Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — Investor Day (March 2022)
151 slides from Dine Brands Global, Inc. Common Stock's investor day presentation, Mar 9, 2022
Slide 1: Dine Together: 2022 Dine Brands Investor Day
Exhibit 99.1 Dine Together 2022 DINE BRANDS INVESTOR DAY el
Slide 2: Disclosures
Disclosures “Dine Brands”, “Company”, “us” and “our” refer to Dine Brands Global, Inc. and its direct and indirect subsidiaries. Non-GAAP Financial Measures The content of this presentation is as of March 9, 2022. Statements contained in this press release may constitute This presentation includes r
Slide 3: John Peyton, CEO
Dine Together eg Dine Brands JOHN PEYTON CEO
Slide 4: Agenda
9:00 AM IHOP Tasting 9:30 AM Welcome | Ken Diptee Dine Brands | John Peyton Strategy & Technology | Scott Gladstone & Justin Skelton Applebee’s | John Cywinski Franchisee Perspective | Greg Flynn Agenda 10:50 AM BRE AK 11:05 AM IHOP | Jay Johns Franchise Perspective | Karl Jaeger International | Ton
Slide 5: Slide 5
Slide 6: Stronger than ever.
Stronger than ever. Dine Together
Slide 7: Historical financial performance
Historical financial performance RE VE N UE ( $M) EBITDA ($M) (1) $896 (1) $253 $732 (2) $621 (2) $221 $498 41% 44% (2) (2) Margin Margin 2017A 2021A 2017A 2021A ADJ US T E D F R E E CAS H F LOW ( $M ) ADJ US T E D E PS $191 $6.54 $63 $4.09 2017A 2021A 2017A 2021A Source: Company’s fiscal 2017, 2018
Slide 8: Strong projected financial performance
Strong projected financial performance RE VE N UE ( $M) EBITDA ($M) ( ) $1,100+ ¹ $350+ (1) § Mid single digit growth (2) $750+ $253 (1) $896 § High single digit growth (2) $621 § Margin expansion 47% 41% (2) (2) Margins Margins 2021A 2026E 2021A 2026E ADJ US T E D F R E E CAS H F LOW ( $M ) ADJ US
Slide 9: Dine's recipe for growth
Dine’s recipe for growth § Incorporation of new formats, including ghost kitchens DEVELOPMENT § Focused approach to development to prove out 1 franchisee ROI $1.1B+ § Adoption of key technologies Revenue by 2026 COMP SALES 2 § Evolution of marketing strategies $350M+ § Menu innovation EBITDA by 2026
Slide 10: In-restaurant Guest Experience
In-restaurant GUEST EXPERIENCE
Slide 11: Off-premise Guest Experience
Off-premise GUEST EXPERIENCE
Slide 12: Streamlined Operations
Streamlined OPERATIONS
Slide 13: Uniquely Dine
Uniquely Dine. WO R L D -CLAS S SCALABLE TA L E N T E D T E A M S & AS S E T -LIGHT BR AN DS PL AT F O R M FRANCHISEES MO DE L
Slide 14: Uniquely Dine. World-class brands
Uniquely Dine. WO R L D -CLAS S BR AN DS
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Slide 16: Uniquely Dine. Scalable platform
Uniquely Dine. SCALABLE PL AT F O R M
Slide 17: Scalable platform
Scalable platform TECHNOLOGY AND SUPPLY CHAIN $2B in Procurement GOODS AND SERVICES $272M Advertising MARKTETING INITIATIVES AND CAMPAIGNS 142 Technology Employees TECH INNOVATION AND INFRASTRUCTURE 40M Digital Transactions ESTIMATED VOLUME PER MONTH
Slide 18: Uniquely Dine. Talented teams & franchisees
Uniquely Dine. TA L E N T E D T E A M S & FRANCHISEES
Slide 19: Industry leader
Industry leader 500 338 DINE HQ 3,431 TEAM MEMBERS FRANCHISEES RESTAURANTS 3,000 20 150,000 TEAM MEMBERS IN COUNTRIES COMPANY OWNED TEAM MEMBERS RESTAURANTS
Slide 20: Uniquely Dine. Asset-light model
Uniquely Dine. AS S E T -LIGHT MO DE L
Slide 21: Asset-light business model
Asset-light business model 98% FRANCHISED % FRANCHISED TODAY VS. AT 2007 MERGER % FRANCHISED VS FAMILY/CASUAL DINING PEERS 98% 100% 100% 100% 99% 96% 74% 2007 merger To 2018 Today 2007 merger To 2018 Today
Slide 22: Different. Better. Special.
Different. Better. Special.
