Dine Brands Global (DIN) 1 Nov 232023 Q3 Earnings call transcript

Good day. Thank you for standing by. Welcome to the Dine Brands Global Third Quarter Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. to conference like speaker to now today. would hand over the your I go Please ahead.

welcome Brands Vance President to XXXX and John call morning, Good Dine remarks prepared I'm and This from Levy, will Relations include Conference CEO; Global's Brett Dime's CFO. Investor Vice and of Peyton, Treasury. morning's Chang, Call. Quarter Third

the available information. those Q&A harbor investment of IHOP President prepared Jay and Johns, the call. the remarks, Following of regarding from also portion Tony to be Please Applebee's; community safe questions Moralejo, during President of our address will remember forward-looking

During the assume factors, information and are or evaluate the involves other update forward-looking obligation and The management different actual detailed the uncertainties forward-looking may which implied. known XX-Q Please which release be we of call, statements expressed or press the cause these information these will and are that no is and those factors, today, risks, results in today's discuss in statements. and filing. unknown supplement to to forward-looking as of context than

non-GAAP also Dine measures, website. will Relations Brands' certain available our financial and to refer in Investor which are on press release We described also

purposes, Dine XXXX over to opened we it call my scheduled For John calendar the With call discuss the results. the a our on pleasure CEO, turn to QX that, that is tentatively planning conference Peyton. release earnings February to host XX, are to and market before Brands' XXXX, morning to

start, to guest guidance mindset. and with share following to our seeing respect I'll update comments, will To call agenda some provide behavior for how us we financial join metrics. an consumer and it, Tony And advancing for updates Dine's and on everyone. as Thanks, we're growth. recipe on thoughts detailed Brett, for a provide we're year Q&A. and growth including strategic what QX good joining Vance our us. update, Jay we'll Thanks then Today, will morning, those our full results the or

and while During selective their brands. We're brands. discretionary quick out continues are means This when we're that seeing we personal they'll core on skip deeply enjoying next in a dining is this, prioritizing other means same meals. leading family In are the guests Quality holidays click value increase. spend DNA general, the limiting weekends seeing become on wallets time, competing holiday brands. we This particularly of competition, to each have occasion we their look to decreased casual more where ingrained full Dine's We're and ask the to if and at restaurant of eat also traffic value just even see brands guests home restaurant in spend believe out with home we where experiences. choose the more. during experience, that exceptional maintain Despite an in noticed less. At but full-service further which brands, And and occasion. budgets upcoming should we our be to that should their guest of with strengths quarter, our guests the eating providing dining believe aligns money. guests tightening to on across with visits is our guests with go our important they not indicating we the restaurant cooked season abundant service spending outperform and also dining guest experience, key prioritize have service it their a

our results. to turning now So

EBITDA results. of results model. quarter highlight posted Our comps strong lapping the Dine's competitive Despite landscape, we third franchise and increasingly resilience an solid

last prior versus of million of of franchisee. year is XX company-owned in of the $XXX revenue year. million difference the restaurants QX refranchising result October in The largely to First, $XXX a approximately a

X of expenses. now of are benefit revenues royalty reduced with refranchising, While operations-related the the we income company-owned from combined consistency because

out dining year-over-year to EBITDA XXth adjusted again, consecutive is quarter. family sales and of segment weekly comp The X% on for of were the same-store sales growth, quarter sales QX of outperformed of XX in for due difference, Applebee's its sales the of of highs. to pre-pandemic up exceeding restaurants. IHOP declined $XX,XXX X XXXX. QX compared Average weeks $XX.X the the million $XX.X posted X.X%. company-owned And million IHOP Second, the refranchising

$XX,XXX, over Throughout on average However, focus quarter, weekly the highs. continue to Applebee's sales pre-pandemic initiatives for drive to QX we which and surpassed efficiency. were also growth

guest technology, investments experiences both and and marketing to we improve programs. First, loyalty in training leverage

guests area introduced These we innovation been menu our has a and across to opportunities supported initiatives on they're into huge activity plans this what value. focused understand marketing with lean highly remain recipe Second, growth. and innovations the abundant to for growth culinary time. looking we we And unit focus with IHOP make X up of support brands. initiatives, to and area our advance and as This over in our and better in further Applebee's engage both for we're third, driving ahead development areas new

quarter the for Applebee's. each highlights starting brand, with review let's Now

at X.X%. As I were the sales start the call, mentioned down comp of Applebee's

while price. as quarter the wings traffic throughout plans affordable its However, demand to looking sales Applebee's guests executing an the value over a experience want advance maintain such Applebee's to promotional volumes by term. continued still at great dining to compelling drive and all-you-can-eat long to tactics increased

leverages options menu and both items, promotional new Our guests. to culinary and existing that offerings new favorite appeal strategy fan

