Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — DineEquity — Investor Presentation (May 2012)
18 slides from Dine Brands Global, Inc. Common Stock's investor presentation, May 10, 2012
Slide 1: Investor Presentation May 2012
Investor Presentation May 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: 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: 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 f
Slide 5: DineEquity Value Creation Framework
5 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 6: Fundamental Approach to Brand Management
6 Menu Innovation Strategic Advertising and Media Enhanced Marketing Restaurant Remodels Operations Excellence Franchise Development Fundamental Approach to Brand Management Drive Restaurant Performance 1
Slide 7: Applebee's Brand Management: Marketing, Menu, Remodel, 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 8: 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
Slide 9: Applebee's Remodel Program
Drive Restaurant Performance 9 Applebee’s Remodel Program 1
Slide 10: 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 11: Menu Innovation & Simplification
Menu Innovation & Simplification Accelerating The Culinary Pipeline 11 Drive Restaurant Performance 1
Slide 12: Facilitate Franchise Development: Today, 95% Franchised System
12 Source: Company 10-K and 10-Q filings DineEquity Company and Franchised Restaurant Count *Note: Through March 31, 2012 IHOP restaurant base has grown by 16% since 2007; In that same time, 342 Applebee’s company-operated restaurants were refranchised Facilitate Franchise Development Today, 95% Fra
Slide 13: Track Record of Tight G&A Management
Track Record of Tight G&A Management 13 Annual G&A Expenses, 2007-2011 ($M) *Comprised of actual IHOP G&A expense plus pro forma Applebee’s G&A expense as disclosed in the Company’s 2007 Form 10-K, less certain one-time costs primarily related to additional stock-based compensation triggered by the
Slide 14: Strong Free Cash Flow Generation
Enables Significant Debt Reduction 14 Annual Free Cash Flow*, 2007-2011 ($M) Strong Free Cash Flow Generation *See non-GAAP financial measures disclosure in the Company’s Form 10-K filing Source: Company 10-K filings 0 50 100 150 $200M 0 50 100 150 $200M 2007 $95M 2008 $57M 2009 $136M 2010 $154M 201
Slide 15: Since the Acquisition, Total Debt Reduced by ~$795M
The Result: Since the Acquisition, Total Debt Reduced by ~$795M 15 Total Debt, 2007-2012 Q1 ($M) Source: Company 10-K and 10-Q Filings Over $300MM in 2011 Debt Reduction Alone 0 1 2 $3B 0 1 2 $3B 2007 $2.4B 2008 $2.4B 2009 $2.1B 2010 $2.0B 2011 $1.7B Q1 2012 $1.6B Total Debt ($B) $95M $57M $135M $15
Slide 16: Practical Benefit of Highly Franchised Model: Low Volatility
Practical Benefit of Highly Franchised Business Model: Low Volatility 16 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 17: 2012 Guidance
2012 Guidance 17 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 18: Conclusion
Conclusion 18 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