Q1 2024 Dine Brands Global Inc Earnings Call Transcript
Key Points
- Dine Brands Global Inc (DIN) saw a positive guest response to limited-time offers (LTOs) and menu innovations, which helped mitigate economic challenges in Q1.
- Applebee's outperformed Black Box traffic in Q1, showing improvement in brand performance throughout the quarter.
- IHOP maintained a steady flow of timely, relevant campaigns, helping to offset modest weather-related headwinds and economic pressures.
- The introduction of new virtual brands at IHOP and strategic promotions at Fuzzy's are expected to support incremental sales growth.
- Dine Brands Global Inc (DIN) remains committed to its full-year guidance despite a slow start, indicating confidence in their strategy and operational plans.
- Dine Brands Global Inc (DIN) experienced a 3.5% decrease in revenues and a decline in EBITDA from $66.4 million in Q1 2023 to $60.8 million in Q1 2024.
- Applebee's reported a 4.6% reduction in comparable sales, and IHOP posted a negative 1.7% in comparable sales, both showing a downturn from the previous year.
- Economic conditions have led to increased consumer price sensitivity, impacting transactions and prompting guests to trade down from higher priced items.
- The closure of the virtual brand partner Nextbite negatively impacted IHOP's year-over-year comparable sales.
- Dine Brands Global Inc (DIN) faced challenges from adverse weather conditions and high pricing from franchisees, particularly affecting Fuzzy's performance in Q1.
Good day and thank you for standing by. Welcome to the Dine Brands First Quarter Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your host today, Matt Lee, Senior Vice President, Finance and Investor Relations. Please go ahead.
Good morning and welcome to Dine Brands Global's first quarter fiscal 2024 conference call. This morning's call will include prepared remarks from John Peyton, CEO, and Vance Chang, CFO. Following those prepared remarks, Tony Moralejo, President of Applebee's, and Jay Johns, President of IHOP, will also be available to address questions from the investment community during the Q&A portion of the call.
Please remember our safe harbor regarding forward-looking information. During the call, management will discuss information that is forward-looking and involves known and unknown risks, uncertainties, and other
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