Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — DineEquity — Barclays Capital High Yield Bond and Syndicated Loan Conference 2012
16 slides from Dine Brands Global, Inc. Common Stock's conference presentation, Mar 27, 2012
Slide 1: Barclays Capital High Yield Bond and Syndicated Loan Conference
Barclays Capital High Yield Bond and Syndicated Loan Conference March 27, 2012
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: Key DineEquity Highlights
Today, at 95% franchised, we are unique in the full-service restaurant segment We have two strong brands: each # 1 in their respective categories* Strong management team with significant industry experience Leverage Shared Services to effectively manage G&A Business model generates strong free cash
Slide 4: DineEquity Value Creation Framework
4 Increase Shareholder Value Maximize the Business Drive Restaurant Performance Facilitate Franchisee Development Manage G&A Cost Generate Free Cash Flow Refranchise Applebee’s Company Operated Restaurants Reduce Debt DineEquity Value Creation Framework: We Are Focused on Strong Brands and Reducing
Slide 5: Fundamental Approach to Brand Management
5 Menu Innovation Strategic Advertising and Media Enhanced Marketing Restaurant Remodels Operations Excellence Franchise Development Fundamental Approach to Brand Management Drive Restaurant Performance 1
Slide 6: Applebee's brand initiatives: marketing, menu, remodel, operations, development
Marketing Advertising and Media Menu Operations Excellence Development Emphasis on promoting unique products and value offerings Strategies for each day part Developing important new communications program Intense focus on creating current 18-month pipeline of new menu items Frequent new menu roll-o
Slide 7: Applebee's – Menu Innovation
Give Neighborhoods Reasons to Come Every Day! Healthy Halo Every Day Value Bar Meets Grill Double Barrel Whiskey Sirloin Lemon Shrimp Fettuccine Brew Pub Pretzels Roasted Garlic Sirloin Applebee’s – Menu Innovation Drive Restaurant Performance 1 Fresh And Seasonal 7
Slide 8: Applebee's Remodel Program
Drive Restaurant Performance 8 Applebee’s Remodel Program 1
Slide 9: IHOP – Powerful, Iconic Brand within Family Dining
Marketing Advertising and Media Menu Operations Excellence Development Promotional platform using featured menu items for longer periods of time Focusing on redefining the breakfast experience and evolving our ad campaign accordingly Expanding reach with social media Unique, cravable and differentia
Slide 10: Menu Innovation & Simplification: Accelerating The Culinary Pipeline
Menu Innovation & Simplification Accelerating The Culinary Pipeline 10 Drive Restaurant Performance 1
Slide 11: Facilitate Franchise Development: 95% Franchised System
11 Source = Company 10-K Filings DineEquity Company and Franchised Restaurant Count * Note = 17 Applebee’s company-operated restaurants in the Mid-South Region were refranchised in January 2012 IHOP Restaurant Base Has Grown by 15% Annually Since 2007; In that same time, Applebee’s has refranchised
Slide 12: Track Record of Tight G&A Management
Track Record of Tight G&A Management 12 G&A Expenses, 2007-2011 ($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 Applebe
Slide 13: Since the Acquisition, Total Debt Reduced by ~$700M
The Result: Since the Acquisition, Total Debt Reduced by ~$700M 13 Total Debt, 2007-2011 ($M) Source: Company 10-K Filings Over $300MM In 2011 Debt Reduction 0.0 1.0 2.0 $2.5B 2007 $2.4B 2008 $2.4B 2009 $2.1B 2010 $2.0B 2011 $1.7B Total Debt ($B) $95M $57M $135M $153M $108M Free Cash Flow
Slide 14: Practical Benefit of Highly Franchised Business Model: Low Volatility
Practical Benefit of Highly Franchised Business Model: Low Volatility 14 At high levels of refranchising, variations in same restaurant sales and margin have a comparatively minor impact on the bottom line Mitigates the pressures from commodity inflation When refranchising is complete, Company opera
Slide 15: 2012 Guidance
2012 Guidance 15 Operating Variables Cash Flow Same Restaurant Sales Applebee’s 0.5% to 2.5% IHOP -1.5% to 1.5% Development Applebee’s 30 to 40 IHOP 45 to 55 Company Margin Applebee’s 15.0% to 15.5% G&A $155M to $158M Cash from Operations $110M to $122M Long-term Receivables ~$13M Capital Expenditur
Slide 16: Conclusion
Conclusion 16 DineEquity’s unique business model combines: Leading brands - #1 in their respective categories* Strong free cash flow Less volatility *Source: Nation's Restaurant News, "Special Report: Top 100," June 27, 2011 (Applebee’s rank based on U.S. system-wide sales in the casual dining categ
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