Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Dine Brands Global, Inc. | |
Entity Central Index Key | 0000049754 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 17,535,046 | |
Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 132,932 | $ 137,164 |
Receivables, net | 97,786 | 137,504 |
Restricted cash | 36,654 | 48,515 |
Prepaid gift card costs | 30,045 | 38,195 |
Prepaid income taxes | 19,370 | 17,402 |
Other current assets | 5,980 | 3,410 |
Total current assets | 322,767 | 382,190 |
Other intangible assets, net | 583,040 | 585,889 |
Operating lease right-of-use asset | 383,962 | |
Goodwill | 343,862 | 345,314 |
Property and equipment, net | 225,396 | 240,264 |
Long-term receivables, net | 99,582 | 103,102 |
Deferred rent receivable | 75,569 | 77,069 |
Non-current restricted cash | 14,700 | 14,700 |
Other non-current assets, net | 27,239 | 26,152 |
Total assets | 2,076,117 | 1,774,680 |
Current liabilities: | ||
Current maturities of long-term debt | 0 | 25,000 |
Accounts payable | 37,726 | 43,468 |
Gift card liability | 115,974 | 160,438 |
Current maturities of operating lease obligations | 67,340 | |
Current maturities of finance lease and financing obligations | 13,708 | 14,031 |
Accrued employee compensation and benefits | 15,338 | 27,479 |
Dividends payable | 12,461 | 11,389 |
Deferred franchise revenue, short-term | 10,376 | 10,138 |
Other accrued expenses | 30,167 | 24,243 |
Total current liabilities | 303,090 | 316,186 |
Long-term debt, less current maturities | 1,274,916 | 1,274,087 |
Operating lease obligations, less current maturities | 386,364 | |
Finance lease obligations, less current maturities | 87,624 | |
Finance lease obligations, less current maturities | 87,762 | |
Financing obligations, less current maturities | 38,306 | 38,482 |
Deferred income taxes, net | 102,074 | 105,816 |
Deferred franchise revenue, long-term | 62,472 | 64,557 |
Other non-current liabilities | 12,092 | 90,063 |
Total liabilities | 2,266,938 | 1,976,953 |
Commitments and contingencies | ||
Stockholders’ deficit: | ||
Common stock, $0.01 par value; shares: 40,000,000 authorized; March 31, 2019 - 24,974,665 issued, 17,650,765 outstanding; December 31, 2018 - 24,984,898 issued, 17,644,267 outstanding | 250 | 250 |
Additional paid-in-capital | 239,585 | 237,726 |
Retained earnings | 24,588 | 10,414 |
Accumulated other comprehensive loss | (61) | (60) |
Treasury stock, at cost; shares: March 31, 2019 - 7,323,900; December 31, 2018 - 7,340,631 | (455,183) | (450,603) |
Total stockholders’ deficit | (190,821) | (202,273) |
Total liabilities and stockholders’ deficit | $ 2,076,117 | $ 1,774,680 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 24,974,665 | 24,984,898 |
Common stock, shares outstanding (in shares) | 17,650,765 | 17,644,267 |
Treasury stock, shares (in shares) | 7,323,900 | 7,340,631 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Rental revenues | $ 30,711 | $ 30,841 |
Total revenues | 237,182 | 188,163 |
Cost of revenues: | ||
Franchise expenses: | 80,303 | 81,872 |
Company restaurant expenses | 31,538 | 0 |
Interest expense from finance leases | 1,529 | 1,877 |
Other rental expenses | 21,095 | 20,764 |
Rental expenses: | 22,624 | 22,641 |
Financing expenses | 146 | 150 |
Total cost of revenues | 134,611 | 104,663 |
Gross profit | 102,571 | 83,500 |
General and administrative expenses | 42,819 | 41,911 |
Interest expense, net | 15,393 | 15,199 |
Amortization of intangible assets | 2,924 | 2,502 |
Closure and impairment charges | 194 | 2,604 |
Loss (gain) on disposition of assets | 109 | (1,427) |
Income before income tax provision | 41,132 | 22,711 |
Income tax provision | (9,489) | (5,638) |
Net income | 31,643 | 17,073 |
Other comprehensive income (loss) net of tax: | ||
Adjustment to unrealized loss on available-for-sale investments | 0 | 50 |
Foreign currency translation adjustment | (1) | (3) |
Total comprehensive income | 31,642 | 17,120 |
Net income available to common stockholders: | ||
Net income | 31,643 | 17,073 |
Less: Net income allocated to unvested participating restricted stock | (1,111) | (568) |
Net income available to common stockholders - basic | $ 30,532 | $ 16,505 |
Net income available to common stockholders per share: | ||
Basic (USD per share) | $ 1.76 | $ 0.93 |
Diluted (USD per share) | $ 1.73 | $ 0.92 |
Weighted average shares outstanding: | ||
Basic (in shares) | 17,343 | 17,703 |
Diluted (in shares) | 17,690 | 17,845 |
Dividends declared per common share (USD per share) | $ 0.69 | $ 0.63 |
Dividends paid per common share (USD per share) | $ 0.63 | $ 0.97 |
Franchise revenues | ||
Revenues: | ||
Revenue from contract with customer, excluding assessed Tax | $ 168,926 | $ 155,313 |
Royalties, franchise fees and other | ||
Revenues: | ||
Revenue from contract with customer, excluding assessed Tax | 96,296 | 91,477 |
Advertising revenue | ||
Revenues: | ||
Revenue from contract with customer, excluding assessed Tax | 72,630 | 63,836 |
Company restaurant sales | ||
Revenues: | ||
Revenue from contract with customer, excluding assessed Tax | 35,735 | 0 |
Financing revenues | ||
Revenues: | ||
Revenue from contract with customer, excluding assessed Tax | 1,810 | 2,009 |
Advertising fees | ||
Revenues: | ||
Revenue from contract with customer, excluding assessed Tax | 72,630 | 63,836 |
Cost of revenues: | ||
Franchise expenses: | 72,630 | 63,836 |
Other franchise expenses | ||
Cost of revenues: | ||
Franchise expenses: | $ 7,673 | $ 18,036 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock |
Common stock, shares, outstanding, beginning (in shares) at Dec. 31, 2017 | 17,993,000 | |||||
Stockholders' equity balance, beginning of the period at Dec. 31, 2017 | $ (215,540) | $ 250 | $ 276,408 | $ (69,940) | $ (105) | $ (422,153) |
Treasury stock, shares, beginning (in shares) at Dec. 31, 2017 | 7,029,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 17,073 | 17,073 | ||||
Other comprehensive gain (loss) | 47 | 47 | ||||
Purchase of Company common stock (in shares) | (139,000) | (139,000) | ||||
Purchase of Company common stock | (10,003) | $ (10,003) | ||||
Reissuance of treasury stock (in shares) | 77,000 | 77,000 | ||||
Reissuance of treasury stock | 456 | (2,495) | $ 2,951 | |||
Net issuance of shares for stock plans (in shares) | 6,000 | |||||
Net issuance of shares for stock plans | 0 | |||||
Repurchase of restricted shares for taxes (in shares) | (15,000) | |||||
Repurchase of restricted shares for taxes | (1,083) | (1,083) | ||||
Stock-based compensation | 3,368 | 3,368 | ||||
Dividends on common stock in excess of retained earnings | (11,204) | (11,204) | ||||
Common stock, shares, outstanding, ending (in shares) at Mar. 31, 2018 | 17,922,000 | |||||
Stockholders' equity balance, ending of the period at Mar. 31, 2018 | $ (216,886) | $ 250 | 264,994 | (52,867) | (58) | $ (429,205) |
Treasury stock, shares, ending (in shares) at Mar. 31, 2018 | 7,091,000 | |||||
Common stock, shares, outstanding, beginning (in shares) at Dec. 31, 2018 | 17,644,267 | 17,644,000 | ||||
Stockholders' equity balance, beginning of the period at Dec. 31, 2018 | $ (202,273) | $ 250 | 237,726 | 10,414 | (60) | $ (450,603) |
Treasury stock, shares, beginning (in shares) at Dec. 31, 2018 | 7,340,631 | 7,341,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 31,643 | 31,643 | ||||
Other comprehensive gain (loss) | (1) | (1) | ||||
Purchase of Company common stock (in shares) | (151,000) | (151,000) | ||||
Purchase of Company common stock | $ (12,015) | $ (12,015) | ||||
Reissuance of treasury stock (in shares) | 168,047 | 168,000 | 168,000 | |||
Reissuance of treasury stock | $ 6,768 | (667) | $ 7,435 | |||
Net issuance of shares for stock plans (in shares) | 9,000 | |||||
Net issuance of shares for stock plans | 0 | |||||
Repurchase of restricted shares for taxes (in shares) | (19,000) | |||||
Repurchase of restricted shares for taxes | (1,817) | (1,817) | ||||
Stock-based compensation | 4,107 | 4,107 | ||||
Dividends on common stock | $ (12,203) | 236 | (12,439) | |||
Common stock, shares, outstanding, ending (in shares) at Mar. 31, 2019 | 17,650,765 | 17,651,000 | ||||
Stockholders' equity balance, ending of the period at Mar. 31, 2019 | $ (190,821) | $ 250 | $ 239,585 | $ 24,588 | $ (61) | $ (455,183) |
Treasury stock, shares, ending (in shares) at Mar. 31, 2019 | 7,323,900 | 7,324,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 31,643 | $ 17,073 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 10,179 | 7,940 |
Non-cash stock-based compensation expense | 4,107 | 3,368 |
Non-cash interest expense | 1,118 | 864 |
Closure and impairment charges | 194 | 2,594 |
Deferred income taxes | (1,149) | (1,182) |
Loss (gain) on disposition of assets | 109 | (1,421) |
Other | (3,976) | (6,199) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (3,210) | (8,804) |
Current income tax receivables and payables | (1,399) | 5,529 |
Gift card receivables and payables | (890) | (2,269) |
Other current assets | (2,570) | 5,709 |
Accounts payable | 1,826 | 65 |
Accrued employee compensation and benefits | (12,141) | (3,448) |
Other current liabilities | 5,088 | (3,351) |
Cash flows provided by operating activities | 28,929 | 16,468 |
Cash flows from investing activities: | ||
Principal receipts from notes, equipment contracts and other long-term receivables | 5,260 | 4,930 |
Additions to property and equipment | (4,717) | (3,488) |
Proceeds from sale of property and equipment | 400 | 655 |
Additions to long-term receivables | (395) | (2,325) |
Other | (100) | (27) |
Cash flows provided by (used in) investing activities | 448 | (255) |
Cash flows from financing activities: | ||
Repayment of Variable Funding Notes | (25,000) | 0 |
Repayment of long-term debt | 0 | (3,250) |
Dividends paid on common stock | (11,153) | (17,453) |
Repurchase of common stock | (10,802) | (10,003) |
Principal payments on financing lease obligations | (3,466) | (4,536) |
Proceeds from stock options exercised | 6,768 | 456 |
Tax payments for restricted stock upon vesting | (1,817) | (1,083) |
Cash flows used in financing activities | (45,470) | (35,869) |
Net change in cash, cash equivalents and restricted cash | (16,093) | (19,656) |
Cash, cash equivalents and restricted cash at beginning of period | 200,379 | 163,146 |
Cash, cash equivalents and restricted cash at end of period | 184,286 | 143,490 |
Supplemental disclosures: | ||
Interest paid in cash | 16,346 | 16,621 |
