DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's
Neighborhood Grill & Bar® and IHOP® restaurants,
today announced approval by its Board of Directors of a meaningful 17%
increase in the Company’s quarterly cash dividend to $0.875 per share of
common stock. The fourth quarter 2014 dividend will be payable on
January 9, 2015 to the Company’s stockholders of record at the close of
business on December 3, 2014.
The Board of Directors also approved an increase in the share repurchase
authorization for the Company’s common stock, effective immediately, to
$100 million from the remaining previous authorization of approximately
$40 million. The Company anticipates using the majority of its remaining
free cash flow after dividend payments for share repurchases.
“Given the substantial interest savings that will result from the
securitization transaction, the time is right to announce our new
capital allocation strategy. Our 99% franchised business model continues
to generate strong and stable free cash flow. The meaningful increase in
our quarterly cash dividend underscores our confidence in the future of
our business,” said Julia A. Stewart, Chairman and Chief Executive
Officer of DineEquity, Inc.
On September 30, 2014, DineEquity, Inc. announced the completion of its
$1.4 billion securitization refinancing, allowing the Company to secure
a significantly lower fixed interest rate of 4.277% for the next seven
years. Additionally, the new debt structure provides for increased
financial flexibility.
About DineEquity, Inc.
Based in Glendale, California, DineEquity, Inc., through its
subsidiaries, franchises and operates restaurants under the Applebee’s
Neighborhood Grill & Bar and IHOP brands. With more than 3,600
restaurants combined in 19 countries, over 400 franchisees and
approximately 200,000 team members (including franchisee- and
company-operated restaurant employees), DineEquity is one of the largest
full-service restaurant companies in the world. For more information on
DineEquity, visit the Company's Web site located at www.dineequity.com.
Forward-Looking Statements
Statements contained in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. You can identify these forward-looking
statements by words such as "may," "will," "should," "expect,"
"anticipate," "believe," "estimate," "intend," "plan" and other similar
expressions. These statements involve known and unknown risks,
uncertainties and other factors, which may cause actual results to be
materially different from those expressed or implied in such statements.
These factors include, but are not limited to: the effect of general
economic conditions; the Company's indebtedness and risks associated
with the timing and our ability to refinance the Company’s indebtedness;
risk of future impairment charges; trading volatility and the price of
the Company’s common stock; the Company's results in any given period
differing from guidance provided to the public; the highly competitive
nature of the restaurant business; the Company's business strategy
failing to achieve anticipated results; risks associated with the
restaurant industry; risks associated with locations of current and
future restaurants; rising costs for food commodities and utilities;
shortages or interruptions in the supply or delivery of food;
ineffective marketing and guest relationship initiatives and use of
social media; changing health or dietary preferences; our engagement in
business in foreign markets; harm to our brands' reputation; litigation;
fourth-party claims with respect to intellectual property assets;
environmental liability; liability relating to employees; failure to
comply with applicable laws and regulations; failure to effectively
implement restaurant development plans; our dependence upon our
franchisees; concentration of Applebee's franchised restaurants in a
limited number of franchisees; credit risk from IHOP franchisees
operating under our previous business model; termination or non-renewal
of franchise agreements; franchisees breaching their franchise
agreements; insolvency proceedings involving franchisees; changes in the
number and quality of franchisees; inability of franchisees to fund
capital expenditures; heavy dependence on information technology; the
occurrence of cyber incidents or a deficiency in our cybersecurity;
failure to execute on a business continuity plan; inability to attract
and retain talented employees; risks associated with retail brand
initiatives; failure of our internal controls; and other factors
discussed from time to time in the Company's Annual and Quarterly
Reports on Forms 10-K and 10-Q and in the Company's other filings with
the Securities and Exchange Commission. The forward-looking statements
contained in this release are made as of the date hereof and the Company
assumes no obligation to update or supplement any forward-looking
statements.
Copyright Business Wire 2014