DIN Stock Forecast & Price Target

Dine Brands Global has experienced a positive turnaround in traffic growth, particularly driven by the successful launch of IHOP's "House Faves" menu, which has led to the first month of positive traffic for IHOP in years. The company's performance forecasts reflect this momentum, with adjusted EBITDA projected between $235 million and $245 million and same-store sales (SSS) growth expectations for Applebee’s and IHOP indicating improvements from previous quarters. Moreover, the favorable spending trends among lower-income consumers, who are a key demographic for both brands, bolster confidence in future financial performance and could enhance shareholder value.

Dine Brands Global Inc. has experienced negative same-store sales (SSS) growth in both its Applebee's and IHOP brands, with declines of 2.2% and 2.7% respectively, indicating ongoing challenges in traffic and market share recovery. The company's recent acquisition of company-operated locations has further contributed to financial performance setbacks, leading to misses in earnings per share (EPS) and EBITDA expectations for the first quarter of 2025. Despite the ability to generate strong free cash flow, the reliance on value-oriented promotions has been ineffective, weighing on average check growth and prompting a downward revision of 2025 EPS estimates to $5.13.