Dine Brands Global (DIN) 8 May 242024 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the Dine Brands First Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your host today, Matt Lee, Senior Vice President, Finance and Investor Relations. Please go ahead.

Good morning and welcome to Dine Brands Global's first quarter fiscal 2024 conference call. include CFO. from will and Peyton, call Chang, Vance morning's prepared John remarks CEO, This

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

in different factors, context During than information results unknown we risks, will and and certain involves on non-GAAP the today's website. call, statements known and assume implied. forward-looking no described actual The or management expressed financial measures obligation Relations refer in to which factors, the will and or and those discuss our available are which other Please information press statements.We and to XX-Q are press to release filing. forward-looking cause detailed these be that Dine today, of are as in is Investor forward-looking the which may of uncertainties, update Brands evaluate these the release supplement

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

and discuss and in consumer results our and Today, our development earnings Good on Dine's morning, behavior will everyone, also then capital and highlights QX more trends allocation thank detail. provide Vance discuss us portfolio. for I'll I'll share call. in update and you first quarter across for strategy plans financial our an joining results our discuss operational

country areas weather, conditions persisted our like large saw experience traffic. caution sales in with the in and economic others of quarter, industry, post-holiday the to consumer And During period. poor respect we impacting first the

become sensitive, indicated As consumer response time promotions. the by a our limited as the price result, more has to

limited year. the time to offer our XX% of previous as was up were from the or Applebee's, at in prior example, which transactions well For promotion, a tied XX% as quarter

We to QX at slower relevancy. value-driven Applebee's, also quarter.Our we strategy we of the sequential and importantly, wallet. marketing indicator approach throughout see managing guest trade our to volatile helped innovation, menu see are challenges a strong causing from XXXX down was response to by validated and are that IHOP their than that priced guests items some LTOs mitigate our to anticipated, macroenvironment the another start guests Despite encouraged in continue higher reinforced improvements to our to the enthusiastic by brand and and reactions continued calendars and drive both

quarter consumer I of Applebee's holiday full QX, recognizing reported So, QX. same an through last were referenced the were comp Revenues which Applebee's positive our we're I'll posted QX the highlights, we guidance pullback committed to challenges financial to down our XXXX. for X.X% remain year. $XX.X time lapping positive a same the for turn year, start the year.I'll now walk cash and million, in results to negative season. impacted reduction after adjusted a related our the sales $XX.X QX, sales year comp the IHOP to compared million a free increase slow with highlights by comp sales X.X% comp strong that was Applebee's in in X.X% EBITDA year's increase was X.X% over lapping sales key was $XX.X QX performance. million and $XX.X X.X% to that, comping In last In Overall, despite weather last growth. flow million. of

QX, innovation quarter, Pass limited marketing Box traffic the and guests Applebee's expectations strong strategically in within Date to minutes, Day, pipeline In outperforming $XXX. X Eat spaced of Applebee's the promotional in with to strong on steadily which It brand's over outstanding, March. outperformed supported in the and connection our performance where the delivered in launched January, contributed that improved the You of time Applebee's than the meeting the we media quarter sold offering the X.X throughout QX. unbeatable and Valentine's was the by effective date However, was value, new brand year X offerings now Black $X,XXX more campaigns, and You increased particularly kicked Can our they just than off prior XXX%.Turning All our holds billion more relevancy brands demonstrating from brand Eat In coverage just value the focus impressions our offered night for Applebee's guests. and Night with with Pass, exceeded promise, dining February, aligned compelling on pairing generating Can promotion, are, time All important moments. our the years. the which Date for and out throughout the conversation The price its with guest cultural with by Night of social

boneless be also Madness, crowned we also in the Applebee's double-blind improved This business. resulted to via of we disruptive a taste the a to March was dine-in boneless during brand volumes time a and the our ran spotlight with available leveraged that buffalo our maintaining offered guests extended which It to-go, first classic this national $X.XX Following was America's steady where wings. Boneless to campaign we test off-premise Favorite draw promotion, value title national guests was the of while sauced restaurants. of basis wings, Wings, our and

