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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 (Mark One)
☒      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2024
 OR
☐      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     
Commission File Number 001-15283
Dine and APPB Logos.jpg Dine Brands Global, Inc. IHOP and Fuzzy Logos.jpg
(Exact name of registrant as specified in its charter)
Delaware95-3038279
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
10 West Walnut Street, 5th Floor91103
PasadenaCA
(Address of principal executive offices) (Zip Code)
(818) 240-6055
(Registrant’s telephone number, including area code)
 ______________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:

 Title of each class Trading symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueDINNew York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒ Accelerated filer ☐
Non-accelerated filer
☐Smaller reporting company ☐
 Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐
  No ☒ 
 
As of October 25, 2024, the Registrant had 15,246,473 shares of Common Stock outstanding.

Dine Brands Global, Inc. and Subsidiaries
Index

  Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1
Cautionary Statement Regarding Forward-Looking Statements
Statements contained in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. You can identify these forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “goal” and other similar expressions. You should consider our forward-looking statements in light of the risks discussed under the heading “Risk Factors,” as well as our consolidated financial statements, related notes, and the other financial information appearing elsewhere in this report and our other filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this report are made as of the date hereof and Dine Brands Global, Inc. does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date of this report to reflect actual results or future events or circumstances.
These statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: general economic conditions, including the impact of inflation, particularly as it may impact our franchisees directly; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of restaurant development plans; our dependence on our franchisees; the concentration of our Applebee’s franchised restaurants in a limited number of franchisees; the financial health of our franchisees, including any insolvency or bankruptcy; credit risks from our IHOP franchisees operating under our previous IHOP business model in which we built and equipped IHOP restaurants and then franchised them to franchisees; insufficient insurance coverage to cover potential risks associated with the ownership and operation of restaurants; our franchisees’ and other licensees’ compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands’ reputation; risks of food-borne illness or food tampering; possible future impairment charges; trading volatility and fluctuations in the price of our stock; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; delivery initiatives and use of third-party delivery vendors; our allocation of human capital and our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; natural disasters, pandemics, epidemics, or other serious incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; and other factors discussed from time to time in the "Risk Factors" section of the Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in the Corporation's other filings with the Securities and Exchange Commission, many of which are beyond our control.
Fiscal Quarter End
The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2024 began on January 1, 2024 and ended on March 31, 2024, the second fiscal quarter of 2024 ended on June 30, 2024, and the third fiscal quarter of 2024 ended on September 29, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023, the second fiscal quarter of 2023 ended on July 2, 2023, and the third fiscal quarter of 2023 ended on October 1, 2023.

2
PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements.
Dine Brands Global, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
September 30, 2024December 31, 2023
Assets(Unaudited)
Current assets:  
Cash and cash equivalents
$169,636 $146,034 
   Receivables, net of allowance of $2,993 (2024) and $4,462 (2023)
83,414 127,937 
Restricted cash
45,974 35,058 
Prepaid gift card costs
23,493 29,545 
Prepaid income taxes
806 3,445 
Other current assets
8,108 15,759 
Total current assets
331,431 357,778 
Non-current restricted cash19,500 19,500 
Property and equipment, net154,932 161,891 
Operating lease right-of-use assets282,202 275,214 
Deferred rent receivable26,721 33,326 
Long-term receivables, net of allowance of $636 (2024) and $5,002 (2023)
33,508 35,602 
Goodwill254,062 254,062 
Other intangible assets, net578,309 586,033 
Other non-current assets, net18,874 16,881 
Total assets
$1,699,539 $1,740,287 
Liabilities and Stockholders’ Deficit  
Current liabilities:  
Current maturities of long-term debt
$100,000 $100,000 
Accounts payable
35,455 36,193 
Gift card liability
137,020 175,640 
Current maturities of operating lease obligations
61,181 63,498 
 Current maturities of finance lease and financing obligations6,713 7,243 
Accrued employee compensation and benefits
12,063 23,211 
Accrued advertising expenses3,616 9,446 
Dividends payable
7,790 7,827 
Other accrued expenses
23,012 37,394 
Total current liabilities
386,850 460,452 
Long-term debt, net, less current maturities1,086,026 1,084,502 
Operating lease obligations, less current maturities271,283 269,097 
Finance lease obligations, less current maturities35,720 34,389 
Financing obligations, less current maturities24,940 26,984 
Deferred income taxes, net57,493 60,829 
Deferred franchise revenue, long-term37,681 38,658 
Other non-current liabilities16,216 16,350 
Total liabilities
1,916,209 1,991,261 
Commitments and contingencies
Stockholders’ deficit:  
Preferred stock, $1 par value, 10,000,000 shares authorized; no shares issued and outstanding
— — 
Common stock, $0.01 par value; shares: 40,000,000 authorized; September 30, 2024 - 24,787,994 issued, 15,273,565 outstanding; December 31, 2023 - 24,870,529 issued, 15,344,768 outstanding
248 249 
Additional paid-in-capital252,994 256,542 
Retained earnings186,237 150,008 
Accumulated other comprehensive loss(67)(64)
Treasury stock, at cost; shares: September 30, 2024 - 9,514,429; December 31, 2023 - 9,525,761
(656,082)(657,709)
Total stockholders’ deficit(216,670)(250,974)
Total liabilities and stockholders’ deficit
$1,699,539 $1,740,287 
See the accompanying Notes to Consolidated Financial Statements.
3
Dine Brands Global, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
 Three Months EndedNine Months Ended
September 30,September 30,
 2024202320242023
Revenues: 
Franchise revenues:
Royalties, franchise fees and other$96,565 $99,135 $299,161 $303,998 
Advertising revenues69,789 73,385 219,568 226,401 
Total franchise revenues166,354 172,520 518,729 530,399 
Company restaurant sales267 308 840 1,839 
Rental revenues27,991 29,128 86,546 90,519 
Financing revenues422 628 1,421 2,009 
Total revenues195,034 202,584 607,536 624,766 
Cost of revenues:  
Franchise expenses:
Advertising expenses69,789 73,385 219,568 226,401 
Bad debt (credit) expense151 (51)(395)2,593 
Other franchise expenses9,787 9,804 31,980 29,790 
Total franchise expenses79,727 83,138 251,153 258,784 
Company restaurant expenses304 323 915 1,833 
Rental expenses:
Interest expense from finance leases729 668 2,208 2,072 
Other rental expenses20,879 21,066 63,005 63,538 
Total rental expenses21,608 21,734 65,213 65,610 
Financing expenses76 91 241 283 
Total cost of revenues101,715 105,286 317,522 326,510 
Gross profit93,319 97,298 290,014 298,256 
General and administrative expenses45,390 48,618 144,435 147,545 
Interest expense, net18,369 19,059 54,291 51,549 
Closure and impairment charges366 1,774 1,442 3,088 
Amortization of intangible assets2,724 2,709 8,169 8,202 
Loss on extinguishment of debt— — — 10 
Loss (gain) on disposition of assets6 191 (57)2,309 
Income before income taxes26,464 24,947 81,734 85,553 
Income tax provision(7,403)(6,468)(22,018)(21,416)
Net income19,061 18,479 59,716 64,137 
Other comprehensive income (loss) net of tax:
Foreign currency translation adjustment2 (2)(3)(2)
Total comprehensive income$19,063 $18,477 $59,713 $64,135 
Net income available to common stockholders:  
Net income$19,061 $18,479 $59,716 $64,137 
Less: Net income allocated to unvested participating restricted stock(553)(431)(1,760)(1,551)
Net income available to common stockholders$18,508 $18,048 $57,956 $62,586 
Net income available to common stockholders per share:  
Basic$1.24 $1.19 $3.88 $4.10 
Diluted$1.24 $1.19 $3.88 $4.09 
Weighted average shares outstanding:  
Basic14,897 15,217 14,940 15,275 
Diluted14,897 15,220 14,940 15,289 
See the accompanying Notes to Consolidated Financial Statements.
4
Dine Brands Global, Inc. and Subsidiaries
Consolidated Statements of Stockholders' Deficit
(In thousands except shares)
(Unaudited)
Three Months Ended September 30, 2024
 Common Stock  Accumulated
Other
Comprehensive
Loss		Treasury Stock 
 Shares
Outstanding		AmountAdditional
Paid-in
Capital		Retained EarningsSharesCostTotal
Balance at June 30, 2024
15,299,270 $248 $249,265 $174,972 $(69)9,515,189 $(656,118)$(231,702)
Net income— — — 19,061 — — — 19,061 
Other comprehensive income— — — — 2 — — 2 
Purchase of Company common stock— — — — — — — — 
Reissuance of treasury stock760 — (36)— — (760)36 — 
Net issuance of shares for stock plans(23,766)— — — — — — — 
Repurchase of restricted shares for taxes(2,699)— (87)— — — — (87)
Stock-based compensation— — 3,815 — — — — 3,815 
Dividends on common stock— — 37 (7,796)— — — (7,759)
Tax payments for share settlement of restricted stock units— — — — — — — — 
Balance at September 30, 2024
15,273,565 $248 $252,994 $186,237 $(67)9,514,429 $(656,082)$(216,670)

Nine Months Ended September 30, 2024
 Common Stock  Accumulated
Other
Comprehensive
Loss		Treasury Stock 
 Shares
Outstanding		AmountAdditional
Paid-in
Capital		Retained EarningsSharesCostTotal
Balance at December 31, 2023
15,344,768 $249 $256,542 $150,008 $(64)9,525,761 $(657,709)$(250,974)
Net income— — — 59,716 — — — 59,716 
Other comprehensive loss— — — — (3)— — (3)
Purchase of Company common stock(269,621)— — — — 269,621 (12,000)(12,000)
Reissuance of treasury stock280,953 (1)(13,626)— — (280,953)13,627 — 
Net issuance of shares for stock plans(27,796)— — — — — — — 
Repurchase of restricted shares for taxes(54,739)— (2,573)— — — — (2,573)
Stock-based compensation— — 12,572 — — — — 12,572 
Dividends on common stock— — 109 (23,487)— — — (23,378)
Tax payments for share settlement of restricted stock units— — (30)— — — — (30)
Balance at September 30, 2024
15,273,565 $248 $252,994 $186,237 $(67)9,514,429 $(656,082)$(216,670)


5
Dine Brands Global, Inc. and Subsidiaries
Consolidated Statements of Stockholders' Deficit
(In thousands except shares)
(Unaudited)
Three Months Ended September 30, 2023
Common StockAccumulated
Other
Comprehensive
Loss		Treasury Stock
Shares
Outstanding		AmountAdditional
Paid-in
Capital		Retained EarningsSharesCostTotal
Balance at June 30, 202315,587,934 $249 $250,808 $114,226 $(65)9,302,265 $(646,219)$(281,001)
Net income— — — 18,479 — — — 18,479 
Other comprehensive loss— — — — (2)— — (2)
Purchase of Company common stock(105,864)— — — — 105,864 (6,000)(6,000)
Reissuance of treasury stock8,901 — (445)— — (8,901)445 — 
Net issuance of shares for stock plans(2,914)— — — — — — — 
Repurchase of restricted shares for taxes(3,545)— (198)— — — — (198)
Stock-based compensation— — 2,858 — — — — 2,858 
Dividends on common stock— — 57 (7,899)— — — (7,842)
Tax payments for share settlement of restricted stock units— — — — — — — — 
Balance at September 30, 2023
15,484,512 $249 $253,080 $124,806 $(67)9,399,228 $(651,774)$(273,706)
Nine Months Ended September 30, 2023
 Common Stock  Accumulated
Other
Comprehensive
Loss		Treasury Stock 
 Shares
Outstanding		AmountAdditional
Paid-in
Capital		Retained EarningsSharesCostTotal
Balance at December 31, 2022
15,599,239 $250 $259,339 $84,538 $(65)9,360,733 $(645,146)$(301,084)
Net income— — — 64,137 — — — 64,137 
Other comprehensive loss— — — — (2)— — (2)
Purchase of Company common stock(318,356)— — — — 318,356 (20,017)(20,017)
Reissuance of treasury stock279,861 (1)(9,576)— — (279,861)13,389 3,812 
Net issuance of shares for stock plans(19,329)— — — — — — — 
Repurchase of restricted shares for taxes(56,903)— (4,139)— — — — (4,139)
Stock-based compensation— — 8,167 — — — — 8,167 
Dividends on common stock— — 148 (23,869)— — — (23,721)
Tax payments for share settlement of restricted stock units— — (859)— — — — (859)
Balance at September 30, 2023
15,484,512 $249 $253,080 $124,806 $(67)9,399,228 $(651,774)$(273,706)

See the accompanying Notes to Consolidated Financial Statements
6
Dine Brands Global, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
 September 30,
 20242023
Cash flows from operating activities: 
Net income$59,716 $64,137 
Adjustments to reconcile net income to cash flows provided by operating activities: 
Depreciation and amortization29,049 26,221 
Non-cash closure and impairment charges1,442 3,088 
Non-cash stock-based compensation expense12,572 8,167 
Non-cash interest expense2,448 2,714 
Loss on extinguishment of debt— 10 
Deferred income taxes(3,335)(3,582)
Deferred revenue(3,431)(2,590)
(Gain) loss on disposition of assets(57)2,309 
Other(2,894)(1,577)
Changes in operating assets and liabilities: 
Receivables, net6,937 6,354 
Deferred rent receivable6,605 6,792 
Current income tax receivable and payable1,352 (186)
Gift card receivable and payable(13,060)(13,588)
Other current assets7,624 6,358 
Accounts payable(2,100)(15,527)
Operating lease assets and liabilities(9,716)2,438 
Accrued employee compensation and benefits(11,033)(4,447)
Accrued advertising(1,827)(9,750)
Other current liabilities(2,598)1,965 
Cash flows provided by operating activities77,694 79,306 
Cash flows from investing activities:  
Principal receipts from notes, equipment contracts and other long-term receivables10,388 6,686 
Additions to property and equipment(10,305)(31,968)
Proceeds from sale of property and equipment305 — 
Additions to long-term receivables(649)(1,237)
Other(400)(113)
Cash flows used in investing activities(661)(26,632)
Cash flows from financing activities: 
Proceeds from issuance of long-term debt— 500,000 
Repayment of long-term debt— (651,713)
Borrowing from revolving credit facility— 30,000 
Repayment of revolving credit facility— (30,000)
Payment of debt issuance costs— (8,044)
Dividends paid on common stock(23,513)(31,740)
Repurchase of common stock(12,000)(20,017)
Principal payments on finance lease and financing obligations(4,396)(5,329)
Proceeds from stock options exercised— 3,812 
Repurchase of restricted stock for tax payments upon vesting(2,573)(4,139)
Tax payments for share settlement of restricted stock units(30)(859)
Other(3)— 
Cash flows used in financing activities(42,515)(218,029)
Net change in cash, cash equivalents and restricted cash34,518 (165,355)
Cash, cash equivalents and restricted cash at beginning of period200,592 324,984 
Cash, cash equivalents and restricted cash at end of period$235,110 $159,629 
Supplemental disclosures:  
Interest paid in cash$59,538 $54,032 
Income taxes paid in cash$31,392 $25,774 
Non-cash conversion to notes receivable$3,130 $969 
Non-cash balance sheet gross-up of receivables and other accrued expenses$11,000 $— 
See the accompanying Notes to Consolidated Financial Statements.
7
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)

1. General
The accompanying unaudited consolidated financial statements of Dine Brands Global, Inc. (the “Company” or “Dine Brands Global”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2024.
The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements.
These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
2. Basis of Presentation
The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2024 began on January 1, 2024 and ended on March 31, 2024, the second fiscal quarter of 2024 ended on June 30, 2024, and the third fiscal quarter of 2024 ended on September 29, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023, the second fiscal quarter of 2023 ended on July 2, 2023, and the third fiscal quarter of 2023 ended on October 1, 2023.
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated.
The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, if any, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made in the calculation and assessment of the following: impairment of tangible and intangible assets and goodwill; income taxes; allowance for doubtful accounts and notes receivables; lease accounting estimates; contingencies; and stock-based compensation. On an ongoing basis, the Company evaluates its estimates based on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates.
3. Recent Accounting Pronouncements
Accounting Standards Adopted in the Current Fiscal Year
Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2024 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years.
Newly Issued Accounting Standards Not Yet Adopted
In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure," which updates reportable segment disclosure requirements. The ASU primarily requires enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profit or loss used to assess segment performance. All annual disclosures of a reportable segment’s profit or loss and assets required by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, will be required to be disclosed in interim periods. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU in the Company's disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early
8
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
3. Recent Accounting Pronouncements (Continued)
adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of adopting this ASU in the Company's disclosures.
The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.
4. Revenues
Franchise revenues and revenues from company-operated restaurants are recognized in accordance with current guidance for revenue recognition as codified in Accounting Standards Topic 606 (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods.
Franchise Revenues
The Company franchises the Applebee's Neighborhood Grill & Bar® (“Applebee's”) concept in the American full-service restaurant segment within the casual dining category of the restaurant industry, the International House of Pancakes® (“IHOP”) concept in the family dining mid-scale full-service category of the restaurant industry, and the Fuzzy's Taco Shop® (“Fuzzy's”) concept in the Mexican food segment within the fast-casual dining category of the restaurant industry. The franchise arrangement for the brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brands that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the respective brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation.
The transaction price in a standard franchise arrangement for the brands primarily consists of (a) initial franchise/development fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required. Additionally, all domestic IHOP franchise agreements require franchisees to purchase proprietary pancake and waffle dry mix from the Company.
The Company recognizes the primary components of the transaction price as follows:
•Franchise and development fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the restaurant opening date. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time;
•The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenues are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either what is considered a contract asset (unbilled receivable) or once billed, accounts receivable, and are included in “receivables, net” on the balance sheet;
•Revenue from the sale of proprietary pancake and waffle dry mix and other proprietary products is recognized in the period in which distributors ship the franchisee's order; recognition of revenue results in an accounts receivable included in “receivables, net” on the balance sheet.
In determining the amount and timing of revenues from contracts with customers, the Company exercises significant judgment with respect to collectability of the amount; however, the timing of recognition does not require significant judgments as it is based on either the term of the franchise agreement, the month of reported sales by the franchisee or the date of product shipment, none of which require estimation.
The Company does not incur a significant amount of contract acquisition costs in conducting franchising activities. The Company believes its franchising arrangements do not contain a significant financing component.
9
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
4. Revenues (Continued)
Company Restaurant Revenues
Company restaurant revenues comprise retail sales at company-operated restaurants. Sales by company-operated restaurants are recognized when food and beverage items are sold. Company restaurant sales are reported net of sales taxes collected from guests that are remitted to the appropriate taxing authorities, with no significant judgements required.
The following table disaggregates franchise revenues by major type for the three and nine months ended September 30, 2024 and 2023:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Franchise Revenues:  
Royalties$76.2 $79.4 $236.9 $245.6 
Advertising revenues69.8 73.4 219.6 226.4 
Proprietary product sales and other18.3 17.6 55.2 52.0 
Franchise and development fees2.1 2.1 7.0 6.4 
Total franchise revenues$166.4 $172.5 $518.7 $530.4 
Changes in the Company's contract liability for deferred franchise and development fees during the nine months ended September 30, 2024 were as follows:
 Deferred Franchise Revenue
(short- and long-term)
(In millions)
Balance at December 31, 2023
$45.3 
Recognized as revenue during the nine months ended September 30, 2024
(6.8)
Fees deferred during the nine months ended September 30, 2024
5.4 
Balance at September 30, 2024
$43.9 
The balance of deferred revenue as of September 30, 2024 is expected to be recognized as follows:
(In millions)
2024 (remaining three months)
$1.6 
20256.0 
20265.2 
20274.3 
20283.4 
Thereafter23.4 
Total$43.9 
5. Current Expected Credit Losses (“CECL”)
The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. The Company records specific reserves against account balances of franchisees deemed at-risk when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed at-risk, an allowance is recorded based on expected loss rates derived pursuant to the Company's CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable.
10
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
5. Current Expected Credit Losses (Continued)
The Company considers its portfolio segments to be the following:
Accounts Receivable
Most of the Company’s short-term receivables due from franchisees are derived from royalty, advertising, and other franchise-related fees, and from distributors related to the sale of proprietary products to franchisees through the Company’s network of suppliers and distributors.
Gift Card Receivable
Gift card receivable consist primarily of amounts due from third-party vendors. Receivables related to gift card sales are subject to seasonality and usually peak around year-end as a result of the December holiday season.
Notes Receivable
Notes receivable balances primarily relate to the conversion of certain past due franchisee accounts receivable to notes receivable, cash loans to franchisees for working capital purposes, a note receivable in connection with the sale of IHOP company restaurants, franchise fees, and other notes. The notes are typically collateralized by the franchise. During the nine months ended September 30, 2024, the Company wrote off $4.4 million of Applebee's notes receivable which were fully reserved. The remaining notes have reserves recorded against them amounting to $0.7 million as of September 30, 2024.
Equipment Leases Receivable
Equipment leases receivable primarily relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant, then franchised the restaurant to a franchisee. Equipment lease contracts are collateralized by the equipment in the restaurant. The estimated fair value of the equipment collateralizing these lease contracts are not deemed to be significant given the very seasoned and mature nature of this portfolio. The weighted average remaining life of the Company’s equipment leases is 2.7 years as of September 30, 2024.
Real Estate Leases Receivable
Real estate leases receivable primarily relate to IHOP franchise development activity prior to 2003 when IHOP provided the financing for leasing or subleasing the site. Real estate leases at September 30, 2024 comprised of 17 leases with a weighted average remaining life of 10.7 years, and relate to locations that IHOP is leasing from third parties and subleasing to franchisees.
September 30, 2024December 31, 2023
(In millions)
Accounts receivable$70.2 $73.3 
Gift card receivable6.2 33.6 
Notes receivable9.0 15.0 
Financing receivable:
Equipment leases receivable14.8 19.7 
Real estate leases receivable18.7 18.4 
Other receivables
1.7 13.0 
120.6 173.0 
Less: allowance for credit losses and notes receivable(3.6)(9.5)
116.9 163.5 
Less: current portion(83.4)(127.9)
Long-term receivables$33.5 $35.6 
11
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
5. Current Expected Credit Losses (Continued)
Changes in the allowance for credit losses during the nine months ended September 30, 2024 were as follows:
Accounts ReceivableNotes Receivable, short-termNotes Receivable, long-termReal estate leases receivableEquipment leases receivable
Other (1)
Total
 (In millions)
Balance, December 31, 2023
$2.7 $1.8 $4.7 $0.1 $0.2 $0.0 $9.5 
Bad debt expense (credit)0.9 (0.9)(0.5)0.0 0.1 — (0.4)
Advertising provision adjustment(0.0)— — — — — 0.0 
Write-offs(0.9)(0.6)(3.8)— (0.2)— (5.5)
Balance, September 30, 2024
$2.7 $0.3 $0.4 $0.1 $0.1 $0.0 $3.6 
(1) Primarily gift card receivable and credit card receivable.
The Company's primary credit quality indicator for all portfolio segments is delinquency. Generally, the notes receivables, leases receivables, equipment receivables, and other receivables (primarily consists of credit card receivables) are not delinquent.
The year of origination of the Company's financing receivables at September 30, 2024 is as follows:
 
Notes Receivable, short and long-termReal estate leases receivableEquipment leases receivableTotal
 (In millions)
2024$2.7 $1.9 $0.3 $4.9 
20235.2 3.4 0.7 9.3 
20220.6 7.8 — 8.4 
20210.4 2.2 — 2.6 
20200.1 1.2 — 1.3 
Prior— 2.2 13.8 16.0 
Total$9.0 $18.7 $14.8 $42.5 
The Company does not place its financing receivables in non-accrual status.
6. Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 504 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 50 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 295 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2024. Approximately 45 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2024.
12
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
6. Leases (Continued)
The Company's lease (income) cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.6 $2.0 $1.9 
Interest on lease liabilities
0.7 0.7 2.2 2.1 
Operating lease cost
18.3 18.5 54.8 56.7 
Variable lease cost1.9 1.8 5.9 5.9 
Short-term lease cost0.0 0.0 0.0 0.0 
Sublease income(25.8)(26.8)(79.7)(83.3)
Lease income$(4.2)$(5.2)$(14.8)$(16.7)
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
The weighted average remaining lease term as of September 30, 2024 was 5.6 years for finance leases and 6.0 years for operating leases. The weighted average discount rate as of September 30, 2024 was 9.2% for finance leases and 5.9% for operating leases.
During the three and nine months ended September 30, 2024 and 2023, the Company made the following cash payments for leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Principal payments on finance lease obligations$1.3 $1.7 $4.4 $5.3 
Interest payments on finance lease obligations0.7 0.7 2.2 2.1 
Payments on operating leases20.8 20.1 62.6 61.3 
Variable lease payments1.9 1.9 6.0 6.0 
13
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
6. Leases (Continued)
The Company's income from operating leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Minimum lease payments$23.7 $24.6 $72.3 $76.3 
Variable lease income3.9 4.1 12.9 13.0 
Total operating lease income$27.6 $28.7 $85.2 $89.3 
Future minimum payments to be received as lessor under noncancellable operating leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$25.4 
202593.6 
202680.4 
202763.4 
202847.1 
Thereafter170.1 
Total minimum rents receivable$480.0 
The Company's income from real estate leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Interest income$0.3 $0.3 $0.9 $0.8 
Variable lease income0.1 0.1 0.2 0.3 
Selling profit
— 0.0 0.2 0.0 
Total real estate lease income$0.4 $0.4 $1.3 $1.1 
Future minimum payments to be received as lessor under noncancellable real estate leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$0.7 
20252.5 
20262.5 
20272.5 
20282.5 
Thereafter15.4 
Total minimum rents receivable26.1 
Less: unearned income(7.5)
Total real estate leases receivable
18.6 
Less: current portion(1.4)
Long-term real estate leases receivable
$17.2 
14
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)


