Gross margins have contracted significantly from 47.7% in 2023Q4 to 38.8% in 2026Q1, reflecting a diminished ability to maintain pricing power across the brand portfolio.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 889.72M | 879.3M | 812.31M | 831.07M | 909.4M | 896.17M | 689.27M | 910.18M | 780.93M | 731.73M | 787.57M | 681.1M | 654.99M | 640.47M | 849.93M | 1.08B | 1.33B | 1.41B | 1.61B | 484.56M | 349.56M | 348.02M | 359M | 404.81M | 365.87M | 324.44M | 303.24M | 273.2M | 256.2M | 214.5M | 189.8M |
| Revenue Growth % | 8.39% | 8.25% | -2.26% | -8.61% | 1.48% | 30.02% | -24.27% | 16.55% | 6.72% | -7.09% | 15.63% | 3.99% | 2.27% | -24.64% | -20.95% | -19.38% | -5.68% | -12.37% | 233.01% | 38.62% | 0.44% | -3.06% | -11.31% | 10.64% | 12.77% | 6.99% | 11% | 6.64% | 19.44% | 13.01% | 15.52% |
| Cost of Goods Sold | 541.93M | 528.5M | 437M | 434.38M | 532.04M | 520.94M | 440.55M | 527.36M | 427.84M | 393.01M | 403.42M | 282.09M | 279.87M | 270.77M | 457.98M | 667.57M | 903.84M | 966.39M | 1.18B | 305.12M | 208.47M | 212.59M | 228.17M | 232.62M | 207.37M | 183.55M | 173.42M | 154.2M | 150.8M | 126.9M | 114.7M |
| COGS % of Revenue | - | 60.1% | 53.8% | 52.27% | 58.5% | 58.13% | 63.92% | 57.94% | 54.79% | 53.71% | 51.22% | 41.42% | 42.73% | 42.28% | 53.89% | 62.09% | 67.77% | 68.35% | 73.12% | 62.97% | 59.64% | 61.09% | 63.56% | 57.47% | 56.68% | 56.58% | 57.19% | 56.44% | 58.86% | 59.16% | 60.43% |
| Gross Profit | 347.79M | 350.8M | 375.31M | 396.68M | 377.36M | 375.23M | 248.72M | 382.81M | 353.09M | 338.71M | 384.15M | 399.01M | 375.12M | 369.69M | 391.94M | 407.63M | 429.8M | 447.57M | 433.82M | 179.44M | 141.09M | 135.43M | 130.83M | 172.18M | 158.5M | 140.88M | 129.82M | 119M | 105.4M | 87.6M | 75.1M |
| Gross Margin % | 39.09% | 39.9% | 46.2% | 47.73% | 41.5% | 41.87% | 36.08% | 42.06% | 45.21% | 46.29% | 48.78% | 58.58% | 57.27% | 57.72% | 46.12% | 37.91% | 32.23% | 31.65% | 26.88% | 37.03% | 40.36% | 38.91% | 36.44% | 42.53% | 43.32% | 43.42% | 42.81% | 43.56% | 41.14% | 40.84% | 39.57% |
| Gross Profit Growth % | - | -6.53% | -5.39% | 5.12% | 0.57% | 50.86% | -35.03% | 8.42% | 4.24% | -11.83% | -3.72% | 6.37% | 1.47% | -5.68% | -3.85% | -5.16% | -3.97% | 3.17% | 141.76% | 27.18% | 4.18% | 3.52% | -24.02% | 8.63% | 12.5% | 8.52% | 9.09% | 12.9% | 20.32% | 16.64% | -5.18% |
| Operating Expenses | 206.25M | 207.2M | 207.53M | 208.98M | 201.31M | 182.52M | 155.69M | 174.52M | 353.09M | 338.71M | 384.15M | 399.01M | 375.12M | 369.69M | 391.94M | 407.63M | 344.86M | 462.34M | 433.82M | 82.72M | 63.54M | 58.8M | 59.89M | 111.15M | 49.53M | 55.44M | 50.04M | 46.8M | 43.7M | 38.4M | 33.4M |
| OpEx % of Revenue | - | 23.56% | 25.55% | 25.15% | 22.14% | 20.37% | 22.59% | 19.17% | 45.21% | 46.29% | 48.78% | 58.58% | 57.27% | 57.72% | 46.12% | 37.91% | 25.86% | 32.7% | 26.88% | 17.07% | 18.18% | 16.9% | 16.68% | 27.46% | 13.54% | 17.09% | 16.5% | 17.13% | 17.06% | 17.9% | 17.6% |