they the guests is to boneless wings. for in to drive more were last to the to pipeline pleased up quarter, give are, and QX, innovation As Box come X cadence we of developments back we're times off-premise combination to a setting drove X exciting success Applebee's. which our finish showcase us to ways Black strong the to outpacing reasons to the and offerings, brand initial with continue well of for our working X QX.Our see designed guests weeks steady This of new off-premise dine-in and to look quarter, enhance our reach we're where

week in Some sponsorship Nfl; Whole DOLLARITA include of and return by our highlights which announced last since out as a the Applebee's followed rates the conversion the of the X the Burger, April; Grill recently launch appetizer, launched the Bacon of Bar fries. our last mobile just Official currently that features NFL highest rolling seen loaded the Lotta website note, in of chicken we've Also and new new app December, of years.

site higher we're momentum improved choosing percentage fact, throughout far In positive the higher so continued app. year.Now Applebee's orders as seeing their averages IHOP. prior for by QX, a well the our check in on guidance guests to place our digitally, of compared and performance to and encouraged supporting moving quarter, the as we're to

for headwinds, time comp the the due steady in top line X our a of modest our flow are maintained Nextbite, timely, economic rollover campaigns relevant the impact a guests the slight we to experienced the closure years, facing. tough partner While offset pullback weather-related that of brand the virtual first a pressures of helped and

positive favorite, Fresh with focus of growth we're in activity and Fruity, the a leading $X. had will Tooty comps the their started guests confident will our executed price to to featuring year guest of the return pattern.And of the combo quarter. new return a at Rooty a we that now value review that 'N We customize allowed for orders point to positive strategy nimble Our allow on a experience, guest quarter, year. for with innovation the way, to up marketing, to of great deliver We us menu and creative sequential very in this run quarters comps and a XX full of targeted

campaign, weeks As the IHOP's earn guests platform. new where each of of to flavor menu during we and engaged new national flavored In benefits segment a opportunity example X good result, with comp members launched promotion. dining sales loyalty also trended out how outperformed to February, months.This continue introducing back. grow launches In advertising after loyalty pancake the line Black popular the with coming we month for in are the our Pancake launched our the to we is most and new have X Box TV pair sales pancakes keep a family points we that exclusive only of to to bonus in April, and X a Month, support

the Day. X.X we at to celebrated enough X we billion million serve. signups people we impressions and are million a National X communities designed garnered raised X launched new our Up members. million February, pancakes steadily nationwide program during to platform, This also year Up today, bring Stacking to Joy, served the quarter and people Pancake and over particularly in as was donate platform hunger. Joy meals facing The over loyalty Our to as IHOP's of money In Stacking we community together guests, increased special we

impacted comp Nextbite mentioned virtual earlier, closure our our the partner I brand of sales. As year-over-year

devices. kitchen IHOP brands line Over Bites, devices daypart tablets of are we IHOP shelves X with our IHOP partnership decreased utilize announced and opportunity taken than we our attachment improved turn & restaurants, date, Tooty point-of-sale of nearly coffee limited-time past X XX% payment a Dining and higher hours these with our was with across and This CPG offer sellout is 'N our outside are tablets and new rate, Rooty capacity with recently target to developed growth.In encouraged Tenders Concepts, Lay's to traditional sales Burgers, tips to to and to of MLB Refuel with see with rollout chip, More IHOP's is off-peak Ballpark in However, Fruity focus on NASCAR, payment has see soon. complete, introduced still that XX% launching the support Virtual brands, transactions virtual and the virtual with table incremental Fresh collaboration X a Baseball. Major offer May. times, potato that brands we partnership retail in to beverage to brand and U.S. channels.Operationally, continues our of least X devices servers. League varieties shift which created now grow, XX,XXX more voids, we restaurants X,XXX partnership for than new implemented retail Outside tablets on payment we and or have at as higher of flavored the launch system in quarter, more and starting and awareness reinforced our now Lay's

tell, can there's you at As on going IHOP. a lot

Fuzzy's. While in give initiatives year.Turning improved now was virtual confidence conditions brand the tough the QX, of to remainder these the by rollover the through performance performance us and for obscured

