Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — DineEquity — Investor Presentation (November 2011)
16 slides from Dine Brands Global, Inc. Common Stock's investor presentation, Nov 14, 2011
Slide 1: Investor Presentation November 2011
Investor Presentation November 2011
Slide 2: Forward-Looking Information
Forward-Looking Information 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," "anticipat
Slide 3: Business Overview
Business Overview Julia Stewart Chairman and Chief Executive Officer 3 ©2011 DineEquity, Inc. All rights reserved.
Slide 4: Key DineEquity Investment Highlights
Key DineEquity Investment Highlights Two long-standing restaurant brands with #1 market share in their respective categories Franchise model results in strong cash flow from high margins and low capital needs Segment profitability and operating cash flow maintained during economic downturn The stren
Slide 5: Fundamental Approach to Brand Management
Fundamental Approach to Brand Management Menu Innovation Strategic Advertising and Media Enhanced Marketing Restaurant Remodels Operations Excellence Franchise Development 5 ©2011 DineEquity, Inc. All rights reserved.
Slide 6: Applebee's: Marketing, Menu, Remodel, Operations, Development
Marketing Advertising and Media Menu Operations Excellence Development Emphasis on promoting value offerings Bar “events” helping to make Applebee’s relevant again “There’s No Place Like The Neighborhood” campaign Holistic approach to advertising to support traditional televised campaigns Intense fo
Slide 7: Applebee's Remodel Program
Applebee’s Remodel Program 7 ©2011 DineEquity, Inc. All rights reserved.
Slide 8: IHOP: Marketing, Menu, Remodel, Operations, Development
Marketing Advertising and Media Menu Operations Excellence Development Two-year pipeline for limited-time offers and strong value Secondary initiatives – dinner, IHOP ‘n’ Go and nutrition “Make it an IHOP day.” campaign Innovative national media plan to drive awareness and trial Unique, cravable and
Slide 9: IHOP's New Remodel Program
IHOP’s New Remodel Program 9 ©2011 DineEquity, Inc. All rights reserved.
Slide 10: Historical Comp Sales Performance
Applebee’s System Wide Same-Restaurant Sales Growth IHOP System Wide Same-Restaurant Sales Growth IHOP Peer Median Applebee’s Peer Median 10 Historical Comp Sales Performance ©2011 DineEquity, Inc. All rights reserved. 1999 1.1% 2000 0.8% 2001 1.0% 2002 0.9% 2003 4.8% 2004 5.3% 2005 2.9% 2006 2.5% 2
Slide 11: DineEquity Advantage Versus Competitive Set
DineEquity Advantage Versus Competitive Set Unwavering focus on brand differentiation integrated throughout all aspects of innovative marketing, menu, remodel and operations approach Compelling value propositions, not discounting, essential to driving traffic while protecting the brands Ensuring tha
Slide 12: Financial Overview
Financial Overview Tom Emrey Chief Financial Officer 12 ©2011 DineEquity, Inc. All rights reserved.
Slide 13: Significant Free Cash Flow Generation
Significant Free Cash Flow Generation Sustainability of Royalty Stream Minimal Capex Requirements Strong Long-Term Track Record IHOP and Applebee’s have a history of operating strong cash flow businesses Three sources of significant free cash flow that will allow for balance sheet de-leveraging: (i)
Slide 14: Free Cash Flow as a % of Total Debt Improving
Free Cash Flow as a % of Total Debt Improving 2008-2010 * FCF = Cash Flows provided by operating activities – Additions to property and equipment + Principal receipts from notes and equipment contracts receivable – Dividends paid DineEquity Free Cash Flow as a % of Total Debt Refranchising of restau
Slide 15: Applebee's Refranchising of Company-Operated Restaurants Update
Applebee’s – Refranchising of Company-Operated Restaurants Update * Pending includes 17 restaurants in Mid-South sale as well as 4 restaurants in the NE sale. 103 110 193 321 Applebee’s Refranchising Progress 2008-2011 YTD 21 Committed to transitioning Applebee’s to a more highly franchised system o
Slide 16: Flexible Capital Structure with Attractive Terms
Flexible Capital Structure with Attractive Terms $809 million senior secured credit facility Seven-year $734 million term loan + five-year $75 million revolving credit facility Term loan: LIBOR + 300 basis points with 125 basis point LIBOR floor $785 million eight-year senior unsecured notes with a