Dine Brands Global, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a decline in total revenues and profitability compared to the previous fiscal period. Total revenues for the three months ended September 30, 2024, were $195.0 million, down from $202.6 million in the same period of 2023. For the nine months, total revenues decreased to $607.5 million from $624.8 million. The decline was primarily attributed to decreased franchise and rental operations revenue, alongside a reduction in domestic same-restaurant sales.
Franchise revenues for the third quarter were $166.4 million, a decrease from $172.5 million in the prior year, with notable declines in both Applebee's and Fuzzy's Taco Shop. Applebee's same-restaurant sales fell by 5.9% for the quarter, while IHOP's decreased by 2.1%. Fuzzy's experienced a more significant drop of 9.6%. The overall decrease in traffic was partially offset by an increase in average check sizes.
Despite the revenue decline, Dine Brands reported a net income of $19.1 million for the third quarter, an increase from $18.5 million in 2023. This improvement was driven by reduced general and administrative expenses and lower impairment charges. The income before income taxes for the quarter rose to $26.5 million, compared to $24.9 million in the previous year. However, for the nine-month period, net income decreased to $59.7 million from $64.1 million, reflecting a decline in profitability.
The company’s cash and cash equivalents increased to $169.6 million as of September 30, 2024, up from $146.0 million at the end of 2023. Current liabilities also decreased to $386.9 million from $460.5 million, while total liabilities fell to $1.92 billion from $1.99 billion. Retained earnings improved to $186.2 million, up from $150.0 million.
Dine Brands continued its stock repurchase program, buying back 269,621 shares at a cost of $12.0 million during the nine months ended September 30, 2024. The company declared a cash dividend of $0.51 per share for the third quarter, consistent with previous quarters in 2024.
The effective tax rate for the nine months ended September 30, 2024, was 26.9%, higher than the 25.0% in the prior year, primarily due to a lower tax deduction related to stock-based compensation. The company’s leverage ratio stood at approximately 4.1x, allowing for the suspension of quarterly principal payments on certain notes.
About Dine Brands Global, Inc.
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