Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — DineEquity — Investor Presentation (November 2013)
22 slides from Dine Brands Global, Inc. Common Stock's investor presentation, Nov 8, 2013
Slide 1: Investor Presentation November 8, 2013
Investor Presentation November 8, 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 includes 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 to c
Slide 4: Creating Stockholder Value By Delivering What We Promised
Creating Stockholder Value By Delivering What We Promised
Slide 5: DineEquity Overview
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 and iconic brands: each #1 in their respective categories for 6 consecutive years through fiscal 2012 based on U.S. system-wide s
Slide 6: We Are Delivering What We Promised
Since acquiring Applebee’s in 2007, DineEquity has: Substantially lowered G&A Re-engineered the menu for franchisee profitability Restored same-restaurant sales momentum over time at both brands Capitalized on the opportunity to reduce commodity costs through an independent purchasing co-op, which f
Slide 7: DineEquity's Value Creation Strategy: Focus on Generating Free Cash Flow
The DineEquity story is one of strong free cash flow 3 2 Maximize the Business Innovate and Evolve our Strong Brands Manage G&A Costs 1 Facilitate Franchisee Development 2 3 Generate Significant Free Cash Flow to Return to Shareholders 1 7 DineEquity’s Value Creation Strategy: Focus on Generating Fr
Slide 8: Innovating and Evolving Two Category-Leading Brands
Innovating and Evolving Two Category-Leading Brands
Slide 9: Fundamental Approach to Brand Management
9 Fundamental Approach to Brand Management Innovate and Evolve 1 Innovate and Evolve Effective Marketing Enhance the Menu Maximize the Remodel Program Achieve Operational Excellence Optimize Development
Slide 10: Applebee's – Brand Highlights
Innovate and Evolve Applebee’s – Brand Highlights Operational Excellence Continually improving operational execution at the restaurant level Testing new service and guest interface models Streamlined the menu, making it easier to execute and a better experience for our guests Marketing Emphasis on p
Slide 11: Applebee's – Menu Innovation
Every Day Value Bar Meets Grill Bourbon Black & Bleu Burger Sizzling Double Barrel Whisky Sirloins Cowboy Burger Napa Chicken & Portobellos Applebee’s – Menu Innovation Innovate and Evolve 1 Sizzling Entrées and Refreshing Drinks See You TomorrowSM Healthy Halo 11
Slide 12: Innovate and Evolve Applebee's Remodel Program
Innovate and Evolve 12 Applebee’s Remodel Program 1
Slide 13: IHOP – Brand Highlights
Operational Excellence Voice of the Guest scores reached new highs in September 2013 Driving operational improvements to drive sustainable and positive same-restaurant sales and traffic Marketing Refining our marketing message and guest testimonial creative strategy Communicating our value propositi
Slide 14: Drive Excitement Through Culinary Innovation & Advertising
Drive Excitement Through Culinary Innovation & Advertising 14 NEW menu design launched in June 2013 Unveiled the NEW IHOP.com Griddle Melt Breakfast Sandwiches 1 SIMPLE & FIT Whole Wheat Waffle with Blueberries Combo Seasonal Signature Pancakes: Pumpkin, Eggnog & Raspberry White Chocolate Chip Berry
Slide 15: International: Remains a Development Opportunity
International: Remains a Development Opportunity Source: Company 10-K and 10-Q filings 15 IHOP Expands to Middle East and Asia Pacific Applebee’s Broadens Presence Abroad Applebee’s has 150 franchised restaurants abroad as of 9/30/2013 Applebee’s are located in: 49 states of the United States Puerto
Slide 16: Facilitate Franchise Development: Restaurant Count
16 Source: Company 10-K and 10-Q filings Company and Franchised Restaurant Count IHOP restaurant base has grown by approximately 19% since 2007 During that time, 479 Applebee’s company-operated restaurants were refranchised Facilitate Franchise Development Today, 99% Franchised System 2 Note: As of
Slide 17: Financial Discipline and 99% Franchised Model Results in Strong Free Cash Flow
Financial Discipline and 99% Franchised Model Results in Strong Free Cash Flow
Slide 18: Track Record of Tight G&A Management
Track Record of Tight G&A Management Annual G&A Expenses, 2007-2013 Forecast ($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 b
Slide 19: Track Record of Strong Free Cash Flow Generation
Track Record of Strong Free Cash Flow Generation *The decline in free cash flow in fiscal 2012 was primarily due to the increase in cash taxes paid on refranchising proceeds and, as expected, lower segment profit due to refranchising. ** Free cash flow for the fiscal years 2008-2012 is defined as ca
Slide 20: 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 ** Year-to-date through September 30, 2013 Note: See Company press release issued on October 29, 2013 for complete revised guidance Source: Compan
Slide 21: The Result: 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) *Guidance for fiscal 2013 Source: Company 10-K and 10-Q Filings 21 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 $2.4B 200
Slide 22: 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