Dine Brands reports Q2 IHOP outperformance while Applebee’s sees slow improvement

Dine Brands reports Q2 IHOP outperformance while Applebee’s sees slow improvement

Wed, August 5, 2026 at 9:39 PM GMT+3 2 min read

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Dine Brands reported mixed results for the quarter ended June 28, with CEO John Peyton citing ongoing impacts from unfavorable economic headwinds, including elevated gas prices and declining consumer sentiment.

IHOP was a bright spot for the casual-dining portfolio company, with 1.5% same-store sales growth and a third consecutive quarter of industry outperformance and improved traffic. The breakfast brand's positive momentum was marked by growth of off-premises channels, particularly catering, which accelerated by 22% in Q2.

Dine Brands has implemented a barbell-shaped pricing strategy to drive both traffic and average check, offering both premium options to drum up excitement on one end — like the return of the Dubai chocolate pancakes — and expanding its $6 value meal on the other end.

"An early Q3 trend suggests that momentum is continuing," Peyton said. "The strategy is working, and the operational foundation behind it is stronger than it was a year ago."

Applebee's, meanwhile, continues to face traffic challenges with same-store sales declines of 1.8%, though there have been steady improvements for the past five quarters. The brand faced a tough April, especially in comparison to a particularly strong Q2 2025.

Dine Brands is also implementing a barbell pricing strategy here, with a simultaneous marketing push for promotions like the return of the $15.99 All You Can Eat deal. The new Loaded Potato Waves, Applebee's new and remixed take on potato skins, have also resonated with guests and was the strongest appetizer launch since the pandemic.

The company's third brand, Fuzzy's Taco Shop, delivered positive same-store sales for the second quarter.

Dine Brands is also making significant progress on its dual-branded restaurants and is more than halfway through its goal of opening 80 "IHOPBees" by the end of 2026.

"With each new opening, we refine our pre-opening process, reduce construction timelines, and sharpen our operational playbook, resulting in a faster path to steady-state performance," Peyton said.

For the second quarter ended June 28, Dine Brands' revenues increased to $240.9 million, up from $230.8 million the same quarter the year prior. The company reported net income of $4.3 million or $0.35 per share for the second quarter, down from $13.8 million or $0.89 per share the same quarter the year prior.

Dine Brands opened nine net new restaurants during the quarter, for a total of 3,289 restaurants across its global portfolio.

Contact Joanna at joanna.fantozzi@informa.com