been to traffic. profitable QX, there's levels several drive Although offered an decline in to promotions guest compared In traffic, check our Applebee's a have shown XXXX. increase

wait wings. sold of our we're promotion introducing to driving wings. internal campaign That's earnings Z X.X Dollarita speak margin we'll our all results we XXX month-long guests, franchisee The about to million Eat better Wings you can million while October, program, for For results. to than individual GBP of we brought the the call, incremental example, the with XXXX. and our particularly dollars performed brand. In since tickets QX full time on new the X-week bonus back and pleased sales, during And preliminary expectations, Gen first our iconic this

the gather engagement guests. to meet benchmarks connection expectations, and the We're technology along details industry will platform weeks. we far and which redesign guests our our strong effort ago, revealed Applebee's relaunch and from highlights their to experience us this guest and feedback valuable app, program the with own to X its participation be side, months surpassed valuable guest with pleased of is Qualtrics insights coming management launched On provides in expectations. website positive and in Applebee's and experience using its brand our exceed

team last culinary than XXX During new innovation months, has different tested menu Applebee's to from current more concepts menu X of items. ranging the cuisines

also which XXXX, system. We also concepts beverage the new franchise generating out throughout anticipation rolling positive have in are

prototype development on program. key forward development innovation conversions, innovative the brings Tony of brand, and are for During the areas a initiatives President to providing and contemporary and Vice menu new Culinary team our remodel to developing focused strengthened progress focus and his by quarter, X on soon. leadership who new and these leader a new our a Menu hiring our veterans, mindset industry we of look

methodically with are by most our the menu Now offers to we're from quarter's data IHOP. promotions loyalty combined and to that compelling gathering program was guests. introduction of offers. plan menu growth The to brand's likely our the us The sales on fueled appeal comp to new enables

As gaining a the to amongst result, traction younger see continue we the brand demographic.

we breakfast cravings. all quarter, that the and dayparts sweet span focused During options both savory on equities balancing to meet

We and in XX July, we just weeks, billion At biscuits Tacos, over introduced in end X flavors sweet nearly and sold pancake August, with the time X the were campaign and impressions. limited came for we million with in Overall, cake restaurants First, the fresh $X. media tacos savory social and tacos which like hit they Bacon X for a and early flavors Egg in media. introduced cheese. on and strawberries of cream had X pancake

Our special core before part with biscuits offer in of premiered becoming breakfast with menu size biscuits our $X a introductory September. for a of

we our category. quarter, the expanded During also waffle

dine-in including chicken to-go. waffles. is launched finally, call, most and we top-selling IHOP after Our expanded Benedex new variety, and guest new hot in of items and as more has been our always asking our And and expanded of for one receiving feedback for categories the we And to menu discussed add guest and performing original waffles flavors, our our QX for new Nashville chicken of comprehensive menu on known menu family-oriented updates and we its and well. one QX Craps experience. are

brand's the Black all-you-can-eat outperform anniversary, partnership back In both kids promotion XXX% in promotion. during sales, Box celebrate XXth its for retail So and it's month build of eat The selling goods and stores. the index to check with we're helping program. packaged XX,XXX IHOP comp August, $X, brought the the IHOP in arabica its dining pancakes family brand to Kraft during consumer our continues approximately coffee Heinz, traffic free

Additionally, in introduced and IHOP the for early Ice other a point-of-sale Foam Late to to at QX. with be expansion completed July, Shifting on progressing Walmart planned track in Cold technology, we the by accordingly. new retailers with is we're to new system tablet XXXX, rollout

million is members. portfolio its Pancakes it's Dine. of We over with resources provided September, the innovation. young, restaurant the attended next added Conference on by Annual now terrific called brand designs In by I program, existing will touching from decade seemed next all energy the and Bank Franchisee X for brand growth offerings, with quarter. the energized and fuzzies Quickly was International scale because loyalty I the the More new on who by and future growing to steadily away Family marketing blown menu the capitalizing information a Fuzzy's Reunion. our Our compelling the for plan of fuzzies. potential substantial be franchisees

menu and to the moments franchisee and embracing of lifestyle restaurant begin will takes of biggest the Baha in design to new of enhancements a new the plan QX QX rollout Baha full national It Testing overall state Fuzzy's was a includes and of roots, conference experience. brand with planned One the in its elements, comprehensive the XXXX. back strategy, mind the a guest refresh from cuisine. unveiling that

of international XX the far business, we so side opened units this On year. the

main our which Applebee's markets comp and East is The Our on Canada. open and sales Puerto Rico growth strong for there of International remains and delivered of international Middle Caribbean, X now our East restaurants, focus division Middle in Canada. the incubator core in the IHOP, dual-branded are the opportunities Latin America, and

the highest still Vance. to standards emphasize our commitment brand with to it and smart, continue growth, to best-in-class are want Before I Vance, over that, promotions to will forward. that recipe a through us it marketing, is central steer I Their over franchisees engaging expertly turn it to And and environment service. navigating challenging economic for and teams turn upholding our I'll compelling