Slide 23: IHOP: Leader in Family Dining
Founded in 1958 Leader in Family Dining Category 1,751 locations globally 2021 system-wide sales: $3.1B (1) 2021 franchise revenue: $190M #1 among Family Dining restaurants Notes: (1) Excludes advertising revenues
Slide 24: Applebee's: Leader in Casual Dining
1980 Founded in Leader in Casual Dining Category 1,680 locations globally 2021 system-wide sales: $4.2B (1) $168M 2021 franchise revenue: Notes: (1) Excludes advertising revenues
Slide 25: At Dine, we're guided by our values
At Dine, we’re guided by our values TA K E FURTHER ALWAYS RE CO GN IZE EMBRACE RE S PO N S IBILIT Y TO G E T H E R BE T T E R THE GO O D ALL
Slide 26: Our ESG priorities fall into four categories
Our ESG priorities fall into four categories
Slide 27: The industry opportunity
The industry opportunity Enormous, stable market Shifting consumer behaviors New channels, formats are Industry consolidation revealing new growth avenues
Slide 28: Our investment highlights
Our investment highlights UNIQUELY DINE New management team Meaningful Sales, EBITDA, EPS growth Significant scale Robust EBITDA margins & cash flow Industry leading brands Significant capital return
Slide 29: Slide 29
Slide 30: Slide 30
Slide 31: Dine Together: 2022 Dine Brands Investor Day
Dine Together 2022 DINE BRANDS INVESTOR DAY el
Slide 32: Slide 32
Slide 33: Pre-COVID to today: technology and off-premise themes
From To Pre-COVID Digital technology Expectation of technology themes accompanying the within all steps of the restaurant experience restaurant experience accelerated Steady growth in off- Off-premise as a core during the premise customer demand habit crisis Delivery influencing new Delivery as form
Slide 34: Digital world has expanded consumer touchpoints
Digital world has dramatically expanded consumer touchpoints Ordering / Handoff / Feedback Discovery Payment Table Experience Word of Menus Out of TV Print Website Proximity/ Radio Coupons Signage Mouth Home Location @ TV TV Print Out of E-Mail Proximity/ Menus Experience Table Word of Social Custom
Slide 35: Demand pools have changed
Demand pools have changed FULL -SERVICE RESTAURANT (FSR) INDUSTRY SALES DOLLARS ($B) 12.3 14 10.4 12 8.8 81% 10 61% 8 53% ON - PR E M I S E 6 4 38% 31% CA R R Y - OU T 2 17% 6% DE L I V E R Y 2% 7% 0 2019 2020 2021 Source: NPD/CREST Notes: YE as of December. Columns may not add to 100% as drive-thru
Slide 36: Delivery evolving similarly to marketplaces in other industries
Delivery evolving similarly to marketplaces in other industries Dine Brands does not have any relationship with Netflix or Etsy.
Slide 37: Two key opportunities have emerged
Two key opportunities have emerged TECHNOLO GY BUSINESS MODEL OPPORTUNITY : OPPORTUNITY : Emergence of Requirement to delivery-only facilities (ghost deepen Customer/Brand kitchens) and virtual brands) Relationship APPROACH: APPROACH: Dine is focusing on Dine is re-doubling on these new growth chann
Slide 38: Two key opportunities: business model
Two key opportunities have emerged BUSINESS MODEL OPPORTUNITY: Emergence of delivery-only facilities (ghost kitchens) and virtual brands) APPROACH: Dine is focusing on these new growth channels
Slide 39: Definitions within this ecosystem
Definitions within this ecosystem TECHNOLO GY VIRTUAL BRAND OPERATOR GHOST KITCHEN PLATFORM A restaurant operator A physical kitchen with Hardware and software A brand with no visible (owner, franchisee no brand-facing front that enables virtual brick and mortar or licensee) of house brand orders to
Slide 40: Option set for growth has expanded rapidly
Option set for growth has expanded rapidly BR AN D 1 Virtual brands in traditional restaurant spaces Traditional 2 restaurant brands Traditional brands DI N E ’ S CO R E in ghost kitchens PO S I T I O N KITCHE N CO N T R O L L E D THIRD PARTY CAPI TAL R E Q UI R E M E N T S HI G H LOW OPERATING RE Q
Slide 41: Two opportunities have emerged: customer
