Dine Brands Global, Inc. Common Stock · NYSE:DIN
Dine Brands Global, Inc. Common Stock — Investor Presentation (March 2019)
31 slides from Dine Brands Global, Inc. Common Stock's investor presentation, Mar 5, 2019
Slide 1: Dine Brands Global, Inc. Investor Presentation March 2019
Dine Brpands Global, Inc. Investor Presentation March 2019
Slide 2: Disclosures
Disclosures Forward-Looking Information: The content contained in this presentation is as of March 5, 2019. The Company assumes no obligation to update or supplement the information. Statements contained in this presentation may constitute forward-looking statements within the meaning of Section 27A
Slide 3: Company Overview
Company Overview BRANDS
Slide 4: Business Overview
Business Overview Founded Founded $7.6 1958 1980 #1 98% BILLION 3,668 in system-wide sales in U.S. Family and Franchised Casual dining(1) Model(2) for 2018, up 3% Total Restaurants compared to 2017 Expanding Industry-leading Diversified sources of $781 $231 margins and cash flow, including internati
Slide 5: Dine Brands Highlights
Dine Brands Highlights #1 U.S. Family & Casual Dining Brands(1) with Significant Scale Recent Same-Store Sales Momentum with Positive Comps Across Both Platforms Favorable Guest Dynamics with Nearly 50% of Guests Age 34 and Younger Strong Franchisee Base Consistent Unit Growth Driving System-Wide Sa
Slide 6: Our Two Iconic Brands at a Glance
Our Two Iconic Brands at a Glance ï,§ Founded in 1958ï,§ Founded in 1980 ï,§ Leader in Family Dining category ï,§ Leader in Casual Dining category ï,§ IHOP system has 1,831 locations globallyï,§ Applebee’s system has 1,837 locations globallyï,§ 2018 system-wide sales: $3.4 billionï,§ 2018 system-wid
Slide 7: Dine Brands 2018 Highlights
Dine Brands 2018 Highlights Continued comp sales momentum (including lapping periods of positive comps) Applebee’s 7.7% comp sales increase for the third quarter of 2018 set a 14-year record IHOP marked at least a decade of consecutive net development All Applebee’s restaurant portfolios operated by
Slide 8: Our Momentum Has Created Significant Value
Our Momentum Has Created Significant Value Dine Share Price ($) Sep. 12, 2017: Opening Share Price upon start of Steve Joyce of $38.55 (+0.6%) $99.49 +158.1% +13.8% (1) Source: Factset. 6 Note: Market data as of 2/21/19. 1. S&P 500 is indexed to Dine’s initial share price.
Slide 9: Commitment to Success
Commitment to Success • We are implementing growth plans at both brands and seeing positive results • We continue to pursue cost optimization opportunities • We are committed to making the necessary investments to further strengthen the business for the long-term • We expect to generate substantial
Slide 10: Vision: Return to Sustainable Growth
Vision: Return to Sustainable Growth 2019: Accelerated, Profitable Growth 2017: Transitional Year 2018: Brand Relevance and Momentum 8
Slide 11: IHOP and Applebee's Update
BRANDS IHOP and Applebée’s Update
Slide 12: Leader in U.S. Family and Casual Dining
Leader in U.S. Family and Casual Dining(1) IHOP HAS BEEN A LEADER IN FAMILY DINING APPLEBEE’S HAS BEEN A LEADER IN CASUAL FOR THE LAST 11 YEARS STRAIGHT DINING FOR THE LAST 11 YEARS STRAIGHT 2017 U.S. System-Wide Sales 2017 U.S. System-Wide Sales ($bn) ($bn) $4.1 $3.1 9 1. Annual ranking by Nation’s
Slide 13: Positive Comp Sales Momentum
Positive Comp Sales Momentum 7.7% 5.7% 2.0% ’ 4.0% 2.0% ’ 4.0% 3.3% 3.5% 3.0% 1.3% 1.6% 1.0%0.7%1.0% 0.8% 0.4% 0.5% 0.4% 0.1% (0.4%) (0.5%) (0.4%) (0.4%) (1.8%) Q4 Q1 Q2 Q3 Q4 FY (1) Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY (1) Q4 Q1 Q2 Q3 Q4 ‘17 ‘18 ‘18 ‘18 ‘18 ‘19E ‘17 ‘18 ‘18 ‘18 ‘18 ‘17 ‘18 ‘18 ‘18 ‘18
Slide 14: Favorable Guest Dynamics
Favorable Guest Dynamics IHOP Guest Age Demographics Applebee’s Guest Age Demographics 23% 27% 41% 39% 26% 28% 25% 27% 32% 51% of guests 45% of guests 30% 20% are age 34 20% are age 34 14% 19% and below 14% 15% and below Family Dining(1) Casual Dining(2) Under 18 18-34 35-54 55+ Under 18 18-34 35-54
Slide 15: IHOP Continues to Outperform Peers
IHOP Continues to Outperform Peers Historical Performance vs. Peer Average System Sales Growth Net Unit Growth CAGR 2013-2018 (December)(1) CAGR 2013-2018 (Spring 2018)(2) 1.8% 2.8% 1.2% 0.6% Peer Peer Average Average Source: Source: NPD Crest. Peer average comprised of Bob Evans, Cracker Barrel and
Slide 16: Strong Brand Equity and Innovation Leader
Strong Brand Equity and Innovation Leader IHOP GUEST PERCEPTION 13 Source: IHOP Brand and Advertising Monitor
Slide 17: Growing IHOP's Off-Premise Business
Growing IHOP’s Off-Premise Business TO-GO AND DELIVERY OVERALL OFF-PREMISE OFF-PREMISE BUSINESSES TO AVERAGE CHECK GROWTH AVERAGE CHECK DRIVE 10% SIGNIFICANT $21.20 FUTURE 8% GROWTH $16.22 6% AVERAGE 4% CHECK FOR ONLINE 2% ORDERS 31% HIGHER THAN 0% CALL-IN 2018 2018 2017 2018 Online Orders Call-in O
Slide 18: Building on IHOP's Positive Performance
Building on IHOP’s Positive Performance TO-GO AND • Long-term menu strategy • Leverage Abundant Value • Continue to develop the PM daypart • IHOP ‘N GO Opportunity HIGHER THAN CALL-IN 15 Source: Internal Company data.