as portfolio brand acquired to as we and our invest QX Fuzzy's scale, its long-term December in of the particularly brand Dine To to starting contextualize concept fast current and XXXX see Fuzzy's integration are relates of XXXX, geographic potential its system a the diversify Fuzzy's in We've which offer value-driven our Texas. of and more and refresher, of franchisees the Dine to in in expertise in a because XXX-unit with a platform, of the accelerate promotions our with a locations marketing. footprint, a benefit than As casual to it capabilities its half to growth. third highly-concentrated is leveraging to of introduction completed

high of a quarter new was Fuzzy's.For to are initiatives our the grow from the to first launch a impacted results by pleased we example, will weather the quarter campaign, during Baja for menu. tested and Fuzzy's, explore Primo pricing and executing of long-term the brand. its the franchisees, near-term initial its While opportunities continue We're growth to kind for with strategy support advertising highlighting we additional

not Dine's an update its we're relevancy like for provide guidance Fuzzy's, yet While to strategic to giving we'd development growth. overall given

multiunit that years. year, we focused course committed restaurants, committed and share IHOP developing which system, excited its included An on XX Fuzzy's recently strategic the to closures. We're past XX the of restaurants several franchisee X some the over has Fuzzy's cleaning been develop existing an Fuzzy's has signed next franchisee has to to up deals. Over

XXXX, won't Fuzzy's opportunities focus driving the brand deals While the we're to awareness supporting in post-integration, in we'll beyond.We're functions. and of XXXX growth with these our speak new we as impact and see and potential pleased seeing continue brand on to

the we the regions, On conflict business, the side growth some for of impacted quarter. international remain long-term in by plans geopolitical focused and we're our on

closely X strategy. great optimistic and X a closure to with well and growth Overall our development for this We're restaurants. establish of both program, development serve a entire platform, with our and support franchisees net development, team capabilities for strong Our traditional openings opportunities internal With support team a programs We our about in and nontraditional creating several application. doing and developing future investing on closures actively their incentives nontraditional, strategically pipeline to to foundation working we've and ground and international domestic QX key finally, and new in to in sites, more approachable. with to footprint.And growth plans planned that development our scale development our continuing made scaling marketing, our across global Dine to concepts restaurant remains for our Applebee's-IHOP hires. and previously making to market, X support the development testing reviewing remain progress are access new is are franchisees quarter, steady efficiently make We're for disclosed capital. to aligned a as international provide building touch on guidance. The new dual-branded

see franchisees new receiving Dine looking of to system, all very for for positive. domestically. from to also to are restaurants demand the responding development we're across the the Dine dual-branded are cross-pollination franchisees continue interest and concepts We're We pillar the pleased dual-branded very the an by looking opportunities important to thesis. accelerate newbuilds about by The

quarter, as around first development Dine [ development that by in ]. engagement by from from done within Forward ] [ alike.This our been communities our Of and provide general to franchisees the restaurant this existing and to not Forward enhancements positive restaurants known also is still thrilled open reallocating launched from and IHOP Forward and Forward support. and We're and program month. quarter. plenty [ function overall system at Dine to aimed system enhanced the to incentivizing guests [ program, the operational structure reiterate financial important are cost who's announce spend.Now we're to will manager DC funded concept, be work that glad to years, to Dine's franchise for brand this franchisees within see over participant, potential It's our establish in course, underrepresented ] we a the and his increasing Dine there's of later research costs XX Dine first ] updates provide

As guidance how is a but give development to quarterly goals. with reminder, to offer our commentary domestic the context remain guidance, following in line we do annual we not

effort making out on I XX to closures QX, domestic were Phase take domestic of into at progress our guidance a our net net First, prototype, to built which were and freestanding Applebee's, we closures the In construction XX X, planned closures. costs. we're of with had X-month on and guidance. in currently is significantly of These Applebee's track

restaurants For QX, of for at X IHOP, closed X domestically, we closure a opened restaurants. X and net

We toward year, XX year As is new the our the over standard earlier with to XX to cycle, see domestic in remain development for we openings that full half IHOP's net guidance restaurants.And new in latter the more of closures concentrated year. I'll with call on target with turn the Vance.