Two opportunities have emerged CUSTOMER OPPORTUNITY: Requirement to deepen Customer/Brand Relationship APPROACH: Dine is re-doubling on technology efforts to enhance the guest experience
Slide 42: Customer journey highlights opportunities for technology
Customer journey highlights opportunities for technology Ordering and Discovery Handoff Payment Feedback experience Guests engage within the restaurant (e.g., order, call server) via their own devices to increase speed of service and enhance Reach experience Survey Multiple customers with Empower te
Slide 43: Capabilities rolled out in 2021, POS migration in 2022
Many of these capabilities rolled out in 2021 with POS migration planned for 2022 Ordering and Discovery Handoff Payment Feedback experience QR OFFER Carside PAY ‘N SERVER PAY ‘N CODE MANAGEMENT Express/ GO/BYOD TABLET GO/BYOD MENU & LOYALTY Curbside MARKETING GUEST SURVEY CALL EMV COMMUNICATION CEN
Slide 44: From pre-COVID to today
From To Pre-COVID Digital technology Expectation of technology themes accompanying the within all steps of the restaurant experience restaurant experience accelerated Steady growth in off- Off-premise as a core during the premise customer demand habit crisis Delivery influencing new Delivery as form
Slide 45: Dine Together: 2022 Dine Brands Investor Day
Dine Together 2022 DINE BRANDS INVESTOR DAY el
Slide 46: The Applebee's Story
The Applebee’s Story JOHN CYWINSKI President, Applebee’s
Slide 47: Chapter One (2017-2021): Unlocking Growth
Chapter One (2017-2021): Unlocking Growth Established eight strategic imperatives Re-establish franchisee trust, partnership, pride & belief 1. Embrace Applebee’s brand essence 2. 3. Build a best-in-class leadership team 4. Create culture of accountability 5. Leverage occasion-driven guest insights
Slide 48: Our Vision
OUR VISION Bold Goal: Incremental $300,000 sales per restaurant Accelerated Profitable Growth 2020-2021 The Relevance Foundation & Cash Flow 2017 2018-2019
Slide 49: Adversity Created Opportunity
Adversity Created Opportunity Welcome Welcome To Applebee’s! To Applebee’s! Can I Get You Can I Get You Started With Started With Some Disinfectant? Some Disinfectant? Chain restaurants are rethinking food for diners who fear the virus – and one another. Chain restaurants are rethinking food for din
Slide 50: Breakthrough 2021 Performance
Breakthrough 2021 Performance § $50,500 weekly sales volume § +6.2% comp sales vs. 2019 § +38.2% comp sales vs. 2020 § Category leader: Affordability, Menu Variety, Convenience, Brand Awareness § Completion of planned portfolio optimization (1,578 U.S. restaurants) Applebee’s AUV $2.60 M $2.20 M YE
Slide 51: Applebee's 2021 vs. 2019 Comp Sales
Applebee’s 2021 vs. 2019 Comp Sales 15% +13.6% +12.9% +12.4% +12.2% +11.7% +11.4% +10.0% 10% +8.1% +6.1% +5.0% 5% 0% -5% -10% Applebee’s Comp Sales (‘21 vs ‘19) -15% -13.7% -15.1% -20% -25% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 52: Outperformed CDR Consecutive Weeks
Outperformed CDR 51 Consecutive Weeks (740 Basis Point Gap) 15% +13.6% +12.9% +12.4% +12.2% +11.7% +11.4% +10.0% 10% +8.1% +6.8% +6.6% +6.1% +5.0% +4.9% 5% +3.8% +3.5% +2.8% +2.7% +2.1% 0% -1.5% -2.0% -5% -10% Applebee’s Comp Sales (‘21 vs ‘19) -13.7% -15% -15.1% Casual Dining Comp Sales (excluding
Slide 53: Chapter Two (2022-2026)
Comp Sales Chapter Two (2022-2026): + Accelerating Market Share Restaurant Development § Trust & scale win post-COVID § Applebee’s exceedingly well-positioned for sustained growth 3%+ Applebee’s Annual System Growth
Slide 54: Applebee's Differentiation: Where We Win
Applebee’s Differentiation … Where We Win Brand Demographics Affordability Essence Innovation Off-Premise Variety & Execution
Slide 55: Brand essence
GOOD FOOD AMERICAN NEIGHBORLY AFFORDABLE COMFORTABLE VARIETY FAMILIAR FAMILY LIKEABLE BAR APPROACHABLE AUTHENTIC FRIENDLY ABUNDANT VALUE EASY
Slide 56: Applebee's makes it easy to connect
Applebee’s makes it easy for family and friends to connect with one another. Whether in our dining room or your living room, we’re that wonderfully familiar and affordable little escape from your everyday.
