Dine Brands Global, Inc. Q4 FY2025 earnings call

• John Peyton started by noting 2025 performance improved vs 2024, driven by execution on priorities like enhancing guest experience, marketing, menu innovation. • Applebee's 2025 returned to positive sales growth, 2 for platform ~22% of transactions, new burger launches successful. • IHOP's back to Basic strategy delivered traffic improvement, value menu expanded to 7 days, off-premise contributed to sales growth, tech enhancements improved table turn times. • Fuzzy's saw encouraging progress in Q3-Q4 2025 with off-premise improvements and new footprint expansions. • Dual brand restaurants outperformed single brand, expected 50+ openings in 2026. • Applebee's Lookin' Good remodel program had 103 remodels in 2025, goal to continue in 2026.

For the full year, Dine Brands generated $219.8 million of adjusted EBITDA compared to $239.8 million last year. Q4 adjusted EBITDA was $59.8 million vs $50.1 million same quarter prior year. Applebee's full year comp sales +1.3% vs -4.2% 2024, Q4 -0.4% comp. IHOP full year comp sales -1.5% vs -2% 2024, Q4 +0.3% comp driven by positive traffic. Off-premise comp sales growth for both brands. Applebee's value mix 34%, IHOP 20% despite IHOP value menu extended to 7 days. Dual brand restaurants: 32 opened in 2025, 9 under construction, expected 50+ in 2026. Applebee's Lookin' Good remodel program: 103 remodeled in 2025, goal 100+ in 2026.

• Anticipate moving towards combined net positive unit growth for domestic Applebee's and IHOP. • Applebee's expected 15-5 net fewer domestic restaurants, IHOP 10 net fewer to 10 new domestic openings. • Applebee's domestic system-wide comp sales range 0%-2%, IHOP same 0%-2%. • G&A range $205M-$210M. • EBITDA guidance $220M-$230M. • 2026 CapEx range $25M-$35M, slightly lower than 2025.

• Q: Jeffery Bernstein on comp trends and share repurchase.

A: Both brands saw momentum build into Q4 but temporary softening in December, now recovering in Q1. Share repurchase to continue as long as undervaluation exists. • Q: Paul Gong on consumer behavior and dual brands.

A: Similar consumer behavior across brands, higher-income guests growing. Dual brand expected 50+ in 2026, closures expected to decline. • Q: Allison Arfstrom on IHOP value on weekend.

A: Tested value menu extension to weekend with franchisees, incidents remained stable. • Q: Nerses Setyan on 2026 comp drivers and cash flow.

A: Applebee's leverages 2 for $25 with new menu items, IHOP complements value with barbell strategy. Cash flow impacted by timing issues in 2025, expected improvement in 2026. • Q: Brian Vaccaro on company operations EBIT loss.

A: Expect company restaurant portfolio to be breakeven in 2026, meaningful swing from 2025 negative EBITDA