Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — DineEquity — Investor Presentation (March 2013)
20 slides from Dine Brands Global, Inc. Common Stock's investor presentation, Mar 4, 2013
Slide 1: Investor Presentation March 2013
Investor Presentation March 2013
Slide 2: Forward-looking statements
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," "anticipate," "believe," "estimate," "
Slide 3: Non-GAAP Financial Measures
This presentation may include references to the Company's non-GAAP financial measures "adjusted net income available to common stockholders (adjusted EPS)," "EBITDA," "free cash flow," and "segment EBITDA." "Adjusted EPS" is computed for a given period by deducting from net income (loss) available t
Slide 4: DineEquity Investment Thesis Highlights
At 99% franchised, we are unique in the full-service restaurant segment DineEquity is one of the largest full-service restaurant companies in the world We have two strong brands: each #1 in their respective categories for 5 consecutive years through fiscal 2011 based on U.S. system-wide sales* Non-c
Slide 5: We Are Delivering What We Promised
Since acquiring Applebee’s in 2007, DineEquity has: Transitioned to a 99% franchised system Substantially lowered G&A Re-engineered the menu for profitability Significantly reduced total debt Restored same-restaurant sales momentum Capitalized on the opportunity to reduce commodity costs through an
Slide 6: DineEquity's Value Creation Framework: Focus on Generating Free Cash Flow
The DineEquity story is one of strong free cash flow 3 2 Maximize the Business Innovate and Ensure Strong Brands Manage G&A Costs 1 Facilitate Franchisee Development 2 3 Generate Significant Free Cash Flow to Return to Shareholders 1 6 DineEquity’s Value Creation Framework: Focus on Generating Free
Slide 7: Fundamental Approach to Brand Management
7 Fundamental Approach to Brand Management Innovate and Ensure Strong Brands 1 Innovation Effective Advertising and Media Enhanced Marketing Successful Remodel Program Operations Excellence Franchise Development
Slide 8: Applebee's – Brand Highlights
Innovate and Ensure Strong Brands Applebee’s – Brand Highlights Operations Excellence Centers of Excellence - These centers pool talent from across the organization in multiple areas to promote synergies and sharing of best practices Continue to leverage purchasing opportunities across both brands M
Slide 9: Applebee's – Menu Innovation
Every Day Value Bar Meets Grill Bacon Cheddar Cheeseburger Sizzling Bourbon Street Steak Brew Pub Pretzels Signature Sirloin w/ Garlic Herd Shrimp Applebee’s – Menu Innovation Innovate and Ensure Strong Brands 1 Savory And Sizzling See You TomorrowSM Healthy Halo 9
Slide 10: Applebee's Remodel Program
Innovate and Ensure Strong Brands 10 Applebee’s Remodel Program 1
Slide 11: IHOP – Brand Highlights
Operations Excellence Completed testing our new protocol for conducting restaurant inspections . Action plans delivered to all restaurant operators based on the inspection results. Driving operational improvements to promote guest retention Marketing Refining our marketing message and guest testimon
Slide 12: Drive Excitement Through Advertising & Culinary Innovation
Drive Excitement Through Advertising & Culinary Innovation 12 Value Driving Limited time offer Unveiled the NEW IHOP.com And mobile app! NEW! Griddle Melt Breakfast Sandwiches 1 Seasonal Signature Pancakes: Pumpkin, Carrot Cake & NY Cheesecake Flavored Coffees and Cocoas NEW Whole Wheat Pancakes, Wa
Slide 13: IHOP and Applebee's Garnering National Attention Through Innovative Advertising
IHOP and Applebee’s Garnering National Attention Through Innovative Brand Strategy and Advertising 13 IHOP Hands-On Advertising in Times Square Applebee’s Ranked #2 Most Innovative Company in Food in 2013 Recently, IHOP launched its new breakfast sandwich, Griddle Melts, supported by national advert
Slide 14: International: Remains a Development Opportunity
International: Remains a Development Opportunity Note = The number of actual openings in any period my differ from both our expectations and the number of signed commitments Source: Company 10-K filings 14 IHOP Expands to Middle East and Asia Pacific Applebee’s Continues Presence Abroad Applebee’s h
Slide 15: Facilitate Franchise Development: 99% Franchised System
15 Source: Company 10-K and 10-Q filings Company and Franchised Restaurant Count Note: DineEquity retained 23 Applebee’s and 12 IHOP company-operated restaurants as of December 31, 2012 IHOP restaurant base has grown by approximately 18% since 2007 In that same time, 479 Applebee’s company-operated
Slide 16: Track Record of Tight G&A Management
Track Record of Tight G&A Management Annual G&A Expenses, 2007-2012 ($M) *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 App
Slide 17: Strong Free Cash Flow Generation Enables Significant 2013 Return of Capital
Strong Free Cash Flow Generation Enables Significant 2013 Return of Capital * See non-GAAP financial measures disclosure in the Company’s Form 10-K filing ** Replaces previously announced $45 million share repurchase authorization announced in August 2011 Note: See Company press release issued on Fe
Slide 18: Total Debt Reduced by Over $1.0 Billion Since 07
The Result: Total Debt Reduced by Over $1.0 Billion Since 2007 Total Debt, 2007-2012 ($M) Source: Company 10-K and 10-Q Filings 18 Reduced debt by over $332M in 2012 alone Strong free cash flow has enabled deleveraging over time 0 1 2 $3B 0 1 2 $3B 2007 $2.4B 2008 2009 $2.1B 2010 $2.0B 2011 $1.7B 20
Slide 19: Benefit of Highly Franchised Business Model: Low Volatility
Benefit of Highly Franchised Business Model: Low Volatility At 99% franchised, the business model generates strong free cash flow with reduced volatility Mitigates the pressures from commodity inflation Company operations are considered largely immaterial The remaining company-operated restaurants a
Slide 20: 2013 Financial Guidance Highlights
2013 Financial Guidance Highlights* Operating Variables Cash Flow Same Restaurant Sales Applebee’s -1.5% to 1.5% IHOP -1.5% to 1.5% Development Applebee’s 40 to 50 IHOP 50 to 60 G&A $144M to $147M Segment Profit Franchise $312M to $325M Company Operated Approx. $1M Rental and Financing $34M to $35M