Thank you, John.

as due remain strong year. quarter for guidance full the not the external we anticipated While as we headwinds, our to to was had committed

decreased our driven million On million by sales the line, $XXX.X negative QX consolidated the the top revenues primarily in across to growth versus $XXX.X in prior brands. year, comp total

same decreased X.X% to XXXX. compared Our $XXX.X for quarter million revenues franchise total to million, the $XXX of

primarily quarter million, segment Rental provided to the as of from for quarter decreased by of was increased XXXX Cash and to in Excluding cash period G&A franchise same quarter favorable The increase increase the compared compared in to increase $XX XXXX, the quarter last in QX year XXXX lease costs due million, offset by million of due for $XX.X for had first buyouts. we working $XX.X for QX cash year. the revenues of initiatives million was compared QX operations driven a the to to in expenses the XXXX. of compensation the for million from end of let's to free $X.XX, X for consumer of operations roughly quarter primarily in our the to quarter. advertising an decreased was in decrease up period last XXXX of a period last CapEx same compared was first fourth flows. the million capital. to to with year, XXXX $X.X due X.X%. unrestricted EPS of million, of from concluded first $XX.X $XX.X million revenues, cash $XX.X of of for months XXXX, the mostly decreased revenues of in diluted through of compared a finished period of the technology an the of the year.Now flow EBITDA adjusted $X.XX $X.X same at cash total to of provided services. million adjusted from research of XXXX of diluted Adjusted last $XX.X CapEx statement period and first same $XXX X.X% turn by year, operations compared same same from an $XXX $XX.X EPS XXXX. in first unrestricted million stock-based professional for XXXX. of the of increase increase decrease end Adjusted XXXX, of QX cash million We We at cash of in prior the to million

strong total is total of delivery. of $XX,XXX XX.X% sales were is X% or of IHOP's from is QX year or were to return capital over lapped to QX paid in will a were QX prior including in from sales, $XX,XXX, as prior. which we sales sales million $XX,XXX, off-premise, Average and million face and $X including from of over thousand Applebee's negative from me from of sales continue same-store performance. repurchased to-go dividends strong comps in from were X.X% Additionally, negative same-store XX% weekly X.X% Average off-premise, weekly we the from XXXX.Next, and discuss we to-go continue shares sales, lapped $X.X to let sensitive over $X.X delivery. from the price environment. which We and XX.X% consumer investors. XX% year comps as is XX%

full to points costs, for are the flat-to-low and front, basis remainder this At improving IHOP elevated, XX period improvement the while versus commodities, improved labor seeing deflation January. of X.X% brands' of XXXX. with commodity cost anticipate QX and since stabilized.Turning costs points have market to basket Applebee's the improving XXXX, basis staffing we labor X.X% franchisees Applebee's year. in that forecast, both On year-over-year to are continues same XX we improve improved the of commodity compared quarter single-digit and IHOP, reporting

inflation expecting orange primarily we're year due However, to coming bacon, the still beef, low-single-digit from and full for pressure juice.

costs. XXXX, co-op, savings identify annualized operational of million across systems and To in chain, system. support and projects is IHOP $XX restaurant resulting date, working through supply and in across to CSCS, opportunities the initiatives both the profitability implemented additional saving input cost Applebee's over Our we have improvements

As profitability year-over-year.Before we saw a guidance the back result over commodity on franchisees' have Q&A, we seen QX QX, of our and overall deflation improve our I'd turning call the quickly average, John financial year. the for our restaurant like an update their dollars X-wall to that to on initiatives improve gross and margins provide in for

over XX Applebee's million; system-wide X% system-wide comp and Applebee's to X% between XXXX XX we're the on that, to quarter: call and As domestic $XX domestic between to I sales in $XXX approximately the range expecting to the mentioned, in we XX G&A compensation million $XXX remain at of $XX XX to to EBITDA and approximately John. range X%; we restaurants.With guidance $XXX IHOP net new range fewer $XX between the end development, hand the IHOP back $XXX of to of domestic million fourth million; million, domestic including and restaurants sales noncash to I'll provided depreciation the of million comp to X%; stock-based CapEx million; committed and range

guests. are our serving an guests Vance. in wrap to sensitive, strategy for for turn and value In franchisees for their our growing abundant long work the so, our growth and over sustainable back environment and remain up the for which brands delivering value. we'll shareholders term commitment known for We're the now up, members and recipe our confident our development generate open our To franchisees.And thank focused and and our to ongoing call price will you team our it operator. questions Thanks, brands to