Slide 19: Applebee's Strong Momentum Into 2019
Applebee’s Strong Momentum Into 2019 Applebee’s Quarterly Comp Sales Momentum(1) What’s Changed at Applebee’s Menu improvements, which provide our guests with 7.7% abundant value and variety Applebee’s laps positive Q4 2017 • Enhancing our guest demographic comp sales as 5.7% positive momentum Enhan
Slide 20: Buzzworthy Social Media-Driven Drink Promotions
Buzzworthy Social Media-Driven Drink Promotions 17
Slide 21: Off-Premise Relevance
Off-Premise Relevance To-Go Comp Sales • Sustainable off-premise growth driven by traffic 43.8% • Growth engine, highly incremental • Ongoing optimization (technology, packaging, service) • Best-positioned brand in CDR 7.6% • Actively implementing delivery Q4 2017 Q4 2018 Source: Internal Company da
Slide 22: Applebee's Technology
Applebee’s Technology • Investing heavily to enable brand initiatives —Server tablets to allow table-side ordering —Enhanced website and mobile app functionality —Carside arrival notification —Enabling guests to pay in-restaurant on their own device —Modernizing our restaurant POS system 19
Slide 23: Strong Asset Base and Franchisee Relations
Strong Asset Base and Franchisee Relations Applebee’s has strong relationships with its franchisees, which continue to invest in the system • 92% of restaurants remodeled between 2012-2015 • Closing under-performing, non-viable restaurants • Temporary increase to national ad contribution rate to 4.2
Slide 24: Applebee's is Well-Positioned for Growth
Applebee’s is Well-Positioned for Growth ï,§ Applebee’s is America’s kitchen table ï,§ 22% of the U.S. population has eaten at Applebee’sï,§ Average guest visits every 60 daysï,§ Average household income of $70,000ï,§ Broad appeal GenZ, Millennials, GenX and Boomersï,§ Innovative buzz-worthy promoti
Slide 25: Financial Performance
Financial Performarice BRANDS
Slide 26: Improved Margin Performance and Cash Flow Generation
Improved Margin Performance and Cash Flow Generation 98% franchised, asset-lite business model generates significant profit on revenue growth, industry-leading margins and substantial adjusted free cash flow Stable and Robust Adjusted EBITDA Margins(1) Adjusted Free Cash Flow(4) $141 45% 45% $123 $6
Slide 27: Historical Financial Performance
Historical Financial Performance System-Wide Units System-Wide Sales ($bn) 3,631 3,667 3,716 3,749 3,722 3,668 $7.5 $7.9 $7.6 $7.6 $7.3 $7.4 $2.8 $3.0 $3.2 $3.2 $3.4 1,620 1,650 1,683 1,733 1,786 $3.3 1,831 $4.5 $4.5 $4.7 $4.4 $4.1 $4.2 2,011 2,017 2,033 2,016 1,936 1,837 2013 2014 2015 2016 2017 20
Slide 28: Appendix
Appendix BRANDS
Slide 29: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Twelve Month Period Ended December 31, ($ in millions) 2016 2017 2018 Cash Flows Provided by Operating Activities $118.1 $65.7 $140.3 Receipts from Notes and Equipment Contracts Receivable 10.0 10.6 14.9 Additions to Property and Equipment (5.6) (13.3) (14.3) A
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Twelve Month Period Ended December 31, ($ in millions) 2013 2014 2015 2016 2017 2018 (as adjusted) Net Income (Loss) $72.0 $36.5 $104.9 $98.0 ($342.8) $80.4 Income Tax Provision (Benefit) 38.6 15.1 63.7 55.1 (85.6) 30.3 Interest Charges 116.5 111.8 77.2 73.7 72.3 71.5
Slide 31: Adjusted EBITDA Margins Reconciliation
Adjusted EBITDA Margins Reconciliation ($ in millions) Fiscal 2017 Fiscal 2018 (as adjusted) Net Income (Loss) ($342.8) $80.4 Income Tax Provision (Benefit) (85.6) 30.3 Interest Charges 72.3 71.5 Depreciation and Amortization 30.6 32.2 EBITDA ($325.4) $214.3 Adjustments: Non-cash Stock-based Compens
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