25 slides from Dine Brands Global, Inc. Common Stock's investor presentation, Mar 8, 2016
Slide 1: 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," "anticipa
Slide 2: Highlights of the DineEquity Story
HIGHLIGHTS OF THE DINEEQUITY STORY Applebee’s and IHOP are two iconic brands with #1 positions in their respective categories(1) for the last eight consecutive years •With more than 3,700 restaurants, DineEquity is one of the largest full-service restaurant companies in the world Stable long-term ca
Slide 3: DineEquity's Diversified Sources of Revenue
DINEEQUITY’S DIVERSIFIED SOURCES OF REVENUE Sale of Pancake / Waffle Dry-Mix Royalties Approx. 4.5% Royalties Approx. 4.0% Franchise Financing Revenues (2) Rental Revenues (3) Franchise Fees Fees (1) IHOP revenue sources exclude advertising fund contributions from franchisees, which are recognized a
Slide 4: Our Strategy to Drive Organic Growth
OUR STRATEGY TO DRIVE ORGANIC GROWTH © 2016 DineEquity, Inc. All rights reserved.
Slide 5: Five Benchmarks Drive Organic Growth
FIVE BENCHMARKS DRIVE ORGANIC GROWTH TO Maximize the Business Change the Story at Applebee’s 1 Drive Strong Free Cash Flow Return it to Shareholders Sustain IHOP’s Momentum 2 Meaningful Cash Dividend Accelerate Franchisee Restaurant Development 3 Share Repurchases Build a More Nimble Company Under O
Slide 6: Innovate, Evolve, Build Strong Brands
INNOVATE EVOLVE BUILD STRONG BRANDS © 2016 DineEquity, Inc. All rights reserved.
Slide 7: Innovate and Evolve Strong Brands
INNOVATE AND EVOLVE STRONG BRANDS Committed to Long-term Brand Building Operational Excellence Remodel Programs Global Development by Franchisees Guest Satisfaction Menu Innovation Effective Advertising & Media Digital and Social Marketing 9 © 2016 DineEquity, Inc. All rights reserved.
Slide 8: Current Remodel Program at IHOP
INNOVATE AND EVOLVE STRONG Current Remodel Program at IHOP BRANDS 10 © 2016 DineEquity, Inc. All rights reserved.
Slide 9: Food and Menu Innovation at IHOP
INNOVATE AND EVOLVE STRONG Food and Menu Innovation at IHOP BRANDS 11 © 2016 DineEquity, Inc. All rights reserved.
Slide 10: Applebee's Domestic Prototype
INNOVATE AND EVOLVE STRONG Applebee’s Domestic Prototype BRANDS 12 © 2016 DineEquity, Inc. All rights reserved.
Slide 11: Food and Menu Innovation at Applebee's
INNOVATE AND EVOLVE STRONG BRANDS Food and Menu Innovation at Applebee’s 13 © 2016 DineEquity, Inc. All rights reserved.
Slide 12: Social Media Impact at Both Brands
INNOVATE AND EVOLVE STRONG BRANDS Social Media Impact at Both Brands Applebee’s Fantographer program voted Best use of Instagram in 2015 by Entrepreneur magazine(1) In 2015, IHOP achieved 74% growth in followers on Twitter, the largest among the peer group(2) With almost 3.5 million likes, IHOP has
Slide 13: Same-Restaurant Sales Performance
INNOVATE AND EVOLVE STRONG BRANDS Same-Restaurant Sales Performance IHOP System-wide Same-Restaurant Sales 3.9% 4.5% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% 2011 2012 2013 2014 2015 Applebee’s System-wide Same-Restaurant Sales 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% (0.3)% 2013 -0.5% 2011 2012 2014 20
Slide 14: Accelerate Franchisee Restaurant Development
ACCELERATE FRANCHISEE RESTAURANT DEVELOPMENT Investing in Talent and Systems to Drive Global Development Fiscal Year Total Restaurant Count 3,716 (1) 4,000 3,667 3,631 36 3,615 35 11 3,569 34 3,464 3,514 3,400 3,500 3,320 3,000 1,607 2,500 2,000 1,500 1,000 500 0 2007 84% 2008 88% 2009 88% 2010 91%
Slide 15: 2015 Was a Successful Year for DineEquity
2015 WAS A SUCCESSFUL YEAR FOR DINEEQUITY • Achieved over 30% growth in full-year adjusted earnings per diluted share,(¹) from $4.73 in fiscal 2014 to $6.19 in fiscal 2015. Generated free cash flow of approximately $142 million,(2) of which approximately $136 million(3) • was returned to shareholder
Slide 16: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS © 2016 DineEquity, Inc. All rights reserved.
Slide 17: Manage Costs: Track Record of Containing Expenses
MANAGE COSTS Track Record of Containing Expenses General and Administrative Expenses (in millions) $193(1) $200 $182 $163 150 $144 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 We are making prudent investments in talent to support future growth and will incur modest incremental costs to sup
Slide 18: Manage Costs: Minimal Capital Expenditures
MANAGE COSTS 99% Franchised System Requires Minimal Capital Expenditures Capital Expenditures (2009 – 2015) (in millions) $30 $25 $20 $15 $10 $6 $5 $0 2009 2010 2011 2012 2013 2014 2015 DineEquity is prudently investing in technology and future restaurant prototypes to drive growth Source: Company’s
Slide 19: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY The share repurchase authorization was increased to $150 million in Q4 2015 QQuuaarrtteerrllyy $00..87755 $00.8.9725 Annual $3..050 dividend $3..5608 Board authorized a m5e%aninincgrfeualsiencinretahsee in thqeuaqrutearrltyerclyaschash dividend in Q4 2015 DineEquity has
Slide 20: Significant Achievements Over the Last Eight Years
SIGNIFICANT ACHIEVEMENTS OVER LAST EIGHT YEARS THE © 2016 DineEquity, Inc. All rights reserved.
Slide 21: Delivered on What We Promised
DELIVERED ON WHAT WE PROMISED SUCCESSFUL EXECUTION OF OUR STRATEGY HAS YIELDED POSITIVE RESULTS Reduced G&A by approximately $44 million between 2007 and 2015 (1) Formed a purchasing co-op in 2009 to benefit our franchisees DineEquity became 99% franchised in 2012 Completed the refinancing of our lo
Slide 22: Positioned for Future Success
POSITIONED FUTURE SUCCESS FOR © 2016 DineEquity, Inc. All rights reserved.
Slide 23: Building on Our Achievements for Future Success
BUILDING ON OUR ACHIEVEMENTS FOR FUTURE SUCCESS Focused on key strategic priorities to drive long-term growth Innovate and evolve our strong brands to drive organic growth International development and brand building Build a more nimble organization Disciplined approach to G&A management and minimiz
Slide 24: Management Presentation March 2016
MANAGEMENT PRESENTATION March 2016 © 2016 DineEquity, Inc. All rights reserved.
Slide 25: Management Presentation
ne MANAGEMENT PRESENTATION March 2016