Total Revenue

–0.8% (from $206.3M to $204.7M)

The slight decline in Q4 2024 total revenue reflects a minimal contraction in overall business, likely due to subdued performance in some operating segments compared to the previous period, even as shifts in revenue mix (e.g., extraordinary Royalties gains and revived company operations) stabilized the total revenue level " " " vs.. " "

Royalties Revenue

+1500% (from $8M to $138.1M)

The dramatic rise in Royalties Revenue indicates a major operational shift, likely due to a surge in franchise fee collections—possibly fueled by improved performance in key franchise brands and/or reclassification of certain revenue streams that were much lower in the prior period " " " vs.. " "

Company Restaurant Operations

Significant Increase (from $0.3M to $8.4M)

The substantial increase in Company Restaurant Operations revenue suggests a reversal from the previous refranchising trend, possibly due to reacquisition or enhanced performance of company-operated outlets, as opposed to the minimal activity seen in Q4 2023 " " " vs.. " " "

Net Income

–84% (from $33.039M to $5.174M)

The sharp decline in net income reflects the impact of rising operating expenses and potentially adverse cost factors (e.g., higher interest and other overheads) that outweighed gains from surging Royalties revenue and revived operations, marking a significant drop compared to the previous period’s profitability " vs.. "

Basic Net Income per Share

Drop (from $2.13 to $0.34)

The decline in basic net income per share is a direct consequence of the substantial reduction in net income, further amplified by possible changes in share count, thereby translating the overall reduced profitability more starkly to a per-share basis " vs.. "

General and Administrative (G&A) Expenses

FY 2025

$195 million to $200 million "

$200 million to $205 million "

raised

Commodity Costs

FY 2025

Applebee's: low‐single‐digit deflation; IHOP: low‐single‐digit inflation "

Applebee's: flat to slightly down; IHOP: increase by low‐to‐mid single digits "

raised

Domestic System-Wide Comparable Sales Growth

FY 2025

no prior guidance

Applebee's: -2% to +1%; IHOP: -1% to +2% "

no prior guidance

Adjusted EBITDA

FY 2025

no prior guidance

$235 million to $245 million "

no prior guidance

Capital Expenditures (CapEx)

FY 2025

no prior guidance

$20 million to $30 million "

no prior guidance

Net Restaurant Openings/Closures

FY 2025

no prior guidance

Applebee's: 20 to 35 fewer domestic restaurants; IHOP: between 10 net fewer to 10 net openings "

no prior guidance

Dual-Brand Concept

Q1 saw the emergence of dual-branded restaurants with positive franchisee interest and international testing. " " In Q2 it was validated internationally and a domestic pipeline was outlined. " " " Q3 emphasized its role as a significant revenue multiplier (1.5x–2x revenue). " "

Q4 highlighted exceptional performance with the first U.S. dual-brand location achieving nearly 3x the performance of its stand-alone brand, with expanded franchisee interest and robust international expansion. " "

Growing momentum and increasing strategic focus as the concept moves from early testing to a critical growth pillar.

Promotional and Menu Innovation

Q1 focused on value-driven promotions (e.g., $0.50 Boneless Wings, Rooty Tooty Fresh 'N Fruity) and new menu items that drove traffic. " " Q2 and Q3 noted mixed effectiveness with challenges in messaging and consistency. " " "

Q4 continued to see mixed results but noted improvements through digital channel performance and new promotions like the Really Big Meal Deal and House Faves value menu, which helped boost off-premise sales. " " "

Continual mixed performance with incremental improvements—innovations are being refined but challenges in consistency remain.

Economic Headwinds and Shifting Consumer Demand

Q1 described increased price sensitivity and evidence of trading down among lower-income consumers. " " Q2 and Q3 consistently cited macroeconomic pressures and consumer caution affecting same-store sales. " " "

Q4 reiterated that economic headwinds remain persistent, with guest spending impacted and same-restaurant sales declining for both brands. However, there were strategic adjustments focused on value platforms and dynamic marketing. " "

Persistent challenges tempered by gradual strategic refinements, with a clear focus on delivering value amid enduring economic pressures.

Franchisee Alignment and Operational Consistency

Q1 contained modest operational updates and encouraging franchisee sentiment. " " Q2 highlighted strong collaborative promotion planning and cost-saving initiatives, while Q3 stressed the need for more consistency but noted franchisee willingness to invest. " " "

Q4 showcased robust franchisee alignment and enhanced operational consistency, with active cooperation on turnaround efforts (e.g., taking over and remodeling restaurants) demonstrating a strong unified approach. " " "

Improvement over time, with franchisees becoming increasingly aligned with strategic initiatives and operational enhancements yielding better consistency.

Store Expansion and Redevelopment Initiatives

Q1 discussed early-stage prototype development, dual-brand research, and moderate net closure guidance. " " Q2 focused on value-engineered prototypes and new development agreements, while Q3 expanded on prototype optimization (including cost reductions and dual-brand designs). " "

Q4 presented a broader set of initiatives including the Applebee's reimaging program, new prototype design planned for 2025, and impressive dual-brand performance both domestically and internationally, signaling a bolstered expansion pipeline. " " "

Steady strategic investment with accelerated pipeline development and updated prototypes, indicating a clear commitment to modernizing the portfolio.

Commodity Cost Pressures and Supply Chain Challenges

Q1 noted modest improvements in commodity costs and initial annualized savings through CSCS. " Q2 reported stabilization with continued cost-saving initiatives, and Q3 affirmed further stabilization with significant annualized savings. " "

Q4 reported renewed pressures driven by factors such as the avian influenza affecting egg prices and rising costs for certain ingredients, though strong supply chain initiatives continued to support profitability. " "

Stable but persistent pressures with ongoing proactive supply chain measures; challenges remain albeit with consistent cost-mitigation efforts.

Strategic Brand Partnerships

Q1 introduced the NFL sponsorship and integration of Fuzzy's Taco Shop through value-driven promotions and development deals. " " Q2 expanded on NFL partnership integration and initial menu innovations for Fuzzy's. " " " Q3 advanced the narrative with targeted NFL campaigns and creative Fuzzy's promotions. " "

Q4 detailed a 3-year NFL partnership that has notably increased visibility and driven traffic while Fuzzy's Taco Shop signed new development agreements (44 restaurants) and refined its value and promotional strategies, underscoring an evolving, strategic brand focus. " "

Increasing strategic value and evolving execution—these partnerships are maturing into key growth drivers, enhancing brand visibility and customer engagement across channels.