Dine Brands surges as Wedbush upgrades stock on potential share buyback

Dine Brands Global

01/10/2024 15:16

(Updates)
    ** Applebee-parent Dine Brands Global's  DIN.N  shares jump
as much as 14.5% to a two-month high of $35.76 in early trade 
    ** Wedbush upgrades rating on DIN to "outperform" from
"neutral"; raises PT to $47 from $37
    ** New PT is at ~50% premium to last close, stock set for
its best day since Nov. 9, 2020
    ** Brokerage sees possible share repurchase plans of more
than $100 mln in H2 FY25 following refinancing of DIN's loans
    ** Wedbush expects ongoing menu testing at co's brands,
Applebee and IHOP restaurants, to offer compelling value to
customers that would stabilize same-store sales growth
    ** Says DIN's 100% franchised model minimizes margin
sensitivity to revenue challenges and gives higher visibility
into earnings and free cash flow generation
    ** 5 of 10 brokerages rate DIN stock "buy", rest "hold";
median PT is $40 - LSEG
    ** As of Monday's close, stock down ~36% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com))