Dine Brands Global (NYSE:DIN) executives told investors the company saw “meaningful improvement” in fiscal 2025 versus 2024, pointing to operational execution, value-focused marketing, menu innovation and ongoing restaurant investment as key drivers. Management also issued fiscal 2026 guidance calling for modest comparable-sales growth at both Applebee’s and IHOP and an EBITDA range largely in line with the prior year.
2025 results: improving trends, mixed by quarter
CEO John Peyton said performance improved year over year, despite what he described as a still-challenging consumer environment where guests remained “highly intentional” about discretionary spending. He noted some softening in comparable sales and traffic across casual and family dining as the industry moved into December.
Comparable sales improved at Applebee’s and were slightly better at IHOP versus 2024:
- Applebee’s: full-year comparable sales +1.3% (vs. -4.2% in 2024); Q4 comparable sales -0.4%.
- IHOP: full-year comparable sales -1.5% (vs. -2.0% in 2024); Q4 comparable sales +0.3%, driven by positive traffic.
In response to a question on Q4 trends, Chang said both brands experienced “temporary softening” in December consistent with the industry, but momentum rebuilt in early Q1 despite winter storms. He said both brands recovered to pre-storm trends and were running within the company’s 0% to +2% 2026 comparable-sales guidance range.
Applebee’s: value platform, burgers, and off-premise growth
Peyton highlighted Applebee’s return to positive same-store sales growth in 2025, supported by value messaging and new products. In Q4, the Two for platform represented about 22% of transactions and supported off-premise demand and check growth. He said the Grilled Cheese Cheeseburger launched in Q4 became the brand’s “highest-selling standalone burger ever” and its “highest-selling Two for burger” to date.
Another major driver was the Ultimate Trio appetizer introduced in August, which remained the best-selling appetizer in Q4 and represented about 11.5% of transactions, according to Peyton. In January, Applebee’s introduced the O-M-Cheese Burger, offered on the Two for platform and individually at $11.99; Peyton said it quickly became the newest highest-selling burger of all time on the Two for platform and “blew up on social media.”
Applebee’s off-premise channel was also a growth contributor. Management said off-premise comparable sales increased 6.2% in Q4 and 6.5% for the full year, with delivery up 10.5% for the year. Chang added that average weekly franchise sales per Applebee’s restaurant were $54.3 thousand in 2025, including about $12.4 thousand from off-premise (roughly 23% of total sales).
On marketing, Peyton said Applebee’s delivered year-over-year growth across key social media platforms, including an 84% increase in posting cadence and a 107% lift in engagement in the back half of the year compared to the front half. Looking ahead, he said Applebee’s plans fewer promotions run for longer windows, with consistent emphasis on Two for $25 supplemented by periodic new appetizer and entrée introductions.
IHOP: traffic gains, value menu expansion, and operational improvements
Peyton and IHOP President Lawrence Kim emphasized traffic as the central highlight for IHOP in 2025. Peyton said IHOP outperformed the Black Box casual/family dining benchmarks in traffic every month of the year, with the outperformance accelerating in Q4.
In September, IHOP launched the IHOP Value Menu, an expanded and rebranded version of House Faves, available seven days a week. Peyton said the aim was to drive traffic without displacing full-margin items, and the company is seeing guests also select premium offerings such as breakfast combos and limited-time items. Management said average check improved 150 basis points from Q3 to Q4.
In Q&A, Kim said testing showed weekend incidence remained around 10% of total checks after expanding the value menu to weekends, and IHOP plans to extend the Value Menu through 2026. He also outlined planned innovation, including a new proprietary coffee, omelet innovation, and a BBQ Pulled Pork Omelet expected to be introduced in March.
Operationally, Peyton said IHOP’s POS and handheld rollout completed in 2024, along with process improvements, contributed to about a 7-minute (12%) improvement in table turn times versus 2024. He also said guest complaints declined for the second consecutive year. Chang noted average weekly franchise sales per IHOP restaurant were $38.7 thousand in 2025, including about $8 thousand from off-premise (about 21% of total sales).
Development, dual-brand expansion, capital returns, and 2026 guidance
The company leaned heavily on restaurant development as a growth lever. Peyton said Dine opened 80 new restaurants globally in 2025, up from 68 the year before. Internationally, Dine ended the year with 32 international dual-brand restaurants, an increase of 14.
Domestically, Peyton said the company has opened 32 dual-brand restaurants in the U.S. (including three company-owned) with nine more under construction. He said the locations are generating about 1.5 to 2.5 times higher revenue than single-brand restaurants and that franchisees continue to expect payback of less than three years. Based on the current pipeline, management expects at least 50 incremental dual-brand openings in 2026, approaching 80 domestic dual-brand restaurants by year-end.
On remodels, Peyton said Applebee’s “Lookin’ Good” program ended 2025 with 103 remodeled restaurants, above the initial goal, and early results show “mid-single-digit” sales lifts when combined with marketing. The company is targeting another about 100 remodels in 2026.
Chang said the company returned $92 million to shareholders in 2025 through dividends and buybacks, including $31 million repurchased in Q4 (about 7% of shares outstanding). For the full year, the company bought back about 2.4 million shares, or 15% of shares, and management reiterated it views the stock as undervalued.
For 2026, management guided to:
- Domestic system-wide comparable sales: Applebee’s 0% to 2%; IHOP 0% to 2%.
- G&A: $205 million to $210 million (including about $35 million in non-cash stock-based compensation and depreciation).
- Adjusted EBITDA: $220 million to $230 million.
- CapEx: $25 million to $35 million.
Chang also said the company expects its company-owned restaurant portfolio to be at a break-even level in 2026, versus what he described as negative $10 million of company-restaurant EBITDA in 2025 after backing out depreciation and certain transitory costs. On cash flow, Chang cited timing issues in 2025 (including paying two quarters of interest in one quarter), higher remodel incentives, and working capital changes, and said he expects cash flow to normalize and improve in 2026 given higher EBITDA guidance.
About Dine Brands Global (NYSE:DIN)
Dine Brands Global, Inc is a leading franchisor and operator of full‐service restaurants in the casual dining and breakfast segments. The company’s primary brands include IHOP®, known for its wide variety of breakfast offerings and pancakes, and Applebee’s Neighborhood Grill + Bar®, a casual dining concept featuring a range of American entrées, appetizers and cocktails. Through its franchise model, Dine Brands works with independent restaurant owners to develop, market and support both domestic and international locations.
The origins of Dine Brands Global date back to the founding of the International House of Pancakes (IHOP) in 1958 in California.
