Wedbush upgrades Dine Brands, lifts PT on potential share buyback

Dine Brands Global

01/10/2024 14:16

** Wedbush upgrades rating on Applebee-parent Dine Brands
Global  DIN.N  to "outperform" from "neutral"; raises PT to $47
from $37
    ** DIN shares up ~4% at $32.48 premarket
    ** Brokerage sees possible share repurchase plans of over
$100 mln in H2 FY25 following refinancing of DIN's loans
    ** Wedbush expects ongoing menu testing at co's brands,
Applebee and IHOP restaurants, to deliver compelling value
offers that would stabilize same-store sales growth
    ** Says DIN's 100% franchised model minimizes margin
sensitivity to revenue challenges and gives higher visibility
into earnings and free cash flow generation
    ** Five of 10 brokerages rate DIN stock "buy", rest "hold";
their median PT is $40
    ** Up to Monday's close, stock down ~36% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))