Thank you, John.

mixed a sales, generate but of steady the terms in our had we to strength quarter and ability in EBITDA. As of model, heard, to you cash see just business flow we reflected continue comp our

revenues, over the the prior On restaurants, excluding Applebee's year. in million total the $XXX QX million refranchise increased consolidated in to versus top $XXX line,

million XXXX. The the Our revenues, we franchise XXXX revenues of Rental for the The total in compared million rental to the of change quarter revenues at of refranchising third quarter flat restaurants exclude to remained X.X%. increased margin advertising was decreased to quarter increased XXXX. the segment Applebee's million X%. the to for compared of same segment XX% $XX If XXXX. revenues October $XXX.X due same of $XXX.X primarily

Adjusted year. for increase in million of diluted XXXX in XXXX for Adjusted of an year last compensation-related the quarter the compared in EPS third XXXX. company-operated occupancy same Our for in nearly to restaurant $XX.X in year, for million for increased the of last QX G&A decreased we by million to million period up $X.X EPS only decrease QX to as the in from of third to from had due approximately of a operations QX X $X.XX QX. restaurant was of were costs. $X.XX $XX.X same expenses period X% XXXX, the quarter mostly of offset $XX.X million adjusted $XX.X costs, EBITDA company million to $XX.X last diluted period sales of compared same

period to of the compared free to $XX of compared XXXX We same for million third QX cash adjusted quarter. roughly million operations turn let's at million same cash third finished provided of of million X total cash of Cash first from XXXX for the the of end last million flow cash the of unrestricted of XXXX $XX.X million quarter statement for $XX.X same of compared of year. with unrestricted period the $XX.X at period for the CapEx provided million XXXX. compared second $XX was $XX.X had the months cash We the of to quarter XXXX. by Now to the was $XX.X million with of flows. the operations of end $XX for

continued to returned our and of prudent approximately to XXXX investors, reduction refinance demonstrating we've back capital to part of we QX Additionally, year-to-date, equity investors. including capital million Through as return our strategy. allocation bond debt $XXX capital

discuss and a environment. me comps performance. face we were same-store we X.X% prior, lap Applebee's let Next, as consumer sales strong year price-sensitive from the to negative continue QX

including However, mentioned off-premise. results as have $X,XXX which from XX% total $XX,XXX, and total with XX% from growth X% to We're weekly XX% of quarter is continued sales over of as delivery. QX throughout same-store including over delivery. or their positive XX% to $XX,XXX IHOP close X%. John XX% go of is is from weekly is from sales Applebee's sales Average steady sales, remained over off-premise sales, of earlier, which go from were fairly of close sales from average were to $XX,XXX, momentum sales to over and the

labor reporting in the front, shortages helping On challenges continues are operational to restaurants. people workforce, our staffing as our more steadily more the reduced, and franchisees to labor that return restaurant improve alleviate are

costs through with front, at outlook through costs provided. have the deflationary. prices and end digit for costs versus in what flat consistent Applebee's. franchisees year. X% level range single full year of basket brands commodity as commodities low our last the to locked the the are commodity ago is the similar versus needs to XX% are improved our year X% year of for remainder over IHOP's a protected and On Applebee's the we by Applebee's turn improved a of over purchase year the remains Both previously

in While expect overall elevated ease, do inflation our moderately inflation levels data indicates to to that remain we consumer continues XXXX.

for year. for G&A. I our G&A update the in guidance expected provide on the proactive we take like the would with Starting spending. an G&A to as reducing our Now range our of measures our We're managing year financial end top

million Our raising With $XXX $XXX end adjusted to to of of to million million new $XXX XXXX EBITDA, EBITDA G&A million. forecast compared we're is the range. our prior guidance guidance lower $XXX our

EBITDA million. compared $XX adjusted million is Our We're million range million of $XXX maintaining prior range of expected million our now $XXX to CapEx $XXX to $XXX to million. guidance $XX also to our

place conversions. and Finally, important opened footprint, is internationally. development. our Development have domestically to across sustainably moving has we restaurants, brands on both many an and both those expand to Through driver, growth IHOP were and strategies in year-to-date, XX domestic of

our to are However, which as and permitting construction delays, the quarter, of cause near-term we the enter to fourth XXXX. some still some including headwinds, openings slip could experiencing franchisees development

the change I XX compared development a we this between openings be As timing and result, that to to to XX made a is stated. development pipeline construction the to accurately guidance as bullish excited now long-term we to forecast XX we XXXX for strong delays IHOP's of IHOP to result franchisees net on challenging to XX net expect growth. openings expand IHOP still it has the have are to Again, brand, these ongoing emphasize previously want more that remain of openings.