Income taxes paid in cash | $ 12,014 | $ 934 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited consolidated financial statements of Dine Brands Global, Inc. (the “Company” or “Dine Brands Global”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2019 . The consolidated balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2019 began on December 31, 2018 and ended on March 31, 2019 . The first fiscal quarter of 2018 began on January 1, 2018 and ended on April 1, 2018 . The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, if any, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made in the calculation and assessment of the following: impairment of goodwill, other intangible assets and tangible assets; income taxes; allowance for doubtful accounts and notes receivables; lease accounting estimates; contingencies; and stock-based compensation. On an ongoing basis, the Company evaluates its estimates based on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. |
Accounting Standards Adopted an
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted | Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted Accounting Standards Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance with respect to the accounting for leases, as codified in Accounting Standards Topic 842 (“ASC 842”). The guidance is intended to improve financial reporting of leasing transactions by requiring entities that lease assets to recognize assets and liabilities for the rights and obligations created by leases, as well as requiring additional disclosures related to an entity's leasing activities. The Company adopted this change in accounting principle using the modified retrospective method as of the first day of the first fiscal quarter of 2019. Accordingly, financial information for periods prior to the date of initial application has not been adjusted. The Company has elected the package of practical expedients for adoption that permitted the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company did not elect to use an allowable expedient that permitted the use of hindsight in performing evaluations of its leases. Upon adoption of ASC 842, the Company recognized operating lease obligations of $453.0 million , which represents the present value of the remaining minimum lease payments, discounted using the Company's incremental borrowing rate. The Company recognized operating lease right-of-use assets of $395.6 million . The Company recognized an adjustment to retained earnings upon adoption of $5.0 million , net of tax of $1.7 million , primarily related to an impairment resulting from an unfavorable differential between lease payments to be made and sublease rentals to be received on certain leases. The remaining difference of $50.7 million between the recognized operating lease obligation and right-of-use assets relates to the derecognition of certain liabilities and assets that had been recorded in accordance with U.S. GAAP that had been applied prior to the adoption of ASC 842, primarily $43.3 million of accrued rent payments. Lease-related reserves for lease incentives, closed restaurants and unfavorable leaseholds were also derecognized. The accounting for the Company's existing finance (capital) leases upon adoption of ASC 842 remained substantially unchanged. Adoption of ASC 842 had no significant impact on the Company's cash flows from operations or its results of operations and did not impact any covenant related to the Company's long-term debt. The Company implemented internal controls necessary to ensure compliance with the accounting and disclosure requirements of ASC 842. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2019 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years. Newly Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued new guidance on the measurement of credit losses on financial instruments. The new guidance will replace the incurred loss methodology of recognizing credit losses on financial instruments that is currently required with a methodology that estimates the expected credit loss on financial instruments and reflects the net amount expected to be collected on the financial instrument. Application of the new guidance may result in the earlier recognition of credit losses as the new methodology will require entities to consider forward-looking information in addition to historical and current information used in assessing incurred losses. The Company will be required to adopt the new guidance on a modified retrospective basis beginning with its first fiscal quarter of 2020, with early adoption permitted in its first fiscal quarter of 2019. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. In August 2018, the FASB issued guidance designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2020; early adoption in any interim period after issuance of the new guidance is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In August 2018, the FASB issued new guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance for capitalizing implementation cost incurred to develop or obtain internal-use software. The guidance also provides presentation and disclosure requirements for such capitalized costs. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2020; early adoption in any interim period after issuance of the new guidance is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable to the Company's operations or that no material effect is expected on the Company's financial statements because of future adoption. |
Revenue Disclosures (Notes)
Revenue Disclosures (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | Revenue Disclosures Franchise revenue (which comprises most of the Company's revenues) and revenue from company-operated restaurants are recognized in accordance with ASC 606. Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods. Franchising Activities The Company owns and franchises the Applebee’s and IHOP restaurant concepts. The franchise arrangement for both brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. The transaction price in a standard franchise arrangement for both brands primarily consists of (a) initial franchise/development fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required. Additionally, all domestic IHOP franchise agreements require franchisees to purchase proprietary pancake and waffle dry mix from the Company. The Company recognizes the primary components of the transaction price as follows: • Franchise and development fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the restaurant opening date. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time; • The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenue are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either what is considered a contract asset (unbilled receivable) or, once billed, accounts receivable, on the balance sheet. • Revenue from the sales of proprietary pancake and waffle dry mix is recognized in the period in which distributors ship the franchisee's order; recognition of revenue results in accounts receivable on the balance sheet. Company Restaurant Revenue Sales by company-operated restaurants are recognized when food and beverage items are sold. Company restaurant sales are reported net of sales taxes collected from guests that are remitted to the appropriate taxing authorities. In determining the amount and timing of revenue from contracts with customers, the Company exercises significant judgment with respect to collectibility of the amount; however, the timing of recognition does not require significant judgments as it is based on either the term of the franchise agreement, the month of reported sales by the franchisee or the date of product shipment, none of which require estimation. The Company does not incur a significant amount of contract acquisition costs in conducting its franchising activities. The Company believes its franchising arrangements do not contain a significant financing component. The following table disaggregates franchise revenue by major type for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 2018 (In thousands) Franchise Revenue: Royalties $ 78,730 $ 75,097 Advertising fees 72,630 63,836 Pancake and waffle dry mix sales and other 14,431 13,097 Franchise and development fees 3,135 3,283 Total franchise revenue $ 168,926 $ 155,313 Receivables from franchisees as of March 31, 2019 and December 31, 2018 were $67.1 million (net of allowance of $2.1 million ) and $62.6 million (net of allowance of $4.6 million ), respectively, and were included in receivables, net in the Consolidated Balance Sheets. Changes in the Company's contract liability for deferred franchise and development fees during the three months ended March 31, 2019 are as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2018 $ 74,695 Recognized as revenue during the three months ended March 31, 2019 (2,948 ) Fees deferred during the three months ended March 31, 2019 1,101 Balance at March 31, 2019 $ 72,848 The balance of deferred revenue as of March 31, 2019 is expected to be recognized as follows: (In thousands) Remainder of 2019 $ 6,633 2020 10,066 2021 7,780 2022 7,251 2023 6,675 2024 5,987 Thereafter 28,456 Total $ 72,848 |
Lease Disclosures (Notes)
Lease Disclosures (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The majority of the Company's lease portfolio originated when the Company was actively involved in the development and financing of IHOP restaurants prior to the franchising of the restaurant to the franchisee. This activity included the Company's leasing or purchase of the site on which the restaurant was located and subsequently leasing/subleasing the site to the franchisee. With a few exceptions, the Company ended this practice in 2003 and the Company's current lease activity is predominantly comprised of renewals of existing lease arrangements and exercises of options on existing lease arrangements. The Company currently leases from third parties the real property on which approximately 620 IHOP franchisee-operated restaurants are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 60 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and a restaurant support center in Kansas City, Missouri. The Company does not have a significant amount of non-real estate leases. The Company's existing leases related to IHOP restaurants generally provided for an initial term of 20 to 25 years with most having one or more five -year renewal options. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 260 of the Company's leases contain provisions requiring additional rent payments to the Company (as lessor) based on a percentage of restaurant sales. Approximately 220 of the Company's leases contain provisions requiring additional rent payments by the Company (as lessee) based on a percentage of restaurant sales. The individual lease agreements do not provide information to determine the implicit rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities as of the adoption date. Due to the large number of leases, the Company applied a portfolio approach by grouping the leases based on the original lease term. The Company estimated the rate for each grouping primarily by reference to yield rates on debt issuances by companies of a similar credit rating as the Company, U.S. Treasury rates as of the adoption date and adjustments for differences in years to maturity. The Company's lease cost for the three months ended March 31, 2019 was as follows: Finance lease cost: (In millions) Amortization of right-of-use assets $ 1.3 Interest on lease liabilities 2.1 Operating lease cost 26.4 Variable lease cost 0.7 Short-term lease cost 0.0 Sublease income (28.1 ) Lease cost $ 2.4 Future minimum lease payments under noncancelable leases as lessee as of March 31, 2019 were as follows: Finance Leases Operating Leases (In millions) 2019 (remaining nine months) $ 15.8 $ 69.0 2020 20.1 93.0 2021 16.5 76.0 2022 14.7 68.0 2023 11.6 55.6 Thereafter 65.0 212.7 Total minimum lease payments 143.7 574.3 Less: interest/imputed interest (43.1 ) (120.6 ) Total obligations 100.6 453.7 Less: current portion (13.0 ) (67.3 ) Long-term lease obligations $ 87.6 $ 386.4 The weighted average remaining lease term as of March 31, 2019 was 8.6 years for finance leases and 8.1 years for operating leases. The weighted average discount rate as of March 31, 2019 was 10.4% for finance leases and 5.8% for operating leases. During the three months ended March 31, 2019, the Company made the following payments for leases: (In millions) Principal payments on finance lease obligations $ 3.5 Interest payments on finance lease obligations $ 2.0 Payments on operating leases $ 22.9 Variable lease payments $ 0.9 The Company's income from operating leases for the three months ended March 31, 2019 was as follows: (In millions) Minimum lease payments $ 25.7 Variable lease income 3.2 Total operating lease income $ 28.9 Future minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2019 were as follows: (In millions) 2019 (remaining nine months) $ 79.5 2020 107.1 2021 101.2 2022 98.1 2023 93.7 Thereafter 288.3 Total minimum rents receivable 767.9 The Company's income from direct financing leases for the three months ended March 31, 2019 was as follows: (In millions) Interest income $ 1.4 Variable lease income 0.4 Total operating lease income $ 1.8 Future minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2019 were as follows: (In millions) 2019 (remaining nine months) $ 12.1 2020 14.8 2021 11.7 2022 8.4 2023 3.6 Thereafter 3.7 Total minimum rents receivable 54.3 Less: unearned income (11.4 ) Total net investment in direct financing leases 42.9 Less: current portion (11.2 ) Long-term investment in direct financing leases $ 31.7 |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The majority of the Company's lease portfolio originated when the Company was actively involved in the development and financing of IHOP restaurants prior to the franchising of the restaurant to the franchisee. This activity included the Company's leasing or purchase of the site on which the restaurant was located and subsequently leasing/subleasing the site to the franchisee. With a few exceptions, the Company ended this practice in 2003 and the Company's current lease activity is predominantly comprised of renewals of existing lease arrangements and exercises of options on existing lease arrangements. The Company currently leases from third parties the real property on which approximately 620 IHOP franchisee-operated restaurants are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 60 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and a restaurant support center in Kansas City, Missouri. The Company does not have a significant amount of non-real estate leases. The Company's existing leases related to IHOP restaurants generally provided for an initial term of 20 to 25 years with most having one or more five -year renewal options. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 260 of the Company's leases contain provisions requiring additional rent payments to the Company (as lessor) based on a percentage of restaurant sales. Approximately 220 of the Company's leases contain provisions requiring additional rent payments by the Company (as lessee) based on a percentage of restaurant sales. The individual lease agreements do not provide information to determine the implicit rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities as of the adoption date. Due to the large number of leases, the Company applied a portfolio approach by grouping the leases based on the original lease term. The Company estimated the rate for each grouping primarily by reference to yield rates on debt issuances by companies of a similar credit rating as the Company, U.S. Treasury rates as of the adoption date and adjustments for differences in years to maturity. The Company's lease cost for the three months ended March 31, 2019 was as follows: Finance lease cost: (In millions) Amortization of right-of-use assets $ 1.3 Interest on lease liabilities 2.1 Operating lease cost 26.4 Variable lease cost 0.7 Short-term lease cost 0.0 Sublease income (28.1 ) Lease cost $ 2.4 Future minimum lease payments under noncancelable leases as lessee as of March 31, 2019 were as follows: Finance Leases Operating Leases (In millions) 2019 (remaining nine months) $ 15.8 $ 69.0 2020 20.1 93.0 2021 16.5 76.0 2022 14.7 68.0 2023 11.6 55.6 Thereafter 65.0 212.7 Total minimum lease payments 143.7 574.3 Less: interest/imputed interest (43.1 ) (120.6 ) Total obligations 100.6 453.7 Less: current portion (13.0 ) (67.3 ) Long-term lease obligations $ 87.6 $ 386.4 The weighted average remaining lease term as of March 31, 2019 was 8.6 years for finance leases and 8.1 years for operating leases. The weighted average discount rate as of March 31, 2019 was 10.4% for finance leases and 5.8% for operating leases. During the three months ended March 31, 2019, the Company made the following payments for leases: (In millions) Principal payments on finance lease obligations $ 3.5 Interest payments on finance lease obligations $ 2.0 Payments on operating leases $ 22.9 Variable lease payments $ 0.9 The Company's income from operating leases for the three months ended March 31, 2019 was as follows: (In millions) Minimum lease payments $ 25.7 Variable lease income 3.2 Total operating lease income $ 28.9 Future minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2019 were as follows: (In millions) 2019 (remaining nine months) $ 79.5 2020 107.1 2021 101.2 2022 98.1 2023 93.7 Thereafter 288.3 Total minimum rents receivable 767.9 The Company's income from direct financing leases for the three months ended March 31, 2019 was as follows: (In millions) Interest income $ 1.4 Variable lease income 0.4 Total operating lease income $ 1.8 Future minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2019 were as follows: (In millions) 2019 (remaining nine months) $ 12.1 2020 14.8 2021 11.7 2022 8.4 2023 3.6 Thereafter 3.7 Total minimum rents receivable 54.3 Less: unearned income (11.4 ) Total net investment in direct financing leases 42.9 Less: current portion (11.2 ) Long-term investment in direct financing leases $ 31.7 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt At March 31, 2019 and December 31, 2018, long-term debt consisted of the following: March 31, 2019 December 31, 2018 (In millions) Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 $ 1,283.8 $ 1,283.8 Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 — 25.0 Class A-2 Note debt issuance costs (8.9 ) (9.7 ) Long-term debt, net of debt issuance costs 1,274.9 1,299.1 Current portion of long-term debt — (25.0 ) Long-term debt $ 1,274.9 $ 1,274.1 For a description of the Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 and the Series 2018-1 Variable Funding Notes Class A-1, refer to Note 8 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. During the three months ended March 31, 2019, the Company repaid $25.0 million of Variable Funding Notes, representing the amount outstanding at December 31, 2018. The Company did not draw on the Variable Funding Notes during the three months ended March 31, 2019. The maximum amount of Variable Funding Notes outstanding during the three months ended March 31, 2019 was $25.0 million and the weighted average interest rate on the Variable Funding Notes for the period outstanding was 4.88% . At March 31, 2019, $2.2 million was pledged against the Variable Funding Notes for outstanding letters of credit, leaving $222.8 million of 2018 Variable Funding Notes available for borrowing. The letters of credit are used primarily to satisfy insurance-related collateral requirements. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Dividends During the three months ended March 31, 2019 , the Company paid dividends on common stock of $11.2 million , representing a cash dividend of $0.63 per share declared in the fourth quarter of 2018. On February 20, 2019, the Company's Board of Directors declared a first quarter 2019 cash dividend of $0.69 per share of common stock. This dividend was paid on April 5, 2019 to stockholders of record at the close of business on March 20, 2019. The Company reported dividends payable of $12.5 million at March 31, 2019 . Dividends declared and paid per share for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 2018 Dividends declared per common share $ 0.69 $ 0.63 Dividends paid per common share $ 0.63 $ 0.97 Stock Repurchase Program In February 2019, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $ 200 million of the Company’s common stock (“2019 Repurchase Program”) on an opportunistic basis from time to time in the open market or in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The 2019 Repurchase Program, as approved by the Board of Directors, does not require the repurchase of a specific number of shares and can be terminated at any time. In October 2015, the Company's Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $150 million of its common stock (the “2015 Repurchase Program”) on an opportunistic basis from time to time in open market transactions and in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The 2015 Repurchase Program, as approved by the Board of Directors, did not require the repurchase of a specific number of shares and could be terminated at any time. In connection with the approval of the 2019 Repurchase Program, the Board of Directors terminated the 2015 Repurchase Program. A summary of shares repurchased under the 2019 Repurchase Program and the 2015 Repurchase Program, during the three months ended March 31, 2019 and cumulatively, is as follows: Shares Cost of shares (In millions) 2019 Repurchase Program: Repurchased during the three months ended March 31, 2019 40,817 $ 3.6 Cumulative (life-of-program) repurchases 40,817 $ 3.6 Remaining dollar value of shares that may be repurchased n/a $ 196.4 2015 Repurchase Program: Repurchased during the three months ended March 31, 2019 110,499 $ 8.4 Cumulative (life-of-program) repurchases 1,589,995 $ 126.2 Remaining dollar value of shares that may be repurchased n/a n/a Treasury Stock Repurchases of the Company's common stock are included in treasury stock at the cost of shares repurchased plus any transaction costs. Treasury stock may be re-issued when stock options are exercised, when restricted stock awards are granted and when restricted stock units settle in stock upon vesting. The cost of treasury stock re-issued is determined using the first-in, first-out (“FIFO”) method. During the three months ended March 31, 2019 , the Company re-issued 168,047 shares of treasury stock at a total FIFO cost of $7.4 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 23.1% for the three months ended March 31, 2019 as compared to 24.8% for the three months ended March 31, 2018 . T he effective tax rate of 23.1% for the three months ended March 31, 2019 was lower than the rate of the prior period primarily due to excess tax benefits on stock-based compensation. The total gross unrecognized tax benefit as of March 31, 2019 and December 31, 2018 was $5.2 million and $5.2 million , respectively, excluding interest, penalties and related tax benefits. The Company estimates the unrecognized tax benefit may decrease over the upcoming 12 months by an amount up to $0.9 million related to settlements with taxing authorities and the lapse of statutes of limitations. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority will occur. As of March 31, 2019 , accrued interest was $1.3 million and accrued penalties were less than $0.1 million , excluding any related income tax benefits. As of December 31, 2018 , accrued interest was $1.1 million and accrued penalties were less than $0.1 million , excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of its income tax provision recognized in its Consolidated Statements of Comprehensive Income. The Company files federal income tax returns and the Company or one of its subsidiaries files income tax returns in various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state or non-United States tax examinations by tax authorities for years before 2011. The Internal Revenue Service commenced examination of the Company’s U.S. federal income tax return for the tax years 2011 to 2013 in fiscal year 2016. The examination is anticipated to conclude during fiscal year 2019. The Company believes that adequate reserves have been provided relating to all matters contained in the tax periods open to examination. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income: Three months ended March 31, 2019 2018 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 4.1 $ 3.4 Liability classified awards expense 1.0 0.5 Total pre-tax stock-based compensation expense 5.1 3.9 Book income tax benefit (1.3 ) (1.0 ) Total stock-based compensation expense, net of tax $ 3.8 $ 2.9 As of March 31, 2019 , total unrecognized compensation expense of $24.1 million related to restricted stock and restricted stock units and $5.8 million related to stock options are expected to be recognized over a weighted average period of 1.7 years for restricted stock and restricted stock units and 1.8 years for stock options. Fair Value Assumptions The Company granted 132,832 stock options during the three months ended March 31, 2019 for which the fair value was estimated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model: Risk-free interest rate 2.5 % Weighted average historical volatility 30.3 % Dividend yield 2.8 % Expected years until exercise 4.7 Weighted average fair value of options granted $21.93 Equity Classified Awards - Stock Options Stock option balances at March 31, 2019 , and activity for the three months ended March 31, 2019 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Millions) Outstanding at December 31, 2018 1,439,708 $ 63.21 Granted 132,832 98.97 Exercised (116,590 ) 58.05 Outstanding at March 31, 2019 1,455,950 66.88 6.8 $ 38.2 Vested at March 31, 2019 and Expected to Vest 1,311,896 67.76 6.6 $ 33.3 Exercisable at March 31, 2019 682,494 $ 75.92 4.6 $ 12.1 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the first quarter of 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2019 . The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options. Equity Classified Awards - Restricted Stock and Restricted Stock Units Outstanding balances as of March 31, 2019 , and activity related to restricted stock and restricted stock units for the three months ended March 31, 2019 were as follows: Restricted Stock Weighted Average Grant Date Fair Value Stock-Settled Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 267,242 $ 63.97 374,529 $ 31.05 Granted 51,457 98.58 13,464 98.97 Released (48,022 ) 79.60 (12,293 ) 90.34 Forfeited (2,562 ) 48.22 — — Outstanding at March 31, 2019 268,115 $ 69.96 375,700 $ 30.95 Liability Classified Awards - Cash-settled Restricted Stock Units The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end. Cash-Settled Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 53,766 $ 94.77 Granted 19,736 91.05 Released (317 ) 82.16 Forfeited (3,622 ) 98.96 Outstanding at March 31, 2019 69,563 $ 93.58 For the three months ended March 31, 2019 , and 2018, $0.6 million and $0.1 million , respectively, was included as stock-based compensation expense related to cash-settled restricted stock units. Liability Classified Awards - Long-Term Incentive Awards The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three -year period and are determined using multipliers from 0% to 200% of the target award based on (i) the total stockholder return of Dine Brands Global common stock compared to the total stockholder returns of a peer group of companies and (ii) the percentage increase in the Company's adjusted earnings per share (as defined). The awards are considered stock-based compensation and are classified as liabilities measured at fair value as of the respective period end. For the three months ended March 31, 2019 and 2018, $0.4 million and $0.4 million , respectively were included in total stock-based compensation expense related to LTIP awards. At March 31, 2019 and December 31, 2018 , liabilities of $1.7 million and $2.4 million , respectively, related to LTIP awards were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company currently has five operating segments: Applebee's franchise operations, Applebee's company-operated restaurant operations, IHOP franchise operations, rental operations and financing operations. The Company has four reportable segments: franchise operations, (an aggregation of Applebee's and IHOP franchise operations), company-operated restaurant operations, rental operations and financing operations. The Company considers these to be its reportable segments, regardless of whether any segment exceeds 10% of consolidated revenues, income before income tax provision or total assets. As of March 31, 2019 , the franchise operations segment consisted of (i) 1,761 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 13 countries outside the United States and (ii) 1,822 restaurants operated by IHOP franchisees and area licensees in the United States, three U.S. territories and 12 countries outside the United States. Franchise operations revenue consists primarily of franchise royalty revenues, franchise advertising revenue, sales of proprietary products to franchisees (primarily pancake and waffle dry mixes for the IHOP restaurants), and franchise fees. Franchise operations expenses include advertising expenses, the cost of IHOP proprietary products, bad debt expense, franchisor contributions to marketing funds, pre-opening training expenses and other franchise-related costs. Company restaurant sales are retail sales at company-operated restaurants. Company restaurant expenses are operating expenses at company-operated restaurants and include food, labor, utilities, rent and other restaurant operating costs. Rental operations revenue includes revenue from operating leases and interest income from direct financing leases. Rental operations expenses are costs of operating leases and interest expense from capital leases on franchisee-operated restaurants. Financing operations revenue primarily consists of interest income from the financing of franchise fees and equipment leases and sales of equipment associated with refranchised IHOP restaurants. Financing expenses are primarily the cost of restaurant equipment associated with refranchised IHOP restaurants. Information on segments is as follows: Three months ended March 31, 2019 2018 (In millions) Revenues from external customers: Franchise operations $ 168.9 $ 155.3 Rental operations 30.7 30.9 Company restaurants 35.8 — Financing operations 1.8 2.0 Total $ 237.2 $ 188.2 Interest expense: Rental operations $ 2.5 $ 2.4 Company restaurants 0.5 — Corporate 15.4 15.2 Total $ 18.4 $ 17.6 Depreciation and amortization: Franchise operations $ 2.6 $ 2.7 Rental operations 3.5 $ 2.9 Company restaurants 1.3 — Corporate 2.8 2.3 Total $ 10.2 $ 7.9 Gross profit, by segment: Franchise operations $ 88.6 $ 73.4 Rental operations 8.1 8.2 Company restaurants 4.2 — Financing operations 1.7 1.9 Total gross profit 102.6 83.5 Corporate and unallocated expenses, net (61.5 ) (60.8 ) Income before income tax provision $ 41.1 $ 22.7 |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The computation of the Company's basic and diluted net income per share is as follows: Three months ended March 31, 2019 2018 (In thousands, except per share data) Numerator for basic and diluted income per common share: Net income $ 31,643 $ 17,073 Less: Net income allocated to unvested participating restricted stock (1,111 ) (568 ) Net income available to common stockholders - basic 30,532 16,505 Effect of unvested participating restricted stock in two-class calculation 12 2 Net income available to common stockholders - diluted $ 30,544 $ 16,507 Denominator: Weighted average outstanding shares of common stock - basic 17,343 17,703 Dilutive effect of stock options 347 142 Weighted average outstanding shares of common stock - diluted 17,690 17,845 Net income per common share: Basic $ 1.76 $ 0.93 Diluted $ 1.73 $ 0.92 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured on a recurring basis at fair value. The Company is not a party to any derivative financial instruments. The Company does not have a material amount of non-financial assets or non-financial liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. The Company has not elected to use the fair value measurement option, as permitted under U.S. GAAP, for any assets or liabilities for which fair value measurement is not presently required. The Company believes the fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. The fair values of the Company's Series 2014-1 Class A-2 Notes (the “Class A-2 Notes”) at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 (In millions) Carrying amount of Class A-2 Notes $ 1,283.8 $ 1,283.8 Fair Value of Class A-2 Notes $ 1,289.0 $ 1,280.9 The fair values were determined based on Level 2 inputs, including information gathered from brokers who trade in the Company’s Class A-2 Notes and information on notes that are similar to those of the Company. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation, Claims and Disputes The Company is subject to various lawsuits, administrative proceedings, audits and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages. The Company is required under U.S. GAAP to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of the Company's litigation are expensed as such fees and expenses are incurred. Management regularly assesses the Company's insurance coverage, analyzes litigation information with the Company's attorneys and evaluates the Company's loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which it is currently a party will ultimately have a material adverse impact on the Company, there can be no assurance that the Company will prevail in all the proceedings the Company is party to, or that the Company will not incur material losses from them. Lease Guarantees In connection with the sale of Applebee’s restaurants to franchisees, the Company has, in certain cases, guaranteed or has potential continuing liability for lease payments totaling $280.0 million as of March 31, 2019 . This amount represents the maximum potential liability for future payments under these leases. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from 2019 through 2048 . Excluding unexercised option periods, the Company's potential liability for future payments under these leases is $42.1 million . In the event of default, the indemnity and default clauses in the sale or assignment agreements govern the Company's ability to pursue and recover damages incurred. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash Current restricted cash of $36.7 million at March 31, 2019 primarily consisted of $33.7 million of funds required to be held in trust in connection with the Company's securitized debt and $2.9 million of funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. Current restricted cash of $48.5 million at December 31, 2018 primarily consisted of $42.3 million of funds required to be held in trust in connection with the Company's securitized debt and $6.2 million of funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. Non-current restricted cash of $14.7 million at March 31, 2019 and December 31, 2018 represents interest reserves required to be set aside for the duration of the Company's securitized debt. |
Acquisition of Business
Acquisition of Business | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Business | Acquisition of Business In December 2018, the Company acquired 69 Applebee’s restaurants in North Carolina and South Carolina from a former Applebee's franchisee for a total purchase price of $21.6 million . The Company entered into the transaction to resolve certain franchisee financial health issues in what the Company believes was the most expedient and favorable manner for the Company and the Applebee's system. During the three months ended March 31, 2019, the Company completed the calculation of deferred income taxes related to the transaction and adjusted the preliminary purchase price as follows: Preliminary Allocation Adjustments Adjusted Allocation (In millions) Reacquired franchise rights $ 11.6 $ — $ 11.6 Equipment and fixtures 10.0 — 10.0 Inventory 1.4 — 1.4 Deferred income taxes — 1.5 1.5 Total identifiable assets acquired 23.0 1.5 24.5 Above-market leaseholds, net (6.5 ) — (6.5 ) Other liabilities (1.0 ) — (1.0 ) Net identifiable assets acquired 15.5 1.5 17.0 Goodwill 6.1 (1.5 ) 4.6 Consideration transferred $ 21.6 $ — $ 21.6 In conjunction with the acquisition, the Company assumed capital (finance) lease obligations and related property under capital (finance) leases of $9.1 million . The Company also entered into new capital (finance) leases totaling $28.1 million of property under capital (finance) leases and capital (finance) lease obligations. |
Accounting Standards Adopted _2
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Fiscal Period | The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2019 began on December 31, 2018 and ended on March 31, 2019 . The first fiscal quarter of 2018 began on January 1, 2018 and ended on April 1, 2018 . |
Accounting Standards Adopted in the Current Fiscal Year and Not Yet Adopted | Accounting Standards Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance with respect to the accounting for leases, as codified in Accounting Standards Topic 842 (“ASC 842”). The guidance is intended to improve financial reporting of leasing transactions by requiring entities that lease assets to recognize assets and liabilities for the rights and obligations created by leases, as well as requiring additional disclosures related to an entity's leasing activities. The Company adopted this change in accounting principle using the modified retrospective method as of the first day of the first fiscal quarter of 2019. Accordingly, financial information for periods prior to the date of initial application has not been adjusted. The Company has elected the package of practical expedients for adoption that permitted the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company did not elect to use an allowable expedient that permitted the use of hindsight in performing evaluations of its leases. Upon adoption of ASC 842, the Company recognized operating lease obligations of $453.0 million , which represents the present value of the remaining minimum lease payments, discounted using the Company's incremental borrowing rate. The Company recognized operating lease right-of-use assets of $395.6 million . The Company recognized an adjustment to retained earnings upon adoption of $5.0 million , net of tax of $1.7 million , primarily related to an impairment resulting from an unfavorable differential between lease payments to be made and sublease rentals to be received on certain leases. The remaining difference of $50.7 million between the recognized operating lease obligation and right-of-use assets relates to the derecognition of certain liabilities and assets that had been recorded in accordance with U.S. GAAP that had been applied prior to the adoption of ASC 842, primarily $43.3 million of accrued rent payments. Lease-related reserves for lease incentives, closed restaurants and unfavorable leaseholds were also derecognized. The accounting for the Company's existing finance (capital) leases upon adoption of ASC 842 remained substantially unchanged. Adoption of ASC 842 had no significant impact on the Company's cash flows from operations or its results of operations and did not impact any covenant related to the Company's long-term debt. The Company implemented internal controls necessary to ensure compliance with the accounting and disclosure requirements of ASC 842. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2019 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years. Newly Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued new guidance on the measurement of credit losses on financial instruments. The new guidance will replace the incurred loss methodology of recognizing credit losses on financial instruments that is currently required with a methodology that estimates the expected credit loss on financial instruments and reflects the net amount expected to be collected on the financial instrument. Application of the new guidance may result in the earlier recognition of credit losses as the new methodology will require entities to consider forward-looking information in addition to historical and current information used in assessing incurred losses. The Company will be required to adopt the new guidance on a modified retrospective basis beginning with its first fiscal quarter of 2020, with early adoption permitted in its first fiscal quarter of 2019. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. In August 2018, the FASB issued guidance designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2020; early adoption in any interim period after issuance of the new guidance is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In August 2018, the FASB issued new guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance for capitalizing implementation cost incurred to develop or obtain internal-use software. The guidance also provides presentation and disclosure requirements for such capitalized costs. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2020; early adoption in any interim period after issuance of the new guidance is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable to the Company's operations or that no material effect is expected on the Company's financial statements because of future adoption. |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates franchise revenue by major type for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 2018 (In thousands) Franchise Revenue: Royalties $ 78,730 $ 75,097 Advertising fees 72,630 63,836 Pancake and waffle dry mix sales and other 14,431 13,097 Franchise and development fees 3,135 3,283 Total franchise revenue $ 168,926 $ 155,313 |
Schedule of Changes in Deferred Revenue | Changes in the Company's contract liability for deferred franchise and development fees during the three months ended March 31, 2019 are as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2018 $ 74,695 Recognized as revenue during the three months ended March 31, 2019 (2,948 ) Fees deferred during the three months ended March 31, 2019 1,101 Balance at March 31, 2019 $ 72,848 |
Schedule of Remaining Performance Obligations | The balance of deferred revenue as of March 31, 2019 is expected to be recognized as follows: (In thousands) Remainder of 2019 $ 6,633 2020 10,066 2021 7,780 2022 7,251 2023 6,675 2024 5,987 Thereafter 28,456 Total $ 72,848 |
Lease Disclosures (Tables)
Lease Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | The Company's lease cost for the three months ended March 31, 2019 was as follows: Finance lease cost: (In millions) Amortization of right-of-use assets $ 1.3 Interest on lease liabilities 2.1 Operating lease cost 26.4 Variable lease cost 0.7 Short-term lease cost 0.0 Sublease income (28.1 ) Lease cost $ 2.4 |
Schedule of Operating Lease, Liability, Maturity | Future minimum lease payments under noncancelable leases as lessee as of March 31, 2019 were as follows: Finance Leases Operating Leases (In millions) 2019 (remaining nine months) $ 15.8 $ 69.0 2020 20.1 93.0 2021 16.5 76.0 2022 14.7 68.0 2023 11.6 55.6 Thereafter 65.0 212.7 Total minimum lease payments 143.7 574.3 Less: interest/imputed interest (43.1 ) (120.6 ) Total obligations 100.6 453.7 Less: current portion (13.0 ) (67.3 ) Long-term lease obligations $ 87.6 $ 386.4 |