from KeyBanc. first comes Instructions] line Our question [Operator Gonzalez of Eric the of

back to go to guidance. want the just I

the you You're months. midpoint I guidance Xs running where need for seems reiterating level, to of for that to Applebee's. X% comp to above That year. really X% X% the of to that look the implies remainder range, the in few industry the that last at that's be the the were comp clearly If

level range? some March I think of to what you that you you're or want So, and if got maybe orders and think already into this at on you there, to sustain that the can in tells I talk that you said LTO. you saw level but drivers why in remarks, that is just mentioned were early April And about XX% a of you May as get we that you question, then related prepared hit of your can

were COVID. into that the put quarter, you really and XX% I before what's but context, with that value are you last could think where range said range ideal I'm year, mix you comfortable If the And not last for there? sure you

about talk a at year the our I'll that John. the high it's to also fill guidance Eric, level for plans Tony the confidence. in ask add and to

improving month-over-month As in we Applebee's March month-over-month, performance from the mentioned as improving versus remarks, April. Box that Black into continued I well saw as and prepared

we're XX% year, So, by middle tends context, includes quarter it mid-teens. in menu trend, XX% the in innovation The for run was Tony and additional the the by before which the we're also that will the plan describe. to encouraged encouraged and LTO the

was the some promotions it ran give reasons during the Tony because in Applebee's you detail is of more accelerated X quarter that can One QX on.

and you've number be because I promotion what for the it's what in then Tony, environment we year. number think And across planned We're so, the necessary where got a And is guest comfortable little it'd so that somewhat. helpful you drive driven that with think fill does the bit more segment. if now in the up color an is

John, happy absolutely, to. Yes,

our business, to as direction, is efficiency, the for that and make that off-premise recap in to a the restaurants.Now perspective, our our promotional elevate which which and strategy, our of promotions in of proposition our early we but refresh platform. get ramp Boneless going helped menu campaign, the details mixed work culinary make in to and moved I'm continues continue guests. to entire confidence in seen we right we'll April. QX, not up, value-based of big Wing to our the strategy. and important our we have strategy We'll operational it's picture wings with sure beginning fan from operations $X.XX, we in of at across that's on to compelling resonate into balance improved right picture end for significantly The of the already you've of to us focus we're beverage our favorites. QX. year and really the QX. of big sure to continue offered QX means focus and new going entire on that So, at at into with and our certainly extended America's value our have some QX the going Favorite that it the your March, innovation trend We'll have barbell The We'll a guests. We're That

traffic And of and performance, run followed ago, a launched was a promotion you disruptive at was has Whole it campaign we will that saw referenced the the that obviously changed tremendous a another product. we that DOLLARITA. entire quality which consider And campaign his opening then that May. that value then Burger that is week sales campaign And really abundant and value when with month January really comments. and so for in And that And $X.XX, we very Bacon strong again, from the the history DOLLARITA is Lotta that John of February. of trendline

as right you some the your and today. why road, reaffirmed guidance So, look, and in to pointed difficult got that's bumps promotional down but it's we've be we've our there's a road, the question, going strategy,

drawing And during John. quarter The for is each make Tony, it's into well the this, times alternatives April part from the focused improved I restaurants. our ourselves restaurants OSAT would really is into and as that for the a that them Applebee's which experience, and reflecting well, comment IHOP last of on month during tough as guest the like guest and distinguishing big satisfaction

of line of Wedbush. question next Our from comes Setyan the Nick

That coming discussion driving Can have the out trends, the how well you was and of really Applebee's. same quarter helpful promotional cadence that quarter-to-date, the IHOP what's on around just maybe we feel and as color it? on

Nick, counter we'll answer Jay response Short on that, quarter, which to Tony's the go his is to IHOP sequentially that throughout was is Sure. And comments. also right for improving encouraging.