needs on of design the we guidance of on mixed our the model of modern terms continue flow focused EBITDA, of includes to by remains and our to creation side, we steady strength shareholder last priorities restaurant Despite remain brand that quarter drive X-part highlighted business and we and sales, Applebee's generation quarter, new in guests. the execute our comp value. see strategic long-term cash executing On the outlined development the which the continues matches our the a unchanged, plan to our

hand it I we'll the open John, up Q&A. now back call for to and So

answer as Thanks so both a and Tony me Vance, to and reminder, your they're much, the Vance. are questions. in Jay along with And on line here

So the Kathy, we'll question up now. open queue the first please take and

[Operator Instructions].

comes Markets. Our first question of Capital KeyBanc with line Eric from the Gonzalez

you eat Applebee's. quarter. a the progressed could about part how can on is more good a from for a wondering bonus you bit wings if all traffic perspective, quarter of little the I'm question My about talk you

when you about about curious talk could that to can you promotion about And it how the Dollarita, that to the about return I'm multiyear off? terms talk after can you saw also if promotion rolled drove as of traffic hiatus? So promotion what anything for your what decision bring in fourth And the you back expectations in the that share improvement maybe quarter.

Sure.

questions So take about Dollarita. Tony, hiatus don't both why of those you and

talk about traditionally traffic, is Applebee's. about performance traffic sales, quarter-over-quarter you that We bone all the guests with we to, improvement, in something experienced say profitable we monitor and younger into Eric. I'll Happy but detail quarter of What can we were it's closely. We eat the Yes. don't pleased swings. obviously brought

As happy involving really item. we've but we're for menu far. XX% say Dollarita, experienced I'll performance food the to of on a included transactions Dollaritas of next that Dollarita quarter, excited for about specifics so what the all purchase the I'm And share

every As from value delivers X experience us. time they Dollarita visit want for and guests on and want great Applebee's want why things great They a both. they

to with that delight guests. continue Applebee's best-in-class surprise innovate and see continue marketing our you'll So campaigns to will

when is specifically then And offerings it. maybe I from an air. of an Have largest you operating any the impact promotional competitors the competitors? on seeing coming just From back the of seen about with air can overall industry they're uptick Got to in of back one environment, are sort perspective, value. ask value? brand your on you And if reacted how

financial face results. brand Eric. that's value all-you-can-eat value can introduced us well. wings on they at or is that guests boneless guests provides in a compelling the Yes. they the It's it and on count an increasingly abundant and Happy know had It's value, younger again to that our strong And environment. uncertainty. of we our We're excellent when guests. brand Again, ignited tick-tock a with built take that as struggling this one seek example challenge promotion, the economy

add data Eric, day. LTO everyday the loyalty both value it's would the that value, I their special in exclusive There's particularly in loyalty do on the menu market. in which in members And both as every is a and new about value well decade in with to million brand their its via there's just they've brands programs. read There's how have buckets. about customers, they program. for John. moment category offerings, the then the positioned brands recently since X time value these great been the X know think is IHOP, a most what They

so mean and are or need one as competitors into loyalty they market as X value they doing. And as of the they do the categories, those what read they see the everyday LPOs and also

So a when they levers pull to. can sophisticated they've they need that got

from Jack line This the question Corrigan with comes Securities. of Truist

you you the kind And of Mine was ahead cadence just Should at that the innovation be going throughout What you a lot in gate a year? of specifically that there. catalyst really I the think out is sales Applebee's. really about kind is is expect to the menu a test going of talked innovation meaningful of that and of expect? that that something to more about menu, we 'XX? Or you see build new is XX%, drivers more think,

Tony, today. on Yes. center you're stage

Yes. focused multiple innovation Look, on in we're areas.

know which innovation need with the an create wings. guest. true we our compelling We're tried like We're our all-you-can-eat remarks. to side our new, focused culinary focused Dollarita, innovation Bono appeal looking mentioned younger those with a offerings, in So to menu we're to complement and respect on to on options offerings opening prototype, respect our and with Vance value with that on value like that to menu. his favorites new We

And top So parts throughout you'll business. old. of renewed really, to lot on of you're our our XX over innovation see of different all that, assets. on A are years see restaurants a going our focus

evolve need be need they so they And to to renovated. and

that program launching later we're reuse year. a got this we've So

the being different of course currently fruition see time through are the These year. come parallel, over streams in it addressed work see over them stages. you'll are you'll next So all but that to

on that was build detail typically Eric's about did provide the consistent throughout Okay. question And that And stress throughout there, I wanted you the mention really quarter. IHOP very quarter. I trend know too much but the don't to you

leads throughout that guess I how me trended the wonder Applebee's quarter. to So

look the If you can that with trajectory the would helpful, to fourth forward help us just we quarter. be as

Yes.