| Selling, General & Admin | 205.56M | 203.8M | 196.7M | 198.06M | 190.75M | 171.84M | 144.79M | 162.81M | 166.68M | 165.68M | 148.94M | 155.43M | 145.91M | 143.59M | 163.22M | 155.82M | 160.33M | 158.47M | 182.24M | 81.6M | 63.54M | 58.8M | 59.89M | 334.68M | 49.53M | 40.62M | 36.48M | 34.5M | 32.4M | 28.4M | 25.1M |
| SG&A % of Revenue | - | 23.18% | 24.22% | 23.83% | 20.97% | 19.17% | 21.01% | 17.89% | 21.34% | 22.64% | 18.91% | 22.82% | 22.28% | 22.42% | 19.2% | 14.49% | 12.02% | 11.21% | 11.29% | 16.84% | 18.18% | 16.9% | 16.68% | 82.68% | 13.54% | 12.52% | 12.03% | 12.63% | 12.65% | 13.24% | 13.22% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 489K | 3.4M | 10.83M | 10.92M | 10.56M | 10.68M | 10.9M | 11.7M | 186.4M | 173.03M | 235.21M | 243.58M | 229.21M | 226.11M | 228.73M | 251.81M | 184.53M | 303.87M | 251.58M | 1.12M | 0 | 0 | 0 | -223.54M | 0 | 14.82M | 13.56M | 12.3M | 11.3M | 10M | 8.3M |
| Operating Income | 137.84M | 143.6M | 167.78M | 187.7M | 176.05M | 192.71M | 93.02M | 208.3M | 176.3M | 163.02M | 225.23M | 233.58M | 217.14M | 213.82M | 216.44M | 239.51M | 84.94M | -14.78M | 255.61M | 96.72M | 77.55M | 76.63M | 70.94M | 61.04M | 108.97M | 85.44M | 79.78M | 72.2M | 61.7M | 49.2M | 41.7M |
| Operating Margin % | 15.49% | 16.33% | 20.65% | 22.59% | 19.36% | 21.5% | 13.5% | 22.89% | 22.58% | 22.28% | 28.6% | 34.29% | 33.15% | 33.39% | 25.47% | 22.28% | 6.37% | -1.04% | 15.84% | 19.96% | 22.19% | 22.02% | 19.76% | 15.08% | 29.78% | 26.34% | 26.31% | 26.43% | 24.08% | 22.94% | 21.97% |
| Operating Income Growth % | - | -14.41% | -10.62% | 6.62% | -8.64% | 107.16% | -55.34% | 18.15% | 8.14% | -27.62% | -3.57% | 7.57% | 1.55% | -1.21% | -9.63% | 181.97% | 674.89% | -105.78% | 164.27% | 24.72% | 1.2% | 8.02% | 16.23% | -43.99% | 27.54% | 7.1% | 10.5% | 17.02% | 25.41% | 17.99% | -16.77% |
| EBITDA | 182.28M | 186.5M | 206.93M | 223.33M | 214M | 232.59M | 135.85M | 250.79M | 208.47M | 193.67M | 255.84M | 266.42M | 251.89M | 249.18M | 255.97M | 289.73M | 146.37M | 50.6M | 328.55M | 128.55M | 97.6M | 96.78M | 89.68M | 79.66M | 124.94M | 100.26M | 93.34M | 84.5M | 73M | 59.2M | 50M |
| EBITDA Margin % | 20.49% | 21.21% | 25.47% | 26.87% | 23.53% | 25.95% | 19.71% | 27.55% | 26.7% | 26.47% | 32.48% | 39.12% | 38.46% | 38.91% | 30.12% | 26.95% | 10.97% | 3.58% | 20.36% | 26.53% | 27.92% | 27.81% | 24.98% | 19.68% | 34.15% | 30.9% | 30.78% | 30.93% | 28.49% | 27.6% | 26.34% |
| EBITDA Growth % | -9.44% | -9.87% | -7.35% | 4.36% | -7.99% | 71.21% | -45.83% | 20.3% | 7.64% | -24.3% | -3.97% | 5.77% | 1.09% | -2.65% | -11.65% | 97.95% | 189.24% | -84.6% | 155.57% | 31.71% | 0.84% | 7.92% | 12.57% | -36.24% | 24.61% | 7.42% | 10.46% | 15.75% | 23.31% | 18.4% | -12.28% |
| D&A (Non-Cash Add-back) | 44.44M | 42.9M | 39.15M | 35.63M | 37.95M | 39.88M | 42.83M | 42.49M | 32.17M | 30.65M | 30.61M | 32.84M | 34.74M | 35.35M | 39.54M | 50.22M | 61.43M | 65.38M | 72.93M | 31.83M | 20.05M | 20.15M | 18.74M | 18.63M | 15.97M | 14.82M | 13.56M | 12.3M | 11.3M | 10M | 8.3M |