Nick, Jay. it's

put value that in is think important Tony when well, said context, really economic times. you Just I to that critically these get

As the the in gives to we into end And they've had going for we concepts virtual about new with before, about And Nextbite now have brands got, confidence down those until you've opening in to which able have repeat, our a coming question then And our year. posed last we John impacts starting virtual replacements in we And that you're of that big And we February. the had impact QX for closed us, launching you what of also. get our been continuously we as X into spoke obviously, don't rollover well? at cascading is was restaurants this to position, year had that brand do weather been finish the be his comments. think you going next quarter.

year. position what's guests our quite March through very the May abundant on. what those. popular little omelets. lost have value February more with as value through are promoting move a found still a to of we may to launch value those play we was replace little was bit be I I not intentionally the a So, us price-pointed the should that, a weather as the we were of But challenges. at you for value see correction the in them Those that But on the impact, economic I you'll sales. than that aggressive help But you a From price-pointed think of for where This more little do not important already. abundant reaction is And a going that the through see as We Applebee's point.So, went year. this more on and an plan you'll in think was. think eliminate preplanned even a rest

when things with in, Just with try want to We that strategy year, we promotion launched we do have a pulse value, just items. the new value, to but week the certain only always new innovations price-pointed not abundant during this a timing-wise, movie that. what actually we tied Free a them well right we to us. do movies, And promotion Eat unique have we're Eat IF in into when that's very tend Kids Kids with for moving with and promotion food And a offerings particular, Free family now. menu with

very through to also quarter. We going a probably year. the for the be improvement as year we the year. tough over was that first see And from last knew that lap, confident rolling X.X% we we're toughest to in we're going were So, the get

then concepts, pricing QX pricing what both the And was for the what's expected for QX and full in year? the and in just

bit, exactly that at brands. stabilize margins improve, a saw that are the period the of X% also mentioned so they'll annual the time. to to exception X% franchisee or of but when, anywhere for tell stabilize prices inflationary with that his toward about how remarks, to time that X% on because the take I'll Nick, cost goods into run Vance this both rate and or historical over And ease. historical pressure that X% around price last basis. seeing beginning to back from Because, in quarters we we're X raise labor long above is beginning talked seeing and was the flat We've before take increases X an restaurants the improving, X% expect California, rate for to spiked the as we're we then our for them franchisees you X% to Can't a move to X%. that historical about begin over

of question comes UBS. line the next from Geiger Dennis of Our

current if a Curious, to see around picking incidents, I as wanted you comments bit to just you now, about and at up. about margins. perhaps think more in they're talk at IHOP franchisee though, of could some sounds Applebee's, that pretty we managing value respect little how sentiment, particularly with encouraging Applebee's the environment, least make those as right which both

maybe again, in on thoughts what from that on means Just the everything And demand any going a commentary your development environment. please. perspective, or

Sure.

can Vance, talking their reacting why about we you how and this and talk to begin, Jay don't are So, Tony environment. specifically then margins, about in ask franchisees we with

Vance. is this Dennis,

as financials us are based the So, in our the shared mentioned from shape prepared in both with remarks, franchisees. good on are that we systems

their all about growth not are we've of to them that lot easing. yet, we strong talked but by the course, Of AUV commodity then And inflation a XXXX levels back of financial it is health, seen. driven

availability is pre-COVID and a cost So, labor as then sales percent this percentage par levels levels. roughly sales really trending point. goods of towards of also pre-COVID better, labor is is to their of sold at And

So, that all dollars seeing towards and levels equates X-wall trending to their year-over-year. growth pre-COVID

our franchisees both those good systems. And in setups so, for are

and most middle? pressure you the risen of customer X Vance. lower it missed curious. some maybe to Maybe that, just would appreciate behaviors I of cohorts, still observed on the Appreciate be more. that etcetera, I the customer thinking that it, observed? kind where there spending anything color on about else, else patterns quarter income, quarter. the Has Is in but by shifted? the that other is in and the observations anything being income, Any at all demographics, Is customer where

restaurant, our particularly of consumers, And consistent QX. last etcetera. finding they're that check, income been that's the lower are business couple pronounced more right. but you we quarters, items, which movement, we've value-oriented We John. also see more higher quarter-to-quarter. more and from, it's our again, less been has That's managing Dennis, income define And the $XX,XXX when less the go as by exactly the visits the see lower from the in below. the aggressively their in performance And guests Yes, observed and in ranges, consistent cohort, movement, our biggest the we

next Our of comes from Instructions] The [Operator Todd Benchmark question the line Company. of Brooks

we to same-store in both can where of I pressures normalized emergence March away that compares, know for you rates I'm trends. you was just the sense how quarter lot talk quarter? a exit Omicron in sales of from sales those same-store be wondering weather talk some earlier things with the get we the a unique with quarter, moved QX brands, compares. that to earlier the willing don't as difficult Would in current farther so of being

in what to we defer can terms I'll of share there. Vance, Sure. you

course, Of yes, Todd.

