Benchmark Co. analyst Todd Brooks has maintained their neutral stance on DIN stock, giving a Hold rating on May 8.
Todd Brooks has given his Hold rating due to a combination of factors impacting Dine Brands Global. The company’s recent operating results showed some stabilization in revenue trends, but they fell short of consensus expectations in terms of gross profit, adjusted earnings per share, and adjusted EBITDA. Although there has been some improvement in same-store sales trends for both Applebee’s and IHOP, the results still reflect a challenging environment.
Management’s efforts to refocus on value platforms rather than limited-time offers have shown some promise, with increased value mix percentages at both brands. Additionally, the company’s strategic move to acquire franchise locations and experiment with dual-branded locations indicates a willingness to innovate. However, these initiatives are still in the early stages, and the sustainability of these improvements remains uncertain. As a result, Brooks maintains a cautious stance with a Hold rating while monitoring the company’s progress in executing its strategies.
According to TipRanks, Brooks is an analyst with an average return of -5.9% and a 35.33% success rate. Brooks covers the Consumer Cyclical sector, focusing on stocks such as Cracker Barrel, Texas Roadhouse, and El Pollo LoCo.
In another report released on May 8, Truist Financial also maintained a Hold rating on the stock with a $23.00 price target.