Earlier today, Dine Brands (DIN; Buy) reported adjusted Q3 EPS of $1.55. This matched our $1.55 projection, and came in a little ahead of sell-side consensus (according to Consensus Metrix) of $1.53.
Given weaker-than-expected same-store sales trends in the family-dining and casualdining sector quarter-to-date, we lower our Q3E same-store sales forecasts for IHOP and Applebee’s (both owned by Dine Brands [DIN; Neutral]). For IHOP, our Q3E samestore sales estimate is reduced by -140 basis points, to +0.8%, which becomes the new “low on the sell-side” forecast, according to Consensus Metrix data. For Applebee’s, we take down our Q3E projection by -150 basis points, to -1.5%, as compared to current sell-side consensus of -1.2%.
Earlier today, Dunkin’ Brands Group (DNKN; Neutral) reported Q2 adjusted EPS of $0.86, surpassing our $0.82 forecast and sell-side consensus (according to Consensus Metrix) of $0.82. Dunkin’ notes that about two cents of the EPS beat is due to “recognized excess tax benefits.”