Applebee’s Parent Dine Brands’ Strong Free Cash Flow And Accelerated Share Repurchase Is Noteworthy, Analyst Upgrades Stock
Wedbush analyst Nick Setyan upgraded Dine Brands Global, Inc. (NYSE:DIN) to Outperform from Neutral, raising the price forecast to $47 from $34.
The analyst identifies key catalysts for Dine Brands’ multiple expansions over the next twelve months. According to Setyan, a $100 million + accelerated share repurchase plan is likely in the second half of 2025 following Dine Brands’ refinancing, representing over 20% of the company’s current market capitalization.
The analyst forecasts adjusted free cash flow of $99.2 million in 2024 and $107.5 million in 2025, or free cash flow yields of 22% and 25%, respectively.
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Additionally, the firm’s strong free cash flow generation is expected to support ongoing annual repurchases of $60 million+ after the ASR.
Both Applebee’s and IHOP are poised to optimize their value propositions as they head into 2025, with current offers stabilizing and near-term same-store sales growth remaining largely in line, the analyst notes.
Dividend payments are $31.8 …
Full story available on Benzinga.com