Dine Brands Global, Inc. Q1 FY2026 earnings call

• Q1 had 475 closure days due to remodels and program conversions, with fewer closures expected later. - Will continue to acquire restaurants to strengthen the system, test initiatives. - Applebee's had about 26% of tickets with value items, IHOP Q1 value mix at 22%. - IHOP California Heritage remodel in early stage, Applebee's remodel expected to reach 40% of portfolio by end of year.

Discussed segment performance related to restaurant closures, value mix at Applebee's and IHOP, and plans for acquisitions and remodels.

• Fewer closure days for rest of year baked into guidance. - Goal not to get to 5% company-owned portfolio, but comfortable with 5% for asset light benefits. - Maintaining net development targets despite closures.

Consumer environment could impact franchisee health and business performance.

Q: Dennis Geiger from UBS asked about focus on quality and price points, value mix at Applebee's and IHOP.

A: John and Lawrence addressed value mix at both brands, Applebee's about 26% of tickets had value items, IHOP Q1 value mix at 22% and discussed future plans.

Q: Brian Moen from Piper Sandler asked about IHOP California heritage remodel.

A: Lawrence talked about early stage of remodel, working with franchisees on incentive program.

Q: Todd Brooks from Benchmark Stone asked about franchisee health and corporate owned base.

A: John and Vance discussed NRP situation, benefits of owning restaurants for testing, and franchisee health with steady margins.

Q: Brian Vaccaro from Raymond James asked about consumer dynamics, average check and traffic trends, closures.

A: John talked about consumer behavior, Vance discussed average check and traffic trends, and closure situation.