Dine Brands stock holds steady as Benchmark maintains rating despite mixed earnings

Published 11/08/2025, 14:46
Dine Brands stock holds steady as Benchmark maintains rating despite mixed earnings

Investing.com - Dine Brands (NYSE:DIN) received a reiterated Hold rating from Benchmark on Monday following the company’s second-quarter 2025 earnings report that showed mixed results. According to InvestingPro data, the company currently trades at an attractive P/E ratio of 7, suggesting potential value despite recent challenges.

The restaurant company reported second-quarter revenues of $231 million on August 6, exceeding analyst consensus expectations of $223 million. The revenue figure included a $28 million contribution from recently acquired franchise locations, comprising 59 Applebee’s, 10 IHOP, and 1 Fuzzy’s restaurants. The company’s total revenue over the last twelve months reached $845 million, with a modest growth rate of 2.9%.

Applebee’s same-store sales increased by 4.9% during the quarter, significantly outperforming the consensus estimate of 1.5% growth. Despite this strong performance in the Applebee’s segment, the company’s corporate stores recorded losses of $2.9 million.

Dine Brands’ adjusted earnings per share came in at $1.17, falling $0.28 below consensus expectations, while adjusted EBITDA of $56 million missed the projected $63 million. General and administrative expenses exceeded expectations by $1.8 million, contributing to the earnings shortfall.

Benchmark acknowledged the progress Dine Brands is making with its Applebee’s brand but maintained its Hold rating on the stock, citing the mixed financial performance despite the revenue beat.

In other recent news, Dine Brands Global Inc. announced its second-quarter 2025 earnings, which showed mixed results. The company reported earnings per share (EPS) of $1.17, which was below the analyst forecast of $1.45, resulting in a 19.31% negative surprise. Despite this, Dine Brands Global’s revenue exceeded expectations, totaling $230.8 million compared to the projected $223.34 million. This revenue increase highlights a positive aspect of the company’s financial performance during the quarter. The earnings miss, however, led to a negative reaction in the stock market. Analysts had anticipated stronger earnings performance, which contributed to the market’s response. These developments reflect recent updates regarding Dine Brands Global’s financial standing.

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