Dine Brands Q2 2026 earnings: IHOP growth offsets Applebee's decline

Dine Brands Q2 2026 earnings: IHOP growth offsets Applebee's decline

Wed, August 5, 2026 at 3:55 PM GMT+3 2 min read

Dine Brands reported second-quarter revenue of $240.9 million, up from $230.8 million a year earlier, as a sales increase at IHOP offset continued weakness at Applebee's.

Net income fell to $4.3 million, or 35 cents per diluted share, from $13.8 million, or 89 cents per diluted share, in the same period of 2025. Excluding certain one-time items, the company's adjusted earnings came to $1.16 per diluted share, short of the $1.20 per share that analysts had expected, according to the Wall Street Journal.

Domestic same-restaurant sales rose 1.5% at IHOP and fell 1.8% at Applebee's compared with the year-earlier quarter. Analysts had projected a 0.5% increase at IHOP and a 2.2% decline at Applebee's, according to the Wall Street Journal.

The revenue gain was driven by higher company-owned restaurant sales, which the company attributed to an increase in the number of restaurants acquired from franchisees and the timing of those acquisitions. Adjusted EBITDA declined to $54.2 million from $56.2 million in the second quarter of 2025.

Chief Executive John Peyton said consumers continue to prioritize affordability and value. He noted in a statement that IHOP posted its third consecutive quarter of outperformance on both sales and traffic relative to the broader industry.

General and administrative expenses rose to $55.6 million from $50.8 million a year earlier, driven by employee costs tied to company-owned restaurant initiatives, reorganization costs, and acquisition-related transaction costs.

During the quarter, Applebee's closed a net 59 franchise locations compared with a year earlier, ending the period with 1,439 franchise restaurants and 118 company-owned locations. IHOP ended the quarter with 1,796 franchise restaurants and 17 company-owned locations. The company also had 81 dual-branded locations — restaurants that operate both IHOP and Applebee's under one roof — as of the end of the period.

Dine Brands maintained its full-year guidance.