Profile: DineEquity Inc (DIN.N)
7 Dec 2016
DineEquity, Inc., incorporated on May 7, 1976, together with its subsidiaries, owns and franchises the Applebee's Neighborhood Grill & Bar (Applebee's) concept in the bar and grill segment within the casual dining category of the restaurant industry, and owns, franchises and operates the International House of Pancakes (IHOP) concept in the family dining category of the restaurant industry. The Company operates through four segments: Franchise operations, Rental operations, Company restaurant operations and Financing operations. The Company has approximately 3,720 restaurants across both brands that are franchised.
Each Applebee's restaurant features food, alcoholic and non-alcoholic beverage items and table service. Applebee's features a selection of modern American grill and bar fare, such as appetizers, sandwiches and burgers, classic entrees and grilled steaks, specialty cocktails, beers and desserts. Approximately 60 franchise groups operate over 2,030 Applebee's franchise restaurants. The Company also franchises, owns and operates restaurants in the family dining category of the restaurant industry under the name International House of Pancakes. The restaurants offer pancakes, omelets and other breakfast specialties. Its IHOP restaurants also offer a range of lunch, dinner and snack items. Approximately 340 franchise groups operate over 1,670 IHOP franchise restaurants and area license restaurants. These restaurants are located in over 50 states within the United States, in the District of Columbia, in over three United States territories and in approximately nine countries outside of the United States.
The franchise operations segment consists of approximately 2,030 restaurants operated by Applebee's franchisees in the United States, two United States territories and over 15 countries outside of the United States and 1,670 restaurants operated by IHOP franchisees and area licensees in the United States, over two United States territories and approximately nine countries outside of the United States. Franchise operations revenue consists of franchise royalty revenues, sales of products (IHOP pancake and waffle dry-mixes) and franchise fees. Franchise operations expenses include IHOP advertising expense, the cost of its products, pre-opening training expenses and other franchise-related costs.
Rental operations revenue includes revenue from operating leases and interest income from direct financing leases. Rental operations expenses are costs of operating leases and interest expense of capital leases on franchisee-operated restaurants. The rental operations revenue and expenses are primarily generated by IHOP. Its rental operations cover approximately 670 IHOP franchised restaurants and an Applebee's franchised restaurant.
Company restaurant operations
The Company's restaurant operations generate revenue from retail sales from approximately 10 IHOP company-operated restaurants. Company restaurant operations are in Cincinnati, Ohio, market area. It also operates approximately 20 Applebee's company-operated restaurants in the Kansas City, Missouri market area.
Financing operations revenue primarily consists of interest income from the financing of franchise fees and equipment leases. The Company also sells equipment associated with IHOP franchise restaurants.
The Company competes with Chili's, Olive Garden, Red Lobster, Buffalo Wild Wings, Outback Steakhouse, Denny's, Golden Corral, Waffle House, Cracker Barrel Old Country Store and Bob Evans Restaurants.
450 N Brand Blvd Fl 3
GLENDALE CA 91203-2347