7. Long-Term Debt 
At September 30, 2024 and December 31, 2023, long-term debt consisted of the following components:
September 30, 2024December 31, 2023
 (In millions)
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II
$594.0 $594.0 
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively
100.0 100.0 
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2
500.0 500.0 
Unamortized debt issuance costs
(8.0)(9.5)
Long-term debt, net of debt issuance costs1,186.0 1,184.5 
Less: current portion of long-term debt(100.0)(100.0)
Long-term debt$1,086.0 $1,084.5 
On June 5, 2019, Applebee’s Funding LLC and IHOP Funding LLC (the “Co-Issuers”), each a special purpose, wholly-owned indirect subsidiary of the Company, issued two tranches of fixed rate senior secured notes, the Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I (“2019 Class A-2-I Notes”) in an initial aggregate principal amount of $700 million and the Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II in an initial aggregate principal amount of $600 million (the “2019 Class A-2-II Notes” and, together with the 2019 Class A-2-I Notes, the “2019 Class A-2 Notes”). The 2019 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended.
On August 12, 2022, the Co-Issuers established a new revolving financing facility, the 2022-1 Variable Funding Senior Secured Notes, Class A-1 (the “Credit Facility”), that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. In connection with this transaction, the Co-Issuers terminated their $225 million revolving financing facility, the 2019-1 Variable Funding Senior Secured Notes, Class A-1.
On April 17, 2023, the Co-Issuers completed a refinancing transaction and issued $500 million of Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2 (the “2023 Class A-2 Notes”). The 2023 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended. The Company used the net proceeds of the 2023 Class A-2 Notes to repay the entire outstanding balance of approximately $585.1 million of the 2019 Class A-2-I Notes and to pay fees and expenses incurred in connection with the issuance of the 2023 Class A-2 Notes. The remaining 2019 Class A-2-II Notes and the Credit Facility, together with the 2023 Class A-2 Notes are referred to collectively herein as the “Notes.” The Notes were issued in securitization transactions pursuant to which substantially all the domestic revenue-generating assets and domestic intellectual property held by the Co-Issuers and certain other special-purpose, wholly-owned indirect subsidiaries of the Company (the “Guarantors”) were pledged as collateral to secure the Notes.
The Notes were issued under a Base Indenture, dated as of September 30, 2014, amended and restated as of June 5, 2019 and further amended and restated as of April 17, 2023 (the “Base Indenture”). In addition, the 2019 Class A-2-II Notes were issued under the related Series 2019-1 Supplement to the Base Indenture, dated June 5, 2019 (the “Series 2019-1 Supplement”), among the Co-Issuers and Citibank, N.A., as the trustee (in such capacity, the “Trustee”) and securities intermediary, the Credit Facility was issued under the related Series 2022-1 Supplement to the Base Indenture, dated August 12, 2022 (“Series 2022-1 Supplement”), among the Co-Issuers and Citibank, N.A., as Trustee and securities intermediary, and the 2023 Class A-2 Notes were issued under the related Series 2023-1 Supplement to the Base Indenture, dated April 17, 2023 (the “Series 2023-1 Supplement”), among the Co-Issuers and Citibank, N.A., as Trustee and securities intermediary. The Base Indenture, Series 2019-1 Supplement, Series 2022-1 Supplement, and Series 2023-1 Supplement (collectively, the “Indenture”) will allow the Co-Issuers to issue additional series of notes in the future subject to certain conditions set forth therein.
2019 Class A-2 Notes
The 2019 Class A-2-I Notes were voluntarily repaid in full on April 17, 2023, while the 2019 Class A-2-II Notes remain outstanding as of September 30, 2024. For a description of the 2019 Class A-2-I Notes, refer to Note 8 — Long-Term Debt of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The legal final maturity of the 2019 Class A-2-II Notes is June 2049, but rapid amortization will apply if the 2019 Class A-2-II Notes are not repaid by June 2026 (the “2019 Class A-2-II Anticipated Repayment Date”). If the Co-
15
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
7. Long-Term Debt (Continued)
Issuers have not repaid or refinanced the 2019 Class A-2-II Notes by the 2019 Class A-2-II Anticipated Repayment Date, then additional interest will accrue on the 2019 Class A-2-II Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the applicable 2019 Class A-2-II Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the 2019 Class A-2-II Anticipated Repayment Date of the United States Treasury Security having a term closest to 10 years plus (y) 7.64% for the 2019 Class A-2-II Notes.
While the 2019 Class A-2-II Notes are outstanding, payment of principal and interest is required to be made on the 2019 Class A-2-II Notes on a quarterly basis. The quarterly principal payment of $1.5 million on the 2019 Class A-2-II Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x. Exceeding the leverage ratio of 5.25x does not violate any covenant related to the Notes. In general, the leverage ratio is the Company's indebtedness (as defined in the Indenture) divided by adjusted EBITDA (as defined in the Indenture) for the four preceding quarterly periods. The complete definitions of all calculation elements of the leverage ratio are contained in the Indenture.
As of September 30, 2024, the Company's leverage ratio was approximately 4.1x. As a result, quarterly principal payments on the 2019 Class A-2-II Notes of $1.5 million currently are not required.
The Company may voluntarily repay the 2019 Class A-2-II Notes at any time without any associated make-whole premium.
2022 Class A-1 Notes
In August 2022, the Co-Issuers entered into the Credit Facility that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. The applicable interest rate under the Credit Facility depends on the type of borrowing by the Co-Issuers. The applicable interest rate for advances is generally calculated at a per annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Term SOFR Rate, in either case, plus 2.50%. The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (A) the greatest of (i) the Prime Rate in effect from time to time; (ii) the Federal Funds Rate in effect from time to time plus 0.50%; and (iii) Term SOFR for a one-month tenor in effect at such time plus 0.50% plus (B) 2.00%.
The legal final maturity of the Credit Facility is June 2052, but rapid amortization will apply if there are outstanding amounts under the Credit Facility after June 2027 (the “Class A-1 Renewal Date”). The Class A-1 Renewal Date may be extended at the Co-Issuers’ election for up to two successive one-year periods if certain conditions are met. If the Co-Issuers have not repaid or refinanced the Credit Facility by the Class A-1 Renewal Date (after giving effect to any extensions), then interest will accrue on the Credit Facility at a rate equal to 5.00% in addition to the regular interest rate applicable to the Credit Facility.
As of September 30, 2024, the outstanding balance of the Credit Facility was $100 million. The amount of $0.6 million was pledged against the Credit Facility for outstanding letters of credit, leaving $224.4 million of the Credit Facility available for borrowing at September 30, 2024. It is anticipated that any principal and interest on the Credit Facility outstanding will be repaid in full on or prior to the quarterly payment date in June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions. The letters of credit are used primarily to satisfy insurance-related collateral requirements. The weighted average interest rate for the period outstanding during the nine months ended September 30, 2024 was 7.93%.
2023 Class A-2 Notes
The legal final maturity of the 2023 Class A-2 Notes is in March 2053, but it is anticipated that, unless repaid earlier to the extent permitted under the Indenture, the 2023 Class A-2 Notes will be repaid in June 2029 (the “2023 Class A-2 Anticipated Repayment Date”). If the Co-Issuers have not repaid or refinanced the 2023 Class A-2 Notes by the 2023 Class A-2 Anticipated Repayment Date, then additional interest will accrue on the 2023 Class A-2 Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the Series 2023-1 Class A-2 Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the 2023 Class A-2 Anticipated Repayment Date of the United States Treasury Security having a term closest to 10 years plus (y) 9.24% for the 2023 Class A-2 Notes.
While the 2023 Class A-2 Notes are outstanding, payment of principal and interest is required to be made on the 2023 Class A-2 Notes on a quarterly basis. The quarterly principal payment of $1.25 million on the 2023 Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x.
As of September 30, 2024, the Company's leverage ratio was approximately 4.1x. As a result, quarterly principal payments on the 2023 Class A-2 Notes of $1.25 million currently are not required.
16
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
7. Long-Term Debt (Continued)
The Company may voluntarily repay the 2023 Class A-2 Notes at any time; however, if the 2023 Class A-2 Notes are repaid prior to certain dates, the Company would be required to pay make-whole premiums. As of September 30, 2024, the make-whole premium associated with voluntary prepayment of the 2023 Class A-2 Notes was approximately $37.8 million. The Company also would be subject to a make-whole premium in the event of a mandatory prepayment required following a Rapid Amortization Event or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded in the Notes that must be bifurcated for separate valuation. The Company estimated the fair value of these derivatives to be immaterial as of September 30, 2024, based on the probability-weighted discounted cash flows associated with either event.
Repurchase Program
On February 16, 2023, the Company's Board of Directors authorized a debt repurchase program of up to $100 million. Repurchases of the Company’s debt, if any, are expected to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption. Under the authorization, the Company may make repurchases of the Company's debt from time to time in the open market or in privately negotiated transactions upon such terms and at such prices as management may determine.
Covenants and Restrictions
The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including: (i) that the Co-Issuers maintain specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments, and the related payment of specified amounts, including specified call redemption premiums in the case of Class A-2 Notes under certain circumstances; (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The Notes are subject to customary rapid amortization events provided for in the Indenture, including events tied to failure of the Securitization Entities (as defined in the Indenture) to maintain the stated debt service coverage ratio (“DSCR”), the sum of domestic retail sales for all restaurants being below certain levels on certain measurement dates, certain manager termination events, certain events of default and the failure to repay or refinance the Class A-2 Notes on the anticipated repayment dates. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure of the Securitization Entities to maintain the stated DSCR, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties and certain judgments.
In general, the DSCR ratio is Net Cash Flow (as defined in the Indenture) for the four quarters preceding the calculation date divided by the total debt service payments (as defined in the Indenture) of the preceding four quarters. The complete definitions of the DSCR and all calculation elements are contained in the Indenture. Failure to maintain a prescribed DSCR can trigger a Cash Flow Sweeping Event, A Rapid Amortization Event, a Manager Termination Event or a Default Event (each as defined in the Indenture) as described below. In a Cash Flow Sweeping Event, the Trustee is required to retain 50% of excess Cash Flow (as defined in the Indenture) in a restricted account. In a Rapid Amortization Event, all excess Cash Flow is retained and used to retire principal amounts of debt. In a Manager Termination Event, the Company may be replaced as manager of the assets securitized under the Indenture. In a Default Event, the outstanding principal amount and any accrued but unpaid interest can be called to become immediately due and payable. Key DSCRs are as follows:
•DSCR less than 1.75x - Cash Flow Sweeping Event
•DSCR less than 1.20x - Rapid Amortization Event
•Interest-only DSCR less than 1.20x - Manager Termination Event
•Interest-only DSCR less than 1.10x - Default Event
The Company's DSCR for the reporting period ended September 30, 2024 was approximately 3.5x.
Debt Issuance Costs
2023 Class A-2 Notes
The Company incurred costs of approximately $8.0 million in connection with the issuance of the 2023 Class A-2 Notes. These debt issuance costs are being amortized using the effective interest method over the estimated life of the 2023 Class A-2 Notes. Amortization costs of $0.3 million and $0.8 million, respectively, were included in interest expense for the three and nine months ended September 30, 2024. Amortization costs of $0.3 million and $0.5 million, respectively, were included in
17
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
7. Long-Term Debt (Continued)
interest expense for the three and nine months ended September 30, 2023. As of September 30, 2024, unamortized debt issuance costs of $6.5 million are reported as a direct reduction of the 2023 Series Class A-2 Notes in the Consolidated Balance Sheets.
2022 Class A-1 Notes
In August 2022, the Company incurred costs of approximately $6.3 million in connection with the issuance of the Credit Facility. These debt issuance costs are being amortized over the estimated life of the Credit Facility. Amortization costs of $0.3 million and $0.9 million, respectively, of these costs were included in interest expense for the three and nine months ended September 30, 2024. Amortization costs of $0.3 million and $0.9 million, respectively, were included in interest expense for the three and nine months ended September 30, 2023. As of September 30, 2024, unamortized debt issuance costs of $3.8 million related to the Credit Facility are classified as other non-current assets in the Consolidated Balance Sheets.
2019 Class A-2 Notes
The Company incurred costs of approximately $12.9 million in connection with the issuance of the 2019 Class A-2 Notes. These debt issuance costs are being amortized using the effective interest method over estimated life of each tranche of the 2019 Class A-2 Notes. Amortization costs of $0.2 million and $0.7 million were included in interest expense for the three and nine months ended September 30, 2024, respectively. Amortization costs of $0.2 million and $1.3 million were included in interest expense for the three and nine months ended September 30, 2023, respectively. The Company repaid the entire outstanding balance of approximately $585.1 million of its 2019 Class A-2-I Notes during the second quarter of fiscal year 2023 and wrote off the related remaining issuance costs of $1.7 million. As of September 30, 2024, unamortized debt issuance costs of $1.5 million are reported as a direct reduction of the 2019 Class A-2-II Notes in the Consolidated Balance Sheets.
Loss (Gain) on Extinguishment of Debt
The Company purchased $67.9 million of its 2019 Class A-2-I Notes under par and recognized a $1.7 million gain on extinguishment of debt during the nine months ended September 30, 2023.
In connection with the repayment of the 2019 Class A-2-I Notes, the Company recognized a loss on extinguishment of debt of $1.7 million, representing the remaining unamortized costs related to the 2019 Class A-2-I Notes, during the nine months ended September 30, 2023.
Maturities of Long-term Debt
•The final maturity of the 2019 Class A-2-II Notes is in June 2049, but it is anticipated that, unless repaid earlier, the 2019 Class A-2-II Notes will be repaid in June 2026.
•The final maturity of the 2023 Class A-2 Notes is in March 2053, but it is anticipated that, unless repaid earlier, to the extent permitted under the Indenture, the 2023 Class A-2 Notes will be repaid in June 2029.
•The renewal date of the Credit Facility is June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions.
•Quarterly principal payments on the 2019 Class A-2-II Notes totaling $1.5 million ($6.0 million per annum) are required if the Company's leverage ratio is greater than 5.25x.
•Quarterly principal payments on the 2023 Class A-2 Notes totaling $1.25 million ($5.0 million per annum) are required if the Company's leverage ratio is greater than 5.25x.
8. Stockholders' Deficit
Dividends
Dividends declared and paid per share for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Dividends declared per common share$0.51 $0.51 $1.53 $1.53 
Dividends paid per common share$0.51 $1.02 $1.53 $2.04 
During the nine months ended September 30, 2024 and 2023, the Company paid dividends of $23.5 million and $31.7 million, respectively.
18
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
8. Stockholders' Deficit (Continued)
On September 5, 2024, the Board of Directors declared a third quarter 2024 cash dividend of $0.51 per share of common stock, paid on October 8, 2024 to the stockholders of record as of the close of business on September 20, 2024.
On May 14, 2024, the Board of Directors declared a second quarter 2024 cash dividend of $0.51 per share of common stock, paid on July 5, 2024 to the stockholders of record as of the close of business on June 20, 2024.
On February 26, 2024, the Board of Directors declared a first quarter 2024 cash dividend of $0.51 per share of common stock, paid on April 5, 2024 to the stockholders of record as of the close of business on March 20, 2024.
On November 30, 2023, the Board of Directors declared a fourth quarter 2023 cash dividend of $0.51 per share of common stock, paid on January 5, 2024 to the stockholders of record as of the close of business on December 20, 2023.
Stock Repurchase Program
In February 2022, the Company’s Board of Directors approved a stock repurchase program, effective April 1, 2022, authorizing the Company to repurchase up to $250 million of the Company’s common stock (the “2022 Repurchase Program”) on an opportunistic basis from time to time in the open market or in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The 2022 Repurchase Program, as approved by the Board of Directors, does not require the repurchase of a specific number of shares and can be terminated at any time.
During the nine months ended September 30, 2024, the Company repurchased 269,621 shares of common stock at a cost of $12.0 million. Cumulatively, the Company repurchased 1,865,399 shares at a cost of $116.7 million. As of September 30, 2024, a remaining amount of $133.3 million in the value of shares may be repurchased under the 2022 Repurchase Program.
Treasury Stock
Repurchases of the Company's common stock are included in treasury stock at the cost of shares repurchased plus any transaction costs. Treasury stock may be re-issued when stock options are exercised, when restricted stock awards are granted and when restricted stock units settle in stock upon vesting. The cost of treasury stock re-issued is determined using the first-in, first-out (“FIFO”) method. During the nine months ended September 30, 2024, the Company re-issued 280,953 shares of treasury stock at a total FIFO cost of $13.6 million.
9. Income Taxes
The Company's effective tax rate was 26.9% for the nine months ended September 30, 2024, as compared to 25.0% for the nine months ended September 30, 2023. The effective tax rate for the nine months ended September 30, 2024 was higher than the rate of the prior comparable period primarily due to a lower tax deduction related to stock-based compensation.
The total gross unrecognized tax benefit as of September 30, 2024 and December 31, 2023 was $2.6 million and $3.5 million, respectively, excluding interest, penalties and related income tax benefits. The Company estimates the unrecognized tax benefit as of September 30, 2024 may decrease over the upcoming 12 months by $0.1 million related to settlements with taxing authorities and statute of limitations expirations. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonable estimate as to when cash settlement with a taxing authority will occur.    
As of September 30, 2024, the accrued interest was $0.8 million, excluding any related income tax benefits. As of December 31, 2023, the accrued interest was $0.9 million, excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income.
The Company files federal income tax returns and the Company or one of its subsidiaries file income tax returns in various state and international jurisdictions. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2020 and state or non-United States tax examinations by tax authorities for years before 2019. The Company believes that adequate reserves have been provided relating to all matters contained in the tax periods open to examination.
19
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)


10. Stock-Based Compensation
The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Equity classified awards expense$3.8 $2.9 $12.7 $8.2 
Liability classified awards (credit) expense0.1 0.2 0.2 (0.4)
Total stock-based compensation expense$4.0 $3.1 $12.9 $7.8 
As of September 30, 2024, total unrecognized compensation expense of $19.1 million related to restricted stock and restricted stock units and $3.4 million related to stock options is expected to be recognized over a weighted average period of 1.4 years for restricted stock and restricted stock units and 1.5 years for stock options.
Fair Value Assumptions
The following table summarizes the assumptions used in the Black-Scholes model for stock options granted during the nine months ended September 30, 2024:
Risk-free interest rate4.3 %
Historical volatility70.2 %
Dividend yield4.2 %
Expected years until exercise4.5
Fair value of options granted$22.26
Equity Classified Awards - Stock Options
Stock option balances at September 30, 2024, and activity for the nine months ended September 30, 2024 were as follows:
 Number of Shares Under OptionWeighted
Average
Exercise
Price Per Share		Weighted Average
Remaining
Contractual Term
(in Years)		Aggregate
Intrinsic
Value (in Millions)
Outstanding at December 31, 2023
462,506 $77.59   
Granted133,729 49.06   
Exercised— —   
Expired(46,486)87.12 
Forfeited(2,316)56.54   
Outstanding at September 30, 2024
547,433 69.90 6.3$— 
Vested and Expected to Vest at September 30, 2024
523,502 70.55 6.2$— 
Exercisable at September 30, 2024
349,411 $76.95 4.8$— 
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the third quarter of 2024 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2024. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options.
20
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
10. Stock-Based Compensation (Continued)
Equity Classified Awards - Restricted Stock and Restricted Stock Units
Outstanding balances as of September 30, 2024, and activity related to restricted stock and restricted stock units for the nine months ended September 30, 2024 were as follows:
 Shares of Restricted
Stock		Weighted
Average
Grant Date
Fair Value		Stock-Settled Restricted
Stock Units		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023338,622 $73.33 58,475 $54.07 
Granted280,953 48.91 31,402 49.06 
Released(147,378)74.84 (18,115)73.97 
Forfeited(45,300)60.13 (18)74.94 
Outstanding at September 30, 2024426,897 $58.14 71,744 $46.84 
Liability Classified Awards - Long-Term Incentive Awards
The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three-year period and are determined using multipliers from 0% to 200% of the target award based on the total stockholder return of Dine Brands Global common stock compared to the total stockholder returns of a peer group of companies. The awards are considered stock-based compensation and are classified as liabilities measured at fair value as of the respective period end. For the three months ended September 30, 2024 and 2023, an expense of $0.1 million and $0.2 million, respectively, were included in total stock-based compensation expense related to LTIP awards. For the nine months ended September 30, 2024 and 2023, an expense of $0.2 million and a credit of $0.4 million, respectively, were included in total stock-based compensation expense related to LTIP awards. At September 30, 2024 and December 31, 2023, liabilities of $0.9 million and $0.7 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits and other non-current liabilities in the Consolidated Balance Sheets.
11. Net Income per Share
The computation of the Company's basic and diluted net income per share is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In thousands, except per share data)
Numerator for basic and diluted income per common share:  
Net income$19,061 $18,479 $59,716 $64,137 
Less: Net income allocated to unvested participating restricted stock(553)(431)(1,760)(1,551)
Net income available to common stockholders - basic18,508 18,048 57,956 62,586 
Effect of unvested participating restricted stock in two-class calculation— 1 1 — 
Net income available to common stockholders - diluted$18,508 $18,049 $57,957 $62,586 
Denominator:  
Weighted average outstanding shares of common stock - basic14,897 15,217 14,940 15,275 
Dilutive effect of stock options— 3 — 14 
Weighted average outstanding shares of common stock - diluted14,897 15,220 14,940 15,289 
Net income per common share:  
Basic$1.24 $1.19 $3.88 $4.10 
Diluted$1.24 $1.19 $3.88 $4.09 
21
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)


12. Segments
The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company currently has six operating segments: Applebee's franchise operations, IHOP franchise operations, Fuzzy's franchise operations, rental operations, financing operations, and company-operated restaurant operations. The Company has four reporting segments: franchise operations (an aggregation of each restaurant concept's franchise operations), company-operated restaurant operations, rental operations and financing operations.
 As of September 30, 2024, the franchise operations segment consisted of 1,618 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 14 countries outside the United States; 1,809 restaurants operated by IHOP franchisees and area licensees in the United States, two U.S. territories and 14 countries outside the United States; and 118 restaurants operated by Fuzzy's franchisees in the United States. Franchise operations revenue consists primarily of franchise royalty revenues, franchise advertising revenue, sales of proprietary products to franchisees, and other franchise fees. Franchise operations expenses include advertising expense, the cost of proprietary products, pre-opening training expenses and other franchise-related costs.
Rental operations revenue includes revenue from operating leases and interest income from real estate leases. Rental operations expenses are costs of operating leases and interest expense from finance leases on which the Company is the lessee. 
Financing operations revenue primarily consists of interest income from the financing of IHOP equipment leases and franchise fees and interest income on notes receivable due from franchisees. Financing operations expenses primarily are the cost of taxes related to IHOP equipment leases.
In December 2022, three company-operated Fuzzy's restaurants were acquired, of which two were subsequently refranchised in the second quarter of 2023. As of September 30, 2024, the company restaurants segment consisted of one company-operated Fuzzy's restaurant located in the United States. Company-operated restaurant operation revenue consists of retail sales at company-operated restaurants. Company-operated restaurant operation expenses are operating expenses such as food, beverage, labor, benefits, utilities, rent and other operating costs.
Information on segments is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In millions)
Revenues from external customers:  
Franchise operations$166.4 $172.5 $518.7 $530.4 
Rental operations28.0 29.1 86.5 90.5 
Company restaurants0.3 0.3 0.8 1.8 
Financing operations0.4 0.6 1.4 2.0 
Total revenues from external customers$195.0 $202.6 $607.5 $624.8 
Interest expense:  
Rental operations$1.0 $0.9 $3.1 $2.9 
Company restaurants— — — — 
Corporate18.4 19.1 54.3 51.5 
Total interest expense$19.4 $20.0 $57.4 $54.4 
Depreciation and amortization:  
Franchise operations$2.4 $2.4 $7.1 $7.3 
Rental operations2.5 2.6 7.7 7.8 
Company restaurants0.0 0.0 0.1 0.0 
Corporate4.7 3.6 14.2 11.1 
Total depreciation and amortization$9.6 $8.6 $29.0 $26.2 
22
Dine Brand Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
12. Segments (Continued)
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In millions)
Gross profit by segment:  
Franchise operations$86.6 $89.4 $267.6 $271.6 
Rental operations6.4 7.4 21.3 24.9 
Company restaurants0.0 0.0 (0.1)0.0 
Financing operations0.3 0.5 1.2 1.7 
Total gross profit93.3 97.3 290.0 298.3 
Corporate and unallocated expenses, net(66.9)(72.4)(208.3)(212.7)
Income before income taxes$26.5 $24.9 $81.7 $85.6 
    
13. Closure and Impairment Charges
Closure and impairment charges for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Closure charges$0.4 $0.3 $1.4 $1.1 
Long-lived tangible asset impairment— 1.5 — 2.0 
Total closure and impairment charges$0.4 $1.8 $1.4 $3.1 
The closure charges for the three and nine months ended September 30, 2024 were related to the establishment of or revisions to existing closure reserves, including accretion, primarily for 21 IHOP restaurants closed prior to December 31, 2023.
The closure charges for the three and nine months ended September 30, 2023 were related to revisions to existing closure reserves, including accretion, for approximately 30 IHOP restaurants.
The long-lived asset impairment for the three months ended September 30, 2023 related to the impairment of four IHOP master land and building leases. The long-lived asset impairment for the nine months ended September 30, 2023 primarily related to technology that was developed in connection with the IHOP Flip'd initiative that was stopped, and the impairment of four IHOP master land and building leases in the third quarter of 2023.
14. Fair Value Measurements
The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured on a recurring basis at fair value. The Company is not a party to any material derivative financial instruments. The Company does not have a material amount of non-financial assets or non-financial liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. The Company has not elected to use the fair value measurement option, as permitted under U.S. GAAP, for any assets or liabilities for which fair value measurement is not presently required.
The Company believes the fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts due to their short duration.
23
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
14. Fair Value Measurements (Continued)

The fair values of the Company's long-term debt, excluding the Credit Facility, at September 30, 2024 and December 31, 2023 were as follows:
 September 30, 2024December 31, 2023
 (In millions)
Face Value$1,094.0 $1,094.0 
Fair Value$1,108.8 $1,085.8 
The fair values were determined based on Level 2 inputs, including information gathered from brokers who trade in the Company’s long-term debt, as well as information on notes that are similar to those of the Company.
15. Commitments and Contingencies
Litigation, Claims and Disputes
The Company is subject to various lawsuits, administrative proceedings, audits and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages. The Company is required under U.S. GAAP to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of the Company's litigation are expensed as such fees and expenses are incurred. Management regularly assesses the Company's insurance coverage, analyzes litigation information with the Company's attorneys and evaluates the Company's loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which it is currently a party will ultimately have a material adverse impact on the Company, there can be no assurance that the Company will prevail in all the proceedings the Company is party to, or that the Company will not incur material losses from them.
Lease Guarantees
In connection with the refranchising of Applebee’s restaurants to franchisees, the Company has, in certain cases, guaranteed or has potential continuing liability for lease payments totaling $367.6 million as of September 30, 2024. This amount represents the maximum potential liability for future payments under these leases. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from 2024 through 2058. Excluding unexercised option periods, the Company's potential liability for future payments under these leases is $91.6 million. In the event of default, the indemnity and default clauses in the sale or assignment agreements govern the Company's ability to pursue and recover damages incurred.
16. Cash, Cash Equivalents and Restricted Cash
Cash and Cash Equivalents
The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. These cash equivalents are stated at cost which approximates market value. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds.
The components of cash and cash equivalents were as follows:

September 30, 2024December 31, 2023
 (In millions)
Money market funds$19.0 $42.0 
IHOP advertising funds and gift card programs64.0 82.8 
Other depository accounts86.6 21.2 
Total cash and cash equivalents$169.6 $146.0 
Current Restricted Cash
Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities.
24
Dine Brands Global, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
16. Cash, Cash Equivalents and Restricted Cash (Continued)
The components of current restricted cash were as follows:

September 30, 2024December 31, 2023
 (In millions)
Securitized debt reserves$40.9 $31.2 
Applebee's advertising funds4.2 2.0 
Other 0.9 1.9 
Total current restricted cash$46.0 $35.1 
Non-current Restricted Cash
Non-current restricted cash was $19.5 million at September 30, 2024 and December 31, 2023 and represents interest reserves required to be set aside for the duration of the Company's securitized debt.

