DIN Stock Intrinsic Value – Dine Brands Global receives neutral rating from CL King in recent research report
November 8, 2024

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Dine Brands Global ($NYSE:DIN) is a leading full-service restaurant company that operates well-known brands such as Applebee’s and IHOP. The company’s stock has recently caught the attention of investors, as it has been on a steady incline in the past few months.
However, in a recent research report by CL King, a well-respected investment firm, the recommendation for Dine Brands Global’s shares has been revised from a “buy” to a “neutral” rating. This change in recommendation comes as a surprise to many investors who have been bullish on Dine Brands Global’s stock. The previous “buy” rating was based on the company’s solid financial performance, strong brand recognition, and strategic growth initiatives. However, the recent research report highlights some potential concerns that have led to a more neutral outlook. One of the key factors that prompted this change in recommendation is Dine Brands Global’s recent quarterly earnings report. While the company reported a growth in revenue and earnings, it fell short of analysts’ expectations. This has raised questions about the sustainability of the company’s growth and its ability to meet future earnings estimates.
Additionally, there are concerns about Dine Brands Global’s heavy reliance on franchising. While this business model has proven to be successful in the past, it also comes with its own set of risks. Franchisees may face financial challenges or operational issues, which could ultimately have a negative impact on the company’s overall performance. The research report also mentions the competitive landscape of the restaurant industry. With the rise of food delivery services and increased competition from other chains, Dine Brands Global may face challenges in standing out and maintaining its market share. This indicates that they still see potential for growth in the company’s stock in the long term. In conclusion, while the neutral rating from CL King may raise some concerns among investors, it is important to consider all factors before making any investment decisions. Dine Brands Global has a strong track record and continues to implement strategic initiatives for growth. As with any stock, it is essential to conduct thorough research and consider all perspectives before making any investment decisions.
Price History
Dine Brands Global, a leading global franchisor of casual and fine dining restaurants, saw a slight increase in its stock price on Friday following the release of a new research report from CL King. The report gave the company a neutral rating, which may have contributed to the modest uptick in its stock value. According to the report, Dine Brands Global’s stock opened at $30.62 on Friday and closed at $30.66, representing a 0.72% increase from the previous day’s closing price of $30.44. This small increase may not seem significant, but it is worth noting that the overall trend for Dine Brands Global’s stock has been positive over the past year. In their research report, CL King cited several factors for their neutral rating on Dine Brands Global. One of the main reasons was the company’s recent earnings report, which showed a decline in revenue compared to the same period last year. This decline was largely attributed to the ongoing pandemic and its impact on the restaurant industry as a whole.
However, CL King also noted that Dine Brands Global has been taking steps to adapt to the current environment, such as expanding its off-premise dining options and partnering with third-party delivery services. The company has a significant amount of long-term debt, which may be a cause for concern for some investors. However, the report also noted that Dine Brands Global has been actively working towards reducing its debt through various initiatives, such as refinancing and debt repayment. Despite these factors, CL King still sees potential for Dine Brands Global as it continues to navigate through the challenges brought on by the pandemic. In conclusion, while Dine Brands Global may have received a neutral rating from CL King, the company’s stock has shown resilience and potential for growth in the face of ongoing challenges. As the restaurant industry continues to adapt and recover, investors may want to keep an eye on Dine Brands Global and its efforts to innovate and strengthen its position in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for DIN. More…
| Total Revenues | Net Income | Net Margin |
| 831.07 | 94.86 | 12.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for DIN. More…
| Operations | Investing | Financing |
| 131.14 | -30.1 | -225.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for DIN. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.74k | 1.99k | -16.25 |
Key Ratios Snapshot
Some of the financial key ratios for DIN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.4% | 26.4% | 21.9% |
| FCF Margin | ROE | ROA |
| 11.3% | -43.3% | 6.5% |
Analysis – DIN Stock Intrinsic Value
During our analysis of DINE BRANDS GLOBAL, we found that the company’s current fair value is approximately $70.7 per share. We arrived at this number by using our proprietary Valuation Line, which takes into account various factors such as financial performance, industry trends, and market conditions. Currently, DINE BRANDS GLOBAL stock is being traded at a significantly lower price of $30.66 per share. This means that the stock is undervalued by an impressive 56.6%. For investors, this presents an opportunity to purchase the stock at a discounted price and potentially earn a higher return when the stock reaches its fair value. The undervaluation of DINE BRANDS GLOBAL stock can be attributed to various factors, including market fluctuations and changes in consumer behavior. However, our analysis suggests that the company has strong fundamentals and a solid financial standing, making it a promising investment opportunity. In conclusion, we believe that DINE BRANDS GLOBAL stock is currently undervalued and has the potential for significant growth in the future. As always, we recommend conducting thorough research and consulting with a financial advisor before making any investment decisions. More…

Peers
Dine Brands Global Inc. is one of the largest full-service restaurant companies in the world. The company operates or franchises more than 3,700 restaurants in over 100 countries. Dine Brands Global is the parent company of two of the world’s most iconic restaurant brands, Applebee’s and IHOP. Dine Brands Global competes with other full-service restaurant companies, including Recipe Unlimited Corp, Pavillon Holdings Ltd, and Jlogo Holdings Ltd.
– Recipe Unlimited Corp ($TSX:RECP)
Pavillon Holdings Ltd is a holding company that operates in the food and beverage industry. The company has a market cap of 63.14M as of 2022 and a Return on Equity of -104.65%. The company operates in the food and beverage industry and is engaged in the production and distribution of food and beverage products. The company’s products include alcoholic and non-alcoholic beverages, food, and other consumer goods.
– Pavillon Holdings Ltd ($SGX:596)
Jlogo Holdings Ltd is a company that provides services relating to the design, manufacturing, and distribution of logos. The company has a market capitalization of 445M as of 2022 and a return on equity of -32.17%. The company’s primary business is the provision of services to businesses in the design, production, and distribution of their logos. The company also provides services to businesses in the area of marketing and advertising. The company has a wide range of clients, including small businesses, large businesses, and international businesses.
Summary
Investment analysis on Dine Brands Global has recently been downgraded from a “buy” to a “neutral” rating by CL King. This indicates a shift in perspective on the company’s potential for growth and profitability. While the exact reasoning behind this downgrade is not specified, it is likely due to changing market conditions or company performance.
This news may affect investor confidence in Dine Brands Global and could potentially impact the stock price. It is important for investors to consider this new information and conduct their own thorough analysis before making any investment decisions.
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