Dine Brands Cuts Outlook Amid Closures, Margin Decline

Dine Brands Global, parent of Applebee’s and IHOP, reported Q2 2025 revenue of $230.8 million, surpassing analyst estimates, but adjusted earnings per share fell to $1.17, down from $1.71 last year and below expectations. Applebee’s comparable sales rose by 4.9%, while IHOP’s declined by 2.3%. Profit margins contracted largely due to higher expenses, ongoing net restaurant closures, and underperformance at both IHOP and Fuzzy’s Taco Shop. The company’s operating margin dropped to 18% from 25.4% in the prior year, and its EBITDA guidance for the year was lowered below analyst forecasts. Despite these challenges and a roughly 27.5% year-to-date stock decline, Dine Brands raised its Applebee’s sales outlook for the year. Management remains confident that innovation and franchise initiatives will drive future value.