Dine Brands Global, Inc. (NYSE:DIN) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET

Company Participants

John Peyton – Chief Executive Officer

Vance Chang – Chief Financial Officer

Tony Moralejo – President of Applebee's

Jay Johns – President of IHOP

Brett Levy – Vice President of Investor Relations and Treasury

Conference Call Participants

Eric Gonzalez – KeyBanc

Jake Bartlett – Truist Securities

Todd Brooks – The Benchmark Company

Nick Setyan – Wedbush

Brian Mullan – Piper Sandler

Andrew Wolf – CL King

Jeffrey Bernstein – Barclays

Maggie Juarez – Raymond James

Operator

Good morning, and welcome to Dine Brands Global's Second Quarter 2023 Conference Call. I'm Brett Levy, Dine’s Vice President of Investor Relations and Treasury. This morning's call will include prepared remarks from John Peyton, CEO; and Vance Chang, CFO. Following those prepared remarks, Tony Moralejo, President of Applebee's; and Jay Johns, President of IHOP, will also be available to address questions from the investment community during the portion of the call.

Please remember our safe harbor regarding forward-looking information. During the call, management will discuss information that is forward-looking and involves known and unknown risks, uncertainties, and other factors, which may cause the actual results to be different than those expressed or implied.

Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release and 10-Q filing. The forward-looking statements are as of today and no obligation to update or supplement these statements. We will also refer to certain non-GAAP financial measures, which are described in our press release and also available on Dine Brand's Investor Relations website. For calendar planning purposes, we are tentatively scheduled to release our Q3 2023 earnings before the market open on November 1, 2023.

With that, it is my pleasure to turn the call over to Dine Brands CEO, John Peyton.

John Peyton

Thanks, and good morning, everyone, and thanks for joining us. Today, we'll provide updates on Dine's Q2 results, our investment initiatives and progress on new unit development. Vance will provide a more detailed financial update, including balance sheet progress, and Tony and Jay will join us for Q&A on the back half of our call.

So I'll begin today with a few comments about the mindset and behavior of our consumer. We've spoken at length about the remarkable resilience of our target guest in 2022 and early 2023. In late Q1, we began to see some hints that our guests were growing a bit more cautious in their spending. This continued into the second quarter as the percentage of guests selecting from limited time offerings and the value offerings on our Applebee's menu grew from approximately 15% to 19% quarter-over-quarter.