Schedule of Finance Lease, Liability, Maturity | Future minimum lease payments under noncancelable leases as lessee as of March 31, 2019 were as follows: Finance Leases Operating Leases (In millions) 2019 (remaining nine months) $ 15.8 $ 69.0 2020 20.1 93.0 2021 16.5 76.0 2022 14.7 68.0 2023 11.6 55.6 Thereafter 65.0 212.7 Total minimum lease payments 143.7 574.3 Less: interest/imputed interest (43.1 ) (120.6 ) Total obligations 100.6 453.7 Less: current portion (13.0 ) (67.3 ) Long-term lease obligations $ 87.6 $ 386.4 |
Leases, Supplemental Cash Flow Information | During the three months ended March 31, 2019, the Company made the following payments for leases: (In millions) Principal payments on finance lease obligations $ 3.5 Interest payments on finance lease obligations $ 2.0 Payments on operating leases $ 22.9 Variable lease payments $ 0.9 |
Schedule of Operating Lease, Lease Income | The Company's income from operating leases for the three months ended March 31, 2019 was as follows: (In millions) Minimum lease payments $ 25.7 Variable lease income 3.2 Total operating lease income $ 28.9 |
Schedule of Lessor, Operating Lease, Payments to be Received, Maturity | Future minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2019 were as follows: (In millions) 2019 (remaining nine months) $ 79.5 2020 107.1 2021 101.2 2022 98.1 2023 93.7 Thereafter 288.3 Total minimum rents receivable 767.9 |
Schedule of Direct Financing Lease, Lease Income | The Company's income from direct financing leases for the three months ended March 31, 2019 was as follows: (In millions) Interest income $ 1.4 Variable lease income 0.4 Total operating lease income $ 1.8 |
Schedule of Lessor, Direct Financing Leases, Maturity | Future minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2019 were as follows: (In millions) 2019 (remaining nine months) $ 12.1 2020 14.8 2021 11.7 2022 8.4 2023 3.6 Thereafter 3.7 Total minimum rents receivable 54.3 Less: unearned income (11.4 ) Total net investment in direct financing leases 42.9 Less: current portion (11.2 ) Long-term investment in direct financing leases $ 31.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | At March 31, 2019 and December 31, 2018, long-term debt consisted of the following: March 31, 2019 December 31, 2018 (In millions) Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 $ 1,283.8 $ 1,283.8 Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 — 25.0 Class A-2 Note debt issuance costs (8.9 ) (9.7 ) Long-term debt, net of debt issuance costs 1,274.9 1,299.1 Current portion of long-term debt — (25.0 ) Long-term debt $ 1,274.9 $ 1,274.1 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared | Dividends declared and paid per share for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 2018 Dividends declared per common share $ 0.69 $ 0.63 Dividends paid per common share $ 0.63 $ 0.97 |
Class of Treasury Stock | A summary of shares repurchased under the 2019 Repurchase Program and the 2015 Repurchase Program, during the three months ended March 31, 2019 and cumulatively, is as follows: Shares Cost of shares (In millions) 2019 Repurchase Program: Repurchased during the three months ended March 31, 2019 40,817 $ 3.6 Cumulative (life-of-program) repurchases 40,817 $ 3.6 Remaining dollar value of shares that may be repurchased n/a $ 196.4 2015 Repurchase Program: Repurchased during the three months ended March 31, 2019 110,499 $ 8.4 Cumulative (life-of-program) repurchases 1,589,995 $ 126.2 Remaining dollar value of shares that may be repurchased n/a n/a |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of the Company’s stock-based compensation expense | The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income: Three months ended March 31, 2019 2018 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 4.1 $ 3.4 Liability classified awards expense 1.0 0.5 Total pre-tax stock-based compensation expense 5.1 3.9 Book income tax benefit (1.3 ) (1.0 ) Total stock-based compensation expense, net of tax $ 3.8 $ 2.9 |
Schedule of stock option valuation assumptions | The following summarizes the assumptions used in the Black-Scholes model: Risk-free interest rate 2.5 % Weighted average historical volatility 30.3 % Dividend yield 2.8 % Expected years until exercise 4.7 Weighted average fair value of options granted $21.93 |
Schedule of stock option activity | Stock option balances at March 31, 2019 , and activity for the three months ended March 31, 2019 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Millions) Outstanding at December 31, 2018 1,439,708 $ 63.21 Granted 132,832 98.97 Exercised (116,590 ) 58.05 Outstanding at March 31, 2019 1,455,950 66.88 6.8 $ 38.2 Vested at March 31, 2019 and Expected to Vest 1,311,896 67.76 6.6 $ 33.3 Exercisable at March 31, 2019 682,494 $ 75.92 4.6 $ 12.1 |
Schedule of restricted stock unit activity | Outstanding balances as of March 31, 2019 , and activity related to restricted stock and restricted stock units for the three months ended March 31, 2019 were as follows: Restricted Stock Weighted Average Grant Date Fair Value Stock-Settled Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 267,242 $ 63.97 374,529 $ 31.05 Granted 51,457 98.58 13,464 98.97 Released (48,022 ) 79.60 (12,293 ) 90.34 Forfeited (2,562 ) 48.22 — — Outstanding at March 31, 2019 268,115 $ 69.96 375,700 $ 30.95 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end. Cash-Settled Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 53,766 $ 94.77 Granted 19,736 91.05 Released (317 ) 82.16 Forfeited (3,622 ) 98.96 Outstanding at March 31, 2019 69,563 $ 93.58 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by segment | Information on segments is as follows: Three months ended March 31, 2019 2018 (In millions) Revenues from external customers: Franchise operations $ 168.9 $ 155.3 Rental operations 30.7 30.9 Company restaurants 35.8 — Financing operations 1.8 2.0 Total $ 237.2 $ 188.2 Interest expense: Rental operations $ 2.5 $ 2.4 Company restaurants 0.5 — Corporate 15.4 15.2 Total $ 18.4 $ 17.6 Depreciation and amortization: Franchise operations $ 2.6 $ 2.7 Rental operations 3.5 $ 2.9 Company restaurants 1.3 — Corporate 2.8 2.3 Total $ 10.2 $ 7.9 Gross profit, by segment: Franchise operations $ 88.6 $ 73.4 Rental operations 8.1 8.2 Company restaurants 4.2 — Financing operations 1.7 1.9 Total gross profit 102.6 83.5 Corporate and unallocated expenses, net (61.5 ) (60.8 ) Income before income tax provision $ 41.1 $ 22.7 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of the Company’s basic and diluted net income per share | The computation of the Company's basic and diluted net income per share is as follows: Three months ended March 31, 2019 2018 (In thousands, except per share data) Numerator for basic and diluted income per common share: Net income $ 31,643 $ 17,073 Less: Net income allocated to unvested participating restricted stock (1,111 ) (568 ) Net income available to common stockholders - basic 30,532 16,505 Effect of unvested participating restricted stock in two-class calculation 12 2 Net income available to common stockholders - diluted $ 30,544 $ 16,507 Denominator: Weighted average outstanding shares of common stock - basic 17,343 17,703 Dilutive effect of stock options 347 142 Weighted average outstanding shares of common stock - diluted 17,690 17,845 Net income per common share: Basic $ 1.76 $ 0.93 Diluted $ 1.73 $ 0.92 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of non-current financial liabilities | The fair values of the Company's Series 2014-1 Class A-2 Notes (the “Class A-2 Notes”) at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 (In millions) Carrying amount of Class A-2 Notes $ 1,283.8 $ 1,283.8 Fair Value of Class A-2 Notes $ 1,289.0 $ 1,280.9 |
Acquisition of Business - (Tabl
Acquisition of Business - (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | During the three months ended March 31, 2019, the Company completed the calculation of deferred income taxes related to the transaction and adjusted the preliminary purchase price as follows: Preliminary Allocation Adjustments Adjusted Allocation (In millions) Reacquired franchise rights $ 11.6 $ — $ 11.6 Equipment and fixtures 10.0 — 10.0 Inventory 1.4 — 1.4 Deferred income taxes — 1.5 1.5 Total identifiable assets acquired 23.0 1.5 24.5 Above-market leaseholds, net (6.5 ) — (6.5 ) Other liabilities (1.0 ) — (1.0 ) Net identifiable assets acquired 15.5 1.5 17.0 Goodwill 6.1 (1.5 ) 4.6 Consideration transferred $ 21.6 $ — $ 21.6 |
Accounting Standards Adopted _3
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease obligations | $ 453,700 | ||
Operating lease right-of-use asset | 383,962 | ||
Adoption of ASC 842 (Note 3) | $ (5,030) | ||
Income tax provision | $ 9,489 | $ 5,638 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease obligations | 453,000 | ||
Operating lease right-of-use asset | 395,600 | ||
Income tax provision | (1,700) | ||
Derecognition of certain liabilities and assets | (50,700) | ||
Accrued rent | (43,300) | ||
Retained Earnings (Accumulated Deficit) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of ASC 842 (Note 3) | (5,030) | ||
Retained Earnings (Accumulated Deficit) | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of ASC 842 (Note 3) | $ 5,000 |
Revenue Disclosures - Disaggreg
Revenue Disclosures - Disaggregation of Franchise Revenue by Major Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Franchise revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | $ 168,926 | $ 155,313 |
Royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | 78,730 | 75,097 |
Advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | 72,630 | 63,836 |
Pancake and waffle dry mix sales and other | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | 14,431 | 13,097 |
Franchise and development fees | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | $ 3,135 | $ 3,283 |
Revenue Disclosures - Changes i
Revenue Disclosures - Changes in the Company's contract liability for deferred franchise and development fees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2018 | $ 74,695 |
Recognized as revenue during the three months ended March 31, 2019 | (2,948) |
Fees deferred during the three months ended March 31, 2019 | 1,101 |
Balance at March 31, 2019 | $ 72,848 |
Revenue Disclosures - (Details)
Revenue Disclosures - (Details) - Receivables From Franchise Revenue Transactions - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and unbilled receivables | $ 67.1 | $ 62.6 |
Billed and unbilled receivables, accumulated allowance for credit loss | $ 2.1 | $ 4.6 |
Revenue Disclosures - Deferred
