Dine Brands investors lose appetite after Q4 update, guidance

Dine Brands Global

02/03/2022 18:54

** Shares in Applebee's owner Dine Brands Global  DIN.N  down
10.1% at $70.39 on track for biggest one-day pct decline since
June 2020 after quarterly report showed Q4 rev missed estimates
and its 2022 EBITDA guidance implies a year/year decline  
    ** Dine's report of Q4 adj. EPS of $1.32 compares with
consensus view of $1.27 while rev of $229.6 mln was below
consensus of $236.7 mln, according to IBES data from Refinitiv
 urn:newsml:reuters.com:*:nBw1g7Hdta
    ** For 2022, assuming no significant COVID-19 disruptions,
except Q1's Omicron impact, DIN forecast consolidated adj.
EBITDA of $235 mln-$250 mln, which would be a decline from its
2021 EBITDA of $253.26 mln, according to Refinitiv  
    ** While it forecast net new openings of 50-65 IHOP
franchisees and area licensees in 2022 it forecast 5-15 net
fewer Applebee's restaurants after a strategic initiative to
close underperforming domestic restaurants
    ** Trading volume on Wednesday was 1.3x 10-DMA. Stock fell
to lowest point since Feb. 4, down 7.2% YTD after rising 30.7%
in 2021

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com;))