Slide 57: Regulars
“Regulars” :6O Dine Together
Slide 58: Broadly Appealing Demographic Profile
Broadly Appealing Demographic Profile (Index vs. CDR) More Diverse More Families Younger 58% (78) 50% (79) 50% (136) 32% (166) 24% (92) 25% (156) 22% (145) 22% (55) 13% (216) 4% (80) African Caucasian Hispanic African Other With Kids No Kids Gen Z Millennial Gen X Boomer Caucasian Hispanic Other No
Slide 59: Affordability is Important
Affordability is Important (Average Guest Check) $23.65 $22.32 $21.01 $19.08 $17.96 $17.00 $15.81 $14.90 $14.86 $14.75 $14.60 $14.11 Source: NPD/CREST (Full Year 2021)
Slide 60: Applebee's Wins on Affordability
Applebee’s Wins on Affordability 70% 68% 65% 63% 60% 60% 58% 57% 55% 54% 50% 53% 45% 40% 35% 30% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Source: Applebee’s Brand Tracker: Is affordable enough to eat here often
Slide 61: 33% Menu Reduction
33% Menu Reduction Balancing Simplification and Innovation
Slide 62: 2022 Culinary Innovation
Crispy Cheese Bites Impossible Burger 2022 Culinary Brew Pub Loaded Waffle Fries Sugar-Dusted Donut Dippers Innovation Abundant, craveable, mainstream indulgence Flamin’ Hot & Original Cheetos Wings Perfect Strawberry Margarita Sizzlin’ Skillet Sensations Crispy Chicken Sandwich
Slide 63: Off-Premise Now Double Pre-Pandemic Mix
Off-Premise Now Double Pre-Pandemic Mix 27% ($13,800/week) 13% Delivery 13% ($5,924/week) 4% Delivery 14% To-Go 9% To-Go Q4, 2019 Sales Q4, 2021 Sales Source: DART
Slide 64: Off-Premise Objective: Best-In-Class
Off-Premise Objective: Best-In-Class § 1,578 points of distribution § Digital/mobile migration § Category-leading awareness § Call center excellence § No veto-vote § Tamper-evident packaging § I’ve Arrived notification § Order accuracy stickers
Slide 65: Runaround Sue
“Runaround Sue” :60 Dine Together
Slide 66: Cosmic Wings Virtual Brand
Cosmic Wings Virtual Brand Launched February, 2021 with Uber Eats § Only available via Delivery § Well-defined target, positioning, co-branded menu § Highly Incremental § Currently integrating DoorDash and Grub Hub Q2 deployment in 1,470 restaurants
Slide 67: Introducing Drive-Thru Pick-Up Windows
Introducing Drive-Thru Pick-Up Windows Texarkana, Texas
Slide 68: Applebee's Innovation and Execution
Applebee’s Innovation and Execution
Slide 69: $140MM Media Deployed with Targeted Precision
$140MM Media Deployed with Targeted Precision § Media strategy is a brand-differentiating core competency § Objective: maximize awareness & trial in a highly-fragmented media landscape § Television, Digital Video, Mobile, Social, Display, Search, CRM (device agnostic) Six Distinct Occasion-Driven Se
Slide 70: Fancy Like
“I’ve always wanted to write a song with Applebee’s in it, so Fancy Like, the dance and the fan love has been a dream come true.” – WA L K E R H AY E S “Fancy Like” :30
Slide 71: Returning to Net New Unit Growth in 2023
Returning to Net New Unit Growth in 2023 § Applebee’s portfolio rationalization complete § Long-overdue category contraction has occurred § 250+ high volume trade areas identified and available § Anticipate scaling to net 20 new restaurants in 2024 § Combination traditional and ghost kitchen § Reduc
Slide 72: New Cost-Engineered Tower 2.0 Prototype
New Cost-Engineered “Tower 2.0” Prototype Welcome Back!
Slide 73: Unlocking Growth & Restaurant Profitability
Unlocking Growth & Restaurant Profitability New Best-In-Class Restaurant Late Night Kitchen Equipment Innovation Profitability Daypart Initiative & Execution Initiative Activation (2023-2024) (Ongoing) (2022) (2022) Pay & Go New New Restaurant POS System Development Mobile Payment & Server Tablets E
Slide 74: Unique Business Model
Unique Business Model 31 Exceptional Franchisees Strategic and sophisticated Leverageable scale Best-in-class culture Strong financial health Deep collaboration and partnership
Slide 75: Franchisee Perspective: Greg Flynn
Franchisee Perspective GREG FLYNN Founder, Chairman & CEO of Flynn Restaurant Group
Slide 76: The Applebee's Story
The Applebee’s Story JOHN CYWINSKI President, Applebee’s
Slide 77: 2022 Dine Brands Investor Day
2022 DINE BRANDS INVESTOR DAY Bz Dine Together
Slide 78: Jay Johns, President
Dine Together 2022 DINE BRANDS INVESTOR DAY gl JAY JOHNS PRESIDENT
Slide 79: IHOP Tasting
IHOP Tasting Buttermilk Pancakes, Butter, and Syrup Bacon Temptation Omelette Flip’d Cali Plant Based Breakfast Sammie Spicy Poblano Fajita Breakfast Burrito
Slide 80: A Brand is a Promise
“A Brand is a Promise, and a great brand is a promise well kept.” — DANIEL LUBETZKY
Slide 81: The recipe for Joy
The recipe for Joy Heritage Togetherness Belonging Great Food
Slide 82: IHOP heritage
IHOP heritage SINCE ITS FOUNDING IN 1958, IHOP HAS BEEN A BRAND THAT BRINGS JOY TO OUR GUESTS.
