Dine Brands Global, Inc., the parent company of Applebee’s Neighborhood Grill & Bar, IHOP and Fuzzy’s Taco Shop restaurants, has announced financial results for the first quarter of fiscal year 2024.
“While we are not content with the start of the year, we are encouraged by the response of our value offerings and targeted promotions, which drove improved performance as the quarter progressed,” said John Peyton, chief executive officer of Dine Brands Global, Inc.
“This quarter is an important reminder that our guests are craving abundant value, and we are committed to meeting their needs through our upcoming campaigns and new menu items while leveraging the resources of our platform to support franchisees.”
Applebee’s year-over-year domestic comparable same-restaurant sales declined 4.6 percent for the first quarter of 2024. Off-premise sales mix accounted for 22.1 percent in the first quarter of 2024 compared to 23.1 percent in the first quarter of 2023.
IHOP’s year-over-year domestic comparable same-restaurant sales declined 1.7 percent for the first quarter of 2024. Off-premise sales mix accounted for 21.0 percent in the first quarter of 2024 compared to 21.7 percent in the first quarter of 2023.
"Our brands have been tested through many economic cycles in the past decades and while our first quarter results reflect the impact of consumer price sensitivity and challenging weather conditions, our fundamental business model remains steady with solid cash flow and positioning us to deliver on our guidance for the year,” said Vance Chang, chief financial officer.
Total revenues for the first quarter of 2024 were USD 206.2 million compared to USD 213.8 million for the first quarter of 2023. The decline was primarily due to the negative comparable same-restaurant sales growth at Applebee’s and IHOP, partially offset by increases in the number of effective franchise restaurants and proprietary product sales at IHOP.
General and Administrative expenses for the first quarter of 2024 were USD 52.2 million compared to USD 51.1 million for the first quarter of 2023. The variance was primarily attributable to an increase in compensation-related expenses (predominantly stock-based compensation) and an increase in consumer research expenses, partially offset by a decrease in professional services.
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