that I'm as share trends. otherwise We well. intra-quarter take one talk you into don't happy to as QX can few for We're weeks typically isn't There about just QX. I well. So a much with

Okay.

think that Applebee's, but I Applebee's consistent same assume. in you for month-to-month, the quarter was can't say I third you the mentioned

Applebee's met So think, -- the quarter, the expectations. or third sorry, our in so I all-you-can-eat for obviously, exceeded promotion,

quarter. So it period stronger the a within was probably

out little how And Okay. bit on guidance that the you the kind be term year. then lowered that, trying of for what figure was basis in is no implication question the my there, little initiatives incentive on last question would much 'XX. impact of the bit things comp tightening this and maybe G&A, which what to the outlook I'm the of like of the near some temporary. lowered year, pulling for the is the a for belt back wondering and versus is a The

you quuestion. Vance don't why So take the

Yes.

of mix a both. it's So

what slowed our accelerate within working has evaluating initiatives So what what pull the back sort we're on. to G&A to we down of are constantly all with

it's and and as building answer the of So have they're Street blocks disciplined of But spending by to to kind this bit quarter we when right? your level they to little this approach apply franchisee So question, expectations. guest successful continue sort achieved evidenced franchisor, these to we to the below will experience any G&A take and of to our existing reflects But improve short commitment G&A support projects. time, both. a improve

comes Bernstein with from Barclays. question Jeffrey This

Great. Two questions.

mentioned I it's the And one first on an know of just is the part important The unit story. growth. you

any at said, maintained about year, all permitting you lack I guidance, to but as the IHOP to sentiment, net Applebee's we on look declines But tempered like of seems how not due I'm next whether tone a out for outlook whether challenging franchisee a believe You had be construction might think franchisee should just that from you're wondering perhaps interest that hearing perhaps delays, it's you anything at more say, basis. higher know franchisees going of because from a to it one guidance follow-up. I into or and demand. I there's more challenged or about the 'XX there's franchisee And any reason those due the not rates, whether growth that cautious whether all then issues macro to conversations.

franchisees Sure. to do are adjusted have And IHOP seems you part their Jay, and year John. it's to commitments quarter, in Jeffrey, I environment franchisees I'll that about said first to quarter know, the our building the to do work with for reflecting make happened working and new ready new we're a specifically? timing that that general be anything what doing into consistent Applebee's, that the and comment, on -- confirming guidance they what fourth you that. as us our construction is from we about add the push prototypes don't last to meeting normal the the were. be IHOP with related

Geoffrey, for Yes, John. Thanks, question. the

that's many, in they're just thing I we've many been to pipeline. steady years a got pretty steady is that's IHOP good developer tough a think been is the thing a going the now. And when got pipeline. this predicting We've environment And for we've open. about consistent

you a opened fourth next little But roll for on ones year. The of year, next us. the So that that's well. quarter this XX give start jump a bit numbers. challenge into just us be year's little been We've a a of already busy for should actually as bit

So year, and up on quite year we're good assume. having this start strong as off next we'll not year going would but thought as we and we'll a end timing, to we we end based up year well year, with the the and

Okay.

on it return terms temporary like this seems it that I broader Applebee's the the 'XX, macro a sound of of for guess, to either for environment you're at to brand brand? like franchisees at there's perhaps with conversations point, net enthusiasm because of doesn't looking in track So openings a

Yes.

guidance So AUVs X going exceed we I'm beyond growth. happy that the Applebee's about take not but average. openings unit of and to return that last We're generate, still net on on our provide openings, to system optimistic one. are they remain convergence, average, to net X restaurant XXXX

So we've conversion shifted our opportunities. to short-term focus

time Our the construction of openings. conversions, right, benefits franchisees lines for recognize including shorter

work system. unit the new, prototypes should we'll the on these you net as to strategies, Collectively, these efficient keep As economical growth. and we we'll posted work still leverage drive challenges. That's the conversions, benefit they we And of goal. through

focus be anticipate that, key for focus IHOP's both year a we openings that and brands, XX% both of is Conversion conversions this next a will well. for for as brands year

Understood. And just follow then up. to

you inflation. that to reference XXXX, elevated think I still made moderating still see at least but briefly you

baskets were the or and Just can you share outlook next the in what you going in pricing environment into offer we any wondering labor, if current quarter an the you're thinking think about can for specifics terms perhaps for commodities what about talk whether as of directionally your or you're franchisees whether XXXX outlook year?

that. take Jay Sure. will

Jeff. Sure.