continued both Todd, on course, John reminder, to But like was first QX. and that all, it's our and of the QX the this generally that as for Tony brands. has the post. is quarter, a a basis, into speaking, been of just So, of positive quick comps well quarter encouraging X-year mentioned, not actually we But Jay and improvement sequential trend throughout

but both momentum traffic it's won't comps both quantify for the exactly brands. to this month-to-month, and encouraging positive we in see our So,

just that maybe to Okay, at years. that more lens for if difficult little maybe potential are few at been thinking were what couldn't the G&A, historically a thoughts given with G&A great. be initiatives some, of and within low on a to And the uses environment, question, through, my valuations capital, some your second we've level share we a $XXX love know delayed look Would other you get now repurchase million-plus and G&A of efficient including spend type at bit would then especially love that. accelerated the

Sure.

right the the believe in plan level what to have with have forward is going we run growth mind. So the level we that company G&A now the right we

with technology that. about we've the we As initiatives, talked concluded before,

the right? that's resources and now. So, we're both, G&A those, G&A impacting But towards within CapEx development G&A, redeploying

before, different franchisees talked a the capabilities, keeping a we're about So, centralized fashion. the level, we're deals in John in is functionalities source to fairly includes at a constant of G&A but to way, more that way a that and the in on investing lot a different development support which

is is doing and cash versus not for the that before. that's within forward. the $X which G&A items, our portion going what quarter, year plan million comp the $X amortization this noncash and reminder One depreciation stock-based so, if on just count of lower to million we G&A, other do we the actually And is

G&A have and that believe we with regards be always long for growth management. opportunities company, and of we in there's shareholder your potential disciplined create then in to to the us and will question the there's buybacks, been with term. very And part we stock the value second So, with the

market and shares there the when that value of company So, the intrinsic and a we we be trading the is always see have we are been, with where in disconnect at. the will

part So, how of that return capital will shareholders. always important we to be an

comes line from Vaccaro the Our of James. next of question Raymond Brian

a in traffic few if follow said ups, that quarter. I outperformed Just could. first the I believe Applebee's you

we're quarter? in for level the Just was make check sure same page. Could brand average the set to each first on where you

data that can have of front question? don't that Vance, I address Sure. you me. in

Sure, the average Applebee's But Brian, is offsetting traffic. Box beat Black check yes. did so for for the positive, slightly negative quarter. we traffic, the

probably the the For given average increase, menu menu IHOP, range increase more the in pricing in effect of high-single-digit was pricing check QX.

context. that's the So,

Okay.

positive in digits. and Applebee's slightly IHOP check So high-single at the

Might have I franchisee think your I quarter? most of misheard comments on. as quarter visibility have it, the Okay. fourth you have on, were on you but recent guess that's financials profitability, those the

Yes.

Okay.

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campaigns running. things giving we're not that methodical, creative are we're These So, away. prudent,

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it. take can I John,

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it think be Brian. advertising strategy And then, overall Tony addressed Vance, for the I helpful would if

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Our next line comes of of the Barclays. question from Jeffrey Bernstein

or is quick modeling I a already and a get quarters Fuzzy's there, worth but for we to updates just out now X to results the and prior real historical if apologize get continue This Jeff. the quarter then will question Pratik integrated, for going had I the it's we is current on year with fully brand quarterly question. of just are that quarter?

that. answer can I

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I for to further questions no time. showing remarks. it now to like would at Dine CEO, this am I turn Brands closing John Peyton, back

Julia, Vance. a quarter August thank And Jay, and throughout you talk the questions. Thanks us this appreciate and look day, you Tony, your you joining guys us and asking We for next Have call. thank great it. We'll your expert for moderation. morning to everybody. to to forward

conclude conference. program. today's This for you your does Thank participation in the

now may You disconnect.