25
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.
You should read the following Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) in conjunction with the consolidated financial statements and the related notes that appear elsewhere in this report and the MD&A contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Statements contained in this report may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please refer to the section of this report under the heading “Cautionary Statement Regarding Forward-Looking Statements” for more information. Except where the context indicates otherwise, the words “we,” “us,” “our,” “Dine Brands Global” and the “Company” refer to Dine Brands Global, Inc., together with its subsidiaries that are consolidated in accordance with United States generally accepted accounting principles (“U.S. GAAP”).
Overview
Through various subsidiaries, we own and franchise the Applebee's Neighborhood Grill & Bar® (“Applebee's”) concept in the American full-service segment within the casual dining category of the restaurant industry, the International House of Pancakes® (“IHOP”) concept in the mid-scale full-service restaurant segment within the family dining category of the restaurant industry, and the Fuzzy's Taco Shop® (“Fuzzy's”) concept in the Mexican limited-service restaurant segment within the fast-casual dining category of the restaurant industry. References herein to Applebee's®, IHOP® and Fuzzy's Taco Shop® restaurants are to these three restaurant concepts, whether operated by franchisees, area licensees and their sub-licensees (collectively, “area licensees”) or by us. With over 3,500 restaurants, we believe we are one of the largest full-service restaurant companies in the world.
We identify our business segments based on the organizational units used by management to monitor performance and make operating decisions. We currently have six operating segments: Applebee's franchise operations, IHOP franchise operations, Fuzzy's franchise operations, rental operations, financing operations, and company-operated restaurant operations. We have four reportable segments: franchise operations (an aggregation of each restaurant concept's franchise operations), rental operations, financing operations, and company-operated restaurant operations.
Key Financial Results
The financial tables appearing in this MD&A present amounts in millions of dollars that are rounded from our consolidated financial statements presented in thousands of dollars. As a result, the tables may not foot or crossfoot due to rounding.
Three Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
 2024202320242023
 (In millions, except per share data)
Income before income taxes$26.5 $24.9 $1.5 $81.7 $85.6 $(3.8)
Income tax provision(7.4)(6.5)(0.9)(22.0)(21.4)(0.6)
Net income$19.1 $18.5 $0.6 $59.7 $64.1 $(4.4)
Effective tax rate28.0 %25.9 %(2.0)%26.9 %25.0 %(1.9)%
Net income per diluted share$1.24 $1.19 $0.05 $3.88 $4.09 $(0.21)
% decrease% decrease
Weighted average diluted shares14.9 15.2 (2.0)%14.9 15.3 (2.6)%
The effective tax rate for the three and nine months ended September 30, 2024 was higher than the rate of the comparable prior periods primarily due to a lower tax deduction related to stock-based compensation.
26
The following table highlights the primary components of the increase (decrease) in our income before income taxes for the three and nine months ended September 30, 2024, compared to our income before income taxes for the comparable prior periods (in millions):
Favorable
(Unfavorable) Variance
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
Increase (decrease) in gross profit:
Applebee's franchise operations
$(1.4)$(2.2)
IHOP franchise operations
(1.3)1.5 
Fuzzy's franchise operations(0.1)(3.3)
Company restaurant operations
0.0 (0.1)
Rental and financing operations
(1.2)(4.1)
Total decrease in gross profit(4.0)(8.2)
Decrease in general and administrative ("G&A") expenses3.2 3.1 
Decrease (increase) in interest expense, net0.7 (2.7)
Change in loss (gain) on disposition of assets0.2 2.4 
Decrease in closure and impairment charges1.4 1.6 
Increase (decrease) in income before income taxes$1.5 $(3.8)
Total gross profit for the three months ended September 30, 2024 decreased compared with the same period of the prior year due to decreased revenue from franchise and rental operations. Income before income taxes for the three months ended September 30, 2024 increased compared to the prior year period primarily due to decreased G&A expenses, decreased impairment charges and decreased interest expense. The decrease in G&A expenses is primarily attributable to a decrease in compensation-related expenses (predominantly incentive compensation), partially offset by an increase in depreciation expense. The decrease in impairment charges is primarily related to the impairment of four IHOP master land and building leases in the same period of the prior year.
Total gross profit for the nine months ended September 30, 2024 decreased compared with the same period of the prior year due to decreased revenue from franchise and rental operations and increased franchisor advertising contribution. In addition, income before income taxes for the nine months ended September 30, 2024 decreased compared to the prior year period due to increased interest expense, offset by a decrease in G&A expenses, a loss on disposition of assets in the same period in the prior year. The increase in interest expense primarily related to higher-rate securitized notes and borrowings from our revolving line of credit. The decrease in G&A expenses is primarily attributable to expenses related to the stopping of the IHOP Flip'd initiative in the same period of the prior year, a decrease in professional services, a decrease in occupancy costs, and a decrease in compensation-related expenses, offset by an increase in depreciation expense (see G&A Expenses section below for further detail). The decrease in impairment charges is primarily related to the technology that was developed in connection with the IHOP Flip'd initiative that was stopped and the impairment of four IHOP master land and building leases in the same period of the prior year.
Increases in commodity, labor and other restaurant operating costs experienced at restaurants owned and operated by our franchisees could impact us to the extent our franchisees are adversely impacted by a sustained decline in their operating margins. At company operated restaurants, when applicable, increases in commodity, labor and other restaurant operating costs impact us directly.
See “Consolidated Results of Operations - Comparison of the Three and Nine Months Ended September 30, 2024 and 2023” for additional discussion of the changes shown above.
Key Performance Indicators
In evaluating the performance of each restaurant concept, we consider the key performance indicators to be the system-wide sales percentage change, the percentage change in domestic system-wide same-restaurant sales (“domestic same-restaurant sales”), net franchise restaurant development and the change in effective restaurants. Changes in both domestic same-restaurant sales and in the number of Applebee's, IHOP and Fuzzy's restaurants will impact our system-wide retail sales that drive franchise royalty revenues. Restaurant development also impacts franchise revenues in the form of initial franchise fees and, in the case of IHOP and Fuzzy's restaurants, sales of proprietary products.
27
Our key performance indicators for the three and nine months ended September 30, 2024 were as follows:
Three Months EndedNine Months Ended
September 30, 2024September 30, 2024
Applebee'sIHOPFuzzy'sApplebee'sIHOPFuzzy's
Sales percentage decrease in reported retail sales - 2024 vs. 2023
(7.1)%(1.6)%(15.8)%(5.3)%(0.5)%(13.7)%
% Decrease in domestic system-wide same-restaurant sales
(5.9)%(2.1)%(9.6)%(4.1)%(1.7)%(8.9)%
Net franchise restaurant reduction (1)
(7)(2)(6)(24)(5)(13)
Net (decrease) increase in total effective restaurants (2)
(34)13 (16)(36)18 (12)
_________________________________________
(1) Franchise and area license restaurant closings, net of openings, during the three and nine months ended September 30, 2024.
(2) Change in the weighted average number of franchise, area license and company-operated restaurants open during the three and nine months ended September 30, 2024, compared to the weighted average number of those open during the same periods of 2023.
The change in total effective restaurants for each brand reflects both permanent closures, net of openings, over the past 12 months as well as the weighted effect of restaurants temporarily closed during each period.
5183
Applebee’s system-wide domestic same-restaurant sales decreased 5.9% for the three months ended September 30, 2024 and decreased 4.1% for the nine months ended September 30, 2024 as compared to the same periods of 2023. The decrease in same-restaurant sales was primarily due to a decrease in traffic, partially offset by an increase in average check.
Based on data from Black Box Intelligence, a restaurant sales reporting firm (“Black Box”), Applebee's same-restaurant sales for the three and nine months ended September 30, 2024 underperformed the casual dining segment of the restaurant industry (excluding Applebee's) during the same period.
Applebee's Off-Premise Sales DataThree Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Off-premise sales (in millions) (1)
$208.9 $221.4 $672.2 $729.3 
% sales mix21.7 %21.5 %21.8 %22.4 %
(1) Primarily to-go, delivery and catering sales for comparable 2024 and 2023 restaurants.

28
5783
IHOP's system-wide domestic same-restaurant sales decreased 2.1% for the three months ended September 30, 2024 and 1.7% for the nine months ended September 30, 2024 as compared to the same periods of 2023. The decrease in same-restaurant sales was primarily due to a decrease in traffic, partially offset by an increase in average check.
Based on data from Black Box, IHOP's decrease in same-restaurant sales for the three and nine months ended September 30, 2024 underperformed the family dining segment of the restaurant industry (excluding IHOP) during the same period.
IHOP Off-Premise Sales Data
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Off-premise sales (in millions) (1)
$140.7 $143.2 $446.2 $460.6 
% sales mix19.3 %19.5 %20.1 %20.6 %
(1) Primarily to-go, delivery and catering sales for comparable 2024 and 2023 restaurants.

Quarterly Domestic Same-Restaurant Sales - Fuzzy's
Fuzzy's system-wide domestic same-restaurant sales decreased 9.6% for the three months ended September 30, 2024 and 8.9% for the nine months ended September 30, 2024 as compared to the same periods of 2023. The decrease in same-restaurant sales was primarily due to a decrease in traffic, partially offset by an increase in average check.
Fuzzy's Off-Premise Sales Data
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Off-premise sales (in millions) (1)
$17.2 $19.0 $55.3 $59.7 
% sales mix38.7 %38.6 %39.6 %38.9 %
(1) Primarily to-go, delivery and catering sales for comparable 2024 and 2023 restaurants.

Restaurant Data
The following table sets forth the number of “Effective Restaurants” in the Applebee’s, IHOP and Fuzzy's systems and information regarding the percentage change in sales at those restaurants compared to the same period of the prior year. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company and, as such, the percentage change in sales at Effective Restaurants is based on non-GAAP sales data. However, we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are based on a percentage of their sales, and, where applicable, rental payments under leases that partially may be based on a percentage of their sales. Management also uses this information to make decisions about plans for future development of additional restaurants as well as evaluation of current operations.
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Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Applebee's Restaurant Data
Global Effective Restaurants(a)
    
Franchise1,620 1,654 1,627 1,663 
Company— — — — 
Total1,620 1,654 1,627 1,663 
System-wide(b)
    
Domestic sales percentage change(c)
(7.1)%(3.2)%(5.3)%0.3 %
Domestic same-restaurant sales percentage change(d)
(5.9)%(2.4)%(4.1)%0.9 %
Franchise(b)
    
Domestic sales percentage change(c)
(7.1)%0.4 %(5.3)%4.0 %
Domestic same-restaurant sales percentage change(d)
(5.9)%(2.4)%(4.1)%0.9 %
Average weekly domestic unit sales (in thousands)$49.5 $52.1 $52.7 $54.4 
IHOP Restaurant Data    
Global Effective Restaurants(a)
    
Franchise1,645 1,631 1,645 1,626 
Area license155 156 155 156 
Total1,800 1,787 1,800 1,782 
System-wide(b)
    
Sales percentage change(c)
(1.6)%4.2 %(0.5)%6.6 %
Domestic same-restaurant sales percentage change, including area license restaurants(d)
(2.1)%2.0 %(1.7)%4.2 %
Franchise(b)
    
Sales percentage change(c)
(1.3)%4.5 %(0.4)%6.9 %
Domestic same-restaurant sales percentage change(d)
(1.9)%2.0 %(1.7)%4.2 %
Average weekly unit sales (in thousands)$37.0 $37.8 $37.7 $38.3 
Area License(b)
    
Sales percentage change(c)
(3.8)%1.1 %(1.6)%4.0 %
Fuzzy's Restaurant Data
Global Effective Restaurants(a)
Franchise120 136 124 135 
Company1 1 1 2 
Total121 137 125 137 
System-wide(b)
Domestic sales percentage change(c)
(15.8)%(5.2)%(13.7)%(1.1)%
Domestic same-restaurant sales percentage change(d)
(9.6)%(6.1)%(8.9)%(3.6)%
Franchise(b)
Domestic sales percentage change(c)
(15.8)%(3.8)%(13.3)%(0.3)%
Domestic same-restaurant sales percentage change(d)
(9.6)%(6.1)%(8.9)%(3.7)%
Average weekly domestic unit sales (in thousands)$29.4 $30.7 $30.0 $31.6 
(a)   “Effective Restaurants” are the weighted average number of restaurants open in each fiscal period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all Effective Restaurants in the Applebee’s, IHOP and Fuzzy's systems, which consist of restaurants owned by franchisees and area licensees as well as those owned by the Company. Effective Restaurants do not include units operated as ghost kitchens (small kitchens with no store-front presence, used to fill off-premise orders).
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(b)   “System-wide sales” are retail sales at Applebee’s and Fuzzy's restaurants operated by franchisees and IHOP restaurants operated by franchisees and area licensees, as reported to the Company, in addition to retail sales at company-operated Fuzzy's restaurants. System-wide sales do not include retail sales of ghost kitchens. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. An increase in franchisees' reported sales will result in a corresponding increase in our royalty revenue, while a decrease in franchisees' reported sales will result in a corresponding decrease in our royalty revenue. Unaudited reported sales for Applebee's and Fuzzy's franchise restaurants, Fuzzy's company-operated restaurants, IHOP franchise restaurants and IHOP area license restaurants were as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Reported sales (in millions)
Applebee's franchise restaurant sales
$1,007.7 $1,085.3 $3,230.5 $3,411.5 
IHOP franchise restaurant sales790.3 801.0 2,416.2 2,425.9 
IHOP area license restaurant sales71.4 74.3 224.4 228.1 
Fuzzy's franchise restaurant sales45.8 54.4 144.9 167.1 
Fuzzy's company-operated restaurants0.3 0.3 0.9 1.9 
Total$1,915.5 $2,015.3 $6,016.9 $6,234.5 
(c)   “Sales percentage change” reflects, for each category of restaurants, the percentage change in sales in any given fiscal period compared to the prior period for all restaurants in that category.
(d)   “Domestic same-restaurant sales percentage change” reflects the percentage change in sales in any given fiscal period, compared to the same weeks in the prior period, for domestic restaurants that have been operated during both periods that are being compared and have been open for at least 18 months. Because of new restaurant openings and restaurant closures, the domestic restaurants open throughout both fiscal periods being compared may be different from period to period.