Slide 83: Current restaurant count
Current restaurant count 1,657 RESTAURANTS ACROSS THE U.S. 94 INTERNATIONAL RESTAURANTS
Slide 84: Brand awareness
Brand awareness #1 IN OUR SEGMENT Top Position FOR SHARE OF VOICE (27%)
Slide 85: Comp sales prior to the pandemic saw great momentum
Comp sales prior to the pandemic saw great momentum COMP SALES (%) +40.2% 40 4.6 10 4.5% 3.9 3.9% 2.2.4 4% 1.5% 1.5 1.0% 1.1 5 -0.1% 0 -1.9% -5 -30 -32.8% -32.6 -35 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: DART, Accounting Compsc
Slide 86: And significant unit growth
… and significant unit growth IHOP D OMESTIC NET UNIT DEVELOPMENT BY YEAR 40 2.5 3.4 34 34 1.5 33 2.7 25 27 15 20 0.5 5 0 -20 -16 -40 -37 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: 10K Public Filing
Slide 87: The Recipe for Joy
The Recipe for Joy \/ IHo¢
Slide 88: Franchisee profiles
SATTAR SHAIK – MANASSAS, VA BE R N AR D O DE J E S US – NEW YO RK, NY TE O RE GALAD O – ALAM O G O R D O, N M ACG – AU S T I N , T X
Slide 89: Franchisees
270 Franchisees *this includes flip’d by IHOP restaurants
Slide 90: IHOP growth plan
IHOP growth plan THE OPPORTUNITY Comp sales 1 § Align brand marketing and culinary to “true north” +3-5% § Pivot to omni-channel marketing Compounded Development 2 annual § Invest in e-commerce engines (web revenue growth and app) to sustain off-premise growth § Launch IHOP loyalty program New chann
Slide 91: IHOP's comp growth strategy
IHOP’s comp growth strategy focuses on: existing and new guest segments OMNI -CHANNEL APPROACH TO REACH OUR GUESTS IN A VARIETY OF CHANNELS The Recipe for Joy +
Slide 92: Menu
SH O R T STAC K O F NE W H AND - CR A F TE D M E LTS BU T T E RM I L K PA N C A K E S Menu BU RRI TO S & BOW L S IH O P ' N G O TA K E O U T
Slide 93: Investing in the off-premise guest experience
Investing in the off-premise guest experience FRO M THE IR IHO P... TO OUR IHO P... Inconsistent | Inconvenient | Complicated Easy | Trustworthy l Personal
Slide 94: Off-Premise now double vs. pre-pandemic
Off-Premise now double vs. pre-pandemic ~24% ($9,300/week) 14% Delivery 10% ($3,900/week) Delivery ~4% To-Go ~10% To-Go ~6% Q4, 2019 Sales Q4, 2021 Sales Source: DINE Brands Global
Slide 95: PM daypart: Dinner at IHOP
PM daypart DINNER AT IHOP ie Together Din RSSIEINMIBIANDs enoar's ox
Slide 96: PM daypart comp impact
+8-10% 3 -9pm COMP TRAFFIC IMPACT +1-2% FULL WEEK COMP SALES IMPACT
Slide 97: International
INTERNATIONAL aX of Ss]
Slide 98: Development growth
Development growth OVER THE NEXT 5 YEARS, GOAL TO OPEN ON AVERAGE 100+ UNITS PER YEAR TRADITIONAL 2,100+ NON TRADITIONAL 1,657 SMALL PROTOTYPE flip'd 2021 2026 Source: DINE Brands Global
Slide 99: Development vehicles
Development vehicles NON SMALL TRADITIONAL flip'd TRADITIONAL PROTOTYPE
Slide 100: Traditional IHOP
Traditional IHOP LIN CO LN , N E BRAS K A
Slide 101: Non-traditional IHOP
Non-traditional IHOP GRE E N VILLE , T E N N E S S E E
Slide 102: Small prototype
Small prototype
Slide 103: flip'd by IHOP
flip’d by IHOP
Slide 104: Conversion opportunities
Conversion opportunities NON SMALL TRADITIONAL flip'd TRADITIONAL PROTOTYPE
Slide 105: Virtual Brands
Virtual Brands HOP Dine Together
Slide 106: Virtual Brands
Virtual Brands Dine Together
Slide 107: The Recipe for Joy
The Recipe for Joy LY
Slide 108: 2022 Dine Brands Investor Day
2022 DINE BRANDS INVESTOR DAY Bz Dine Together
Slide 109: Dine Together
Bz Dine Together 2022 DINE BRANDS INVESTOR DAY
Slide 110: International: Tony Moralejo, President
International TONY MORALEJO PRESIDENT
Slide 111: International footprint