| EBIT | 83.8M | 30.2M | 161.69M | 181.75M | 175.74M | 185.22M | -41.67M | 198.87M | 172.29M | -366.33M | 219.33M | 231.9M | 148.23M | 210.88M | 309.26M | 237.71M | 159.46M | 223.06M | 14.98M | 25.95M | 77.55M | 76.63M | 70.94M | 70.12M | 108.97M | 85.44M | 79.78M | 72.2M | 61.7M | 49.2M | 41.7M |
| Net Interest Income | -19.09M | -5M | -72.14M | -70.05M | -60.95M | -63.3M | -66.89M | -60.39M | -61.69M | -61.98M | -61.48M | -63.25M | -96.64M | -100.26M | -114.34M | -132.71M | -171.54M | -186.47M | -203.14M | -28.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 19.09M | 5M | 72.14M | 70.05M | 60.95M | 63.3M | 66.89M | 60.39M | 61.69M | 61.98M | 61.48M | 63.25M | 96.64M | 100.26M | 114.34M | 132.71M | 171.54M | 186.47M | 203.14M | 28.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -115.34M | -118.4M | -78.23M | -76M | -61.27M | -70.78M | -201.58M | -69.82M | -65.69M | -591.33M | -67.38M | -64.93M | -165.55M | -103.21M | -21.51M | -134.51M | -97.02M | 51.36M | -443.77M | -99.43M | -4.7M | -5.77M | -16.78M | -2.19M | -43.62M | -20.98M | -22.32M | -20M | -18.9M | -14.9M | -11M |
| Pretax Income | 22.5M | 25.2M | 89.54M | 111.7M | 114.78M | 121.92M | -108.56M | 138.47M | 110.61M | -428.31M | 157.85M | 168.65M | 51.6M | 110.62M | 194.92M | 105M | -12.08M | 36.58M | -188.16M | -2.71M | 72.85M | 70.87M | 54.17M | 58.85M | 65.36M | 64.46M | 57.46M | 52.2M | 42.8M | 34.3M | 30.7M |
| Pretax Margin % | 2.53% | 2.87% | 11.02% | 13.44% | 12.62% | 13.6% | -15.75% | 15.21% | 14.16% | -58.53% | 20.04% | 24.76% | 7.88% | 17.27% | 22.93% | 9.77% | -0.91% | 2.59% | -11.66% | -0.56% | 20.84% | 20.36% | 15.09% | 14.54% | 17.86% | 19.87% | 18.95% | 19.11% | 16.71% | 15.99% | 16.17% |
| Income Tax | 6.2M | 8.1M | 24.65M | 14.53M | 33.67M | 24.06M | -4.57M | 34.13M | 30.25M | -85.56M | 56.85M | 63.73M | 15.14M | 38.58M | 67.25M | 29.81M | -9.29M | 5.17M | -33.7M | -2.23M | 28.3M | 26.93M | 20.75M | 22.07M | 24.51M | 24.17M | 22.12M | 20.1M | 16.7M | 13.4M | 12.1M |
| Effective Tax Rate % | 27.56% | 32.14% | 27.53% | 13.01% | 29.34% | 19.73% | 4.21% | 24.65% | 27.35% | 19.98% | 36.01% | 37.79% | 29.35% | 34.88% | 34.5% | 28.39% | 76.92% | 14.15% | 17.91% | 82.27% | 38.84% | 38% | 38.3% | 37.5% | 37.5% | 37.5% | 38.5% | 38.51% | 39.02% | 39.07% | 39.41% |
| Net Income | 16.3M | 17.1M | 64.89M | 97.18M | 81.11M | 97.86M | -103.99M | 104.35M | 80.35M | -342.75M | 101M | 104.92M | 36.45M | 72.04M | 127.67M | 75.19M | -2.79M | 31.41M | -154.46M | -480K | 44.55M | 43.94M | 33.42M | 36.78M | 40.85M | 40.29M | 35.34M | 32.1M | 26.1M | 20.9M | 18.6M |
| Net Margin % | 1.83% | 1.94% | 7.99% | 11.69% | 8.92% | 10.92% | -15.09% | 11.46% | 10.29% | -46.84% | 12.82% | 15.4% | 5.57% | 11.25% | 15.02% | 6.99% | -0.21% | 2.22% | -9.57% | -0.1% | 12.75% | 12.62% | 9.31% | 9.09% | 11.16% | 12.42% | 11.65% | 11.75% | 10.19% | 9.74% | 9.8% |
| Net Income Growth % | -70.69% | -73.65% | -33.22% | 19.81% | -17.12% | 194.11% | -199.66% | 29.86% | 123.44% | -439.35% | -3.74% | 187.83% | -49.4% | -43.58% | 69.8% | 2796.99% | -108.88% | 120.33% | -32078.96% | -101.08% | 1.4% | 31.47% | -9.14% | -9.95% | 1.39% | 14.01% | 10.09% | 22.99% | 24.88% | 12.37% | 14.81% |
