Dine Brands Global, Inc.

DIN

Retail-Eating Places

Mkt Cap

$574.9M

PE

6.76

Debt

$1.285B

Cash

$212.1M

EV

$1.648B

FCF

$121.1M

Market Cap

$574.9M

P/E Ratio

6.76

Debt

$1.285B

Cash

$212.1M

EV

$1.648B

FCF

$121.1M

Charts data: {"Earnings":[{"time":"2014-12-30","value":35932000},{"time":"2015-12-30","value":103523000},{"time":"2016-12-30","value":96605000},{"time":"2017-12-30","value":-330539000},{"time":"2018-12-30","value":77643000},{"time":"2019-12-30","value":100814000},{"time":"2020-12-30","value":-104414000},{"time":"2021-12-30","value":95569000},{"time":"2022-12-30","value":78937000},{"time":"2023-12-30","value":94859000}],"Sales":[{"time":"2014-12-30","value":654988000},{"time":"2015-12-30","value":681100000},{"time":"2016-12-30","value":633973000},{"time":"2017-12-30","value":604819000},{"time":"2018-12-30","value":780931000},{"time":"2019-12-30","value":910178000},{"time":"2020-12-30","value":689268000},{"time":"2021-12-30","value":896167000},{"time":"2022-12-30","value":909402000},{"time":"2023-12-30","value":831068000}],"Net Margins":[{"time":"2014-12-30","value":0.05485902031792949},{"time":"2015-12-30","value":0.15199383350462486},{"time":"2016-12-30","value":0.15238030641683478},{"time":"2017-12-30","value":-0.5465089555718322},{"time":"2018-12-30","value":0.09942363665932073},{"time":"2019-12-30","value":0.11076294966479085},{"time":"2020-12-30","value":-0.15148534387204976},{"time":"2021-12-30","value":0.10664195401080379},{"time":"2022-12-30","value":0.08680099669892963},{"time":"2023-12-30","value":0.11414108111490275}],"Assets":[{"time":"2014-12-30","value":2448108000},{"time":"2015-12-30","value":2331850000},{"time":"2016-12-30","value":2278583000},{"time":"2017-12-30","value":1750240000},{"time":"2018-12-30","value":1774680000},{"time":"2019-12-30","value":2049511000},{"time":"2020-12-30","value":2074945000},{"time":"2021-12-30","value":1999366000},{"time":"2022-12-30","value":1881491000},{"time":"2023-12-30","value":1740287000}],"Stockholders Equity":[{"time":"2014-12-30","value":279073000},{"time":"2015-12-30","value":267223000},{"time":"2016-12-30","value":252772000},{"time":"2017-12-30","value":-146698000},{"time":"2018-12-30","value":-202273000},{"time":"2019-12-30","value":-241774000},{"time":"2020-12-30","value":-354651000},{"time":"2021-12-30","value":-242807000},{"time":"2022-12-30","value":-301084000},{"time":"2023-12-30","value":-250974000}],"ROE":[{"time":"2014-12-30","value":0.12875484192308106},{"time":"2015-12-30","value":0.3874030304277701},{"time":"2016-12-30","value":0.3821823619704714},{"time":"2017-12-30","value":2.2531936359050566},{"time":"2018-12-30","value":-0.3838525161539108},{"time":"2019-12-30","value":-0.41697618437052786},{"time":"2020-12-30","value":0.2944133810422077},{"time":"2021-12-30","value":-0.39360067872837273},{"time":"2022-12-30","value":-0.26217600403874003},{"time":"2023-12-30","value":-0.3779634543817288}],"ROA":[{"time":"2014-12-30","value":0.06670293957619516},{"time":"2015-12-30","value":0.1054308810601025},{"time":"2016-12-30","value":0.09954519980180665},{"time":"2017-12-30","value":-0.20762581131730506},{"time":"2018-12-30","value":0.09708454481934771},{"time":"2019-12-30","value":0.10181599415665493},{"time":"2020-12-30","value":-0.015741140126605765},{"time":"2021-12-30","value":0.06098083092340272},{"time":"2022-12-30","value":0.061007466950413265},{"time":"2023-12-30","value":0.06418653934667098}]}

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, and operates restaurants in the United States and internationally. The company operates through six segments: Applebee's Franchise Operations, International House of Pancakes (IHOP), Fuzzy's franchise operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. It owns and franchises three restaurant concepts, including Applebee's Neighborhood Grill + Bar within the casual dining category; and IHOP in the family dining category of the restaurant industry; Fuzzy's Taco Shop within the fast-casual dining category. In addition, its Applebee's restaurants offer American fare with drinks and local draft beers; IHOP restaurants provide full table services, food and beverage; and Fuzzy's Taco Shop offers baja-style mexican food like baja tacos, chips and queso, guacamole and salsa made in house, and a full bar including margaritas, and cold draft beer. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Glendale, California.

Sector

10-Q
9/30/23
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6/30/23
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3/31/23
10-K
12/31/22
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3/31/20
10-K
12/31/19
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10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Dine Brands Global, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$121.1M	$119.7M	$118.3M	$117M	$115.6M	$114.2M	$112.9M	$111.6M	$110.3M	$109M	$107.8M	$1.078B
DCF		$104.1M	$89.48M	$76.9M	$66.09M	$56.8M	$48.82M	$41.96M	$36.06M	$30.99M	$26.63M	$266.3M
Value	$844.2M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -0.15%

Earnings Stability -24%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	15%	15%	-55%	9.9%	11%	-15%	11%	8.7%	11%	10%
ROA	11%	10%	-21%	9.7%	10%	-1.6%	6.1%	6.1%	6.4%	5.9%
ROE	39%	38%	230%	-38%	-42%	29%	-39%	-26%	-38%	-35%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.1%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.74%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.16%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.6%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -25.67%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.55%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	9.93	11.40	24.75	10.50	9.58	17.88	7.15	26.69	13.67	10.61
Debt Equity	4.79	5.07	-8.83	-6.55	-5.38	-4.31	-5.27	-4.79	-5.12	-5.25
MIN
Graham Stability	-	-	-420%	-	-	-	100%	100%	100%	-420%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 10.61.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.61.

What is the Graham’s Stability?

Graham’s Stability measure stands at -4.20.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	3.9%	1.3%	6.4%	-8.6%	-0.16%
Net Income	-0.26%	4.1%	-	20%	-14%
Stockholders Equity	-	-	-	-	-1.2%
FCF	-2.5%	-5.7%	3.2%	74%	3.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +1.25%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.16%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +4.09%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -14.08%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +4.41%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.16%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -5.71%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +3.57%.