Dine Brands has reported a fall in total revenues to $195m in the third quarter (Q3) of 2024 - a slight dip from $202.6m in the same period of 2023.
The decline was largely due to negative same-restaurant sales growth at Applebee's and International House of Pancakes (IHOP), despite an increase in effective franchise restaurant numbers and sales of products at IHOP.
For the first nine months of 2024, total revenues reached $607.5m compared to $624.8m during the same period in 2023.
General and administrative (G&A) expenses for Q3 2024 were reported at $45.4m, down from $48.6m in Q3 2023, mainly due to lower compensation-related expenses.
Generally accepted accounting principles (GAAP) net income available to common stockholders for the quarter showed an improvement, registering at $18.5m compared to net income of $18m.
The rise is primarily attributed to reduced G&A expenses and lower closure and impairment charges, which balanced out the decrease in segment profit.
Adjusted net income available to common stockholders saw a slight decrease to $21.4m for Q3 2024 from $22.3m in the same quarter of the previous year.
The decline was mainly due to a drop in segment profit, partially mitigated by the reduction in G&A expenses.
Consolidated adjusted earnings before taxation, interest, depreciation and amortisation for Q3 2024 were slightly higher at $61.9m compared to $60.6m in the previous year.
Franchise development activity within Applebee's and IHOP during Q3 2024 resulted in the opening of ten new restaurants and the closure of 19.
In terms of domestic restaurant sales, Applebee's reported a year-on-year decline of 5.9% in comparable same-restaurant sales for Q3 2024, with its off-premise sales mix slightly increasing to 21.7%.
IHOP also experienced a decline in domestic comparable same-restaurant sales by 2.1% for Q3 2024, with its off-premise sales mix slightly decreasing to 19.3%.
Dine Brands Global CEO John Peyton said: “During the third quarter, we continued to experience consumer pullback and the pressures of a highly promotional operating environment. We know we need to do more in the near term to drive traffic and get back to better top-line performance.
“For the fourth quarter, we are enhancing our value proposition for guests and remain focused on executing our plans across our brands.”
