Dine Brands Global, Inc. (DIN) stock analysis

P/E above its 5-year median

Dine Brands Global's P/E of 109.4 is above its own 5-year median of 12.0.

P/E above the industry

Dine Brands Global's P/E of 109.4 is above the Eating and Drinking Places median of 28.5.

EV/EBITDA below its 5-year median

Dine Brands Global's EV/EBITDA of 7.0 is below its 5-year median of 8.9.

P/S below the industry

Dine Brands Global's price-to-sales of 0.50 is below the Eating and Drinking Places median of 0.73 (book value is negative, so we use sales).

Trading below fair value

The share price of $37.18 is below our fair value estimate of $56.67.

Margin of safety over 20%

The price is 34.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -39.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 7.6% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Guidance unchanged

The latest outlook (fiscal 2026 G&A expenses, May 6, 2026) was maintained, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 38.1% over the last twelve months, against 40.7% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 0.4% over the last twelve months, against a 5-year average of 8.3%.

Net margin below the industry

Dine Brands Global's net margin of 0.4% is below the Eating and Drinking Places median of 1.9%.

No debt

Dine Brands Global has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets don't cover short-term debts

Current assets are 0.87 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.79; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Dine Brands Global paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Dine Brands Global yields 2.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 356% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.