Benchmark Co. analyst Todd Brooks has maintained their neutral stance on DIN stock, giving a Hold rating yesterday.
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Todd Brooks has given his Hold rating due to a combination of factors affecting Dine Brands Global’s performance. The company is experiencing mixed results across its two main brands, Applebee’s and IHOP. While Applebee’s initially showed promise with its value-focused promotions, it faced a significant decline in traffic during August, which only slightly improved in September. This inconsistency led to a downward revision of sales estimates for the brand.
Conversely, IHOP demonstrated a positive trend with an increase in traffic, particularly after extending its $6 House Faves value menu to weekends. However, the overall impact on average check size remains uncertain. These mixed performance results, coupled with a cautious outlook on profitability due to marginally higher corporate costs, have led to a reduction in revenue and earnings estimates. As a result, Todd Brooks maintains a Hold rating, reflecting the challenges in achieving consistent growth across both brands.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $29.00 price target.