Revenue Disclosures - Deferred revenue expected to be recognized (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 72,848 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,633 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 10,066 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,780 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,251 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,675 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 5,987 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 28,456 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing |
Lease Disclosures (Details)
Lease Disclosures (Details) | Mar. 31, 2019propertiesFranchiseereal_propertyrestaurant_concept |
Lessee, Lease, Description [Line Items] | |
Number of company-operated restaurants located on leased real estate properties | properties | 69 |
Lessee, operating lease, renewal term | 5 years |
Lessor, number of leases requiring additional rent payments based on a percentage of restaurant sales | real_property | 260 |
Lessee, number of leases requiring additional rent payments based on a percentage of restaurant sales | real_property | 220 |
Finance lease, weighted average remaining lease term | 8 years 7 months 6 days |
Operating lease, weighted average remaining lease term | 8 years 1 month 6 days |
Finance lease, weighted average discount rate, percent | 10.40% |
Operating lease, weighted average discount rate, percent | 5.80% |
IHOP | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | Franchisee | 620 |
Number of properties leased | restaurant_concept | 60 |
Applebee's | |
Lessee, Lease, Description [Line Items] | |
Number of properties leased | restaurant_concept | 1 |
Minimum | IHOP | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Maximum | IHOP | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 25 years |
Lease Disclosures Components of
Lease Disclosures Components of Lease Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-of-use assets | $ 1.3 |
Interest on lease liabilities | 2.1 |
Operating lease cost | 26.4 |
Variable lease cost | 0.7 |
Short-term lease cost | 0 |
Sublease income | (28.1) |
Lease cost | $ 2.4 |
Lease Disclosures Future minimu
Lease Disclosures Future minimum lease payments under noncancelable leases as lessee (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2019 (remaining nine months) | $ 15,800 |
2020 | 20,100 |
2021 | 16,500 |
2022 | 14,700 |
2023 | 11,600 |
Thereafter | 65,000 |
Total minimum lease payments | 143,700 |
Less: interest/imputed interest | (43,100) |
Total obligations | 100,600 |
Less: current portion | (13,000) |
Long-term lease obligations | 87,624 |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 (remaining nine months) | 69,000 |
2020 | 93,000 |
2021 | 76,000 |
2022 | 68,000 |
2023 | 55,600 |
Thereafter | 212,700 |
Total minimum lease payments | 574,300 |
Less: interest/imputed interest | (120,600) |
Total obligations | 453,700 |
Less: current portion | (67,340) |
Long-term lease obligations | $ 386,364 |
Lease Disclosures Components _2
Lease Disclosures Components of Lease Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Minimum lease payments | $ 25.7 |
Variable lease income | 3.2 |
Total operating lease income | $ 28.9 |
Lease Disclosures Future mini_2
Lease Disclosures Future minimum payments to be received as lessor under noncancelable operating leases (Details) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining nine months) | $ 79.5 |
2020 | 107.1 |
2021 | 101.2 |
2022 | 98.1 |
2023 | 93.7 |
Thereafter | 288.3 |
Total minimum rents receivable | $ 767.9 |
Lease Disclosures Schedule of i
Lease Disclosures Schedule of income from direct financing leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Interest income | $ 1.4 |
Variable lease income | 0.4 |
Total operating lease income | $ 1.8 |
Lease Disclosures Future mini_3
Lease Disclosures Future minimum payments to be received as lessor under noncancelable direct financing leases (Details) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining nine months) | $ 12.1 |
2020 | 14.8 |
2021 | 11.7 |
2022 | 8.4 |
2023 | 3.6 |
Thereafter | 3.7 |
Total minimum rents receivable | 54.3 |
Less: unearned income | (11.4) |
Total net investment in direct financing leases | 42.9 |
Less: current portion | (11.2) |
Long-term investment in direct financing leases | $ 31.7 |
Lease Disclosures Payment for L
Lease Disclosures Payment for Leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Principal payments on finance lease obligations | $ 3.5 |
Interest payments on finance lease obligations | 2 |
Payments on operating leases | 22.9 |
Variable lease payments | $ 0.9 |
Long-Term Debt (Schedule of Deb
Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Class A-2 Note debt issuance costs | $ (8,900) | $ (9,700) |
Long-term debt, net of debt issuance costs | 1,274,900 | 1,299,100 |
Current portion of long-term debt | 0 | (25,000) |
Long-term debt, less current maturities | $ 1,274,916 | $ 1,274,087 |
Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 | ||
Debt Instrument [Line Items] | ||
Debt interest rate (percent) | 4.277% | 4.277% |
Senior notes | $ 1,283,800 | $ 1,283,800 |
Series 2018-1 Variable Funding Senior Notes Class A-1, at a variable interest rate of 4.93% as of December 31, 2018 | ||
Debt Instrument [Line Items] | ||
Debt interest rate (percent) | 4.93% | |
Senior notes | $ 0 | $ 25,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 | ||
Debt Instrument [Line Items] | ||
Debt interest rate (percent) | 4.277% | 4.277% |
Series 2018-1 Variable Funding Senior Notes Class A-1, at a variable interest rate of 4.93% as of December 31, 2018 | ||
Debt Instrument [Line Items] | ||
Debt interest rate (percent) | 4.93% | |
Repayments of notes payable | $ 25 | |
Line of credit facility, amount outstanding | $ 25 | |
Debt, weighted average interest rate | 4.88% | |
Line of credit facility, current borrowing capacity | $ 222.8 | |
Letter of Credit | Series 2018-1 Variable Funding Senior Notes Class A-1, at a variable interest rate of 4.93% as of December 31, 2018 | ||
Debt Instrument [Line Items] | ||
Debt instrument, collateral amount | $ 2.2 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) | Apr. 05, 2019 | Feb. 20, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Oct. 31, 2015 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Dividends paid on common stock | $ 11,153,000 | $ 17,453,000 | ||||
Dividends declared per common share (USD per share) | $ 0.69 | $ 0.69 | $ 0.63 | $ 0.63 | ||
Dividends paid per common share (USD per share) | $ 0.63 | $ 0.97 | ||||
Dividends payable | $ 12,461,000 | $ 11,389,000 | ||||
Treasury stock reissued (shares) | 168,047 | |||||
Reissuance of treasury stock | $ 6,768,000 | $ 456,000 | ||||
Treasury Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury stock reissued (shares) | 168,000 | 77,000 | ||||
Reissuance of treasury stock | $ 7,435,000 | $ 2,951,000 | ||||
2019 Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||||
October 2015 Share Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 150,000,000 | |||||
Subsequent Event | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Dividends paid per common share (USD per share) | $ 0.69 |
Stockholders' Deficit Dividends
Stockholders' Deficit Dividends declared and paid per share (Details) - $ / shares | Feb. 20, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Equity [Abstract] | ||||
Dividends declared per common share (USD per share) | $ 0.69 | $ 0.69 | $ 0.63 | $ 0.63 |
Dividends paid per common share (USD per share) | $ 0.63 | $ 0.97 |
Stockholders' Deficit - Share R
Stockholders' Deficit - Share Repurchases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class of Stock [Line Items] | ||
Stock repurchased during period, value | $ 12,015 | $ 10,003 |
2019 Repurchase Program | ||
Class of Stock [Line Items] | ||
Stock repurchased during period (in shares) | 40,817 | |
Stock repurchased during period, value | $ 3,600 | |
Cumulative amount of shares repurchased (in shares) | 40,817 | |
Cumulative payments for repurchase of common stock | $ 3,600 | |
Remaining dollar value of shares that may be repurchased | $ 196,400 | |
October 2015 Share Repurchase Program | ||
Class of Stock [Line Items] | ||
Stock repurchased during period (in shares) | 110,499 | |
Stock repurchased during period, value | $ 8,400 | |
Cumulative amount of shares repurchased (in shares) | 1,589,995 | |
Cumulative payments for repurchase of common stock | $ 126,200 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (percent) | 23.10% | 24.80% | |
Gross unrecognized tax benefit | $ 5.2 | $ 5.2 | |
Expected change in unrecognized tax benefits | 0.9 | ||
Accrued interest on income taxes | 1.3 | 1.1 | |
Accrued penalties on income taxes, less than | $ 0.1 | $ 0.1 |
Stock-Based Compensation (Compo
Stock-Based Compensation (Components of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Equity classified awards expense | $ 4.1 | $ 3.4 |
Liability classified awards expense | 1 | 0.5 |
Total pre-tax stock-based compensation expense | 5.1 | 3.9 |
Book income tax benefit | (1.3) | (1) |
Total stock-based compensation expense, net of tax | $ 3.8 | $ 2.9 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | 132,832 | ||
Share-based compensation expense | $ 5,100 | $ 3,900 | |
Accrued employee compensation and benefits | 15,338 | $ 27,479 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | $ 24,100 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 1 year 8 months 29 days | ||
Restricted stock, granted (in shares) | 13,464 | ||
Vested in period (in shares) | 12,293 | ||
Restricted stock, forfeited (in shares) | 0 | ||
Cash-settled restricted stock units, outstanding (in shares) | 375,700 | 374,529 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | $ 5,800 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 1 year 9 months 11 days | ||
Cash-settled Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock, granted (in shares) | 19,736 | ||
Restricted stock, forfeited (in shares) | 3,622 | ||
Cash-settled restricted stock units, outstanding (in shares) | 69,563 | 53,766 | |
Share-based compensation expense | $ 600 | 100 | |
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Share-based compensation expense | $ 400 | $ 400 | |
Accrued employee compensation and benefits | $ 1,700 | $ 2,400 | |
LTIP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Multiplier for target award based on total shareholder return on common stock (percent) | 0.00% | ||
LTIP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Multiplier for target award based on total shareholder return on common stock (percent) | 200.00% |
Stock-Based Compensation (Optio
Stock-Based Compensation (Options Value Assumptions) (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (percent) | 2.50% |
Weighted average historical volatility (percent) | 30.30% |
Dividend yield (percent) | 2.80% |
Expected years until exercise (years) | 4 years 8 months 12 days |