| Net Income (Continuing) | 16.3M | 17.1M | 64.89M | 97.18M | 81.11M | 97.86M | -103.99M | 104.35M | 80.35M | -342.75M | 101M | 104.92M | 36.45M | 72.04M | 127.67M | 75.19M | -2.79M | 31.41M | -154.46M | -480K | 44.55M | 43.94M | 33.42M | 36.78M | 40.85M | 40.29M | 35.34M | 32.1M | 26.1M | 20.9M | 18.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 30K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.29 | 1.12 | 4.22 | 6.22 | 4.96 | 5.66 | -6.41 | 5.85 | 4.52 | -18.63 | 5.33 | 5.52 | 1.90 | 3.70 | 6.63 | 3.89 | -1.74 | 0.55 | -9.21 | -0.13 | 2.43 | 2.24 | 1.61 | 1.70 | 1.92 | 1.94 | 1.74 | 1.58 | 1.32 | 0.54 | 0.49 |
| EPS Growth % | -71.47% | -73.46% | -32.15% | 25.4% | -12.37% | 188.3% | -209.57% | 29.42% | 124.26% | -449.53% | -3.44% | 190.53% | -48.65% | -44.19% | 70.44% | 323.56% | -416.36% | 105.97% | -6984.62% | -105.35% | 8.48% | 39.13% | -5.29% | -11.46% | -1.03% | 11.49% | 10.13% | 19.7% | 144.44% | 10.2% | 13.95% |
| EPS (Basic) | - | 1.12 | 4.22 | 6.23 | 4.97 | 5.69 | -6.41 | 5.95 | 4.58 | -18.65 | 5.36 | 5.55 | 1.92 | 3.75 | 6.81 | 3.96 | -1.74 | 0.55 | -9.21 | -0.13 | 2.46 | 2.26 | 1.62 | 1.72 | 1.95 | 1.98 | 1.77 | 1.61 | 1.32 | 0.55 | 0.50 |
| Diluted Shares Outstanding | 12.6M | 14.3M | 14.93M | 15.24M | 15.9M | 16.89M | 16.23M | 17.25M | 17.79M | 17.74M | 18.13M | 18.77M | 18.96M | 19.14M | 18.88M | 18.18M | 17.24M | 16.92M | 16.76M | 17.23M | 18.3M | 19.6M | 20.79M | 21.61M | 21.27M | 20.76M | 20.26M | 20.36M | 19.78M | 19.42M | 18.93M |
| Basic Shares Outstanding | 12.3M | 14.3M | 14.93M | 15.23M | 15.87M | 16.8M | 16.23M | 16.93M | 17.53M | 17.73M | 18.03M | 18.64M | 18.75M | 18.87M | 17.99M | 17.85M | 17.24M | 16.92M | 16.76M | 17.23M | 18.09M | 19.41M | 20.61M | 21.42M | 20.95M | 20.4M | 20.02M | 19.98M | 19.74M | 19.42M | 18.93M |
| Dividend Payout Ratio | - | 181.29% | 48.24% | 32.64% | 37.93% | - | - | 44.91% | 63.62% | - | 66.76% | 63.06% | 117.23% | 79.74% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Debt Service Burden
According to the provided financial data, Dine Brands Global has experienced inconsistent top-line performance, with revenue growth fluctuating between a 3.7% decline in 2024Q3 and an 11.9% increase in 2025Q2, suggesting that the company's core franchise model struggles to maintain steady, organic expansion across its primary brands.
The volatility in revenue growth appears to reflect the challenges of managing mature casual dining concepts in a competitive environment. Investors should monitor whether the recent acquisition of Fuzzy’s Taco Shop can provide a sustainable growth engine to offset the stagnation observed in the legacy Applebee’s and IHOP segments.
As reported in the income statement, gross margins have trended downward from 47.7% in 2023Q4 to 38.8% in 2026Q1, indicating that the company's ability to maintain pricing power or manage pass-through lease costs has been significantly compromised over the last ten quarters of operations.
