Dine Brands down after Truist Securities downgrades to 'hold', cuts PT

Dine Brands Global

04/10/2024 15:11

(Updates)
    ** Shares of Applebee parent Dine Brands Global  DIN.N  down
as much as 5.5% at $31.69 in early trading
    ** Brokerage Truist Securities downgrades to "hold" from
"buy" citing weaker sales growth compared to peers
    ** Says no longer sees near-term benefits from same-store
sales given "potentially severe" underperformance of its
full-service restaurant Applebee
    ** Adds, same-store sales declined even as industry trends
improved, highlighting Applebee's difficult market position
    ** Lowers PT to $37 from $66, expects more hesitancy in
opening new stores and increase in store closures to continue
through 2025
    ** We do not expect a meaningful cut in forecast for general
and administration expenses to offset pressures from sales -
brokerage
    ** Six of 10 brokerages rate the stock "buy" or "higher" and
 four "hold"; their median PT is $40 - LSEG
    ** Including session's move, stock down nearly 35% YTD

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com;))