sort we're for to encourage take this year, right? But our we're are sort to positive we is that that a expecting like when for by our seeing everyone you of next beef which rest -- what franchisees deflationary consideration and a for of talked yet. But So next have And the seeing our surprise we're setting most now, with to improvement elevated but just about -- eggs, baskets. for franchisees, does into year, we're But not that's closely And moderated. by of a it pricing details early inflation not year, now, moderately But and for have things by ton the is commodity managing of meaningfully we remain but poultry, coffee, we'll no. pricing, really fast-moving we're working for that we franchisees through. seeing a more driven it's pretty environment the seem still fact menu by color for that year. probably of and that, next our

the current in the the contribution? that quarter? gauge is share we versus comp price the guys maybe you component components pricing so just can How Do much of of other the

mean the You as Was comp. menu of the pricing that terms in question? our part of

please. That would be great. Yes,

So let see. for Applebees, think me I

pricing year-over-year QX many is for increase X%. Applebee's So for IHOP's about X% about

This the from question Nerses Setyan Wedbush. of line comes with

guidance quarter we quantify a it at at QX you in QX? don't I kind EBITDA versus lowered the Applebee's, as an it. kind look pretty resulted to know like was sounds the Dollarita guys G&A of obviously QX, despite want some lower comp of slightly. acceleration has nice

a QX growth And even result so pretty last versus to the QX from implied deceleration big EBITDA QX, of no would in kind maybe year. of

given expectation that Dollarita so Why uptick higher? result little be comp has that maybe a even And in Where in in EBITDA normalized bit QX? to be a of should an case? the bit just little the should

Vance?

will I that. Yes, address

So higher quarter big for prior this seasonality a of purposes, other about G&A QX, part we in talked than tends that that, to our little and just be accrual probably the a G&A quarters.

the So reason trends that more that the of EBITDA, than we're that's to line it's to drop primarily any that this top in see quarter-over-quarter going related seeing. you're

see versus a bit how And little and enough. about look are this kind you out XXXX? lower in G&A environment can thinking than Okay. as of I mean XXXX we Fair we actually XXXX? to G&A XXXX, be

running. is improved And do So is sort need as in a the our improving XXXX the to that probably So increase bit run take level initiatives mentioned support is with our said little G&A -- efforts rate and what earlier, business they the of increased run we've guest -- that we're these experiences. I we the that of and time, reflects before right? franchisee

of sort So that we're still future level for at that of years. G&A looking

me. then And question for just last Okay.

have peers other some lot weakness -- a of of of see QX. of driver one Do both that you Applebee's, when cited I your comps think you looking result any During of at some seasonality Or major your were the in you see as your comp IHOP factors? QX, a impact? mean, at do and any seasonality do comp

John, should I take that?

to, would you take I Yes, thought but... that

Yes.

ran last what year --we're this also by within comps our year. quarter. see what we sort typical is we the But this run So driven that a is there back-to-school versus we lot it campaigns running of trends the really of certainly campaigns

up So always campaigns. mix and match it they don't with different we

be bigger traditional seasonality some say. a would but other I So back-to-school, probably that, with than than there that's may noise driver

in past than or stronger Nerses, have the quarter particular that we is a others. we've said that weaker the don't

perspective, seasonality to attribute the consistent, both country. size we're we which their of brands a the from and So fairly distribution across

So we wouldn't for explanation. need said, the as seasonality, Vance this

from Brian of line Vaccaro James. the This is with Raymond question

trended across different I the healthier on last levels. up likely wanted that's sales strategy. the of discount then could also seeing percent how on the promotional value LTO sort comments your heard to on consumer. or occurring Could you understanding on over of And but of it's relates follow you're I to you and are just changes income given quarters? your any it comment as And frequency that earlier, some up elaborate couple

didn't Sure. any quarter-over-quarter Brian, it's change John. we When the it consumer, terms income to levels. comes significant see in of

that reported there. we as see did about check. multiple $XX,XXX is their when saw to change at we upon consumer large didn't our we about decreased household Our we $XX,XXX in they their both came is brands sources to QSR. income see data past. consumer slightly the us, in they of based maintained average And We the spend that get What significant a for core they

that want friends, experience. your the with And still expectations second they're with together still us. repeat spending menu. quarter, they are average and maintain you with service they're and we've items have family And the now Applebee's since prices, they're when the some full out last But on question? a to and they finding second in they we've can said value question, come when so dine, the as want the checks. raised IHOP also of just past, They They from consistent our

Yes.

