Restaurant Chain Underperforms Peers, Promotions Fail to Boost Sales

  • Applebee’s parent Dine Brands Global Inc.’s stock down 5% after Truist downgrades to ‘hold’ from ‘buy’
  • Truist Card Data shows Applebee’s underperforming compared to the restaurant sector
  • Analyst Jake Bartlett cuts price target to $37 from $66
  • Third-quarter same-store sales forecast lowered to down 5% from 2.5%
  • IHOP outperforms Applebee’s, but faces slight sales miss
  • Truist expects store count contraction to continue through at least 2025

Dine Brands Global Inc.’s stock fell by 5% after Truist downgraded the company from ‘buy’ to ‘hold’, citing concerns over slowing sales at Applebee’s. Analyst Jake Bartlett lowered his price target to $37 from $66 and cut third-quarter same-store sales forecast to a decline of 5%, below consensus estimates. Despite promotions like the ‘All You Can Eat Boneless Wings’ and NFL partnership, sales remain weak. IHOP outperforms Applebee’s but faces a slight sales miss. Truist expects store count contraction to continue through at least 2025.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Dine Brands Global Inc.’s stock performance, Truist’s downgrade of the company, and the reasons behind it such as concerns over Applebee’s sales underperformance compared to peers. It also includes details on promotions and forecasts for both Applebee’s and IHOP, as well as a comparison between the two franchises. The article is not sensational or misleading, and while it does include some speculation about future performance, it is based on data and analysis from Truist Card Data.
Noise Level: 4
Noise Justification: The article provides relevant information about the downgrade of Dine Brands Global Inc.’s stock and the concerns regarding Applebee’s sales performance compared to industry trends. It also mentions the impact of promotions on both Applebee’s and IHOP, as well as the company’s loyalty program and store count contraction. However, it lacks in-depth analysis or exploration of long-term consequences and does not offer significant actionable insights for readers.
Public Companies: Dine Brands Global Inc. (DIN), Truist Securities (), Darden Restaurants, Inc. (DRI), S&P 500 (SPX)
Private Companies: Applebee’s,IHOP
Key People: Jake Bartlett (Analyst)

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Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Dine Brands Global Inc.’s stock performance after a downgrade by Truist, impacting the company’s financial outlook and affecting its price target. It also mentions the impact of promotions on sales for Applebee’s and IHOP, as well as the overall market performance with S&P 500 comparison.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in this article is a 5% decrease in Dine Brands Global Inc.’s stock price.
Sector: All
Direction: Down
Magnitude: Medium
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com