 Restaurant Development ActivityThree Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Applebee's
Summary - beginning of period:
Franchise1,625 1,661 1,642 1,678 
Company— — — — 
Beginning of period1,625 1,661 1,642 1,678 
Franchise restaurants opened:  
Domestic— 2 — 3 
International4 2 9 5 
Total franchise restaurants opened4 4 9 8 
Franchise restaurants permanently closed:  
Domestic(9)(12)(25)(28)
International(2)(1)(8)(6)
Total franchise restaurants permanently closed(11)(13)(33)(34)
Net franchise restaurant reduction(7)(9)(24)(26)
Summary - end of period:
Franchise1,618 1,652 1,618 1,652 
Company— — — — 
Total Applebee's restaurants, end of period1,618 1,652 1,618 1,652 
Domestic1,511 1,544 1,511 1,544 
International107 108 107 108 
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 Restaurant Development ActivityThree Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
IHOP  
Summary - beginning of period:
Franchise1,656 1,634 1,657 1,625 
Area license155 156 157 156 
Total IHOP restaurants, beginning of period1,811 1,790 1,814 1,781 
Franchise/area license restaurants opened:
Domestic franchise4 5 14 27 
Domestic area license— — 1 2 
International franchise2 5 11 11 
Total franchise/area license restaurants opened6 10 26 40 
Franchise/area license restaurants permanently closed:  
Domestic franchise(7)(5)(24)(23)
Domestic area license— — (3)(2)
International franchise(1)(1)(4)(2)
Total franchise/area license restaurants permanently closed(8)(6)(31)(27)
Net increase (decrease) in franchise/area license restaurants
(2)4 (5)13 
Summary - end of period:
Franchise1,654 1,638 1,654 1,638 
Area license155 156 155 156 
Total IHOP restaurants, end of period1,809 1,794 1,809 1,794 
Domestic1,684 1,681 1,684 1,681 
International125 113 125 113 
Fuzzy's
Summary - beginning of period:
Franchise124 137 131 134 
Company1 1 1 3 
Beginning of period125 138 132 137 
Franchise restaurants opened:  
Domestic1 1 1 3 
Franchise restaurants permanently closed:  
Domestic(7)(1)(14)(2)
Net franchise restaurant addition (reduction)(6)— (13)1 
Refranchised from Company restaurants— — — 2
Net franchise restaurant addition (reduction)(6)— (13)3 
Summary - end of period:
Franchise118 137 118 137 
Company1 1 1 1 
Total Fuzzy's restaurants, end of period119 138 119 138 
Domestic119 138 119 138 
International— — — — 
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The restaurant counts and activity presented above include 13 dual-branded international Applebee's and IHOP restaurants at September 30, 2024, and six dual-branded international Applebee's and IHOP restaurants at September 30, 2023, which are tabulated in both brands’ activities. Dual-branded restaurants are defined as restaurants that run two of our concepts and share an entrance, front of the house staff and a kitchen. The restaurant counts and activity presented above do not include one domestic Applebee's ghost kitchen (small kitchens with no store-front presence, used to fill off-premise orders), seven international Applebee's ghost kitchens and 34 international IHOP ghost kitchens.
The closures presented in the tables above represent permanent closures of restaurants. Temporary closures, which can occur for a variety of reasons, are not reflected as reductions in this table and are included in the summary counts at the beginning and end of each period shown. Temporary closures are reflected in the weighted calculation of Effective Restaurants presented in the preceding Restaurant Data table.
Closures of restaurants adversely impact our system-wide retail sales that drive our franchise royalty revenues as well as, in the case of IHOP and Fuzzy's restaurants, sales of proprietary products. Further, with certain restaurants, we own or lease the underlying property and sublease it to the applicable franchisee. Thus, our rental income also could be adversely affected due to the loss of such income, as well as our obligation to make rental or other payments for such properties.
CONSOLIDATED RESULTS OF OPERATIONS
Comparison of the Three and Nine Months Ended September 30, 2024 and 2023
Financial Results
RevenueThree Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
 2024202320242023
 (In millions)
Franchise operations$166.4 $172.5 $(6.1)$518.7 $530.4 $(11.7)
Rental operations28.0 29.1 (1.1)86.5 90.5 (4.0)
Company restaurant operations0.3 0.3 0.0 0.8 1.8 (1.0)
Financing operations0.4 0.6 (0.2)1.4 2.0 (0.6)
Total revenue$195.1 $202.5 $(7.4)$607.4 $624.7 $(17.3)
Change vs. prior period(3.7)%(2.8)%
Total revenue for the three and nine months ended September 30, 2024 decreased compared with the same periods of the prior year, primarily due to the decrease in franchise and rental operations revenue. The decrease in franchise operations revenue was primarily attributable to the decrease in domestic same-restaurant sales and the decrease in the number of Applebee's and Fuzzy's effective restaurants, partially offset by increases in the number of effective restaurants and proprietary product sales at IHOP. Rental operations revenue for the three months ended September 30, 2024 decreased compared with the same period of the prior year, primarily due to operating lease terminations and a decrease in percentage rent. Rental operations revenue for the nine months ended September 30, 2024 decreased compared with the same period of the prior year, primarily due to prior year lease buyouts and operating lease terminations. 
Gross Profit Three Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
 2024202320242023
 (In millions)
Franchise operations$86.6 $89.4 $(2.8)$267.6 $271.6 $(4.0)
Rental operations6.4 7.4 (1.0)21.3 24.9 (3.6)
Company restaurant operations0.0 0.0 0.0 (0.1)0.0 (0.1)
Financing operations0.3 0.5 (0.2)1.2 1.7 (0.5)
Total gross profit$93.3 $97.3 $(4.0)$290.0 $298.3 $(8.2)
Change vs. prior period(4.1)%(2.8)%
Total gross profit for the three and nine months ended September 30, 2024 decreased compared with the same periods of the prior year, primarily due to the decrease in franchise and rental operations revenue. The franchise operations gross profit decreased for the three months ended September 30, 2024 primarily due Applebee's and IHOP decreased franchise gross profit. The franchise operations gross profit decreased for the nine months ended September 30, 2024 primarily due to Fuzzy's and
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Applebee's decreased franchise gross profit. The decrease in rental operations gross profit for the three and nine months ended September 30, 2024 was primarily due to decreased rental revenue as described above.
Franchise OperationsThree Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
2024202320242023
 (In millions, except number of restaurants)
Effective Franchise Restaurants:(1)
Applebee’s1,620 1,654 (34)1,627 1,663 (36)
IHOP1,800 1,787 13 1,800 1,782 18 
Fuzzy's120 136 (16)124 135 (11)
Franchise Revenues:   
Applebee’s franchise fees$40.1 $41.7 $(1.6)$126.5 $131.7 $(5.2)
IHOP franchise fees53.4 54.1 (0.7)163.1 161.8 1.3 
Fuzzy's franchise fees3.1 3.3 (0.2)9.6 10.5 (0.9)
Advertising fees69.8 73.4 (3.6)219.6 226.4 (6.8)
Total franchise revenues166.4 172.5 (6.1)518.7 530.4 (11.7)
Franchise Expenses:   
Applebee’s0.7 1.0 0.3 0.7 3.7 3.0 
IHOP8.9 8.3 (0.6)27.6 27.8 0.2 
Fuzzy's0.3 0.5 0.2 3.3 0.9 (2.4)
Advertising expenses69.8 73.4 3.6 219.6 226.4 6.8 
Total franchise expenses79.7 83.1 3.4 251.2 258.8 7.6 
Franchise Gross Profit:   
Applebee’s39.4 40.7 (1.4)125.8 128.0 (2.2)
IHOP44.5 45.8 (1.3)135.5 134.0 1.5 
Fuzzy's2.7 2.8 (0.1)6.3 9.6 (3.3)
Total franchise gross profit$86.6 $89.4 $(2.8)$267.6 $271.6 $(4.0)
Gross profit as % of franchise revenue (2)
52.1 %51.8 %51.6 %51.2 %
Gross profit as % of franchise fees (2)(3)
89.7 %90.2 %89.4 %89.3 %
 _____________________________________________________
(1) Effective Franchise Restaurants are the weighted average number of franchise and area license restaurants open in each fiscal period, adjusted to account for restaurants open for only a portion of the period.
(2) Percentages calculated on actual amounts, not rounded amounts presented above.
(3) From time to time, advertising fee revenue may be different from advertising expenses in a given accounting period. Over the long term, advertising activity should not generate gross profit or loss.
Applebee's franchise fee revenue for the three months ended September 30, 2024 decreased 4.0% as compared with the same period of the prior year, primarily attributable to the unfavorable impact on royalties of a 5.9% decrease in domestic same-restaurant sales and a decrease in the number of effective franchise restaurants, offset by improved collections from international franchisees. Applebee's franchise fee revenue for the nine months ended September 30, 2024 decreased 4.0% as compared with the same period of the prior year, primarily attributable to the unfavorable impact on royalties of a 4.1% decrease in domestic same-restaurant sales and the decrease in the number of effective franchise restaurants, offset by an increase in accelerated franchise fee recognition due to restaurant closures.
Applebee's franchise expenses for the three months ended September 30, 2024 decreased $0.3 million compared with the same period of the prior year primarily due to a recovery of previously written off receivables from international franchisees. Applebee's franchise expenses for the nine months ended September 30, 2024 decreased $3.0 million compared with the same period of the prior year primarily due to a decrease in bad debt expense.
IHOP's franchise fee revenue for the three months ended September 30, 2024 decreased 1.3% as compared with the same period of the prior year, primarily due to a decrease in domestic same-restaurant sales of 2.1% and a decrease in licensing revenue, partially offset by an increase in the number of effective franchise restaurants and proprietary product sales. IHOP's franchise fee revenue for the nine months ended September 30, 2024 increased 0.8%, as compared with the same period of the
34
prior year, primarily due to an increase in proprietary product sales and the number of effective franchise restaurants, partially offset by a 1.7% decrease in domestic same-restaurant sales and a decrease in virtual brand revenue.
IHOP's franchise expenses for the three months ended September 30, 2024 increased $0.6 million as compared with the same period of the prior year, primarily due to an increase in bad debt expense and an increase in the cost of proprietary product sales. IHOP's franchise expenses for the nine months ended September 30, 2024 decreased $0.2 million as compared with the same period of the prior year, primarily due to a decrease in bad debt expense and a decrease in franchisee IT support costs, partially offset by an increase in franchisor advertising contribution.
Fuzzy's franchise fee revenue for the three months ended September 30, 2024 decreased 6.8% as compared with the same period of the prior year, primarily attributable to the unfavorable impact on royalties of a 9.6% decrease in same-restaurant sales, the decrease in the number of effective franchise restaurants and a decrease in proprietary product sales, partially offset by an increase in termination fees. Fuzzy's franchise fee revenue for the nine months ended September 30, 2024 decreased $0.9 million as compared with the same period of the prior year, primarily attributable to a 8.9% decrease in same-restaurant sales and a decrease in the number of effective franchise restaurants, partially offset by an increase in termination fees.
Fuzzy's franchise expenses for the three months ended September 30, 2024 decreased $0.2 million as compared with the same period of the prior year primarily due to a decrease in the cost of proprietary product sales. Fuzzy's franchise expenses for the nine months ended September 30, 2024 increased $2.4 million as compared with the same period of the prior year primarily due to an increase in franchisor advertising contribution and an increase in bad debt expense.
Advertising Revenues and Expenses
Three Months Ended September 30,Increase (Decrease)Nine Months Ended September 30,Increase (Decrease)
2024202320242023
(In millions)
Applebee’s$40.8 $43.7 $(2.9)$130.3 $136.4 $(6.1)
IHOP 28.1 28.7 (0.6)86.4 87.0 (0.6)
Fuzzy's0.9 1.0 (0.1)2.9 2.9 0.0 
Total advertising revenues and expenses$69.8 $73.4 $(3.6)$219.6 $226.3 $(6.7)
Applebee's advertising revenues and expenses for the three months ended September 30, 2024 decreased 6.7% compared to the same period of the prior year primarily due to a 5.9% decrease in domestic franchise same-restaurant sales and a decrease in the number of effective franchise restaurants. IHOP advertising revenues and expenses for the three months ended September 30, 2024 decreased 2.2% compared to the same period of the prior year, primarily due to a 2.1% decrease in same-restaurant sales, partially offset by an increase in the number of effective franchise restaurants.
Applebee's advertising revenues and expenses for the nine months ended September 30, 2024 decreased 4.5% compared to the same period of the prior year primarily due to a 4.1% decrease in domestic franchise same-restaurant sales and decrease in the number of effective franchise restaurants. IHOP's advertising revenues and expenses for the nine months ended September 30, 2024 decreased 0.7% as compared with the same period of the prior year, primarily due to a 1.7% decrease in same-restaurant sales partially offset by an increase in the number of effective franchise restaurants.
It is our accounting policy to recognize any deficiency in advertising fee revenue compared to advertising expenditure or any recovery of a previously recognized deficiency in advertising fee revenue compared to advertising expenditure in the fourth quarter of our fiscal year.
Rental OperationsThree Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
 2024202320242023
 (In millions)
Rental revenues$28.0 $29.1 $(1.1)$86.5 $90.5 $(4.0)
Rental expenses21.6 21.7 0.1 65.2 65.6 0.4 
Rental operations gross profit$6.4 $7.4 $(1.0)$21.3 $24.9 $(3.6)
Gross profit as % of rental revenue (1)
22.8 %25.4 %24.6 %27.5 %
___________________________________________________
(1) Percentages calculated on actual amounts, not rounded amounts presented above.
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Rental operations relate primarily to IHOP franchise restaurants. Rental income includes sublease revenue from operating leases and interest income from finance leases. Rental expenses are costs of prime operating leases and interest expense on prime finance leases.
Rental operations gross profit for the three months ended September 30, 2024 decreased compared with the same period of the prior year, primarily due to operating lease terminations and a decrease in percentage rent.
Rental operations gross profit for the nine months ended September 30, 2024 decreased as compared to the same period of the prior year, primarily due to prior year lease buyouts and operating lease terminations.
Company Restaurant and Financing OperationsThree Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
2024202320242023
(in millions)
Company Restaurant Operations
Company restaurant sales$0.3 $0.3 $0.0 $0.8 $1.8 $(1.0)
Company restaurant expenses0.3 0.3 0.0 0.9 1.8 0.9 
Total company restaurants operations
$0.0 $0.0 $0.0 $(0.1)$0.0 $(0.1)
Financing Operations
Financing revenues$0.4 $0.6 $(0.2)$1.4 $2.0 $(0.6)
Financing expenses0.1 0.1 0.0 0.2 0.3 0.1 
Total financing operations
$0.3 $0.5 $(0.2)$1.2 $1.7 $(0.5)
For the three and nine months ended September 30, 2023, company restaurant operations consisted of three Fuzzy's restaurants that were acquired in December 2022, of which two were subsequently refranchised in the second quarter of 2023. Company segment restaurant expenses may include costs associated with reacquired restaurants in the process of being refranchised. There were no reacquired restaurants expenses during the nine months ended September 30, 2024 and 2023.
Financing revenues primarily consist of interest income from the financing of IHOP equipment leases and franchise fees as well as interest income on notes receivable due from franchisees. Financing expenses are sales and use taxes related to IHOP equipment leases. Financing revenue and gross profit for the three and nine months ended September 30, 2024 declined compared to the same periods of the prior year, primarily due to progressive decline in interest income as note balances are repaid.
G&A ExpensesThree Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
2024202320242023
 (In millions)
Total G&A expenses$45.4 $48.6 $3.2 $144.4 $147.5 $3.1 
G&A expenses for the three months ended September 30, 2024 decreased 6.6% compared to the same period of the prior year, primarily due to a decrease in compensation-related expenses (predominantly incentive compensation), partially offset by an increase in depreciation expense.
G&A expenses for the nine months ended September 30, 2024 decreased 2.1% compared to the same period of the prior year, primarily due to a decrease in incentive compensations, expenses related to the stopping of the IHOP Flip'd initiative in the same period of the prior year, a decrease in professional services and a decrease in occupancy costs, offset by an increase in stock-based compensation, depreciation expense and severance costs.
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Other Income and Expense Items
Three Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
2024202320242023
 (In millions)
Interest expense, net$18.4 $19.1 $0.7 $54.3 $51.5 $(2.7)
Loss on extinguishment of debt— — — — 0.0 0.0 
Closure and impairment charges0.4 1.8 1.4 1.4 3.1 1.6 
Amortization of intangible assets2.7 2.7 0.0 8.2 8.2 0.0 
Loss (gain) on disposition of assets0.0 0.2 0.2 (0.1)2.3 2.4 
Total other income and expenses$21.5 $23.7 $2.3 $63.8 $65.1 $1.3 
Interest expense, net and loss on extinguishment of debt
Interest expense, net for the three months ended September 30, 2024 was slightly lower than the same period of the prior year, primarily due to lower interest expense from less borrowings under the revolving Credit Facility as well as an increase in interest income.
Interest expense, net for the nine months ended September 30, 2024 increased compared to the same periods of the prior year, primarily due to the higher interest rate on our refinanced securitized notes as well as on our Credit Facility, partially offset by the increase in interest income from improved yields.
The Company repaid the entire outstanding balance of approximately $585.1 million of its 2019 Class A-2 Notes during the nine months ended September 30, 2023 and recognized a $1.7 million loss on extinguishment of debt from the write-off of the related remaining issuance costs. This loss was offset by a $1.7 million gain on extinguishment of debt from the purchase of $67.9 million of its 2019 Class A-2 Notes under par during the nine months ended September 30, 2023.
Loss (gain) on disposition of assets
The loss on disposition of assets for the three and nine months ended September 30, 2023 primarily related to the disposition of certain IHOP Flip'd assets.
Income TaxesThree Months Ended September 30,Favorable
(Unfavorable) Variance		Nine Months Ended September 30,Favorable
(Unfavorable) Variance
2024202320242023
 (In millions)
Income before income taxes$26.5 $24.9 $1.5 $81.7 $85.6 $(3.8)
Income tax provision$7.4 $6.5 $(0.9)$22.0 $21.4 $(0.6)
Effective tax rate28.0 %25.9 %(2.0)%26.9 %25.0 %(1.9)%
Our income tax provision or benefit will vary from period to period in our normal course of business for two reasons: a change in income before income taxes and a change in the effective tax rate. Changes in our income before income taxes were addressed in the preceding sections of “Consolidated Results of Operations - Comparison of the Three and Nine Months Ended September 30, 2024 and 2023."
Our effective tax rate for the three and nine months ended September 30, 2024 was higher than the rate of the comparable prior periods primarily due to a lower tax deduction related to stock-based compensation.

Liquidity and Capital Resources
Key provisions of our long-term debt potentially impacting liquidity are summarized below. See Note 7 — Long-Term Debt, of the Notes to the Consolidated Financial Statements, for additional detail on long-term debt, including the balances outstanding at September 30, 2024 and 2023.
Instruments
Our long-term debt includes two series of fixed rate senior secured notes, the Series 2019-1 4.723% Fixed Rate Senior Secured Notes in an initial aggregate principal amount of $600 million (the “2019 Class A-2-II Notes”) and the Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2 in an initial aggregate principal amount of $500 million (the “2023 Class A-2 Notes” and, together with the 2019 Class A-2-II Notes, the “Class A-2 Notes”). The Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) were voluntarily repaid in full on April 17, 2023. For a description
37
of the 2019 Class A-2-I Notes, refer to Note 8 — Long-Term Debt of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Our long-term debt also includes a revolving financing facility, the 2022-1 Variable Funding Senior Notes, Class A-1 (the “Credit Facility”) that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit.
Maturity
The final maturity of the 2019 Class A-2-II Notes is in June 2049, but it is anticipated that, unless repaid earlier, the 2019 Class A-2-II Notes will be repaid in June 2026.
The final maturity of the 2023 Class A-2 Notes is in March 2053, but it is anticipated that, unless repaid earlier, to the extent permitted under the Indenture, the 2023 Class A-2 Notes will be repaid in June 2029.
The renewal date of the Credit Facility is June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions.
 Payment of Principal and Interest
While the Class A-2 Notes are outstanding, payment of principal and interest is required to be made on the Class A-2 Notes on a quarterly basis. The payment of principal on the Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x. As of September 30, 2024, our leverage ratio was approximately 4.1x. Therefore, quarterly principal payments are not required.
Exceeding the leverage ratio of 5.25x does not violate any covenant related to the Class A-2 Notes.
On February 16, 2023, the Company's Board of Directors authorized a debt repurchase program of up to $100 million. Repurchases of the Company’s debt, if any, are expected to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption. Under the authorization, the Company may make repurchases of the Company's debt from time to time in the open market or in privately negotiated transactions upon such terms and at such prices as management may determine.
Make-whole Premiums
We may voluntarily repay the Class A-2 Notes at any time; however, if repaid prior to certain dates we would be required to pay make-whole premiums. As of September 30, 2024, there was no make-whole premium associated with voluntary prepayment of the 2019 Class A-2-II Notes. As of September 30, 2024, the make-whole premium associated with voluntary prepayment of the 2023 Class A-2 Notes was approximately $37.8 million. We also would be subject to a make-whole premium in the event of a mandatory prepayment required following certain rapid amortization events or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded that must be bifurcated for separate valuation. We estimated the fair value of these derivatives to be immaterial as of September 30, 2024, based on the probability-weighted discounted cash flows associated with either event.
Covenants and Restrictions
Our long-term debt is subject to a series of covenants and restrictions customary for transactions of this type, including maintenance of a debt service coverage ratio ("DSCR"). In general, the DSCR ratio is net cash flow for the four quarters preceding the calculation date divided by the total debt service payments of the preceding four quarters. The complete definitions of the DSCR and all calculation elements are contained in the indenture, and subsequent amendments thereto, under which the Class A-2 Notes were issued.
Failure to maintain a prescribed DSCR can trigger the following events:
•DSCR less than 1.75x - Cash Flow Sweeping Event
•DSCR less than 1.20x - Rapid Amortization Event
•Interest-only DSCR less than 1.20x - Manager Termination Event
•Interest-only DSCR less than 1.10x - Default Event
Our DSCR for the reporting period ended September 30, 2024 was approximately 3.5x.
Credit Facility
In August 2022, the Co-Issuers entered into the Credit Facility that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. The applicable interest rate under the Credit Facility depends on the type of borrowing by the Co-Issuers. The applicable interest rate for advances is generally calculated at a per
38
annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Secured Overnight Financing Rate (“SOFR”), in either case, plus 2.50%. The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (a) the greatest of (i) the prime rate in effect from time to time; (ii) the federal funds rate in effect from time to time plus 0.50%; and (iii) SOFR for a one-month tenor in effect at such time plus 0.50% plus (b) 2.00%.
As of September 30, 2024, the outstanding balance of the Credit Facility was $100 million. The amount of $0.6 million was pledged against the Credit Facility for outstanding letters of credit, leaving $224.4 million of the Credit Facility available for borrowing at September 30, 2024. It is anticipated that any principal and interest on the Credit Facility outstanding will be repaid in full on or prior to the quarterly payment date in June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions. The letters of credit are used primarily to satisfy insurance-related collateral requirements. The weighted average interest rate on Credit Facility borrowings for the period outstanding during the nine months ended September 30, 2024 was 7.93%.
Capital Allocation
Dividends
Dividends declared and paid per share for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Dividends declared per common share$0.51 $0.51 $1.53 $1.53 
Dividends paid per common share$0.51 $1.02 $1.53 $2.04 
During the nine months ended September 30, 2024 and 2023, the Company paid dividends of $23.5 million and $31.7 million, respectively.
On February 26, 2024, the Board of Directors declared a first quarter 2024 cash dividend of $0.51 per share of common stock, paid on April 5, 2024 to the stockholders of record as of the close of business on March 20, 2024.
On May 14, 2024, the Board of Directors declared a second quarter 2024 cash dividend of $0.51 per share of common stock, paid on July 5, 2024 to the stockholders of record as of the close of business on June 20, 2024.
On September 5, 2024, the Board of Directors declared a third quarter 2024 cash dividend of $0.51 per share of common stock, paid on October 8, 2024 to the stockholders of record as of the close of business on September 20, 2024.
Stock Repurchases
On February 17, 2022, the Company's Board of Directors authorized a new share repurchase program, effective April 1, 2022, of up to $250 million (the “2022 Repurchase Program”).
During the nine months ended September 30, 2024, the Company repurchased 269,621 shares of common stock at a cost of $12.0 million. Cumulatively, the Company has repurchased 1,865,399 shares at a cost of $116.7 million under the 2022 Repurchase Program.
From time to time, we also repurchase shares owned and tendered by employees to satisfy tax withholding obligations on the vesting of restricted stock awards. Shares are deemed purchased at the closing price of our common stock on the vesting date. See Part II, Item 2 for detail on this stock repurchase activity during the nine months ended September 30, 2024.
Cash Flows
In summary, our cash flows for the nine months ended September 30, 2024 and September 30, 2023 were as follows:
Nine Months Ended September 30,
 20242023Variance
 (In millions)
Net cash provided by operating activities$77.7 $79.3 $(1.6)
Net cash used in investing activities(0.7)(26.6)25.9 
Net cash used in financing activities(42.5)(218.0)175.5 
Net increase (decrease) in cash, cash equivalents and restricted cash$34.5 $(165.3)$199.8 
39
Operating Activities
Cash provided by operating activities is primarily driven by revenues earned and collected from our franchisees, and profit from our rental operations, financing operations and our company-owned restaurant. Cash provided by operating activities decreased $1.6 million during the nine months ended September 30, 2024 compared to the same period of the prior year. This decrease was primarily attributable to a decrease in gross segment profit partially offset by a decrease in G&A expenses, as discussed in the preceding sections of this MD&A, and a favorable increase in working capital.
Investing Activities
Investing activities used net cash of $0.7 million for the nine months ended September 30, 2024 compared to $26.6 million for the nine months ended September 30, 2023. The decrease in cash used by investing activities of $25.9 million was primarily attributable to a decrease in capital expenditures compared to the same period of the prior year, partially offset by an increase in principal receipts from notes and equipment contracts receivables. The Company increased spending in information technology and other projects in fiscal year 2023.
Financing Activities
Financing activities used net cash of $42.5 million for the nine months ended September 30, 2024. The decrease in cash used by financing activities of $175.5 million was primarily due to the repayment and issuance of long-term debt of $159.8 million during the nine months ended September 30, 2023, a decrease in dividends paid due to timing and a $8.0 million decrease in repurchase of common stock. There was no repayment or issuance of long-term debt during the nine months ended September 30, 2024.
Adjusted Free Cash Flow
We define “adjusted free cash flow” for a given period as cash provided by operating activities, plus receipts from notes and equipment contract receivables, less additions to property and equipment. Management uses this liquidity measure in its periodic assessment of, among other things, payment of cash dividends on common stock and repurchases of common stock and we believe it is important for investors to have the same measure used by management for that purpose. Adjusted free cash flow does not represent residual cash flow available for discretionary purposes.
Adjusted free cash flow is a non-U.S. GAAP measure. This non-U.S. GAAP measure is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-U.S. GAAP measures should be considered in addition to, and not as a substitute for, the U.S. GAAP information contained within our financial statements. Reconciliation of the cash provided by operating activities to adjusted free cash flow is as follows:
Nine Months Ended September 30,
20242023Variance
(In millions)
Cash flows provided by operating activities$77.7 $79.3 $(1.6)
Principal receipts from notes and equipment contracts10.4 6.7 3.7 
Additions to property and equipment(10.3)(32.0)21.7 
Adjusted free cash flow$77.8 $54.0 $23.8 
Adjusted free cash flow for the nine months ended September 30, 2024 improved compared to the same period of the prior year due to the decrease in capital expenditures and an increase in principal receipts from notes and equipment contracts receivable, partially offset by a decrease in cash flows provided by operating activities.
Contractual Obligations and Commitments
There were no material changes to the contractual obligations as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.
Critical Accounting Policies and Estimates
 The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net revenues and expenses in the reporting period. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. We continually review the estimates and underlying assumptions to ensure they are appropriate for the circumstances. Accounting assumptions and estimates are inherently uncertain and actual results may differ materially from our estimates.
40
A summary of our critical accounting estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2023. During the nine months ended September 30, 2024, there were no significant changes in our critical accounting policies or in our critical accounting estimates.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.
There were no material changes from the information contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Item 4.  Controls and Procedures.
Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
41
Part II. OTHER INFORMATION
Item 1.  Legal Proceedings.
We are subject to various lawsuits, administrative proceedings, audits and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages. We are required to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of our litigation are expensed as such fees and expenses are incurred. Management regularly assesses our insurance deductibles, analyzes litigation information with our attorneys and evaluates our loss experience in connection with pending legal proceedings. While we do not presently believe that any of the legal proceedings to which we are currently a party will ultimately have a material adverse impact on us, there can be no assurance that we will prevail in all the proceedings we are party to, or that we will not incur material losses from them.

Item 1A.  Risk Factors.
 There are no material changes from the risk factors set forth under Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Purchases of Equity Securities by the Company
PeriodTotal number of
shares
purchased to satisfy tax withholding obligations (a)		Average price
paid per
share		Total number of
shares purchased as
part of publicly
announced plans or
programs (b)		Approximate dollar value of
shares that may yet be
purchased under the
plans or programs (b)
July 1, 2024 - July 28, 2024238 $34.34 — $133,266,000 
July 29, 2024 - August 25, 2024798 32.32 — $133,266,000 
August 26, 2024 - September 29, 20241,663 31.89 — $133,266,000 
2,699 $32.23 — $133,266,000 
(a) These amounts include shares owned and tendered by employees to satisfy tax withholding obligations arising upon vesting of restricted stock awards. Shares so surrendered by the participants are repurchased by us pursuant to the terms of the plan and the applicable individual award agreements under which the shares were issued and not pursuant to publicly announced repurchase authorizations.
(b)   On February 17, 2022, the Company's Board of Directors authorized a share repurchase program, effective April 1, 2022, of up to $250 million (the “2022 Repurchase Program”). The 2022 Repurchase Program, as approved by the Board of Directors, does not require the repurchase of a specific number of shares and can be terminated at any time.

Item 3.  Defaults Upon Senior Securities.
None.
Item 4.  Mine Safety Disclosures.
Not Applicable.
Item 5.  Other Information.
Securities Trading Plans of Directors and Executive Officers
During the fiscal quarter ended September 30, 2024, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified, or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement for our securities (as defined in Item 408(c) of Regulation S-K).
42
Item 6. Exhibits.
*31.1 
*31.2 
*32.1 
*32.2 
101.INS 
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH Inline XBRL Schema Document.***
101.CAL Inline XBRL Calculation Linkbase Document.***
101.DEF Inline XBRL Definition Linkbase Document.***
101.LAB Inline XBRL Label Linkbase Document.***
101.PRE Inline XBRL Presentation Linkbase Document.***
104 Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*    Filed herewith.
**    The certifications attached as Exhibits 32.1 and 32.2 accompany this Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
***       Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 and 104 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.


43
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 Dine Brands Global, Inc.
(Registrant)
   
   
Dated:6th day of November, 2024By:/s/ John W. Peyton
 
John W. Peyton
Chief Executive Officer
(Principal Executive Officer)
Dated:6th day of November, 2024By:/s/ Vance Y. Chang
Vance Y. Chang
Chief Financial Officer
(Principal Financial Officer)
   
Dated:6th day of November, 2024By:/s/ Allison Hall
 
Allison Hall
Chief Accounting Officer
(Principal Accounting Officer)
44

Exhibit 31.1
 
Certification Pursuant to
Rule 13a-14(a) of the
Securities Exchange Act of 1934, As Amended
 
I, John W. Peyton, certify that:
1.            I have reviewed this Quarterly Report on Form 10-Q of Dine Brands Global, Inc.;
2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.         The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)      Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.         The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Dated:6th day of November, 2024/s/ John W. Peyton
 
John W. Peyton
Chief Executive Officer
(Principal Executive Officer)



Exhibit 31.2
 
Certification Pursuant to
Rule 13a-14(a) of the
Securities Exchange Act of 1934, As Amended
 
I, Vance Y. Chang, certify that:
1.                                     I have reviewed this Quarterly Report on Form 10-Q of Dine Brands Global, Inc.;
2.                                     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.                                     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.                                     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)                                Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)                                Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)                                 Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)                                Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5.                                     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)                                All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)                                Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

Dated:6th day of November, 2024/s/ Vance Y. Chang
 
Vance Y. Chang
Chief Financial Officer
(Principal Financial Officer)



Exhibit 32.1
 
Certification Pursuant to
18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
 
In connection with the Quarterly Report on Form 10-Q of Dine Brands Global, Inc. (the “Company”) for the quarter ended September 30, 2024, as filed with the Securities and Exchange Commission on the 6th day of November, 2024 (the “Report”), John W. Peyton, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:
 
(1)                     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
 
(2)                     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Dated:6th day of November, 2024/s/ John W. Peyton
 
John W. Peyton
Chief Executive Officer
(Principal Executive Officer)
 
This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act except to the extent the Company expressly and specifically incorporates it by reference in such filing.