Just the past few value percent of of discount sales mix quarters? and on some sort how the over that's trended or promotion

with Vance, that the belief mix the of is don't specific we specifically disclose promotions. my associated

check steady. think is our see And fairly Right. menu I the Brian, you that pricing that will average is what increase. talked we about And

makeup the the shift what terms us dropping the of their consumers PMIC. you're is that check of and they're check referring So sticking with a And in but what is ordering size. to similar PMIC managing the from in

that So our business. we are in seeing

Okay.

around comment down is X%, to is that clarify specific thus X% where but correctly? up Applebee's an So traffic Am flattish pricing is I that, is and check just year-on-year. that interpreting

traffic both on a in down we and menu is for for X% but for we part. But X% quantify the The Applebee's traffic brands, Well, didn't directionally, comment it. correct. didn't that's pricing IHOP,

bit, And off-premise accelerated Applebee's more on have that a what correct accurate? in correct. may off-premise comment off-premise like at on so at channels little seems decline the quick both you're maybe in then math Is more IHOP. year-on-year Okay. than and It the just did broadly side, got assuming I seeing maybe numbers the my And my brands.

address that, can I John.

that So correct. yes, is

little think most bit the really the from is dropping coming business. I a for DSD volume And of that us. that off-premise is

consumers budget, of are are their dining fees as the decision part managing delivery So factor. the

driving is process of guests. that some our So for the decision-making

know you then tailwind gave call expect me. menu I what the over pricing year-on-year the moderate And just has decision. menu you But quarters inflation in moderate next for even the quarter. on to guess, fourth And one it's Okay. to the moderated? during appreciate pricing, few I that the I in degree last third or color a quarter the as environment do franchisee

to raise years correct. that. that would described. is Thank goods, of the the the feel What that an less mean pressure prices. of Vance John. past a either particular, have see you franchisees declining, it couple it's we've that their to been the don't. for last rate to year. We is we price the to in take franchisees I'll as reported as in I is begin that we Obviously, cost exception you're anticipate franchise X% typically, Brian, decision, X% make saying

next potential goods is that. then of cost this environment if flows So there into for year, the

comes Mullan Our Piper next Brian with question Sandler. from

on Ashley that in to you're is drive is day at back part. kind And for late-night doing there? traffic if actually promotions just any This traffic Brian. changes is daypart seeing you're IHOP, material any running how if of My update on an question the

Thanks, Ashley. Jay will take that.

Ashley, thanks pretty change for business. night in the been question. Actually, steady. we're not seeing It's a of tremendous late the amount

hours, of XX/X I last call XX doing added We have And either quarters, about what we've form added some more we that think restaurants XX/X. over or XX of on on the are couple it to restaurants that does where We're we restaurants. XXX little probably restaurants keep below period. bit But still a back up almost XXX to XXX back were we're time slowly adding or of pre-pandemic.

national doesn't. As far overnight it on who because done as is participates we who not the have themselves, typically and hours just advertising so for localized sales

independent less out locally. themselves all that's some So night the of for prove things doing it's us. individual year the an national that promotion But steady. late more consistent running But be organized do they may pretty in we to than pretty business. been for It's

[Operator Instructions] Benchmark the from the question line This of with Company. Brooks Todd comes

one seems I you you some The question. existing finding for a focus an quickly to through new build. you a conversion have one follow-up, if then into of to conversions about on open go new And and construction follow-up other Can time speed can walk versus the talked facility. units. via that economics

and franchisees enhancing Just think forward? to tough in trying for about environment going be return higher could construction that a the something from cost

your don't since why conversions Jay, take you this year. XX% [indiscernibe] for of that

needs tell depends you're and depends of one number Yes. Thanks, to converting. no what to a done. there's Todd. exact be It work these, It lot the you. do We

Sometimes it has inside kitchen it. equipment left

construction problem places from with is equipment. going that. country have up. with the Sometimes build, going be you works been have slowed office can an a a a probably Usually, than back people to new not so little goes speak. and new the the little But cost, has existing in structure this, faster. just little depends I of compared and a in start on to around get to to completely of in It permitting down to amount But Permitting save -- go the less, convert ground significantly repairs starting the things tell XX%, than to remote a it in done. XX% sometimes a it move paper across trying it's you're to to be again, everybody trying on and can cheaper an desk, more approvals the you're lot

ground-up done So get conversion to a is permitting it to challenge, is the it's all a faster facility. still a for a of little it doing bit than but get still approvals

that we've have et we've that advising prototype. And been there because even windows, of happening And time. at So even up few there's opens quite to ourselves, locations really franchisees for pickup that there's look got and are a some the cetera. all our conversions still a service more opportunities out smaller quick

and that more with can buildings about more So see do them. there's they more a things and there lot those are you and from franchisees are out results the more excited becoming around the of as others

on question, And abundant and a talk about other lot my call helpful. very delivering. value That's value the are that then on both just the of brands focused

