Wedbush downgrades Dine Brands after soft Q2 channel checks

Wedbush downgraded Dine Brands to Neutral from Outperform with a price target of $65, down from $80. The firm’s Applebee’s and IHOP channel checks point to Q2 same-store-sales growth trending below consensus estimates for both concepts. Dine’s franchised model helps in an inflationary environment, but is not much of a positive as inflation decelerates, the analyst tells investors in a research note. Wedbush sees a lack of medium-term positive catalysts beyond Q2 for Dine Brands and says a meaningful acceleration in near-term share repurchases “may no longer be in the cards.”