Exhibit 32.2
 
Certification Pursuant to
18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
 
In connection with the Quarterly Report on Form 10-Q of Dine Brands Global, Inc. (the “Company”) for the quarter ended September 30, 2024, as filed with the Securities and Exchange Commission on the 6th day of November, 2024 (the “Report”), Vance Y. Chang, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:
 
(1)                     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
 
(2)                     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Dated:6th day of November, 2024/s/ Vance Y. Chang
 
Vance Y. Chang
Chief Financial Officer
(Principal Financial Officer)
 
This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act except to the extent the Company expressly and specifically incorporates it by reference in such filing.


v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Oct. 25, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-15283  
Entity Registrant Name Dine Brands Global, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 95-3038279  
Entity Address, Address Line One 10 West Walnut Street, 5th Floor  
Entity Address, City or Town Pasadena  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 91103  
City Area Code (818)  
Local Phone Number 240-6055  
Title of 12(b) Security Common Stock, $0.01 par value  
Trading Symbol DIN  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   15,246,473
Entity Central Index Key 0000049754  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.24.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 169,636 $ 146,034
Receivables, net of allowance of $2,993 (2024) and $4,462 (2023) 83,414 127,937
Restricted cash 45,974 35,058
Prepaid gift card costs 23,493 29,545
Prepaid income taxes 806 3,445
Other current assets 8,108 15,759
Total current assets 331,431 357,778
Non-current restricted cash 19,500 19,500
Property and equipment, net 154,932 161,891
Operating lease right-of-use assets 282,202 275,214
Deferred rent receivable 26,721 33,326
Long-term receivables, net of allowance of $636 (2024) and $5,002 (2023) 33,508 35,602
Goodwill 254,062 254,062
Other intangible assets, net 578,309 586,033
Other non-current assets, net 18,874 16,881
Total assets 1,699,539 1,740,287
Current liabilities:    
Current maturities of long-term debt 100,000 100,000
Accounts payable 35,455 36,193
Gift card liability 137,020 175,640
Current maturities of operating lease obligations 61,181 63,498
Current maturities of finance lease and financing obligations 6,713 7,243
Accrued employee compensation and benefits 12,063 23,211
Accrued advertising expenses 3,616 9,446
Dividends payable 7,790 7,827
Other accrued expenses 23,012 37,394
Total current liabilities 386,850 460,452
Long-term debt, net, less current maturities 1,086,026 1,084,502
Operating lease obligations, less current maturities 271,283 269,097
Finance lease obligations, less current maturities 35,720 34,389
Financing obligations, less current maturities 24,940 26,984
Deferred income taxes, net 57,493 60,829
Deferred franchise revenue, long-term 37,681 38,658
Other non-current liabilities 16,216 16,350
Total liabilities 1,916,209 1,991,261
Commitments and contingencies
Stockholders’ deficit:    
Preferred stock, $1 par value, 10,000,000 shares authorized; no shares issued and outstanding 0 0
Common stock, $0.01 par value; shares: 40,000,000 authorized; September 30, 2024 - 24,787,994 issued, 15,273,565 outstanding; December 31, 2023 - 24,870,529 issued, 15,344,768 outstanding 248 249
Additional paid-in-capital 252,994 256,542
Retained earnings 186,237 150,008
Accumulated other comprehensive loss (67) (64)
Treasury stock, at cost; shares: September 30, 2024 - 9,514,429; December 31, 2023 - 9,525,761 (656,082) (657,709)
Total stockholders’ deficit (216,670) (250,974)
Total liabilities and stockholders’ deficit $ 1,699,539 $ 1,740,287
v3.24.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Receivables, allowance for credit loss $ 2,993 $ 4,462
Long-term receivables, allowance for credit loss $ 636 $ 5,002
Preferred stock, par value (in dollars per share) $ 1 $ 1
Preferred stock, authorized (in shares) 10,000,000 10,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 40,000,000 40,000,000
Common stock, issued (in shares) 24,787,994 24,870,529
Common stock, outstanding (in shares) 15,273,565 15,344,768
Treasury stock (in shares) 9,514,429 9,525,761
v3.24.3
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenues:        
Rental revenues $ 27,991 $ 29,128 $ 86,546 $ 90,519
Financing revenues 422 628 1,421 2,009
Total revenues 195,034 202,584 607,536 624,766
Cost of revenues:        
Franchise expenses 79,727 83,138 251,153 258,784
Bad debt (credit) expense 151 (51) (395) 2,593
Company restaurant expenses 304 323 915 1,833
Interest expense from finance leases 729 668 2,208 2,072
Other rental expenses 20,879 21,066 63,005 63,538
Total rental expenses 21,608 21,734 65,213 65,610
Financing expenses 76 91 241 283
Total cost of revenues 101,715 105,286 317,522 326,510
Gross profit 93,319 97,298 290,014 298,256
General and administrative expenses 45,390 48,618 144,435 147,545
Interest expense, net 18,369 19,059 54,291 51,549
Closure and impairment charges 366 1,774 1,442 3,088
Amortization of intangible assets 2,724 2,709 8,169 8,202
Loss on extinguishment of debt 0 0 0 10
Loss (gain) on disposition of assets 6 191 (57) 2,309
Income before income taxes 26,464 24,947 81,734 85,553
Income tax provision (7,403) (6,468) (22,018) (21,416)
Net income 19,061 18,479 59,716 64,137
Other comprehensive income (loss) net of tax:        
Foreign currency translation adjustment 2 (2) (3) (2)
Total comprehensive income 19,063 18,477 59,713 64,135
Net income available to common stockholders:        
Net income 19,061 18,479 59,716 64,137
Less: Net income allocated to unvested participating restricted stock (553) (431) (1,760) (1,551)
Net income available to common stockholders - basic $ 18,508 $ 18,048 $ 57,956 $ 62,586
Net income available to common stockholders per share:        
Basic (in dollars per share) $ 1.24 $ 1.19 $ 3.88 $ 4.10
Diluted (in dollars per share) $ 1.24 $ 1.19 $ 3.88 $ 4.09
Weighted average shares outstanding:        
Basic (in shares) 14,897 15,217 14,940 15,275
Diluted (in shares) 14,897 15,220 14,940 15,289
Franchise Revenues:        
Revenues:        
Revenue from contract with customer $ 166,354 $ 172,520 $ 518,729 $ 530,399
Royalties, franchise fees and other        
Revenues:        
Revenue from contract with customer 96,565 99,135 299,161 303,998
Advertising revenues        
Revenues:        
Revenue from contract with customer 69,789 73,385 219,568 226,401
Company restaurant sales        
Revenues:        
Revenue from contract with customer 267 308 840 1,839
Advertising revenues        
Revenues:        
Revenue from contract with customer 69,800 73,400 219,600 226,400
Cost of revenues:        
Franchise expenses 69,789 73,385 219,568 226,401
Other franchise expenses        
Cost of revenues:        
Franchise expenses $ 9,787 $ 9,804 $ 31,980 $ 29,790
v3.24.3
Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Treasury Stock
Common stock, beginning of period (in shares) at Dec. 31, 2022   15,599,239        
Stockholders' equity, beginning of period at Dec. 31, 2022 $ (301,084) $ 250 $ 259,339 $ 84,538 $ (65) $ (645,146)
Treasury stock, beginning of period (in shares) at Dec. 31, 2022           9,360,733
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 64,137     64,137    
Other comprehensive income (loss) (2)       (2)  
Purchase of Company common stock (in shares)   (318,356)       (318,356)
Purchase of Company common stock (20,017)         $ (20,017)
Reissuance of treasury stock (in shares)   (279,861)       (279,861)
Reissuance of treasury stock 3,812 $ (1) (9,576)     $ 13,389
Net issuance of shares for stock plans (in shares)   (19,329)        
Repurchase of restricted shares for taxes (in shares)   (56,903)        
Repurchase of restricted shares for taxes (4,139)   (4,139)      
Stock-based compensation 8,167   8,167      
Dividends on common stock (23,721)   148 (23,869)    
Tax payments for share settlement of restricted stock units (859)   (859)      
Common stock, end of period (in shares) at Sep. 30, 2023   15,484,512        
Stockholders' equity, end of the period at Sep. 30, 2023 (273,706) $ 249 253,080 124,806 (67) $ (651,774)
Treasury stock, end of period (in shares) at Sep. 30, 2023           9,399,228
Common stock, beginning of period (in shares) at Jun. 30, 2023   15,587,934        
Stockholders' equity, beginning of period at Jun. 30, 2023 (281,001) $ 249 250,808 114,226 (65) $ (646,219)
Treasury stock, beginning of period (in shares) at Jun. 30, 2023           9,302,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 18,479     18,479    
Other comprehensive income (loss) (2)       (2)  
Purchase of Company common stock (in shares)   (105,864)       (105,864)
Purchase of Company common stock (6,000)         $ (6,000)
Reissuance of treasury stock (in shares)   (8,901)       (8,901)
Reissuance of treasury stock 0   (445)     $ 445
Net issuance of shares for stock plans (in shares)   (2,914)        
Repurchase of restricted shares for taxes (in shares)   (3,545)        
Repurchase of restricted shares for taxes (198)   (198)      
Stock-based compensation 2,858   2,858      
Dividends on common stock (7,842)   57 (7,899)    
Common stock, end of period (in shares) at Sep. 30, 2023   15,484,512        
Stockholders' equity, end of the period at Sep. 30, 2023 $ (273,706) $ 249 253,080 124,806 (67) $ (651,774)
Treasury stock, end of period (in shares) at Sep. 30, 2023           9,399,228
Common stock, beginning of period (in shares) at Dec. 31, 2023 15,344,768 15,344,768        
Stockholders' equity, beginning of period at Dec. 31, 2023 $ (250,974) $ 249 256,542 150,008 (64) $ (657,709)
Treasury stock, beginning of period (in shares) at Dec. 31, 2023 9,525,761         9,525,761
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 59,716     59,716    
Other comprehensive income (loss) (3)       (3)  
Purchase of Company common stock (in shares)   (269,621)       (269,621)
Purchase of Company common stock (12,000)         $ (12,000)
Reissuance of treasury stock (in shares)   (280,953)       (280,953)
Reissuance of treasury stock 0 $ (1) (13,626)     $ 13,627
Net issuance of shares for stock plans (in shares)   (27,796)        
Repurchase of restricted shares for taxes (in shares)   (54,739)        
Repurchase of restricted shares for taxes (2,573)   (2,573)      
Stock-based compensation 12,572   12,572      
Dividends on common stock (23,378)   109 (23,487)    
Tax payments for share settlement of restricted stock units $ (30)   (30)      
Common stock, end of period (in shares) at Sep. 30, 2024 15,273,565 15,273,565        
Stockholders' equity, end of the period at Sep. 30, 2024 $ (216,670) $ 248 252,994 186,237 (67) $ (656,082)
Treasury stock, end of period (in shares) at Sep. 30, 2024 9,514,429         9,514,429
Common stock, beginning of period (in shares) at Jun. 30, 2024   15,299,270        
Stockholders' equity, beginning of period at Jun. 30, 2024 $ (231,702) $ 248 249,265 174,972 (69) $ (656,118)
Treasury stock, beginning of period (in shares) at Jun. 30, 2024           9,515,189
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 19,061     19,061    
Other comprehensive income (loss) 2       2  
Reissuance of treasury stock (in shares)   (760)       (760)
Reissuance of treasury stock 0   (36)     $ 36
Net issuance of shares for stock plans (in shares)   (23,766)        
Repurchase of restricted shares for taxes (in shares)   (2,699)        
Repurchase of restricted shares for taxes (87)   (87)      
Stock-based compensation 3,815   3,815      
Dividends on common stock $ (7,759)   37 (7,796)    
Common stock, end of period (in shares) at Sep. 30, 2024 15,273,565 15,273,565        
Stockholders' equity, end of the period at Sep. 30, 2024 $ (216,670) $ 248 $ 252,994 $ 186,237 $ (67) $ (656,082)
Treasury stock, end of period (in shares) at Sep. 30, 2024 9,514,429         9,514,429
v3.24.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities:    
Net income $ 59,716 $ 64,137
Adjustments to reconcile net income to cash flows provided by operating activities:    
Depreciation and amortization 29,049 26,221
Non-cash closure and impairment charges 1,442 3,088
Non-cash stock-based compensation expense 12,572 8,167
Non-cash interest expense 2,448 2,714
Loss on extinguishment of debt 0 10
Deferred income taxes (3,335) (3,582)
Deferred revenue (3,431) (2,590)
(Gain) loss on disposition of assets (57) 2,309
Other (2,894) (1,577)
Changes in operating assets and liabilities:    
Receivables, net 6,937 6,354
Deferred rent receivable 6,605 6,792
Current income tax receivable and payable 1,352 (186)
Gift card receivable and payable (13,060) (13,588)
Other current assets 7,624 6,358
Accounts payable (2,100) (15,527)
Operating lease assets and liabilities (9,716) 2,438
Accrued employee compensation and benefits (11,033) (4,447)
Accrued advertising (1,827) (9,750)
Other current liabilities (2,598) 1,965
Cash flows provided by operating activities 77,694 79,306
Cash flows from investing activities:    
Principal receipts from notes, equipment contracts and other long-term receivables 10,388 6,686
Additions to property and equipment (10,305) (31,968)
Proceeds from sale of property and equipment 305 0
Additions to long-term receivables (649) (1,237)
Other (400) (113)
Cash flows used in investing activities (661) (26,632)
Cash flows from financing activities:    
Proceeds from issuance of long-term debt 0 500,000
Repayment of long-term debt 0 (651,713)
Borrowing from revolving credit facility 0 30,000
Repayment of revolving credit facility 0 (30,000)
Payment of debt issuance costs 0 (8,044)
Dividends paid on common stock (23,513) (31,740)
Repurchase of common stock (12,000) (20,017)
Principal payments on finance lease and financing obligations (4,396) (5,329)
Proceeds from stock options exercised 0 3,812
Repurchase of restricted stock for tax payments upon vesting (2,573) (4,139)
Tax payments for share settlement of restricted stock units (30) (859)
Other (3) 0
Cash flows used in financing activities (42,515) (218,029)
Net change in cash, cash equivalents and restricted cash 34,518 (165,355)
Cash, cash equivalents and restricted cash at beginning of period 200,592 324,984
Cash, cash equivalents and restricted cash at end of period 235,110 159,629
Supplemental disclosures:    
Interest paid in cash 59,538 54,032
Income taxes paid in cash 31,392 25,774
Non-cash conversion to notes receivable 3,130 969
Non-cash balance sheet gross-up of receivables and other accrued expenses $ 11,000 $ 0
v3.24.3
General
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General General
The accompanying unaudited consolidated financial statements of Dine Brands Global, Inc. (the “Company” or “Dine Brands Global”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2024.
The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements.
These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
v3.24.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2024 began on January 1, 2024 and ended on March 31, 2024, the second fiscal quarter of 2024 ended on June 30, 2024, and the third fiscal quarter of 2024 ended on September 29, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023, the second fiscal quarter of 2023 ended on July 2, 2023, and the third fiscal quarter of 2023 ended on October 1, 2023.
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated.
The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, if any, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made in the calculation and assessment of the following: impairment of tangible and intangible assets and goodwill; income taxes; allowance for doubtful accounts and notes receivables; lease accounting estimates; contingencies; and stock-based compensation. On an ongoing basis, the Company evaluates its estimates based on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates.
v3.24.3
Recent Accounting Pronouncements
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
Accounting Standards Adopted in the Current Fiscal Year
Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2024 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years.
Newly Issued Accounting Standards Not Yet Adopted
In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure," which updates reportable segment disclosure requirements. The ASU primarily requires enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profit or loss used to assess segment performance. All annual disclosures of a reportable segment’s profit or loss and assets required by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, will be required to be disclosed in interim periods. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU in the Company's disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early
adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of adopting this ASU in the Company's disclosures.
The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.
v3.24.3
Revenues
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Franchise revenues and revenues from company-operated restaurants are recognized in accordance with current guidance for revenue recognition as codified in Accounting Standards Topic 606 (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods.
Franchise Revenues
The Company franchises the Applebee's Neighborhood Grill & Bar® (“Applebee's”) concept in the American full-service restaurant segment within the casual dining category of the restaurant industry, the International House of Pancakes® (“IHOP”) concept in the family dining mid-scale full-service category of the restaurant industry, and the Fuzzy's Taco Shop® (“Fuzzy's”) concept in the Mexican food segment within the fast-casual dining category of the restaurant industry. The franchise arrangement for the brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brands that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the respective brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation.
The transaction price in a standard franchise arrangement for the brands primarily consists of (a) initial franchise/development fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required. Additionally, all domestic IHOP franchise agreements require franchisees to purchase proprietary pancake and waffle dry mix from the Company.
The Company recognizes the primary components of the transaction price as follows:
•Franchise and development fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the restaurant opening date. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time;
•The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenues are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either what is considered a contract asset (unbilled receivable) or once billed, accounts receivable, and are included in “receivables, net” on the balance sheet;
•Revenue from the sale of proprietary pancake and waffle dry mix and other proprietary products is recognized in the period in which distributors ship the franchisee's order; recognition of revenue results in an accounts receivable included in “receivables, net” on the balance sheet.
In determining the amount and timing of revenues from contracts with customers, the Company exercises significant judgment with respect to collectability of the amount; however, the timing of recognition does not require significant judgments as it is based on either the term of the franchise agreement, the month of reported sales by the franchisee or the date of product shipment, none of which require estimation.
The Company does not incur a significant amount of contract acquisition costs in conducting franchising activities. The Company believes its franchising arrangements do not contain a significant financing component.
Company Restaurant Revenues
Company restaurant revenues comprise retail sales at company-operated restaurants. Sales by company-operated restaurants are recognized when food and beverage items are sold. Company restaurant sales are reported net of sales taxes collected from guests that are remitted to the appropriate taxing authorities, with no significant judgements required.
The following table disaggregates franchise revenues by major type for the three and nine months ended September 30, 2024 and 2023:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Franchise Revenues:  
Royalties$76.2 $79.4 $236.9 $245.6 
Advertising revenues69.8 73.4 219.6 226.4 
Proprietary product sales and other18.3 17.6 55.2 52.0 
Franchise and development fees2.1 2.1 7.0 6.4 
Total franchise revenues$166.4 $172.5 $518.7 $530.4 
Changes in the Company's contract liability for deferred franchise and development fees during the nine months ended September 30, 2024 were as follows:
 Deferred Franchise Revenue
(short- and long-term)
(In millions)
Balance at December 31, 2023
$45.3 
Recognized as revenue during the nine months ended September 30, 2024
(6.8)
Fees deferred during the nine months ended September 30, 2024
5.4 
Balance at September 30, 2024
$43.9 
The balance of deferred revenue as of September 30, 2024 is expected to be recognized as follows:
(In millions)
2024 (remaining three months)
$1.6 
20256.0 
20265.2 
20274.3 
20283.4 
Thereafter23.4 
Total$43.9 
v3.24.3
Current Expected Credit Losses ("CECL")
 9 Months Ended
Sep. 30, 2024
Credit Loss [Abstract]  
Current Expected Credit Losses ("CECL") Current Expected Credit Losses (“CECL”)
The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. The Company records specific reserves against account balances of franchisees deemed at-risk when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed at-risk, an allowance is recorded based on expected loss rates derived pursuant to the Company's CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable.
The Company considers its portfolio segments to be the following:
Accounts Receivable
Most of the Company’s short-term receivables due from franchisees are derived from royalty, advertising, and other franchise-related fees, and from distributors related to the sale of proprietary products to franchisees through the Company’s network of suppliers and distributors.
Gift Card Receivable
Gift card receivable consist primarily of amounts due from third-party vendors. Receivables related to gift card sales are subject to seasonality and usually peak around year-end as a result of the December holiday season.
Notes Receivable
Notes receivable balances primarily relate to the conversion of certain past due franchisee accounts receivable to notes receivable, cash loans to franchisees for working capital purposes, a note receivable in connection with the sale of IHOP company restaurants, franchise fees, and other notes. The notes are typically collateralized by the franchise. During the nine months ended September 30, 2024, the Company wrote off $4.4 million of Applebee's notes receivable which were fully reserved. The remaining notes have reserves recorded against them amounting to $0.7 million as of September 30, 2024.
Equipment Leases Receivable
Equipment leases receivable primarily relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant, then franchised the restaurant to a franchisee. Equipment lease contracts are collateralized by the equipment in the restaurant. The estimated fair value of the equipment collateralizing these lease contracts are not deemed to be significant given the very seasoned and mature nature of this portfolio. The weighted average remaining life of the Company’s equipment leases is 2.7 years as of September 30, 2024.
Real Estate Leases Receivable
Real estate leases receivable primarily relate to IHOP franchise development activity prior to 2003 when IHOP provided the financing for leasing or subleasing the site. Real estate leases at September 30, 2024 comprised of 17 leases with a weighted average remaining life of 10.7 years, and relate to locations that IHOP is leasing from third parties and subleasing to franchisees.
September 30, 2024December 31, 2023
(In millions)
Accounts receivable$70.2 $73.3 
Gift card receivable6.2 33.6 
Notes receivable9.0 15.0 
Financing receivable:
Equipment leases receivable14.8 19.7 
Real estate leases receivable18.7 18.4 
Other receivables
1.7 13.0 
120.6 173.0 
Less: allowance for credit losses and notes receivable(3.6)(9.5)
116.9 163.5 
Less: current portion(83.4)(127.9)
Long-term receivables$33.5 $35.6 
Changes in the allowance for credit losses during the nine months ended September 30, 2024 were as follows:
Accounts ReceivableNotes Receivable, short-termNotes Receivable, long-termReal estate leases receivableEquipment leases receivable
Other (1)
Total
 (In millions)
Balance, December 31, 2023
$2.7 $1.8 $4.7 $0.1 $0.2 $0.0 $9.5 
Bad debt expense (credit)0.9 (0.9)(0.5)0.0 0.1 — (0.4)
Advertising provision adjustment(0.0)— — — — — 0.0 
Write-offs(0.9)(0.6)(3.8)— (0.2)— (5.5)
Balance, September 30, 2024
$2.7 $0.3 $0.4 $0.1 $0.1 $0.0 $3.6 
(1) Primarily gift card receivable and credit card receivable.
The Company's primary credit quality indicator for all portfolio segments is delinquency. Generally, the notes receivables, leases receivables, equipment receivables, and other receivables (primarily consists of credit card receivables) are not delinquent.
The year of origination of the Company's financing receivables at September 30, 2024 is as follows:
 