International footprint DINE BRANDS INTERNATIONAL HAS A PRESENCE IN… CANADA BAHRAIN QATAR UAE* INDIA (40 restaurants, (1 restaurant) (7 restaurants) (12 ghost kitchens) (2 restaurants) 1 ghost kitchen) MEXICO (87 restaurants, 201 PAKISTAN 1 ghost kitchen) (1 restaurant) INTERNATIONAL (1) RESTAURANTS
Slide 112: Core markets account for 85% of international restaurants
Our core markets account for 85% of our international restaurants and 90% of sales MEXICO CANADA § 20% of Restaurants § 43% of Restaurants § 19% of Sales § 37% of Sales MIDDLE EAST PUERTO RICO § 7% of Restaurants § 15% of Restaurants § 15% of Sales § 19% of Sales
Slide 113: #1 or #2 American casual/family player in core markets
We’re the #1 or #2 American casual/family player in our core markets WE BELIEVE THERE’S STILL ROOM TO GROW Core Market Casual #1 Casual #2 Family #1 Family #2 Mexico IHOP Canada Note: Information compiled by Dine Brands International Development as of July 2021 Source: Competitor 10K reports, Franch
Slide 114: Growth plan
Growth plan APPLEBEE’S GUAYNABO, PUERTO RICO v
Slide 115: International growth plan
International growth plan THE OPPORTUNITY § Grow Bricks and Mortar in core markets DEVELOPMENT 1 § Grow Ghost Kitchens in core and non-core markets § Additional marketing dollars 25% COMP SALES 2 § Increase field team resources Compounded annual revenue § Invest in revenue-driving technology growth
Slide 116: Key enablers of growth
These are our key enablers of growth FRESH APPROACH EMBRACING NEW DE E PE N I N G CO M M I T M E N T TO TO T R A D I T I O N A L PA R A D I G M : RE LAT IO N S HIPS INN OVAT IO N DE VE LO PM E N T GHO S T KITCHE N S
Slide 117: Fresh approach to traditional development
Fresh approach to traditional development
Slide 118: Plan to develop restaurants and ghost kitchens per year
Our plan is to develop on average 50-60 net new restaurants and 40-50 ghost kitchens per year over the next 5 years THE OPPORTUNITY Mexico Caribbean Canada Middle East
Slide 119: Building strong international momentum
We're building strong momentum in our international business already 32 NEW RESTAURANT COMMITMENTS FOR FUTURE GROWTH OVER THE NEXT SEVERAL YEARS
Slide 120: Ghost Kitchens are preferable new market entry channel
Ghost Kitchens are preferable new market entry channel OLD STRATEGY § High up-front resource commitment § Consumer research nearly non-existent § Initial contact typically made via brokers § Slow pace of development NEW STRATEGY § Low up-front resource commitment § Low-risk test to learn local brand
Slide 121: IHOP and Applebee's kitchen fits into small footprint
IHOP and Applebee’s kitchen fits into just 130 square feet! MI C R OWAV E OV E N WA F F L E I R O N CH E E S E M E LTE R EX HAU S T HO OD FL AT G R I L L S , 4’ & 2 ’ CO O K TO P IN D U C T IO N FR Y E R CO N D I M E N T RA I L S KITOPI LAYOUT
Slide 122: Ghost kitchen strategic relationships
Ghost kitchen strategic relationships IKKITOPI foodpanda Dine Together
Slide 123: International growth plan
International growth plan THE OPPORTUNITY § Additional marketing dollars 25% COMP SALES 2 § Increase field team resources Compounded On average annual revenue § Invest in revenue-driving technology growth +2% per year 3
Slide 124: Deepening relationships
Deepening relationships APPLEBEE’S MEXICO
Slide 125: Commitment to innovation
Commitment to innovation TR O P I C A L I S L A N D OM E L E T T E I T A L I A N O, M E X I C O FROOT LOOPS SHAKE, MEXICO SP L A SH E R , L A T A M DU A L - BR A N D C O N C E P T TE C H N O L O G Y DE S I G N
Slide 126: Looking forward
Looking forward
Slide 127: Dine Together: 2022 Dine Brands Investor Day
Dine Together 2022 DINE BRANDS INVESTOR DAY el