The contraction in gross margin suggests that the company's role as a middleman in rental operations may be creating a drag on profitability that is difficult to mitigate. This trend warrants further investigation into whether rising commodity costs or franchisee-level pressures are forcing the parent company to absorb more operational risk.
Based on the reported figures, operating income has failed to scale proportionally with revenue, as evidenced by the decline in operating margins from 21.9% in 2023Q4 to 13.5% in 2026Q1, highlighting a lack of efficiency in managing corporate SG&A expenses relative to the company's total unit footprint.
The inability to leverage fixed costs effectively suggests that the corporate structure may be bloated for the current level of system-wide sales. Analysts should consider whether the current SG&A spend is necessary for brand support or if it represents an inflexible cost base that limits the company's operating agility.
Financial statements reveal that net income has been highly erratic, swinging from a $33.0 million profit in 2023Q4 to a $12.2 million loss in 2025Q4, which suggests that non-operating items and interest obligations are creating significant noise that obscures the underlying health of the franchise business.
The wide variance between operating income and net income implies that the company's capital structure is exerting excessive pressure on the bottom line. Investors should be cautious of relying on EPS as a metric of performance, as it appears heavily influenced by non-recurring charges and debt-related expenses.
Short-term trends in the income statement, particularly the persistent contraction of the Applebee’s unit count and the compression of net margins to 1.94% in 2026Q1, suggest that the asset-light model may be reaching a point of diminishing returns in the current high-interest rate environment.
A critical challenge to the current narrative is whether the company can continue to extract royalty streams without reinvesting heavily into the brand, which could lead to a long-term decline in system-wide sales. The market may be underestimating the risk that franchisee defaults could force the company to take back and operate underperforming units.
Quick answers to the most common questions about buying DIN stock.
For fiscal year 2025, Dine Brands Global, Inc. (DIN) reported total revenue of $879.3M. This represents a 363.3% increase compared to $189.8M in 1996.
Dine Brands Global, Inc. (DIN) is profitable, generating $17.1M in net income for the fiscal year ending 2025 with a net profit margin of 1.9%.
Dine Brands Global, Inc. (DIN) reported an operating income of $143.6M, resulting in an operating profit margin of 16.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Dine Brands Global, Inc. (DIN) generated $350.8M in gross profit for the year, representing a gross profit margin of 39.9%. This demonstrates the company's core pricing power and production efficiency.