So element. offensive an there's

You've day. got every

close have and loyalty. it do got You've your when promotions of you to from environment kind through capability really through about both where counterpunch an a value concepts? of competitors reactive focus both see LTOs, a got more value customers in you've you that defensively competitors, for have How for becoming is you

of right, their now, the that take includes beverage can food brands They the I'll planning -- 'XX calendar. that promotions imagine. year. John. it's both Todd, plan the you marketing for as item both behalf on Yes, brands. We're and And

strategy we us marketing the focus it a competitor will our and history story based the competitors of and does can in do, we upon need characteration is for conditions, our our quarter. future. to we we is can, about we're what is your would and what upon effectively? to. tell at the point to we from react But on what if always we're do perspective primary Because be and what answer Of offensively best, given upon do market we and necessary based reactive current And for looking always -- like we a at based course, in overly a strategy at looking what any I not So right? the our it we believe that time expect

a right now That's helpful, that react okay, market the maybe, in you bit. John. characterize need competitive the expected you think do Would to or to something about little intensity as we

of date particular. and given the about mind our general consensus economy as the guests of You the would characterize it in expected,

from This the line Jake Securities. Bartlett with question of comes Truist

past He asked quarter, guys you've you real shared following earlier, up XX% And have first on Brian's about the in and Just Applebee's was question the Vaccaro. XX%. is was last value at quickly mix. shared it this the quarter and Brian in

update section. the for So on, can that's that and an and I'm looking ring LTOs number menu value that's

Jake. back, recall. Welcome so do Do yes, I we --

first So it. quarter. XX Yes. you and the in XX% It last was did disclose quarter

it have handy. this we that we don't do Vance And I or quarter have that for know Tony,

handy, have I don't John.

We'll think right. All about follows. it as

I we or guests have it. value the well trade as into to down a menu value color as add see it question little don't I tiers XXX of and value our lower is can did the menu that handy but either, into trading

exact was we a that, there the follow a respect get up of So little can management to to you percentage. to bit but check with directly with

it. appreciate I appreciate it. I

Then a XX%. this second have our been I'll helping would out team make is from finance that

it so XX, bunch? went a down

Yes.

sure I on was I statement. versus your to question And just kind Okay. CapEx, and reported the then guidance the of make what's other flow want understand cash on

$XX I guidance want make the are million. think for same CapEx $XX just to the that those and what's from I is sure then million million measures. it's year-to-date reported to $XX

So quarter. down go much in fourth the so imagine I would wouldn't

'XX, whether 'XX picture Just or are big to be you then these should some for directional just big down as there. some picture coming of clarify what really moving tech into you commentary think lapped in And expect kind CapEx of it investments for CapEx.

Sure. Jake, again. Vance is this

CapEx, close for pretty working initiatives most So of that -- on. we're we much been to the are we've

a reimbursements TI reminder, about spend today. this year, received Now and our not we CapEx guidance as of reflect million $XX here does just year-to-date the it that for

in it's evolve over in But and forward, meaningfully, unless end more do CapEx till then going time. be we have sector and the levels with the business at of projects the will historical down CapEx we versus speaking, year, overall, line level return So restaurant last our expect we're as great initiatives. our comparatively already

comes Wolf King. CL Andrew final Your question from with

down. if all think Applebee's, talking coming comps you in My that I it on despite I flat of right, volumes mentioned question heard I about were one is the

of kind the and getting company Is supply is, discount up case you speaks the of So at I a vendors obviously, logistics rigs up, the for going people on And basis being for participate promoted, that of that it's came absorbing whatever the promotions franchisees, all-you-can-eat franchisees the discounting. that the to your so given are is an the extent, of think this aren't to discounting my some who or that cheaper question chain, as their something whether of look because is most one vendors, that the kind volume volumes such. that level of the Is in, bump scale efficient to promotionality. that able way manner in the enjoyed.

don't the question, will know I I you. answer confess, that to that Vance, to

year this expectations. in John planned of Yes. The promotions, way because and we some Andrew, have earlier, visibility commodity we we is ahead, about terms talked the plan the

part is decision of the -- do we that in campaigns So of running. were what terms

port So -- that heavier to is tend pricing if with know those with lean favorable, promotions. we we

the it's decisions. are specifically the participate, into inflation we that but vendor expected not where factor to So the we in campaign asking

Okay.

So there's calendar. a planning

Okay.

All right.

kind change these promotional of Okay. basis of Or can type on a you, promotions. Great. it an Is always ad hoc large-scale year?

any can't We going on on examples sort offense, we to. as basis. can it think need John I can play ad things -- situation. done we we've depends because be hoc of it expected. an definitely do have And we that this on if recent talked we about earlier. been can that the And We of reactive

were on so. So to we plan. the But we last that things any type haven't capability have do pull minute of had to

would the Peyton, CEO, closing for back I Brands to Dine you. now turn Thank John to conference remarks. like

our our store our as seeing in brands, brands want resilience brands, technology Thanks, and quarter, in been and Thanks, for think for your everybody, XXXX relevance has pleased innovation Kathy. with I We're as of come today. marketing and questions we're and the we execution. sales weekly I of questions. and facilitation some appreciate that avid time excess level highlight for all well to their second and efforts around for results both the menu the a your both around year back just of focus on particular,

questions. everybody, again care. you next for thanks, And the we quarter. So see in the Take will

for This you conference participating, may concludes call. today's you Thank and disconnect. now