menu and Applebee's 2 for $25.

• Higher income guests are visiting more frequently, while lower income guest traffic is stable due to QSR trade-up.

• Value menus are compelling, but innovation and new menu items are essential to keep offerings fresh.

• Value items drive traffic but represent only about 20-25% of sales, with upselling and premium items boosting profitability.

Dual-brand strategy and growth outlook

• Dual-branded restaurants combine Applebee's and IHOP, activating all dayparts and increasing revenue 1.5x-2.5x per location.

• 45 dual-branded units are open, with a target of 80 by year-end and a long-term opportunity for 900 units over 10 years.

• 65% of tickets at dual-branded locations include items from both brands, showing strong consumer adoption.

• Franchisee enthusiasm is high, with both conversions and new builds planned.

• By 2027, dual-branded units are expected to approach 200, attracting new franchisees and driving innovation.

Operational improvements and franchisee relations

• IHOP has outperformed industry benchmarks in sales and traffic due to value focus and operational enhancements.

• Table turn times and to-go order accuracy have improved through technology and process simplification.

• Applebee's is in the midst of a remodel cycle, targeting 50% completion by next year, with renovated units seeing 5%-15% sales lifts.

• IHOP maintains 80% of its system up to date with remodels, following a five-year cycle.

• Franchisee sentiment is positive, with strong communication and partnership, though Applebee's franchisees seek stronger top-line growth amid cost pressures.