Weighted average fair value of options granted (USD per share) | $ 21.93 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - Stock Options $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Shares | |
Options, outstanding, beginning of period (in shares) | shares | 1,439,708 |
Options, granted (in shares) | shares | 132,832 |
Options, exercised (in shares) | shares | (116,590) |
Options, outstanding, end of period (in shares) | shares | 1,455,950 |
Options, vested and expected to vest (in shares) | shares | 1,311,896 |
Options, exercisable (in shares) | shares | 682,494 |
Weighted Average Exercise Price | |
Weighted average exercise price, beginning of period (per share) | $ / shares | $ 63.21 |
Weighted average exercise price, granted (per share) | $ / shares | 98.97 |
Weighted average exercise price, exercised (per share) | $ / shares | 58.05 |
Weighted average exercise price, end of period (per share) | $ / shares | 66.88 |
Weighted average exercise price, vested and expected to vest (per share) | $ / shares | 67.76 |
Weighted average exercise price, exercisable (per share) | $ / shares | $ 75.92 |
Weighted average remaining contractual term (in years) | 6 years 9 months 12 days |
Weighted average remaining contractual term, vested and expected to vest (in years) | 6 years 6 months 23 days |
Weighted average remaining contractual term, exercisable (in years) | 4 years 6 months 28 days |
Options, outstanding, intrinsic value | $ | $ 38.2 |
Options, vested and expected to vest, intrinsic value | $ | 33.3 |
Options, vested and expected to vest, exercisable | $ | $ 12.1 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock) (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Restricted stock, beginning of period (in shares) | shares | 267,242 |
Restricted stock, granted (in shares) | shares | 51,457 |
Restricted stock, released (in shares) | shares | (48,022) |
Restricted stock, forfeited (in shares) | shares | (2,562) |
Restricted stock, end of period (in shares) | shares | 268,115 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, beginning balance (per share) | $ / shares | $ 63.97 |
Weighted average grant date fair value, granted (per share) | $ / shares | 98.58 |
Weighted average grant date fair value, released (per share) | $ / shares | 79.60 |
Weighted average grant date fair value, forfeited (per share) | $ / shares | 48.22 |
Weighted average grant date fair value, ending balance (per share) | $ / shares | $ 69.96 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Restricted stock, beginning of period (in shares) | shares | 374,529 |
Restricted stock, granted (in shares) | shares | 13,464 |
Restricted stock, released (in shares) | shares | (12,293) |
Restricted stock, forfeited (in shares) | shares | 0 |
Restricted stock, end of period (in shares) | shares | 375,700 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, beginning balance (per share) | $ / shares | $ 31.05 |
Weighted average grant date fair value, granted (per share) | $ / shares | 98.97 |
Weighted average grant date fair value, released (per share) | $ / shares | 90.34 |
Weighted average grant date fair value, forfeited (per share) | $ / shares | 0 |
Weighted average grant date fair value, ending balance (per share) | $ / shares | $ 30.95 |
Stock-Based Compensation (Liabi
Stock-Based Compensation (Liability Classified Awards - Cash-settled Restricted Stock Units) (Details) - Cash-settled Restricted Stock Units | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Restricted stock, beginning of period (in shares) | shares | 53,766 |
Restricted stock, granted (in shares) | shares | 19,736 |
Restricted stock, released (in shares) | shares | (317) |
Restricted stock, forfeited (in shares) | shares | (3,622) |
Restricted stock, end of period (in shares) | shares | 69,563 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, beginning balance (per share) | $ / shares | $ 94.77 |
Weighted average fair value of restricted stock units granted (USD per share) | $ / shares | 91.05 |
Weighted average fair value of restricted stock units released (in USD per share) | $ / shares | 82.16 |
Weighted average grant date fair value, forfeited (per share) | $ / shares | 98.96 |
Weighted average grant date fair value, ending balance (per share) | $ / shares | $ 93.58 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019RestaurantCountrysegmentTerritory | |
Franchisor Disclosure [Line Items] | |
Number of segments (segment) | segment | 5 |
Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of territories in which entity operates (territory) | Territory | 2 |
Number of countries in which entity operates (country) | Country | 13 |
IHOP | |
Franchisor Disclosure [Line Items] | |
Number of territories in which entity operates (territory) | Territory | 3 |
Number of countries in which entity operates (country) | Country | 12 |
Franchised Units | Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | Restaurant | 1,761 |
Franchised Units | IHOP | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | Restaurant | 1,822 |
Segments (Schedule of Segment R
Segments (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Rental revenues | $ 30,711 | $ 30,841 |
Total revenues | 237,182 | 188,163 |
Interest expense | 18,400 | 17,600 |
Depreciation and amortization | 10,179 | 7,940 |
Segment profit | 41,132 | 22,711 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 15,400 | 15,200 |
Depreciation and amortization | 2,800 | 2,300 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 102,600 | 83,500 |
Operating Segments | Franchise operations | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 2,600 | 2,700 |
Segment profit | 88,600 | 73,400 |
Operating Segments | Rental operations | ||
Segment Reporting Information [Line Items] | ||
Rental revenues | 30,700 | 30,900 |
Interest expense | 2,500 | 2,400 |
Depreciation and amortization | 3,500 | 2,900 |
Segment profit | 8,100 | 8,200 |
Operating Segments | Company restaurants | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 500 | 0 |
Depreciation and amortization | 1,300 | 0 |
Segment profit | 4,200 | 0 |
Operating Segments | Financing operations | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 1,700 | 1,900 |
Corporate and unallocated expenses, net | ||
Segment Reporting Information [Line Items] | ||
Segment profit | (61,500) | (60,800) |
Franchise revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer, excluding assessed Tax | 168,926 | 155,313 |
Franchise revenues | Operating Segments | Franchise operations | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer, excluding assessed Tax | 168,900 | 155,300 |
Company restaurant sales | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer, excluding assessed Tax | 35,735 | 0 |
Company restaurant sales | Operating Segments | Company restaurants | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer, excluding assessed Tax | 35,800 | 0 |
Financing revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer, excluding assessed Tax | 1,810 | 2,009 |
Financing revenues | Operating Segments | Financing operations | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer, excluding assessed Tax | $ 1,800 | $ 2,000 |
Net Income per Share - Computat
Net Income per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 31,643 | $ 17,073 |
Less: Net income allocated to unvested participating restricted stock | (1,111) | (568) |
Net income available to common stockholders - basic | 30,532 | 16,505 |
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 12 | 2 |
Net income available to common stockholders - diluted | $ 30,544 | $ 16,507 |
Weighted average outstanding shares of common stock - basic (in shares) | 17,343 | 17,703 |
Dilutive effect of stock options (in shares) | 347 | 142 |
Weighted average outstanding shares of common stock - diluted (in shares) | 17,690 | 17,845 |
Net income per common share - basic (USD per share) | $ 1.76 | $ 0.93 |
Net income per common share - diluted (USD per share) | $ 1.73 | $ 0.92 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Non-Current Financial Liabilities (Details) - Level 2 - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,283.8 | $ 1,283.8 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,289 | $ 1,280.9 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Applebee's - Property Lease Guarantee $ in Millions | Mar. 31, 2019USD ($) |
Loss Contingencies [Line Items] | |
Potential liability for guaranteed leases | $ 280 |
Potential liability for guaranteed leases excluding unexercised option periods | $ 42.1 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 36,654 | $ 48,515 |
Non-current restricted cash | 14,700 | 14,700 |
Held in Trust Deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 33,700 | 42,300 |
Held for Advertising Activity Deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 2,900 | $ 6,200 |
Acquisition of Business (Detail
Acquisition of Business (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018USD ($)Restaurant | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Business Combinations [Abstract] | |||
Number of businesses acquired | Restaurant | 69 | ||
Business Acquisition [Line Items] | |||
Capital (finance) lease | $ 100.6 | ||
Applebee's Restaurants In North And South Carolina | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 21.6 | 21.6 | $ 21.6 |
Assumed capital (finance) lease obligations | 9.1 | ||
Capital (finance) lease | $ 28.1 |
Acquisition of Business Prelimi
Acquisition of Business Preliminary estimated fair values of the assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 345,314 | $ 343,862 | $ 345,314 |
Applebee's Restaurants In North And South Carolina | |||
Business Acquisition [Line Items] | |||
Reacquired franchise rights | 11,600 | 11,600 | 11,600 |
Measurement period adjustments, reacquired franchise rights | 0 | ||
Equipment and fixtures | 10,000 | 10,000 | 10,000 |
Measurement period adjustments, equipment and fixtures | 0 | ||
Inventory | 1,400 | 1,400 | 1,400 |
Measurement period adjustments, inventory | 0 | ||
Deferred income taxes | 0 | 1,500 | 0 |
Measurement period adjustments, deferred income taxes | 1,500 | ||
Total identifiable assets acquired | 23,000 | 24,500 | 23,000 |
Measurement period adjustments, total identifiable assets acquired | 1,500 | ||
Above-market leaseholds, net | (6,500) | (6,500) | (6,500) |
Measurement period adjustments, above-market leaseholds, net | 0 | ||
Other liabilities | (1,000) | (1,000) | (1,000) |
Measurement period adjustments, other liabilities | 0 | ||
Net identifiable assets acquired | 15,500 | 17,000 | 15,500 |
Measurement period adjustments, net identifiable assets acquired | 1,500 | ||
Goodwill | 6,100 | 4,600 | 6,100 |
Measurement period adjustments, goodwill | (1,500) | ||
Consideration transferred | $ 21,600 | 21,600 | $ 21,600 |
Measurement period adjustments, consideration transferred | $ 0 |