Dine Brands Global owns, franchises, and operates full-service restaurants in the United States and internationally. The company owns and operates two restaurant concepts, including Applebee's Neighborhood Grill & Bar and International House of Pancakes (IHOP) in the family dining category of the restaurant industry. The company was founded in 1958 and is based in Glendale, California.
DIN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DIN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Dine Brands Global Inc ranked in the 11th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for DIN, they are:
Its compound free cash flow growth rate, as measured over the past 5.43 years, is -0.11% -- higher than only 13.84% of stocks in our DCF forecasting set.
31% of the company's capital comes from equity, which is greater than merely 13.28% of stocks in our cash flow based forecasting set.
As a business, Dine Brands Global Inc experienced a tax rate of about 47% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 92.86% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Dine Brands Global Inc? See PENN, BBBY, BFAM, BOOT, and EVC.
Reporting this morning on its second-quarter 2020 results, Dine Brands Global (NYSE: DIN) beat analyst consensus on revenue for the quarter and reported an extremely swift rebound in same-restaurant sales over the 13-week period. Known previously as IHOP, Inc., the parent company of the IHOP and Applebee's Neighborhood Grill + Bar chains has received positive investor attention since the release, with its share value climbing almost 11% by midday. While COVID-19 clobbered Dine Brands' same-restaurant sales earlier in the year, with Applebee's sales down 77% during the week ending April 5 and IHOP's at negative 81.5% during the same period, today's report shows the company recovering rapidly.