Casual restaurant chain Dine Brands (NYSE:DIN) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
Dine Brands missed analysts’ revenue expectations last quarter, reporting revenues of $217.6 million, up 6.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ revenue estimates.
Is Dine Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dine Brands’s revenue to grow 3% year on year, slowing from the 4.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dine Brands has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Dine Brands’s peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.5%, and The Cheesecake Factory reported revenues up 5.6%, topping estimates by 1.5%. Kura Sushi traded down 17.8% following the results while The Cheesecake Factory’s stock price was unchanged.
Read our full analysis of Kura Sushi’s results here and The Cheesecake Factory’s results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat over the last month. Dine Brands is down 3.1% during the same time and is heading into earnings with an average analyst price target of $30.25 (compared to the current share price of $26.74).
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