25 slides from Dine Brands Global, Inc. Common Stock's shareholder meeting presentation, May 19, 2015
Slide 1: Annual Meeting of Stockholders May 19, 2015
Annual Meeting of Stockholders May 19, 2015
Slide 2: Disclaimer: Forward-Looking Information
Disclaimer Forward-Looking Information: Statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words such as "may," "will," "should," "expect,
Slide 3: Stock Performance
STOCK PERFORMANCE dineEquity’
Slide 4: Comparison of Five-Year Cumulative Total Return
4 Comparison of Five-Year Cumulative Total Return DineEquity, S&P 500, & the Value Line Restaurants Index Performance Results Through 12/31/14 Assumes $100 invested at the close of trading on 12/31/2009 in DineEquity, Inc. common stock, Standard & Poor’s 500, and the Value Line Restaurants Index. *C
Slide 5: Significant Achievements Over the Last Seven Years
Significant Achievements Over the Last Seven Years
Slide 6: Delivered on What We Promised
Delivered on What We Promised Reduced G&A by $50 million Continuing to drive growth from our existing brands DineEquity became 99% franchised in 2012 Completed the refinancing of our long-term debt in 2014 to a lower fixed rate Reduced total debt by over $1 billion since 2007 Formed a purchasing co-
Slide 7: Our Brands Continue to Lead Their Respective Categories
Our Brands Continue to Lead Their Respective Categories Family Dining: Domestic System-wide Sales Casual Dining: Domestic System-wide Sales Source: Nation’s Restaurant News, “Top 100,” June 30, 2014 (Applebee’s rank based on 2013 U.S. system-wide sales in the “casual” dining category; IHOP rank base
Slide 8: Both Brands have Outpaced Peer Development
Both Brands have Outpaced Peer Development Family Dining: Global Gross Development 2009-2014 Casual Dining: Global Gross Development 2009-2014 (1)Average of IHOP’s competitive set, defined as Denny’s, Cracker Barrel, and Bob Evans (2)Average of Applebee’s competitive set, defined as Chili’s, Olive G
Slide 9: Fiscal 2014 Highlights
FISCAL 2014 HIGHLIGHTS dineEquity’
Slide 10: 2014 Was a Banner Year for DineEquity
2014 Was a Banner Year for DineEquity Refinanced our long-term debt at a significantly lower, fixed interest rate of 4.277%, reducing future cash interest payments by approximately $34 million on an annualized, pre-tax basis. Announced a new capital allocation strategy, increasing our quarterly divi
Slide 11: Overview of DineEquity, Inc.
Overview of DineEquity, Inc.
Slide 12: 99% franchised business model generates strong free cash flow
99% franchised business model generates strong free cash flow with reduced volatility Asset-lite franchise business model drives strong, consistent cash flow generation DineEquity has reduced its total debt by over $1 billion since the end of 2007 (2) Applebee’s and IHOP are two iconic brands with #
Slide 13: Our Strategy to Drive Shareholder Value
Our Strategy to Drive Shareholder Value
Slide 14: DineEquity's Value Creation Strategy
Maximize the Business Innovate and Evolve Strong Brands Manage Costs 1 Facilitate Franchisee Development 2 3 DineEquity is focused on generating strong free cash flow. The DineEquity story is one of strong and stable free cash flow and returning a substantial portion of it to shareholders. DineEquit
Slide 15: Innovate and Evolve Strong Brands
15 Menu Innovation Effective Advertising & Media Digital & Social Marketing Operational Excellence Remodel Programs Consumer Delight Development by Franchisees Never-ending Commitment to Long-term Brand Building Innovate and Evolve Strong Brands 1
Slide 16: Social Media Impact at Both Brands
(1)Be The Change Revolutions: “Applebee’s Social Media By the Numbers, 2014 Annual Report.” (2)MRM//McCann: IHOP Front Lines Report. Competitive set includes: Denny’s, Waffle House, Cracker Barrel, Panera and Bob Evans. Data from October 2014 to January 2015. (3)MRM//McCann: Social Benchmarking Tool
Slide 17: Same-Restaurant Sales Performance
Same-Restaurant Sales Performance Applebee’s System-wide Same-Restaurant Sales IHOP System-wide Same-Restaurant Sales Source: Company’s fiscal 2014 Form 10-K and Company’s press releases. Fiscal 2015 financial performance guidance as of February 25, 2015. Innovate and Evolve Strong Brands (Cont.) 1
Slide 18: Investing in Talent and Systems to Drive Global Development
Note: As of December 31, 2014, DineEquity’s company restaurant operations segment consisted of 23 Applebee's company-operated restaurants and 11 IHOP company-operated restaurants. Source: Company ‘s fiscal 2014 Form 10-K IHOP’s restaurant base has grown by approximately 23% since the end of 2007 Dur
Slide 19: Track Record of Minimizing Expenses: General & Administrative Expense
Source: Company’s Form 10-K filings and press releases. Comprised of actual IHOP G&A expense plus pro forma Applebee’s G&A expense as disclosed in the Company’s 2007 Form 10-K, less certain one-time costs primarily related to additional stock-based compensation triggered by the Applebee’s acquisitio
Slide 20: Track Record of Minimizing Expenses: Corporate Interest Expense
Source: Company Form 10-K filings and press releases. (1) We incurred a substantial amount of indebtedness to finance the Applebee's acquisition. As a result, our interest expense increased significantly from that reported in prior years. Track Record of Minimizing Expenses Corporate Interest Expens
Slide 21: 99% Franchised System Requires Minor Capital Expenditures
Source: Company Form 10-K filings and press releases. ($ in millions) Capital Expenditures (2009 - 2014) 99% Franchised System Requires Minor Capital Expenditures DineEquity is making prudent investments in technology and future restaurant prototyping to drive future growth Manage Costs 3 21 $15 $19
Slide 22: Capital Allocation
CAPITAL ALLOCATION dineEquity’
Slide 23: New Capital Allocation Strategy
New Capital Allocation Strategy Board authorized a meaningful increase in the quarterly cash dividend in Q4 2014 Quarterly $0.75 $0.875 Annual $3.00 dividend $3.50 In addition, the Board has replenished our share repurchase authorization to $100 million Meaningful 17% increase in the quarterly cash
Slide 24: Positioned for Future Success
Positioned for Future Success
Slide 25: Building on our Achievements for Future Success
Building on our Achievements for Future Success Focused on key strategic priorities to drive long-term growth 25 Continue to drive growth from our existing brands International development and brand building Potentially broaden our portfolio through a acquisition of a complimentary fast casual conce