Notes Receivable, short and long-termReal estate leases receivableEquipment leases receivableTotal
 (In millions)
2024$2.7 $1.9 $0.3 $4.9 
20235.2 3.4 0.7 9.3 
20220.6 7.8 — 8.4 
20210.4 2.2 — 2.6 
20200.1 1.2 — 1.3 
Prior— 2.2 13.8 16.0 
Total$9.0 $18.7 $14.8 $42.5 
The Company does not place its financing receivables in non-accrual status.
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 504 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 50 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 295 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2024. Approximately 45 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2024.
The Company's lease (income) cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.6 $2.0 $1.9 
Interest on lease liabilities
0.7 0.7 2.2 2.1 
Operating lease cost
18.3 18.5 54.8 56.7 
Variable lease cost1.9 1.8 5.9 5.9 
Short-term lease cost0.0 0.0 0.0 0.0 
Sublease income(25.8)(26.8)(79.7)(83.3)
Lease income$(4.2)$(5.2)$(14.8)$(16.7)
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
The weighted average remaining lease term as of September 30, 2024 was 5.6 years for finance leases and 6.0 years for operating leases. The weighted average discount rate as of September 30, 2024 was 9.2% for finance leases and 5.9% for operating leases.
During the three and nine months ended September 30, 2024 and 2023, the Company made the following cash payments for leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Principal payments on finance lease obligations$1.3 $1.7 $4.4 $5.3 
Interest payments on finance lease obligations0.7 0.7 2.2 2.1 
Payments on operating leases20.8 20.1 62.6 61.3 
Variable lease payments1.9 1.9 6.0 6.0 
The Company's income from operating leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Minimum lease payments$23.7 $24.6 $72.3 $76.3 
Variable lease income3.9 4.1 12.9 13.0 
Total operating lease income$27.6 $28.7 $85.2 $89.3 
Future minimum payments to be received as lessor under noncancellable operating leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$25.4 
202593.6 
202680.4 
202763.4 
202847.1 
Thereafter170.1 
Total minimum rents receivable$480.0 
The Company's income from real estate leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Interest income$0.3 $0.3 $0.9 $0.8 
Variable lease income0.1 0.1 0.2 0.3 
Selling profit
— 0.0 0.2 0.0 
Total real estate lease income$0.4 $0.4 $1.3 $1.1 
Future minimum payments to be received as lessor under noncancellable real estate leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$0.7 
20252.5 
20262.5 
20272.5 
20282.5 
Thereafter15.4 
Total minimum rents receivable26.1 
Less: unearned income(7.5)
Total real estate leases receivable
18.6 
Less: current portion(1.4)
Long-term real estate leases receivable
$17.2 
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 504 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 50 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 295 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2024. Approximately 45 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2024.
The Company's lease (income) cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.6 $2.0 $1.9 
Interest on lease liabilities
0.7 0.7 2.2 2.1 
Operating lease cost
18.3 18.5 54.8 56.7 
Variable lease cost1.9 1.8 5.9 5.9 
Short-term lease cost0.0 0.0 0.0 0.0 
Sublease income(25.8)(26.8)(79.7)(83.3)
Lease income$(4.2)$(5.2)$(14.8)$(16.7)
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
The weighted average remaining lease term as of September 30, 2024 was 5.6 years for finance leases and 6.0 years for operating leases. The weighted average discount rate as of September 30, 2024 was 9.2% for finance leases and 5.9% for operating leases.
During the three and nine months ended September 30, 2024 and 2023, the Company made the following cash payments for leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Principal payments on finance lease obligations$1.3 $1.7 $4.4 $5.3 
Interest payments on finance lease obligations0.7 0.7 2.2 2.1 
Payments on operating leases20.8 20.1 62.6 61.3 
Variable lease payments1.9 1.9 6.0 6.0 
The Company's income from operating leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Minimum lease payments$23.7 $24.6 $72.3 $76.3 
Variable lease income3.9 4.1 12.9 13.0 
Total operating lease income$27.6 $28.7 $85.2 $89.3 
Future minimum payments to be received as lessor under noncancellable operating leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$25.4 
202593.6 
202680.4 
202763.4 
202847.1 
Thereafter170.1 
Total minimum rents receivable$480.0 
The Company's income from real estate leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Interest income$0.3 $0.3 $0.9 $0.8 
Variable lease income0.1 0.1 0.2 0.3 
Selling profit
— 0.0 0.2 0.0 
Total real estate lease income$0.4 $0.4 $1.3 $1.1 
Future minimum payments to be received as lessor under noncancellable real estate leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$0.7 
20252.5 
20262.5 
20272.5 
20282.5 
Thereafter15.4 
Total minimum rents receivable26.1 
Less: unearned income(7.5)
Total real estate leases receivable
18.6 
Less: current portion(1.4)
Long-term real estate leases receivable
$17.2 
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 504 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 50 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 295 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2024. Approximately 45 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2024.
The Company's lease (income) cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.6 $2.0 $1.9 
Interest on lease liabilities
0.7 0.7 2.2 2.1 
Operating lease cost
18.3 18.5 54.8 56.7 
Variable lease cost1.9 1.8 5.9 5.9 
Short-term lease cost0.0 0.0 0.0 0.0 
Sublease income(25.8)(26.8)(79.7)(83.3)
Lease income$(4.2)$(5.2)$(14.8)$(16.7)
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
The weighted average remaining lease term as of September 30, 2024 was 5.6 years for finance leases and 6.0 years for operating leases. The weighted average discount rate as of September 30, 2024 was 9.2% for finance leases and 5.9% for operating leases.
During the three and nine months ended September 30, 2024 and 2023, the Company made the following cash payments for leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Principal payments on finance lease obligations$1.3 $1.7 $4.4 $5.3 
Interest payments on finance lease obligations0.7 0.7 2.2 2.1 
Payments on operating leases20.8 20.1 62.6 61.3 
Variable lease payments1.9 1.9 6.0 6.0 
The Company's income from operating leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Minimum lease payments$23.7 $24.6 $72.3 $76.3 
Variable lease income3.9 4.1 12.9 13.0 
Total operating lease income$27.6 $28.7 $85.2 $89.3 
Future minimum payments to be received as lessor under noncancellable operating leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$25.4 
202593.6 
202680.4 
202763.4 
202847.1 
Thereafter170.1 
Total minimum rents receivable$480.0 
The Company's income from real estate leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Interest income$0.3 $0.3 $0.9 $0.8 
Variable lease income0.1 0.1 0.2 0.3 
Selling profit
— 0.0 0.2 0.0 
Total real estate lease income$0.4 $0.4 $1.3 $1.1 
Future minimum payments to be received as lessor under noncancellable real estate leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$0.7 
20252.5 
20262.5 
20272.5 
20282.5 
Thereafter15.4 
Total minimum rents receivable26.1 
Less: unearned income(7.5)
Total real estate leases receivable
18.6 
Less: current portion(1.4)
Long-term real estate leases receivable
$17.2 
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 504 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 50 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 295 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2024. Approximately 45 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2024.
The Company's lease (income) cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.6 $2.0 $1.9 
Interest on lease liabilities
0.7 0.7 2.2 2.1 
Operating lease cost
18.3 18.5 54.8 56.7 
Variable lease cost1.9 1.8 5.9 5.9 
Short-term lease cost0.0 0.0 0.0 0.0 
Sublease income(25.8)(26.8)(79.7)(83.3)
Lease income$(4.2)$(5.2)$(14.8)$(16.7)
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
The weighted average remaining lease term as of September 30, 2024 was 5.6 years for finance leases and 6.0 years for operating leases. The weighted average discount rate as of September 30, 2024 was 9.2% for finance leases and 5.9% for operating leases.
During the three and nine months ended September 30, 2024 and 2023, the Company made the following cash payments for leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Principal payments on finance lease obligations$1.3 $1.7 $4.4 $5.3 
Interest payments on finance lease obligations0.7 0.7 2.2 2.1 
Payments on operating leases20.8 20.1 62.6 61.3 
Variable lease payments1.9 1.9 6.0 6.0 
The Company's income from operating leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Minimum lease payments$23.7 $24.6 $72.3 $76.3 
Variable lease income3.9 4.1 12.9 13.0 
Total operating lease income$27.6 $28.7 $85.2 $89.3 
Future minimum payments to be received as lessor under noncancellable operating leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$25.4 
202593.6 
202680.4 
202763.4 
202847.1 
Thereafter170.1 
Total minimum rents receivable$480.0 
The Company's income from real estate leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Interest income$0.3 $0.3 $0.9 $0.8 
Variable lease income0.1 0.1 0.2 0.3 
Selling profit
— 0.0 0.2 0.0 
Total real estate lease income$0.4 $0.4 $1.3 $1.1 
Future minimum payments to be received as lessor under noncancellable real estate leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$0.7 
20252.5 
20262.5 
20272.5 
20282.5 
Thereafter15.4 
Total minimum rents receivable26.1 
Less: unearned income(7.5)
Total real estate leases receivable
18.6 
Less: current portion(1.4)
Long-term real estate leases receivable
$17.2 
v3.24.3
Long-Term Debt
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt 
At September 30, 2024 and December 31, 2023, long-term debt consisted of the following components:
September 30, 2024December 31, 2023
 (In millions)
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II
$594.0 $594.0 
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively
100.0 100.0 
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2
500.0 500.0 
Unamortized debt issuance costs
(8.0)(9.5)
Long-term debt, net of debt issuance costs1,186.0 1,184.5 
Less: current portion of long-term debt(100.0)(100.0)
Long-term debt$1,086.0 $1,084.5 
On June 5, 2019, Applebee’s Funding LLC and IHOP Funding LLC (the “Co-Issuers”), each a special purpose, wholly-owned indirect subsidiary of the Company, issued two tranches of fixed rate senior secured notes, the Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I (“2019 Class A-2-I Notes”) in an initial aggregate principal amount of $700 million and the Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II in an initial aggregate principal amount of $600 million (the “2019 Class A-2-II Notes” and, together with the 2019 Class A-2-I Notes, the “2019 Class A-2 Notes”). The 2019 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended.
On August 12, 2022, the Co-Issuers established a new revolving financing facility, the 2022-1 Variable Funding Senior Secured Notes, Class A-1 (the “Credit Facility”), that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. In connection with this transaction, the Co-Issuers terminated their $225 million revolving financing facility, the 2019-1 Variable Funding Senior Secured Notes, Class A-1.
On April 17, 2023, the Co-Issuers completed a refinancing transaction and issued $500 million of Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2 (the “2023 Class A-2 Notes”). The 2023 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended. The Company used the net proceeds of the 2023 Class A-2 Notes to repay the entire outstanding balance of approximately $585.1 million of the 2019 Class A-2-I Notes and to pay fees and expenses incurred in connection with the issuance of the 2023 Class A-2 Notes. The remaining 2019 Class A-2-II Notes and the Credit Facility, together with the 2023 Class A-2 Notes are referred to collectively herein as the “Notes.” The Notes were issued in securitization transactions pursuant to which substantially all the domestic revenue-generating assets and domestic intellectual property held by the Co-Issuers and certain other special-purpose, wholly-owned indirect subsidiaries of the Company (the “Guarantors”) were pledged as collateral to secure the Notes.
The Notes were issued under a Base Indenture, dated as of September 30, 2014, amended and restated as of June 5, 2019 and further amended and restated as of April 17, 2023 (the “Base Indenture”). In addition, the 2019 Class A-2-II Notes were issued under the related Series 2019-1 Supplement to the Base Indenture, dated June 5, 2019 (the “Series 2019-1 Supplement”), among the Co-Issuers and Citibank, N.A., as the trustee (in such capacity, the “Trustee”) and securities intermediary, the Credit Facility was issued under the related Series 2022-1 Supplement to the Base Indenture, dated August 12, 2022 (“Series 2022-1 Supplement”), among the Co-Issuers and Citibank, N.A., as Trustee and securities intermediary, and the 2023 Class A-2 Notes were issued under the related Series 2023-1 Supplement to the Base Indenture, dated April 17, 2023 (the “Series 2023-1 Supplement”), among the Co-Issuers and Citibank, N.A., as Trustee and securities intermediary. The Base Indenture, Series 2019-1 Supplement, Series 2022-1 Supplement, and Series 2023-1 Supplement (collectively, the “Indenture”) will allow the Co-Issuers to issue additional series of notes in the future subject to certain conditions set forth therein.
2019 Class A-2 Notes
The 2019 Class A-2-I Notes were voluntarily repaid in full on April 17, 2023, while the 2019 Class A-2-II Notes remain outstanding as of September 30, 2024. For a description of the 2019 Class A-2-I Notes, refer to Note 8 — Long-Term Debt of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The legal final maturity of the 2019 Class A-2-II Notes is June 2049, but rapid amortization will apply if the 2019 Class A-2-II Notes are not repaid by June 2026 (the “2019 Class A-2-II Anticipated Repayment Date”). If the Co-
Issuers have not repaid or refinanced the 2019 Class A-2-II Notes by the 2019 Class A-2-II Anticipated Repayment Date, then additional interest will accrue on the 2019 Class A-2-II Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the applicable 2019 Class A-2-II Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the 2019 Class A-2-II Anticipated Repayment Date of the United States Treasury Security having a term closest to 10 years plus (y) 7.64% for the 2019 Class A-2-II Notes.
While the 2019 Class A-2-II Notes are outstanding, payment of principal and interest is required to be made on the 2019 Class A-2-II Notes on a quarterly basis. The quarterly principal payment of $1.5 million on the 2019 Class A-2-II Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x. Exceeding the leverage ratio of 5.25x does not violate any covenant related to the Notes. In general, the leverage ratio is the Company's indebtedness (as defined in the Indenture) divided by adjusted EBITDA (as defined in the Indenture) for the four preceding quarterly periods. The complete definitions of all calculation elements of the leverage ratio are contained in the Indenture.
As of September 30, 2024, the Company's leverage ratio was approximately 4.1x. As a result, quarterly principal payments on the 2019 Class A-2-II Notes of $1.5 million currently are not required.
The Company may voluntarily repay the 2019 Class A-2-II Notes at any time without any associated make-whole premium.
2022 Class A-1 Notes
In August 2022, the Co-Issuers entered into the Credit Facility that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. The applicable interest rate under the Credit Facility depends on the type of borrowing by the Co-Issuers. The applicable interest rate for advances is generally calculated at a per annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Term SOFR Rate, in either case, plus 2.50%. The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (A) the greatest of (i) the Prime Rate in effect from time to time; (ii) the Federal Funds Rate in effect from time to time plus 0.50%; and (iii) Term SOFR for a one-month tenor in effect at such time plus 0.50% plus (B) 2.00%.
The legal final maturity of the Credit Facility is June 2052, but rapid amortization will apply if there are outstanding amounts under the Credit Facility after June 2027 (the “Class A-1 Renewal Date”). The Class A-1 Renewal Date may be extended at the Co-Issuers’ election for up to two successive one-year periods if certain conditions are met. If the Co-Issuers have not repaid or refinanced the Credit Facility by the Class A-1 Renewal Date (after giving effect to any extensions), then interest will accrue on the Credit Facility at a rate equal to 5.00% in addition to the regular interest rate applicable to the Credit Facility.
As of September 30, 2024, the outstanding balance of the Credit Facility was $100 million. The amount of $0.6 million was pledged against the Credit Facility for outstanding letters of credit, leaving $224.4 million of the Credit Facility available for borrowing at September 30, 2024. It is anticipated that any principal and interest on the Credit Facility outstanding will be repaid in full on or prior to the quarterly payment date in June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions. The letters of credit are used primarily to satisfy insurance-related collateral requirements. The weighted average interest rate for the period outstanding during the nine months ended September 30, 2024 was 7.93%.
2023 Class A-2 Notes
The legal final maturity of the 2023 Class A-2 Notes is in March 2053, but it is anticipated that, unless repaid earlier to the extent permitted under the Indenture, the 2023 Class A-2 Notes will be repaid in June 2029 (the “2023 Class A-2 Anticipated Repayment Date”). If the Co-Issuers have not repaid or refinanced the 2023 Class A-2 Notes by the 2023 Class A-2 Anticipated Repayment Date, then additional interest will accrue on the 2023 Class A-2 Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the Series 2023-1 Class A-2 Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the 2023 Class A-2 Anticipated Repayment Date of the United States Treasury Security having a term closest to 10 years plus (y) 9.24% for the 2023 Class A-2 Notes.
While the 2023 Class A-2 Notes are outstanding, payment of principal and interest is required to be made on the 2023 Class A-2 Notes on a quarterly basis. The quarterly principal payment of $1.25 million on the 2023 Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x.
As of September 30, 2024, the Company's leverage ratio was approximately 4.1x. As a result, quarterly principal payments on the 2023 Class A-2 Notes of $1.25 million currently are not required.
The Company may voluntarily repay the 2023 Class A-2 Notes at any time; however, if the 2023 Class A-2 Notes are repaid prior to certain dates, the Company would be required to pay make-whole premiums. As of September 30, 2024, the make-whole premium associated with voluntary prepayment of the 2023 Class A-2 Notes was approximately $37.8 million. The Company also would be subject to a make-whole premium in the event of a mandatory prepayment required following a Rapid Amortization Event or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded in the Notes that must be bifurcated for separate valuation. The Company estimated the fair value of these derivatives to be immaterial as of September 30, 2024, based on the probability-weighted discounted cash flows associated with either event.
Repurchase Program
On February 16, 2023, the Company's Board of Directors authorized a debt repurchase program of up to $100 million. Repurchases of the Company’s debt, if any, are expected to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption. Under the authorization, the Company may make repurchases of the Company's debt from time to time in the open market or in privately negotiated transactions upon such terms and at such prices as management may determine.
Covenants and Restrictions
The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including: (i) that the Co-Issuers maintain specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments, and the related payment of specified amounts, including specified call redemption premiums in the case of Class A-2 Notes under certain circumstances; (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The Notes are subject to customary rapid amortization events provided for in the Indenture, including events tied to failure of the Securitization Entities (as defined in the Indenture) to maintain the stated debt service coverage ratio (“DSCR”), the sum of domestic retail sales for all restaurants being below certain levels on certain measurement dates, certain manager termination events, certain events of default and the failure to repay or refinance the Class A-2 Notes on the anticipated repayment dates. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure of the Securitization Entities to maintain the stated DSCR, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties and certain judgments.
In general, the DSCR ratio is Net Cash Flow (as defined in the Indenture) for the four quarters preceding the calculation date divided by the total debt service payments (as defined in the Indenture) of the preceding four quarters. The complete definitions of the DSCR and all calculation elements are contained in the Indenture. Failure to maintain a prescribed DSCR can trigger a Cash Flow Sweeping Event, A Rapid Amortization Event, a Manager Termination Event or a Default Event (each as defined in the Indenture) as described below. In a Cash Flow Sweeping Event, the Trustee is required to retain 50% of excess Cash Flow (as defined in the Indenture) in a restricted account. In a Rapid Amortization Event, all excess Cash Flow is retained and used to retire principal amounts of debt. In a Manager Termination Event, the Company may be replaced as manager of the assets securitized under the Indenture. In a Default Event, the outstanding principal amount and any accrued but unpaid interest can be called to become immediately due and payable. Key DSCRs are as follows:
•DSCR less than 1.75x - Cash Flow Sweeping Event
•DSCR less than 1.20x - Rapid Amortization Event
•Interest-only DSCR less than 1.20x - Manager Termination Event
•Interest-only DSCR less than 1.10x - Default Event
The Company's DSCR for the reporting period ended September 30, 2024 was approximately 3.5x.
Debt Issuance Costs
2023 Class A-2 Notes
The Company incurred costs of approximately $8.0 million in connection with the issuance of the 2023 Class A-2 Notes. These debt issuance costs are being amortized using the effective interest method over the estimated life of the 2023 Class A-2 Notes. Amortization costs of $0.3 million and $0.8 million, respectively, were included in interest expense for the three and nine months ended September 30, 2024. Amortization costs of $0.3 million and $0.5 million, respectively, were included in
interest expense for the three and nine months ended September 30, 2023. As of September 30, 2024, unamortized debt issuance costs of $6.5 million are reported as a direct reduction of the 2023 Series Class A-2 Notes in the Consolidated Balance Sheets.
2022 Class A-1 Notes
In August 2022, the Company incurred costs of approximately $6.3 million in connection with the issuance of the Credit Facility. These debt issuance costs are being amortized over the estimated life of the Credit Facility. Amortization costs of $0.3 million and $0.9 million, respectively, of these costs were included in interest expense for the three and nine months ended September 30, 2024. Amortization costs of $0.3 million and $0.9 million, respectively, were included in interest expense for the three and nine months ended September 30, 2023. As of September 30, 2024, unamortized debt issuance costs of $3.8 million related to the Credit Facility are classified as other non-current assets in the Consolidated Balance Sheets.
2019 Class A-2 Notes
The Company incurred costs of approximately $12.9 million in connection with the issuance of the 2019 Class A-2 Notes. These debt issuance costs are being amortized using the effective interest method over estimated life of each tranche of the 2019 Class A-2 Notes. Amortization costs of $0.2 million and $0.7 million were included in interest expense for the three and nine months ended September 30, 2024, respectively. Amortization costs of $0.2 million and $1.3 million were included in interest expense for the three and nine months ended September 30, 2023, respectively. The Company repaid the entire outstanding balance of approximately $585.1 million of its 2019 Class A-2-I Notes during the second quarter of fiscal year 2023 and wrote off the related remaining issuance costs of $1.7 million. As of September 30, 2024, unamortized debt issuance costs of $1.5 million are reported as a direct reduction of the 2019 Class A-2-II Notes in the Consolidated Balance Sheets.
Loss (Gain) on Extinguishment of Debt
The Company purchased $67.9 million of its 2019 Class A-2-I Notes under par and recognized a $1.7 million gain on extinguishment of debt during the nine months ended September 30, 2023.
In connection with the repayment of the 2019 Class A-2-I Notes, the Company recognized a loss on extinguishment of debt of $1.7 million, representing the remaining unamortized costs related to the 2019 Class A-2-I Notes, during the nine months ended September 30, 2023.
Maturities of Long-term Debt
•The final maturity of the 2019 Class A-2-II Notes is in June 2049, but it is anticipated that, unless repaid earlier, the 2019 Class A-2-II Notes will be repaid in June 2026.
•The final maturity of the 2023 Class A-2 Notes is in March 2053, but it is anticipated that, unless repaid earlier, to the extent permitted under the Indenture, the 2023 Class A-2 Notes will be repaid in June 2029.
•The renewal date of the Credit Facility is June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions.
•Quarterly principal payments on the 2019 Class A-2-II Notes totaling $1.5 million ($6.0 million per annum) are required if the Company's leverage ratio is greater than 5.25x.
•Quarterly principal payments on the 2023 Class A-2 Notes totaling $1.25 million ($5.0 million per annum) are required if the Company's leverage ratio is greater than 5.25x.
v3.24.3
Stockholders' Deficit
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Stockholders' Deficit Stockholders' Deficit
Dividends
Dividends declared and paid per share for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Dividends declared per common share$0.51 $0.51 $1.53 $1.53 
Dividends paid per common share$0.51 $1.02 $1.53 $2.04 
During the nine months ended September 30, 2024 and 2023, the Company paid dividends of $23.5 million and $31.7 million, respectively.
On September 5, 2024, the Board of Directors declared a third quarter 2024 cash dividend of $0.51 per share of common stock, paid on October 8, 2024 to the stockholders of record as of the close of business on September 20, 2024.
On May 14, 2024, the Board of Directors declared a second quarter 2024 cash dividend of $0.51 per share of common stock, paid on July 5, 2024 to the stockholders of record as of the close of business on June 20, 2024.
On February 26, 2024, the Board of Directors declared a first quarter 2024 cash dividend of $0.51 per share of common stock, paid on April 5, 2024 to the stockholders of record as of the close of business on March 20, 2024.
On November 30, 2023, the Board of Directors declared a fourth quarter 2023 cash dividend of $0.51 per share of common stock, paid on January 5, 2024 to the stockholders of record as of the close of business on December 20, 2023.
Stock Repurchase Program
In February 2022, the Company’s Board of Directors approved a stock repurchase program, effective April 1, 2022, authorizing the Company to repurchase up to $250 million of the Company’s common stock (the “2022 Repurchase Program”) on an opportunistic basis from time to time in the open market or in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The 2022 Repurchase Program, as approved by the Board of Directors, does not require the repurchase of a specific number of shares and can be terminated at any time.
During the nine months ended September 30, 2024, the Company repurchased 269,621 shares of common stock at a cost of $12.0 million. Cumulatively, the Company repurchased 1,865,399 shares at a cost of $116.7 million. As of September 30, 2024, a remaining amount of $133.3 million in the value of shares may be repurchased under the 2022 Repurchase Program.
Treasury Stock
Repurchases of the Company's common stock are included in treasury stock at the cost of shares repurchased plus any transaction costs. Treasury stock may be re-issued when stock options are exercised, when restricted stock awards are granted and when restricted stock units settle in stock upon vesting. The cost of treasury stock re-issued is determined using the first-in, first-out (“FIFO”) method. During the nine months ended September 30, 2024, the Company re-issued 280,953 shares of treasury stock at a total FIFO cost of $13.6 million.
v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's effective tax rate was 26.9% for the nine months ended September 30, 2024, as compared to 25.0% for the nine months ended September 30, 2023. The effective tax rate for the nine months ended September 30, 2024 was higher than the rate of the prior comparable period primarily due to a lower tax deduction related to stock-based compensation.
The total gross unrecognized tax benefit as of September 30, 2024 and December 31, 2023 was $2.6 million and $3.5 million, respectively, excluding interest, penalties and related income tax benefits. The Company estimates the unrecognized tax benefit as of September 30, 2024 may decrease over the upcoming 12 months by $0.1 million related to settlements with taxing authorities and statute of limitations expirations. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonable estimate as to when cash settlement with a taxing authority will occur.    
As of September 30, 2024, the accrued interest was $0.8 million, excluding any related income tax benefits. As of December 31, 2023, the accrued interest was $0.9 million, excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income.
The Company files federal income tax returns and the Company or one of its subsidiaries file income tax returns in various state and international jurisdictions. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2020 and state or non-United States tax examinations by tax authorities for years before 2019. The Company believes that adequate reserves have been provided relating to all matters contained in the tax periods open to examination.
v3.24.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Equity classified awards expense$3.8 $2.9 $12.7 $8.2 
Liability classified awards (credit) expense0.1 0.2 0.2 (0.4)
Total stock-based compensation expense$4.0 $3.1 $12.9 $7.8 
As of September 30, 2024, total unrecognized compensation expense of $19.1 million related to restricted stock and restricted stock units and $3.4 million related to stock options is expected to be recognized over a weighted average period of 1.4 years for restricted stock and restricted stock units and 1.5 years for stock options.
Fair Value Assumptions
The following table summarizes the assumptions used in the Black-Scholes model for stock options granted during the nine months ended September 30, 2024:
Risk-free interest rate4.3 %
Historical volatility70.2 %
Dividend yield4.2 %
Expected years until exercise4.5
Fair value of options granted$22.26
Equity Classified Awards - Stock Options
Stock option balances at September 30, 2024, and activity for the nine months ended September 30, 2024 were as follows:
 Number of Shares Under OptionWeighted
Average
Exercise
Price Per Share		Weighted Average
Remaining
Contractual Term
(in Years)		Aggregate
Intrinsic
Value (in Millions)
Outstanding at December 31, 2023
462,506 $77.59   
Granted133,729 49.06   
Exercised— —   
Expired(46,486)87.12 
Forfeited(2,316)56.54   
Outstanding at September 30, 2024
547,433 69.90 6.3$— 
Vested and Expected to Vest at September 30, 2024
523,502 70.55 6.2$— 
Exercisable at September 30, 2024
349,411 $76.95 4.8$— 
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the third quarter of 2024 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2024. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options.
Equity Classified Awards - Restricted Stock and Restricted Stock Units
Outstanding balances as of September 30, 2024, and activity related to restricted stock and restricted stock units for the nine months ended September 30, 2024 were as follows:
 Shares of Restricted
Stock		Weighted
Average
Grant Date
Fair Value		Stock-Settled Restricted
Stock Units		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023338,622 $73.33 58,475 $54.07 
Granted280,953 48.91 31,402 49.06 
Released(147,378)74.84 (18,115)73.97 
Forfeited(45,300)60.13 (18)74.94 
Outstanding at September 30, 2024426,897 $58.14 71,744 $46.84 
Liability Classified Awards - Long-Term Incentive Awards
The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three-year period and are determined using multipliers from 0% to 200% of the target award based on the total stockholder return of Dine Brands Global common stock compared to the total stockholder returns of a peer group of companies. The awards are considered stock-based compensation and are classified as liabilities measured at fair value as of the respective period end. For the three months ended September 30, 2024 and 2023, an expense of $0.1 million and $0.2 million, respectively, were included in total stock-based compensation expense related to LTIP awards. For the nine months ended September 30, 2024 and 2023, an expense of $0.2 million and a credit of $0.4 million, respectively, were included in total stock-based compensation expense related to LTIP awards. At September 30, 2024 and December 31, 2023, liabilities of $0.9 million and $0.7 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits and other non-current liabilities in the Consolidated Balance Sheets.
v3.24.3
Net Income per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Income per Share Net Income per Share
The computation of the Company's basic and diluted net income per share is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In thousands, except per share data)
Numerator for basic and diluted income per common share:  
Net income$19,061 $18,479 $59,716 $64,137 
Less: Net income allocated to unvested participating restricted stock(553)(431)(1,760)(1,551)
Net income available to common stockholders - basic18,508 18,048 57,956 62,586 
Effect of unvested participating restricted stock in two-class calculation— 1 1 — 
Net income available to common stockholders - diluted$18,508 $18,049 $57,957 $62,586 
Denominator:  
Weighted average outstanding shares of common stock - basic14,897 15,217 14,940 15,275 
Dilutive effect of stock options— 3 — 14 
Weighted average outstanding shares of common stock - diluted14,897 15,220 14,940 15,289 
Net income per common share:  
Basic$1.24 $1.19 $3.88 $4.10 
Diluted$1.24 $1.19 $3.88 $4.09 
v3.24.3
Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segments Segments
The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company currently has six operating segments: Applebee's franchise operations, IHOP franchise operations, Fuzzy's franchise operations, rental operations, financing operations, and company-operated restaurant operations. The Company has four reporting segments: franchise operations (an aggregation of each restaurant concept's franchise operations), company-operated restaurant operations, rental operations and financing operations.
 As of September 30, 2024, the franchise operations segment consisted of 1,618 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 14 countries outside the United States; 1,809 restaurants operated by IHOP franchisees and area licensees in the United States, two U.S. territories and 14 countries outside the United States; and 118 restaurants operated by Fuzzy's franchisees in the United States. Franchise operations revenue consists primarily of franchise royalty revenues, franchise advertising revenue, sales of proprietary products to franchisees, and other franchise fees. Franchise operations expenses include advertising expense, the cost of proprietary products, pre-opening training expenses and other franchise-related costs.
Rental operations revenue includes revenue from operating leases and interest income from real estate leases. Rental operations expenses are costs of operating leases and interest expense from finance leases on which the Company is the lessee. 
Financing operations revenue primarily consists of interest income from the financing of IHOP equipment leases and franchise fees and interest income on notes receivable due from franchisees. Financing operations expenses primarily are the cost of taxes related to IHOP equipment leases.
In December 2022, three company-operated Fuzzy's restaurants were acquired, of which two were subsequently refranchised in the second quarter of 2023. As of September 30, 2024, the company restaurants segment consisted of one company-operated Fuzzy's restaurant located in the United States. Company-operated restaurant operation revenue consists of retail sales at company-operated restaurants. Company-operated restaurant operation expenses are operating expenses such as food, beverage, labor, benefits, utilities, rent and other operating costs.
Information on segments is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In millions)
Revenues from external customers:  
Franchise operations$166.4 $172.5 $518.7 $530.4 
Rental operations28.0 29.1 86.5 90.5 
Company restaurants0.3 0.3 0.8 1.8 
Financing operations0.4 0.6 1.4 2.0 
Total revenues from external customers$195.0 $202.6 $607.5 $624.8 
Interest expense:  
Rental operations$1.0 $0.9 $3.1 $2.9 
Company restaurants— — — — 
Corporate18.4 19.1 54.3 51.5 
Total interest expense$19.4 $20.0 $57.4 $54.4 
Depreciation and amortization:  
Franchise operations$2.4 $2.4 $7.1 $7.3 
Rental operations2.5 2.6 7.7 7.8 
Company restaurants0.0 0.0 0.1 0.0 
Corporate4.7 3.6 14.2 11.1 
Total depreciation and amortization$9.6 $8.6 $29.0 $26.2 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In millions)
Gross profit by segment:  
Franchise operations$86.6 $89.4 $267.6 $271.6 
Rental operations6.4 7.4 21.3 24.9 
Company restaurants0.0 0.0 (0.1)0.0 
Financing operations0.3 0.5 1.2 1.7 
Total gross profit93.3 97.3 290.0 298.3 
Corporate and unallocated expenses, net(66.9)(72.4)(208.3)(212.7)
Income before income taxes$26.5 $24.9 $81.7 $85.6 
v3.24.3
Closure and Impairment Charges
 9 Months Ended
Sep. 30, 2024
Restructuring Charges [Abstract]  
Closure and Impairment Charges Closure and Impairment Charges
Closure and impairment charges for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Closure charges$0.4 $0.3 $1.4 $1.1 
Long-lived tangible asset impairment— 1.5 — 2.0 
Total closure and impairment charges$0.4 $1.8 $1.4 $3.1 
The closure charges for the three and nine months ended September 30, 2024 were related to the establishment of or revisions to existing closure reserves, including accretion, primarily for 21 IHOP restaurants closed prior to December 31, 2023.
The closure charges for the three and nine months ended September 30, 2023 were related to revisions to existing closure reserves, including accretion, for approximately 30 IHOP restaurants.
The long-lived asset impairment for the three months ended September 30, 2023 related to the impairment of four IHOP master land and building leases. The long-lived asset impairment for the nine months ended September 30, 2023 primarily related to technology that was developed in connection with the IHOP Flip'd initiative that was stopped, and the impairment of four IHOP master land and building leases in the third quarter of 2023.
v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured on a recurring basis at fair value. The Company is not a party to any material derivative financial instruments. The Company does not have a material amount of non-financial assets or non-financial liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. The Company has not elected to use the fair value measurement option, as permitted under U.S. GAAP, for any assets or liabilities for which fair value measurement is not presently required.
The Company believes the fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts due to their short duration.
The fair values of the Company's long-term debt, excluding the Credit Facility, at September 30, 2024 and December 31, 2023 were as follows:
 September 30, 2024December 31, 2023
 (In millions)
Face Value$1,094.0 $1,094.0 
Fair Value$1,108.8 $1,085.8 
The fair values were determined based on Level 2 inputs, including information gathered from brokers who trade in the Company’s long-term debt, as well as information on notes that are similar to those of the Company.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Litigation, Claims and Disputes
The Company is subject to various lawsuits, administrative proceedings, audits and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages. The Company is required under U.S. GAAP to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of the Company's litigation are expensed as such fees and expenses are incurred. Management regularly assesses the Company's insurance coverage, analyzes litigation information with the Company's attorneys and evaluates the Company's loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which it is currently a party will ultimately have a material adverse impact on the Company, there can be no assurance that the Company will prevail in all the proceedings the Company is party to, or that the Company will not incur material losses from them.
Lease Guarantees
In connection with the refranchising of Applebee’s restaurants to franchisees, the Company has, in certain cases, guaranteed or has potential continuing liability for lease payments totaling $367.6 million as of September 30, 2024. This amount represents the maximum potential liability for future payments under these leases. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from 2024 through 2058. Excluding unexercised option periods, the Company's potential liability for future payments under these leases is $91.6 million. In the event of default, the indemnity and default clauses in the sale or assignment agreements govern the Company's ability to pursue and recover damages incurred.
v3.24.3
Cash, Cash Equivalents and Restricted Cash
 9 Months Ended
Sep. 30, 2024
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted Cash
Cash and Cash Equivalents
The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. These cash equivalents are stated at cost which approximates market value. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds.
The components of cash and cash equivalents were as follows:

September 30, 2024December 31, 2023
 (In millions)
Money market funds$19.0 $42.0 
IHOP advertising funds and gift card programs64.0 82.8 
Other depository accounts86.6 21.2 
Total cash and cash equivalents$169.6 $146.0 
Current Restricted Cash
Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities.
The components of current restricted cash were as follows:

September 30, 2024December 31, 2023
 (In millions)
Securitized debt reserves$40.9 $31.2 
Applebee's advertising funds4.2 2.0 
Other 0.9 1.9 
Total current restricted cash$46.0 $35.1 
Non-current Restricted Cash
Non-current restricted cash was $19.5 million at September 30, 2024 and December 31, 2023 and represents interest reserves required to be set aside for the duration of the Company's securitized debt.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure        
Net income $ 19,061 $ 18,479 $ 59,716 $ 64,137
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Basis of Presentation (Policies)
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fiscal Period The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2024 began on January 1, 2024 and ended on March 31, 2024, the second fiscal quarter of 2024 ended on June 30, 2024, and the third fiscal quarter of 2024 ended on September 29, 2024. The first fiscal quarter of 2023 began on January 2, 2023 and ended on April 2, 2023, the second fiscal quarter of 2023 ended on July 2, 2023, and the third fiscal quarter of 2023 ended on October 1, 2023.
Accounting Standards Adopted in the Current Fiscal Year and Newly Issued Accounting Standards Not Yet Adopted
Accounting Standards Adopted in the Current Fiscal Year
Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2024 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years.
Newly Issued Accounting Standards Not Yet Adopted
In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure," which updates reportable segment disclosure requirements. The ASU primarily requires enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profit or loss used to assess segment performance. All annual disclosures of a reportable segment’s profit or loss and assets required by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, will be required to be disclosed in interim periods. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU in the Company's disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early
adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of adopting this ASU in the Company's disclosures.
The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.
v3.24.3
Revenues (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates franchise revenues by major type for the three and nine months ended September 30, 2024 and 2023:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Franchise Revenues:  
Royalties$76.2 $79.4 $236.9 $245.6 
Advertising revenues69.8 73.4 219.6 226.4 
Proprietary product sales and other18.3 17.6 55.2 52.0 
Franchise and development fees2.1 2.1 7.0 6.4 
Total franchise revenues$166.4 $172.5 $518.7 $530.4 
Schedule of Changes in Deferred Revenue
Changes in the Company's contract liability for deferred franchise and development fees during the nine months ended September 30, 2024 were as follows:
 Deferred Franchise Revenue
(short- and long-term)
(In millions)
Balance at December 31, 2023
$45.3 
Recognized as revenue during the nine months ended September 30, 2024
(6.8)
Fees deferred during the nine months ended September 30, 2024
5.4 
Balance at September 30, 2024
$43.9 
Schedule of Remaining Performance Obligations
The balance of deferred revenue as of September 30, 2024 is expected to be recognized as follows:
(In millions)
2024 (remaining three months)
$1.6 
20256.0 
20265.2 
20274.3 
20283.4 
Thereafter23.4 
Total$43.9 
v3.24.3
Current Expected Credit Losses ("CECL") (Tables)
 9 Months Ended
Sep. 30, 2024
Credit Loss [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
September 30, 2024December 31, 2023
(In millions)
Accounts receivable$70.2 $73.3 
Gift card receivable6.2 33.6 
Notes receivable9.0 15.0 
Financing receivable:
Equipment leases receivable14.8 19.7 
Real estate leases receivable18.7 18.4 
Other receivables
1.7 13.0 
120.6 173.0 
Less: allowance for credit losses and notes receivable(3.6)(9.5)
116.9 163.5 
Less: current portion(83.4)(127.9)
Long-term receivables$33.5 $35.6 
Schedule of Changes in Allowance for Credit Losses
Changes in the allowance for credit losses during the nine months ended September 30, 2024 were as follows:
Accounts ReceivableNotes Receivable, short-termNotes Receivable, long-termReal estate leases receivableEquipment leases receivable
Other (1)
Total
 (In millions)
Balance, December 31, 2023
$2.7 $1.8 $4.7 $0.1 $0.2 $0.0 $9.5 
Bad debt expense (credit)0.9 (0.9)(0.5)0.0 0.1 — (0.4)
Advertising provision adjustment(0.0)— — — — — 0.0 
Write-offs(0.9)(0.6)(3.8)— (0.2)— (5.5)
Balance, September 30, 2024
$2.7 $0.3 $0.4 $0.1 $0.1 $0.0 $3.6 
(1) Primarily gift card receivable and credit card receivable.
Schedule of Financing Receivable Credit Quality Indicators
The year of origination of the Company's financing receivables at September 30, 2024 is as follows:
 
Notes Receivable, short and long-termReal estate leases receivableEquipment leases receivableTotal
 (In millions)
2024$2.7 $1.9 $0.3 $4.9 
20235.2 3.4 0.7 9.3 
20220.6 7.8 — 8.4 
20210.4 2.2 — 2.6 
20200.1 1.2 — 1.3 
Prior— 2.2 13.8 16.0 
Total$9.0 $18.7 $14.8 $42.5 
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Schedule of Lease Cost
The Company's lease (income) cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.6 $2.0 $1.9 
Interest on lease liabilities
0.7 0.7 2.2 2.1 
Operating lease cost
18.3 18.5 54.8 56.7 
Variable lease cost1.9 1.8 5.9 5.9 
Short-term lease cost0.0 0.0 0.0 0.0 
Sublease income(25.8)(26.8)(79.7)(83.3)
Lease income$(4.2)$(5.2)$(14.8)$(16.7)
Schedule of Operating Lease Liability Future Maturity
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
Schedule of Finance Lease Liability Future Maturity
Future minimum lease payments under noncancellable leases as lessee as of September 30, 2024 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2024 (remaining three months)
$2.0 $20.7 
20257.9 77.7 
20267.6 71.9 
20276.5 53.3 
20284.8 38.9 
Thereafter26.0 153.3 
Total minimum lease payments54.8 415.8 
Less: interest/imputed interest(13.8)(83.4)
Total obligations41.0 332.4 
Less: current portion(5.3)(61.2)
Long-term lease obligations$35.7 $271.2 
Schedule of Lease Payments
During the three and nine months ended September 30, 2024 and 2023, the Company made the following cash payments for leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Principal payments on finance lease obligations$1.3 $1.7 $4.4 $5.3 
Interest payments on finance lease obligations0.7 0.7 2.2 2.1 
Payments on operating leases20.8 20.1 62.6 61.3 
Variable lease payments1.9 1.9 6.0 6.0 
Schedule of Operating Lease Income
The Company's income from operating leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)
Minimum lease payments$23.7 $24.6 $72.3 $76.3 
Variable lease income3.9 4.1 12.9 13.0 
Total operating lease income$27.6 $28.7 $85.2 $89.3 
Schedule of Future Minimum Payments as a Lessor Under Operating Leases
Future minimum payments to be received as lessor under noncancellable operating leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$25.4 
202593.6 
202680.4 
202763.4 
202847.1 
Thereafter170.1 
Total minimum rents receivable$480.0 
Schedule of Direct Finance Lease Income
The Company's income from real estate leases for the three and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Interest income$0.3 $0.3 $0.9 $0.8 
Variable lease income0.1 0.1 0.2 0.3 
Selling profit
— 0.0 0.2 0.0 
Total real estate lease income$0.4 $0.4 $1.3 $1.1 
Schedule of Future Minimum Payments as a Lessor Under Direct Financing Leases
Future minimum payments to be received as lessor under noncancellable real estate leases as of September 30, 2024 were as follows:
 (In millions)
2024 (remaining three months)
$0.7 
20252.5 
20262.5 
20272.5 
20282.5 
Thereafter15.4 
Total minimum rents receivable26.1 
Less: unearned income(7.5)
Total real estate leases receivable
18.6 
Less: current portion(1.4)
Long-term real estate leases receivable
$17.2 
v3.24.3
Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
At September 30, 2024 and December 31, 2023, long-term debt consisted of the following components:
September 30, 2024December 31, 2023
 (In millions)
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II
$594.0 $594.0 
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively
100.0 100.0 
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2
500.0 500.0 
Unamortized debt issuance costs
(8.0)(9.5)
Long-term debt, net of debt issuance costs1,186.0 1,184.5 
Less: current portion of long-term debt(100.0)(100.0)
Long-term debt$1,086.0 $1,084.5 
v3.24.3
Stockholders' Deficit (Tables)
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Schedule of Dividends Declared Dividends declared and paid per share for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Dividends declared per common share$0.51 $0.51 $1.53 $1.53 
Dividends paid per common share$0.51 $1.02 $1.53 $2.04 
v3.24.3
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Components of the Company’s Stock-Based Compensation Expense
The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Equity classified awards expense$3.8 $2.9 $12.7 $8.2 
Liability classified awards (credit) expense0.1 0.2 0.2 (0.4)
Total stock-based compensation expense$4.0 $3.1 $12.9 $7.8 
Schedule of Stock Option Valuation Assumptions
The following table summarizes the assumptions used in the Black-Scholes model for stock options granted during the nine months ended September 30, 2024:
Risk-free interest rate4.3 %
Historical volatility70.2 %
Dividend yield4.2 %
Expected years until exercise4.5
Fair value of options granted$22.26
Schedule of Stock Option Activity Stock option balances at September 30, 2024, and activity for the nine months ended September 30, 2024 were as follows:
 Number of Shares Under OptionWeighted
Average
Exercise
Price Per Share		Weighted Average
Remaining
Contractual Term
(in Years)		Aggregate
Intrinsic
Value (in Millions)
Outstanding at December 31, 2023
462,506 $77.59   
Granted133,729 49.06   
Exercised— —   
Expired(46,486)87.12 
Forfeited(2,316)56.54   
Outstanding at September 30, 2024
547,433 69.90 6.3$— 
Vested and Expected to Vest at September 30, 2024
523,502 70.55 6.2$— 
Exercisable at September 30, 2024
349,411 $76.95 4.8$— 
Schedule of Restricted Stock Unit Activity
Outstanding balances as of September 30, 2024, and activity related to restricted stock and restricted stock units for the nine months ended September 30, 2024 were as follows:
 Shares of Restricted
Stock		Weighted
Average
Grant Date
Fair Value		Stock-Settled Restricted
Stock Units		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2023338,622 $73.33 58,475 $54.07 
Granted280,953 48.91 31,402 49.06 
Released(147,378)74.84 (18,115)73.97 
Forfeited(45,300)60.13 (18)74.94 
Outstanding at September 30, 2024426,897 $58.14 71,744 $46.84 
v3.24.3
Net Income per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of the Company’s Basic and Diluted Net Income per Share
The computation of the Company's basic and diluted net income per share is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In thousands, except per share data)
Numerator for basic and diluted income per common share:  
Net income$19,061 $18,479 $59,716 $64,137 
Less: Net income allocated to unvested participating restricted stock(553)(431)(1,760)(1,551)
Net income available to common stockholders - basic18,508 18,048 57,956 62,586 
Effect of unvested participating restricted stock in two-class calculation— 1 1 — 
Net income available to common stockholders - diluted$18,508 $18,049 $57,957 $62,586 
Denominator:  
Weighted average outstanding shares of common stock - basic14,897 15,217 14,940 15,275 
Dilutive effect of stock options— 3 — 14 
Weighted average outstanding shares of common stock - diluted14,897 15,220 14,940 15,289 
Net income per common share:  
Basic$1.24 $1.19 $3.88 $4.10 
Diluted$1.24 $1.19 $3.88 $4.09 
v3.24.3
Segments (Tables)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Segment
Information on segments is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In millions)
Revenues from external customers:  
Franchise operations$166.4 $172.5 $518.7 $530.4 
Rental operations28.0 29.1 86.5 90.5 
Company restaurants0.3 0.3 0.8 1.8 
Financing operations0.4 0.6 1.4 2.0 
Total revenues from external customers$195.0 $202.6 $607.5 $624.8 
Interest expense:  
Rental operations$1.0 $0.9 $3.1 $2.9 
Company restaurants— — — — 
Corporate18.4 19.1 54.3 51.5 
Total interest expense$19.4 $20.0 $57.4 $54.4 
Depreciation and amortization:  
Franchise operations$2.4 $2.4 $7.1 $7.3 
Rental operations2.5 2.6 7.7 7.8 
Company restaurants0.0 0.0 0.1 0.0 
Corporate4.7 3.6 14.2 11.1 
Total depreciation and amortization$9.6 $8.6 $29.0 $26.2 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In millions)
Gross profit by segment:  
Franchise operations$86.6 $89.4 $267.6 $271.6 
Rental operations6.4 7.4 21.3 24.9 
Company restaurants0.0 0.0 (0.1)0.0 
Financing operations0.3 0.5 1.2 1.7 
Total gross profit93.3 97.3 290.0 298.3 
Corporate and unallocated expenses, net(66.9)(72.4)(208.3)(212.7)
Income before income taxes$26.5 $24.9 $81.7 $85.6 
v3.24.3
Closure and Impairment Charges (Tables)
 9 Months Ended
Sep. 30, 2024
Restructuring Charges [Abstract]  
Schedule of Impairment and Closure Charges
Closure and impairment charges for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (In millions)
Closure charges$0.4 $0.3 $1.4 $1.1 
Long-lived tangible asset impairment— 1.5 — 2.0 
Total closure and impairment charges$0.4 $1.8 $1.4 $3.1 
v3.24.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Non-Current Financial Liabilities
The fair values of the Company's long-term debt, excluding the Credit Facility, at September 30, 2024 and December 31, 2023 were as follows:
 September 30, 2024December 31, 2023
 (In millions)
Face Value$1,094.0 $1,094.0 
Fair Value$1,108.8 $1,085.8 
v3.24.3
Cash, Cash Equivalents and Restricted Cash (Tables)
 9 Months Ended
Sep. 30, 2024
Cash and Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents The components of cash and cash equivalents were as follows:

September 30, 2024December 31, 2023
 (In millions)
Money market funds$19.0 $42.0 
IHOP advertising funds and gift card programs64.0 82.8 
Other depository accounts86.6 21.2 
Total cash and cash equivalents$169.6 $146.0 
Schedule of Restrictions on Cash and Cash Equivalents The components of current restricted cash were as follows:

September 30, 2024December 31, 2023
 (In millions)
Securitized debt reserves$40.9 $31.2 
Applebee's advertising funds4.2 2.0 
Other 0.9 1.9 
Total current restricted cash$46.0 $35.1 
v3.24.3
Revenues - Disaggregation of Franchise Revenue by Major Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Franchise Revenues:        
Disaggregation of Revenue [Line Items]        
Total franchise revenues $ 166,354 $ 172,520 $ 518,729 $ 530,399
Royalties        
Disaggregation of Revenue [Line Items]        
Total franchise revenues 76,200 79,400 236,900 245,600
Advertising revenues        
Disaggregation of Revenue [Line Items]        
Total franchise revenues 69,800 73,400 219,600 226,400
Proprietary product sales and other        
Disaggregation of Revenue [Line Items]        
Total franchise revenues 18,300 17,600 55,200 52,000
Franchise and development fees        
Disaggregation of Revenue [Line Items]        
Total franchise revenues $ 2,100 $ 2,100 $ 7,000 $ 6,400
v3.24.3
Revenues - Changes in the Company's Contract Liability for Deferred Franchise and Development Fees (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Deferred Franchise Revenue (short- and long-term)  
Balance at December 31, 2023 $ 45.3
Recognized as revenue during the nine months ended September 30, 2024 (6.8)
Fees deferred during the nine months ended September 30, 2024 5.4
Balance at September 30, 2024 $ 43.9
v3.24.3
Revenues - Deferred Revenue Expected to be Recognized (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 43.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 1.6
Performance obligations expected to be satisfied, expected timing 3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 6.0
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 5.2
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 4.3
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 3.4
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 23.4
Performance obligations expected to be satisfied, expected timing
v3.24.3
Current Expected Credit Losses ("CECL") - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
lease
Financing Receivable, Allowance for Credit Loss [Line Items]  
Write-offs $ 5.5
Operating lease, weighted average remaining lease term (in years) 6 years
Finance lease, weighted average remaining lease term (in years) 5 years 7 months 6 days
Notes Receivable  
Financing Receivable, Allowance for Credit Loss [Line Items]  
Accounts and financing receivable, allowance for credit loss $ 0.7
Notes Receivable | Applebee's  
Financing Receivable, Allowance for Credit Loss [Line Items]  
Write-offs 4.4
Equipment leases receivable  
Financing Receivable, Allowance for Credit Loss [Line Items]  
Write-offs $ 0.2
Operating lease, weighted average remaining lease term (in years) 2 years 8 months 12 days
Real estate leases receivable  
Financing Receivable, Allowance for Credit Loss [Line Items]  
Write-offs $ 0.0
Number of properties subject to ground leases | lease 17
Finance lease, weighted average remaining lease term (in years) 10 years 8 months 12 days
v3.24.3
Current Expected Credit Losses ("CECL") - Components of Receivables (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable $ 70,200 $ 73,300
Gift card receivable 6,200 33,600
Notes receivable 9,000 15,000
Receivables, gross 120,600 173,000
Less: allowance for credit losses and notes receivable (3,600) (9,500)
Receivables, net 116,900 163,500
Less: current portion (83,414) (127,937)
Long-term receivables 33,500 35,600
Equipment leases receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivables 14,800 19,700
Real estate leases receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivables 18,700 18,400
Other receivables    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivables $ 1,700 $ 13,000
v3.24.3
Current Expected Credit Losses ("CECL") - Changes in the Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     $ 9,500  
Bad debt expense (credit) $ 151 $ (51) (395) $ 2,593
Advertising provision adjustment     0  
Write-offs     (5,500)  
Ending balance 3,600   3,600  
Accounts Receivable        
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     2,700  
Bad debt expense (credit)     900  
Advertising provision adjustment     0  
Write-offs     (900)  
Ending balance 2,700   2,700  
Notes Receivable, short-term        
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     1,800  
Bad debt expense (credit)     (900)  
Advertising provision adjustment     0  
Write-offs     (600)  
Ending balance 300   300  
Notes Receivable, long-term        
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     4,700  
Bad debt expense (credit)     (500)  
Advertising provision adjustment     0  
Write-offs     (3,800)  
Ending balance 400   400  
Real estate leases receivable        
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     100  
Bad debt expense (credit)     0  
Advertising provision adjustment     0  
Write-offs     0  
Ending balance 100   100  
Equipment leases receivable        
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     200  
Bad debt expense (credit)     100  
Advertising provision adjustment     0  
Write-offs     (200)  
Ending balance 100   100  
Other        
Financing Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance     0  
Bad debt expense (credit)     0  
Advertising provision adjustment     0  
Write-offs     0  
Ending balance $ 0   $ 0  
v3.24.3
Current Expected Credit Losses ("CECL") - Year of Origination of Financing Receivables (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Total  
Financing Receivable, Credit Quality Indicator [Line Items]  
2024 $ 4.9
2023 9.3
2022 8.4
2021 2.6
2020 1.3
Prior 16.0
Total 42.5
Notes Receivable, short and long-term  
Financing Receivable, Credit Quality Indicator [Line Items]  
2024 2.7
2023 5.2
2022 0.6
2021 0.4
2020 0.1
Prior 0.0
Total 9.0
Real estate leases receivable  
Financing Receivable, Credit Quality Indicator [Line Items]  
2024 1.9
2023 3.4
2022 7.8
2021 2.2
2020 1.2
Prior 2.2
Total 18.7
Equipment leases receivable  
Financing Receivable, Credit Quality Indicator [Line Items]  
2024 0.3
2023 0.7
2022 0.0
2021 0.0
2020 0.0
Prior 13.8
Total $ 14.8
v3.24.3
Leases - Narrative (Details)
Sep. 30, 2024
restaurant
lease
Lessee, Lease, Description [Line Items]  
Lessor, number of leases requiring additional rent payments based on a percentage of restaurant sales | lease 295
Lessee, number of leases requiring additional rent payments based on a percentage of restaurant sales | lease 45
Finance lease, weighted average remaining lease term (in years) 5 years 7 months 6 days
Operating lease, weighted average remaining lease term (in years) 6 years
Finance lease, weighted average discount rate (in percent) 9.20%
Operating lease, weighted average discount rate (in percent) 5.90%
IHOP  
Lessee, Lease, Description [Line Items]  
Number of franchisee-operated restaurants 504
Number of properties leased 50
Lessee, operating lease, renewal term (in years) 5 years
IHOP | Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract (in years) 20 years
IHOP | Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract (in years) 25 years
Applebee's  
Lessee, Lease, Description [Line Items]  
Number of franchisee-operated restaurants 1
Number of properties leased 1
Applebee's | Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract (in years) 10 years
Lessee, operating lease, renewal term (in years) 5 years
Applebee's | Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract (in years) 20 years
Lessee, operating lease, renewal term (in years) 20 years
Fuzzy's  
Lessee, Lease, Description [Line Items]  
Number of company-operated restaurants 1
v3.24.3
Leases - Components of Lease Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Finance lease cost:        
Amortization of right-of-use assets $ 0.7 $ 0.6 $ 2.0 $ 1.9
Interest on lease liabilities 0.7 0.7 2.2 2.1
Operating lease cost 18.3 18.5 54.8 56.7
Variable lease cost 1.9 1.8 5.9 5.9
Short-term lease cost 0.0 0.0 0.0 0.0
Sublease income (25.8) (26.8) (79.7) (83.3)
Lease income $ (4.2) $ (5.2) $ (14.8) $ (16.7)
v3.24.3
Leases - Future Minimum Lease Payments Under Noncancelable Leases as Lessee (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Finance Leases  
2024 (remaining three months) $ 2.0
2025 7.9
2026 7.6
2027 6.5
2028 4.8
Thereafter 26.0
Total minimum lease payments 54.8
Less: interest/imputed interest (13.8)
Total obligations 41.0
Less: current portion $ (5.3)
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current maturities of finance lease and financing obligations
Long-term lease obligations $ 35.7
Operating Leases  
2024 (remaining three months) 20.7
2025 77.7
2026 71.9
2027 53.3
2028 38.9
Thereafter 153.3
Total minimum lease payments 415.8
Less: interest/imputed interest (83.4)
Total obligations 332.4
Less: current portion (61.2)
Long-term lease obligations $ 271.2
v3.24.3
Leases - Payment for Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]        
Principal payments on finance lease obligations $ 1,300 $ 1,700 $ 4,396 $ 5,329
Interest payments on finance lease obligations 700 700 2,200 2,100
Payments on operating leases 20,800 20,100 62,600 61,300
Variable lease payments $ 1,900 $ 1,900 $ 6,000 $ 6,000
v3.24.3
Leases - Components of Lease Income (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]        
Minimum lease payments $ 23.7 $ 24.6 $ 72.3 $ 76.3
Variable lease income 3.9 4.1 12.9 13.0
Total operating lease income $ 27.6 $ 28.7 $ 85.2 $ 89.3
Operating lease, lease income, statement of income or comprehensive income [extensible enumeration] Rental revenues Rental revenues Rental revenues Rental revenues
v3.24.3
Leases - Future Minimum Payments to be Received as Lessor Under Noncancelable Operating Leases (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Leases [Abstract]  
2024 (remaining three months) $ 25.4
2025 93.6
2026 80.4
2027 63.4
2028 47.1
Thereafter 170.1
Total minimum rents receivable $ 480.0
v3.24.3
Leases - Schedule of Income From Direct Financing Leases (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]        
Interest income $ 0.3 $ 0.3 $ 0.9 $ 0.8
Variable lease income 0.1 0.1 0.2 0.3
Selling profit 0.0 0.0 0.2 0.0
Total real estate lease income $ 0.4 $ 0.4 $ 1.3 $ 1.1
Direct financing lease, lease income, statement of income or comprehensive income [extensible enumeration] Rental revenues Rental revenues Rental revenues Rental revenues
v3.24.3
Leases - Future Minimum Payments to be Received as Lessor Under Noncancelable Direct Financing Leases (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Leases [Abstract]  
2024 (remaining three months) $ 0.7
2025 2.5
2026 2.5
2027 2.5
2028 2.5
Thereafter 15.4
Total minimum rents receivable 26.1
Less: unearned income (7.5)
Total real estate leases receivable 18.6
Less: current portion (1.4)
Long-term real estate leases receivable $ 17.2
v3.24.3
Long-Term Debt - Schedule of Debt Components (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Apr. 17, 2023
Jun. 05, 2019
Debt Instrument [Line Items]        
Unamortized debt issuance costs $ (8,000) $ (9,500)    
Long-term debt, net of debt issuance costs 1,186,000 1,184,500    
Less: current portion of long-term debt (100,000) (100,000)    
Long-term debt, net, less current maturities 1,086,026 1,084,502    
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II        
Debt Instrument [Line Items]        
Senior Notes $ 594,000 $ 594,000    
Debt interest rate (in percent) 4.723% 4.723%   4.723%
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively        
Debt Instrument [Line Items]        
Senior Notes $ 100,000 $ 100,000    
Debt interest rate (in percent) 7.82% 7.95%    
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2        
Debt Instrument [Line Items]        
Senior Notes $ 500,000 $ 500,000    
Debt interest rate (in percent) 7.824% 7.824% 7.824%  
v3.24.3
Long-Term Debt - Narrative (Details)
 1 Months Ended 3 Months Ended 9 Months Ended
Apr. 17, 2023
USD ($)
Aug. 31, 2022
USD ($)
renewalPeriod
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
Sep. 30, 2024
renewalPeriod
Sep. 30, 2024
Rate
Sep. 30, 2024
extensionTerm
Dec. 31, 2023
USD ($)
Feb. 16, 2023
USD ($)
Aug. 12, 2022
USD ($)
Jun. 05, 2019
USD ($)
tranche
Debt Instrument [Line Items]                              
Repayments of long-term debt           $ 0 $ 651,713,000                
Debt instrument, repurchase program, maximum amount                         $ 100,000,000    
Threshold percentage               50.00%              
Cash sweeping event | Rate                   175.00%          
Rapid amortization event | Rate                   120.00%          
Manager termination event | Rate                   120.00%          
Interest-only debt service coverage ratio, default event | Rate                   110.00%          
Debt service coverage ratio               3.5              
Gain (loss) on extinguishment of debt     $ 0 $ 0   0 (10,000)                
Unamortized debt issuance costs     8,000,000.0     8,000,000.0           $ 9,500,000      
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II and Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I                              
Debt Instrument [Line Items]                              
Number of tranches issued | tranche                             2
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I                              
Debt Instrument [Line Items]                              
Debt interest rate (in percent)                             4.194%
Debt instrument, face amount                             $ 700,000,000
Repayments of long-term debt $ 585,100,000                            
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II                              
Debt Instrument [Line Items]                              
Debt interest rate (in percent)               4.723%       4.723%     4.723%
Debt instrument, face amount                             $ 600,000,000
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively                              
Debt Instrument [Line Items]                              
Debt interest rate (in percent)               7.82%       7.95%      
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively | Revolving Credit Facility                              
Debt Instrument [Line Items]                              
Line of credit facility, maximum borrowing capacity   $ 325,000,000                       $ 325,000,000  
Number of renewal periods | renewalPeriod   2                          
Renewal period term (in years)   1 year                          
Interest rate after renewal date (in percent)   5.00%                          
Line of credit facility, amount outstanding     100,000,000     100,000,000                  
Letters of credit outstanding, amount     600,000     600,000                  
Line of credit facility, current borrowing capacity     224,400,000     $ 224,400,000                  
Number of additional extensions                 2   2        
Additional extension (in years)           1 year                  
Debt, weighted average interest rate (in percent)               7.93%              
Debt issuance costs, gross   $ 6,300,000                          
Amortization of debt issuance costs     300,000 300,000   $ 900,000 900,000                
Debt issuance costs, net     3,800,000     $ 3,800,000                  
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)                              
Debt Instrument [Line Items]                              
Basis spread on variable rate (in percent)   2.50%                          
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively | Letter of Credit | Secured Overnight Financing Rate (SOFR)                              
Debt Instrument [Line Items]                              
Basis spread on variable rate (in percent)   0.50%                          
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively | Letter of Credit | Federal Funds Rate                              
Debt Instrument [Line Items]                              
Basis spread on variable rate (in percent)   0.50%                          
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively | Letter of Credit | Base Rate                              
Debt Instrument [Line Items]                              
Basis spread on variable rate (in percent)   2.00%                          
Series 2022-1 Variable Funding Senior Secured Notes, Class A-1, variable interest rate of 7.82% and 7.95% at September 30, 2024 and December 31, 2023, respectively | Revolving Credit Facility                              
Debt Instrument [Line Items]                              
Line of credit facility, expired amount                           $ 225,000,000  
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2                              
Debt Instrument [Line Items]                              
Debt interest rate (in percent) 7.824%             7.824%       7.824%      
Debt instrument, face amount $ 500,000,000                            
Additional interest on fixed rate (in percent)           5.00%                  
Debt instrument, term (in years)           10 years                  
Quarterly principal payment           $ 1,250,000                  
Covenant compliance, leverage ratio, maximum | Rate                   525.00%          
Make-whole premium     37,800,000     37,800,000                  
Annual principal payment     5,000,000     $ 5,000,000                  
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2 | Ten Year United States Treasury Bill Rate                              
Debt Instrument [Line Items]                              
Additional interest on fixed rate (in percent)           9.24%                  
Series 2023-1 7.824% Fixed Rate Senior Secured Notes, Class A-2 | Revolving Credit Facility                              
Debt Instrument [Line Items]                              
Debt issuance costs, gross     8,000,000     $ 8,000,000                  
Amortization of debt issuance costs     300,000 300,000   800,000 500,000                
Debt issuance costs, net     6,500,000     $ 6,500,000                  
2019 Class A-2-I And 2019 Class A-2-II Notes                              
Debt Instrument [Line Items]                              
Repayments of long-term debt         $ 585,100,000                    
Additional interest on fixed rate (in percent)           5.00%                  
Debt instrument, term (in years)           10 years                  
Quarterly principal payment           $ 1,500,000                  
Covenant compliance, leverage ratio, maximum | Rate                   525.00%          
Ratio of indebtedness to net capital | Rate                   410.00%          
Debt issuance costs, gross     12,900,000     12,900,000                  
Amortization of debt issuance costs     200,000 $ 200,000   700,000 1,300,000                
Gain (loss) on extinguishment of debt         $ (1,700,000)                    
Unamortized debt issuance costs     1,500,000     1,500,000                  
Annual principal payment     $ 6,000,000     $ 6,000,000                  
2019 Class A-2-I And 2019 Class A-2-II Notes | Ten Year United States Treasury Bill Rate                              
Debt Instrument [Line Items]                              
Additional interest on fixed rate (in percent)           7.64%                  
Class A-2-I Notes | Revolving Credit Facility                              
Debt Instrument [Line Items]                              
Gain (loss) on extinguishment of debt $ (1,700,000)           1,700,000                
Extinguishment of debt             $ 67,900,000                
v3.24.3
Stockholders' Deficit - Dividends Declared and Paid per Share (Details) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Equity [Abstract]              
Dividends declared per common share (in dollars per share) $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 1.53 $ 1.53
Dividends paid per common share (in dollars per share) $ 0.51       $ 1.02 $ 1.53 $ 2.04
v3.24.3
Stockholders' Deficit - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended 32 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Feb. 28, 2022
Equity, Class of Treasury Stock [Line Items]                  
Dividends paid           $ 23,500,000 $ 31,700,000    
Dividends declared per common share (in dollars per share) $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 0.51 $ 1.53 $ 1.53    
Stock repurchased during period         $ 6,000,000 $ 12,000,000 $ 20,017,000    
Reissuance of treasury stock $ 0       $ 0 $ 0 $ 3,812,000    
Common Stock                  
Equity, Class of Treasury Stock [Line Items]                  
Repurchase of restricted shares for taxes (in shares)         105,864 269,621 318,356    
Reissuance of treasure stock (in shares) 760       8,901 280,953 279,861    
Reissuance of treasury stock           $ (1,000) $ (1,000)    
Treasury Stock                  
Equity, Class of Treasury Stock [Line Items]                  
Repurchase of restricted shares for taxes (in shares)         105,864 269,621 318,356    
Stock repurchased during period         $ 6,000,000 $ 12,000,000 $ 20,017,000    
Reissuance of treasure stock (in shares) 760       8,901 280,953 279,861    
Reissuance of treasury stock $ 36,000       $ 445,000 $ 13,627,000 $ 13,389,000    
2022 Repurchase Program                  
Equity, Class of Treasury Stock [Line Items]                  
Stock repurchase program, authorized amount                 $ 250,000,000
Repurchase of restricted shares for taxes (in shares)           269,621   1,865,399  
Stock repurchased during period           $ 12,000,000.0   $ 116,700,000  
Remaining dollar value of shares that may be repurchased $ 133,300,000         $ 133,300,000   $ 133,300,000  
v3.24.3
Income Taxes (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Effective income tax rate (in percent) 26.90% 25.00%  
Gross unrecognized tax benefit $ 2.6   $ 3.5
Expected change in unrecognized tax benefits 0.1    
Accrued interest on income taxes $ 0.8   $ 0.9
v3.24.3
Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Equity classified awards expense $ 3.8 $ 2.9 $ 12.7 $ 8.2
Liability classified awards (credit) expense 0.1 0.2 0.2 (0.4)
Total stock-based compensation expense $ 4.0 $ 3.1 $ 12.9 $ 7.8
v3.24.3
Stock-Based Compensation - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation expense $ 4,000 $ 3,100 $ 12,900 $ 7,800  
Accrued employee compensation and benefits 12,063   12,063   $ 23,211
Restricted Stock and Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total compensation cost not yet recognized 19,100   $ 19,100    
Total compensation cost not yet recognized, period for recognition (in years)     1 year 4 months 24 days    
Stock Options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total compensation cost not yet recognized 3,400   $ 3,400    
Total compensation cost not yet recognized, period for recognition (in years)     1 year 6 months    
LTIP          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period (in years)     3 years    
Share-based compensation expense 100 $ 200 $ 200 $ (400)  
Accrued employee compensation and benefits $ 900   $ 900   $ 700
LTIP | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Multiplier for target award based on total shareholder return on common stock (in percent)     0.00%    
LTIP | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Multiplier for target award based on total shareholder return on common stock (in percent)     200.00%    
v3.24.3
Stock-Based Compensation - Weighted Average Assumptions of Options Value (Details) - Stock Options
 9 Months Ended
Sep. 30, 2024
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Risk-free interest rate (in percent) 4.30%
Historical volatility (in percent) 70.20%
Dividend yield (in percent) 4.20%
Expected years until exercise (in years) 4 years 6 months
Fair value of options granted (in dollars per share) $ 22.26
v3.24.3
Stock-Based Compensation - Stock Option Activity (Details)
$ / shares in Units, $ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
$ / shares
shares
Number of Shares Under Option  
Outstanding, beginning of period (in shares) | shares 462,506
Granted (in shares) | shares 133,729
Exercised (in shares) | shares 0
Expired (in shares) | shares (46,486)
Forfeited (in shares) | shares (2,316)
Outstanding, end of period (in shares) | shares 547,433
Vested and Expected to Vest (in shares) | shares 523,502
Exercisable (in shares) | shares 349,411
Weighted Average Exercise Price Per Share  
Beginning of period (in dollars per share) | $ / shares $ 77.59
Granted (in dollars per share) | $ / shares 49.06
Exercised (in dollars per share) | $ / shares 0
Expired (in dollars per share) | $ / shares 87.12
Forfeited (in dollars per share) | $ / shares 56.54
End of period (in dollars per share) | $ / shares 69.90
Vested and expected to vest (in dollars per share) | $ / shares 70.55
Exercisable (in dollars per share) | $ / shares $ 76.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]  
Weighted Average Remaining Contractual Term (in years) 6 years 3 months 18 days
Weighted Average Remaining Contractual Term, Vested and Expected to Vest (in years) 6 years 2 months 12 days
Weighted Average Remaining Contractual Term, Exercisable (in years) 4 years 9 months 18 days
Aggregate Intrinsic Value, Outstanding | $ $ 0.0
Aggregate Intrinsic Value, Vested and Expected to Vest | $ 0.0
Aggregate Intrinsic Value, Exercisable | $ $ 0.0
v3.24.3
Stock-Based Compensation - Restricted Stock Activity (Details)
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Shares of Restricted Stock  
Shares of Restricted Stock  
Beginning of period (in shares) | shares 338,622
Granted (in shares) | shares 280,953
Released (in shares) | shares (147,378)
Forfeited (in shares) | shares (45,300)
End of period (in shares) | shares 426,897
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 73.33
Granted (in dollars per share) | $ / shares 48.91
Released (in dollars per share) | $ / shares 74.84
Forfeited (in dollars per share) | $ / shares 60.13
Ending balance (in dollars per share) | $ / shares $ 58.14
Stock-Settled Restricted Stock Units  
Shares of Restricted Stock  
Beginning of period (in shares) | shares 58,475
Granted (in shares) | shares 31,402
Released (in shares) | shares (18,115)
Forfeited (in shares) | shares (18)
End of period (in shares) | shares 71,744
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 54.07
Granted (in dollars per share) | $ / shares 49.06
Released (in dollars per share) | $ / shares 73.97
Forfeited (in dollars per share) | $ / shares 74.94
Ending balance (in dollars per share) | $ / shares $ 46.84
v3.24.3
Net Income per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Numerator for basic and diluted income per common share:        
Net income $ 19,061 $ 18,479 $ 59,716 $ 64,137
Less: Net income allocated to unvested participating restricted stock (553) (431) (1,760) (1,551)
Net income available to common stockholders - basic 18,508 18,048 57,956 62,586
Effect of unvested participating restricted stock in two-class calculation 0 1 1 0
Net income available to common stockholders - diluted $ 18,508 $ 18,049 $ 57,957 $ 62,586
Denominator:        
Weighted average outstanding shares of common stock - basic (in shares) 14,897 15,217 14,940 15,275
Dilutive effect of stock options (in shares) 0 3 0 14
Weighted average outstanding shares of common stock - diluted (in shares) 14,897 15,220 14,940 15,289
Net income per common share:        
Basic (in dollars per share) $ 1.24 $ 1.19 $ 3.88 $ 4.10
Diluted (in dollars per share) $ 1.24 $ 1.19 $ 3.88 $ 4.09
v3.24.3
Segments - Narrative (Details)
 3 Months Ended 9 Months Ended
Jun. 30, 2023
restaurant
Sep. 30, 2024
restaurant
territory
country
segment
Dec. 31, 2022
restaurant
Franchisor Disclosure [Line Items]      
Number of operating segments (segment) | segment   6  
Number of reportable segments (segment) | segment   4  
Applebee's      
Franchisor Disclosure [Line Items]      
Number of territories in which entity operates (territory) | territory   2  
Number of countries in which entity operates (country) | country   14  
IHOP      
Franchisor Disclosure [Line Items]      
Number of territories in which entity operates (territory) | territory   2  
Number of countries in which entity operates (country) | country   14  
Franchised Units | Applebee's      
Franchisor Disclosure [Line Items]      
Number of restaurants (restaurant)   1,618  
Franchised Units | IHOP      
Franchisor Disclosure [Line Items]      
Number of restaurants (restaurant)   1,809  
Franchised Units | Fuzzy's      
Franchisor Disclosure [Line Items]      
Number of restaurants (restaurant)   118  
Entity Operated Units | Fuzzy's      
Franchisor Disclosure [Line Items]      
Number of restaurants (restaurant)   1 3
Number of restaurants refranchised (restaurant) 2    
v3.24.3
Segments - Schedule of Segment Reporting Information by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Segment Reporting Information [Line Items]        
Rental revenues $ 27,991 $ 29,128 $ 86,546 $ 90,519
Financing revenues 422 628 1,421 2,009
Total revenues 195,034 202,584 607,536 624,766
Interest expense 19,400 20,000 57,400 54,400
Total depreciation and amortization 9,600 8,600 29,049 26,221
Income before income taxes 26,464 24,947 81,734 85,553
Operating Segments        
Segment Reporting Information [Line Items]        
Income before income taxes 93,300 97,300 290,000 298,300
Corporate        
Segment Reporting Information [Line Items]        
Interest expense 18,400 19,100 54,300 51,500
Total depreciation and amortization 4,700 3,600 14,200 11,100
Income before income taxes (66,900) (72,400) (208,300) (212,700)
Franchise operations | Operating Segments        
Segment Reporting Information [Line Items]        
Total depreciation and amortization 2,400 2,400 7,100 7,300
Income before income taxes 86,600 89,400 267,600 271,600
Rental operations | Operating Segments        
Segment Reporting Information [Line Items]        
Rental revenues 28,000 29,100 86,500 90,500
Interest expense 1,000 900 3,100 2,900
Total depreciation and amortization 2,500 2,600 7,700 7,800
Income before income taxes 6,400 7,400 21,300 24,900
Company restaurants | Operating Segments        
Segment Reporting Information [Line Items]        
Interest expense 0 0 0 0
Total depreciation and amortization 0 0 100 0
Income before income taxes 0 0 (100) 0
Financing operations | Operating Segments        
Segment Reporting Information [Line Items]        
Financing revenues 400 600 1,400 2,000
Income before income taxes 300 500 1,200 1,700
Franchise operations        
Segment Reporting Information [Line Items]        
Revenue from contract with customer 166,354 172,520 518,729 530,399
Franchise operations | Franchise operations | Operating Segments        
Segment Reporting Information [Line Items]        
Revenue from contract with customer 166,400 172,500 518,700 530,400
Company restaurants        
Segment Reporting Information [Line Items]        
Revenue from contract with customer 267 308 840 1,839
Company restaurants | Company restaurants        
Segment Reporting Information [Line Items]        
Revenue from contract with customer $ 300 $ 300 $ 800 $ 1,800
v3.24.3
Closure and Impairment Charges - Impairment and Closure Charges (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Restructuring Charges [Abstract]        
Closure charges $ 400 $ 300 $ 1,400 $ 1,100
Long-lived tangible asset impairment 0 1,500 0 2,000
Total closure and impairment charges $ 366 $ 1,774 $ 1,442 $ 3,088
v3.24.3
Closure and Impairment Charges - Narrative (Details) - IHOP
 3 Months Ended 9 Months Ended
Sep. 30, 2024
restaurant
Sep. 30, 2023
restaurant
lease
Sep. 30, 2024
restaurant
Sep. 30, 2023
lease
restaurant
Restructuring Cost and Reserve [Line Items]        
Number of restaurants related to prior period closure charge revisions | restaurant 21 30 21 30
Entity Operated Units        
Restructuring Cost and Reserve [Line Items]        
Number of master land and building leases subject to asset impairment | lease   4   4
v3.24.3
Fair Value Measurements (Details) - Level 2 - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Face Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value $ 1,094.0 $ 1,094.0
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value $ 1,108.8 $ 1,085.8
v3.24.3
Commitments and Contingencies (Details) - Applebee's - Property Lease Guarantee
$ in Millions
Sep. 30, 2024
USD ($)
Loss Contingencies [Line Items]  
Potential liability for guaranteed leases $ 367.6
Potential liability for guaranteed leases excluding unexercised option periods $ 91.6
v3.24.3
Cash, Cash Equivalents and Restricted Cash - Schedule of Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents $ 169,636 $ 146,034
Money market funds    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 19,000 42,000
IHOP advertising funds and gift card programs | IHOP    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 64,000 82,800
Other depository accounts    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents $ 86,600 $ 21,200
v3.24.3
Cash, Cash Equivalents and Restricted Cash - Schedule of Current Restricted Cash (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Restricted Cash and Cash Equivalents Items [Line Items]    
Total current restricted cash $ 46.0 $ 35.1
Securitized debt reserves    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total current restricted cash 40.9 31.2
Applebee's advertising funds | Applebee's    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total current restricted cash 4.2 2.0
Other    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total current restricted cash $ 0.9 $ 1.9
v3.24.3
Cash, Cash Equivalents and Restricted Cash - Narrative (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]    
Non-current restricted cash $ 19,500 $ 19,500
Dine Brands Global (NYSE:DIN)
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