Slide 128: Dine Together: 2022 Dine Brands Investor Day
rDir Dine Together mJ 2022 DINE BRANDS INVESTOR DAY BRANDS
Slide 129: Finance: Vance Chang, CFO
Finance VA N C E C H A N G Chief Financial Officer
Slide 130: Dine's investment highlights
Dine’s investment highlights 3,431 RESTAURANTS AND $7B+ IN SYSTEM SALES NEW INDUSTRY MARKET SIGNIFICANT MANAGEMENT LEADING BRANDS OPPORTUNITY SCALE TEAM EBITDA MARGINS, 98% SALES, EBITDA & SHAREHOLDER CASH FLOW FRANCHISED EPS GROWTH RETURN GENERATION
Slide 131: Our commitment to financial success
Our commitment to financial success § Generate consistent, long-term organic growth at both brands § Generate substantial adjusted free cash flow and earnings growth § Focus on high ROI projects § Return capital to shareholders
Slide 132: Dine has seen a strong recovery from the pandemic
Dine has seen a strong recovery from the pandemic REVENUE ($M) ADJUSTED EBITDA ($M) ADJUSTED FREE CASH FLOW ($M) $350 80% $1,100 $250 $1,050 70% $191 $300 $1,000 $200 60% $274 $950 $253 $910 50% $149 $896 $250 $141 $900 $150 $231 $221 40% $850 $107 30% 30% $200 $800 $781 $100 30 % 30% 28% 23% $750 $
Slide 133: Asset-light is a highly attractive business model
Asset-light is a highly attractive business model —high margins and significant free cash flow (4 ) 2022E EBITDA MARGINS 2022E FCF CO NVERSIO N 35% 100% 85% 84% 29% 30 % 80% 26% 25% 60% 46% 20% 40% 15% 26% 12% 11% 20% 10% 5% 0% DINE Highly CDR Fast DINE Highly CDR Fast (2) (2) Franchised Peers ² Cas
Slide 134: 2022 Guidance: investment year
2022 Guidance: investment year $33M–$38M (15)–(5) 50–65 NET DEVELOPMENT CAPEX NET DEVELOPMENT FOR IHOP FOR APPLEBEE’S $188M–$198M $235M–$250M G&A ADJUSTED EBITDA
Slide 135: Consistent historical G&A
Consistent historical G&A: investments are needed to generate long-term growth $225 $193 $193 $30 $172 $167 $166 $30 $163 $23 $145 $20 $18 $23 $26 $163 $163 $149 $147 $147 $140 $119 (1) Bonus Return to Technology Franchisee Development 2017A 2018A 2019A 2020A 2021A 2022E ¹ 2023E 2024E 2025E 20 20 22
Slide 136: Dine's capex spend is lower than peers
Dine’s capex spend is lower than peers (1) 2019 CAPEX % O F REVENUES 2019 CAPEX % O F EBITDA 10% 100% 9% 77% 8% 80% 63% 6% 6% 60% 5% 4% 40% 2% 23% 2% 20% 7% 0% 0% DINE Highly CDR Fast DINE Highly CDR Fast (3) Franchised Peers ² Casual (3) Franchised Peers ² Casual (4) (2) Peers ¹ Peers³ (4) (2) Peer
Slide 137: Breakdown of 2022 capex spend
Breakdown of 2022 capex spend § Loyalty/CRM platform OF F - PR E M IS E TE C H N O L O GY § Marketing campaign management § Flybuy/geofencing for pickup and curbside GROW T H MA R K E T I N G § AI recommendation engine/customer analytics IN VE S TME N T S TE C H N O L O GY § New point of sale system
Slide 138: Diversified sources of revenues
Diversified sources of revenues that will continue to grow IHOP APPLEBEE’S Royalties Advertising Company Royalties Franchise Dry Mix Advertising Rental/ Franchise Operated Fees Financing Fees 4.0% of system Initial fee 4.25% of 69 company 4.5% of system Initial fee Sale of 3.50% of system Rent from
Slide 139: Projected financial performance: revenue
Projected financial performance: revenue CONSOLIDATED REVENUE (EXCLUDES ADVERTISING) $900 $800 $750 + $700 $621 $600 $500 $400 $300 $200 $100 $0 2021A 2022E 2023E 2024E 2025E 2026E IHOP Applebee's International Source: Company’s Form 10-K filings and Company projections MI D S I N G L E D I G I T G
Slide 140: Strong projected financial performance
Strong projected financial performance RE VE N UE ( $M) EBITDA ($M) ( ) $1,100+ ¹ $350+ (1) § Mid single digit growth (2) $750+ $253 (1) $896 § High single digit growth (2) $621 § Margin expansion 47% 41% (2) (2) Margins Margins 2021A 2026E 2021A 2026E ADJ US T E D F R E E CAS H F LOW ( $M ) ADJ US
Slide 141: Cash G&A projected to grow 2% a year
Cash G&A is projected to grow on average 2% a year after 2022 G&A ($M) $275 $250 $225 $225 $193 $46 $200 $30 $175 $150 $125 $100 $179 $163 $75 $50 $25 $0 (1) 2022E ¹ 2023E 2024E 2025E 2026E Cash G&A Non-Cash G&A Note: (1) Based on midpoint of guidance range $188 million to $198 million CA S H G & A
Slide 142: Balanced capital allocation strategy
Balanced capital allocation strategy MAINTENANCE CAPITAL ALLO CATION PRIORITIES + GROWTH INVESTMENTS § Invest in Existing Brands § Manage Long- Term Debt § Capital Return RETURN TO (Dividends + Share Repurchases) SHAREHOLDERS § Inorganic/External Investments (JVs, Partnerships, M&A)
Slide 143: Capex expected to peak in 2022
Capex expected to peak in 2022 then gradually return to more normalized levels CAPEX ($M) $36 $ $20 $19 $17 $14 $13 $11 (1) 2017A 2018A 2019A 2020A 2021A 2022E ¹ 2023E 2024E - 2026E Source: Company Form 10-K filings and Company projections (1) Based on midpoint of guidance range $33 million to $38 m
Slide 144: Strong and healthy balance sheet
Dine maintains a strong and healthy balance sheet LT M N E T D E B T / E B I T D A 6.00x ($M) 2017 2018 2019 2020 2021 5.50x 4.98x Unrestricted 5.00x $117 $137 $116 $383 $361 Cash 4.50x 3.86x 4.00x (4) Total Debt $1,398 $1,439 $1,417 $1,618 $1,382 3.50x 3.25x 3.00x 2.72x Net Debt $1,234 $1,239 $1,24
Slide 145: Dividends
Dividends DIVIDEND YIELD 2.5% ~1.7% § Quarterly cash dividend of $0.46 per share § Announced in Q1 2022 ($1.84 per share annualized) DINE Highly CDR (2) Franchised Peers ² (1) Peers ¹ Source: S&P Capital IQ as of 3/3/2022. Dine’s dividend is based on a stock price of $73.27 as of 3/3/2022 (1) Includ
Slide 146: Share repurchases
Share repurchases ADJUSTED EPS $16.00 § Committed to best-in-class capital $14.50 returns to shareholders $14.00 $12.00 § Feb. 2022 $250 million share repurchase authorization $10.00 $8.00 § Continuously evaluate timing and $6.54 attractiveness of share repurchases $6.00 § Since resuming share repur
Slide 147: Projected annual shareholder growth over the next five years
Projected annual shareholder growth over the next five years HIGH ~20% ~2-3% = + TEENS EXPECTED ANNUAL DI VI DE N D ADJ US T E D E PS TOTA L S H A R E H O L D E R YIE LD GROW T H RE T URN Source: Internal Company projections
Slide 148: Dine Together: 2022 Dine Brands Investor Day
Dine Together 2022 DINE BRANDS INVESTOR DAY el
Slide 149: Appendix: Adjusted EBITDA reconciliation
Appendix Adjusted EBITDA is a non-GAAP financial measure. Reconciliation of the Company's net income (loss) to adjusted EBITDA is as follows: ($ in 000s) Twelve Months Ended Dec ember 31 , 2017 2018 2019 2020 2021 (as adjusted) Net income (loss), as reported $ (342,750) $ 80,354 $ 104,346 $ (103,994
Slide 150: Appendix: Adjusted Free Cash Flow reconciliation
Appendix Adjusted Free Cash Flow is a non-GAAP financial measure. Reconciliation of the Company's cash flows provided by operating activities to adjusted free cash flow” is as follows: ($ in millions) Twelve Months Ended December 31, 2017 2018 2019 2020 2021 Cash flows provided by operating activiti
Slide 151: Appendix: Adjusted EPS reconciliation
Appendix Adjusted earnings per share is a non-GAAP financial measure. Reconciliation of net income available to common stockholders per share to the diluted net income available to common stockholders per share, as adjusted is as follows: Twelve Months Ended December 31, 2017 2021 (as adjusted) Dilu