Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-15283 | ||
Entity Registrant Name | Dine Brands Global, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-3038279 | ||
Entity Address, Address Line One | 450 North Brand Boulevard, | ||
Entity Address, City or Town | Glendale, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91203-2346 | ||
City Area Code | (818) | ||
Local Phone Number | 240-6055 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | DIN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Smaller Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1 | ||
Entity Common Stock, Shares Outstanding | 15,608,131 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on Thursday, May 11, 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Except as expressly incorporated by reference, the registrant’s Proxy Statement shall not be deemed to be part of this report. | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000049754 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | ERNST & YOUNG LLP |
Auditor Location | Los Angeles, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 269,655 | $ 361,412 |
Receivables, net of allowance of $4,806 (2022) and $4,959 (2021) | 119,981 | 119,968 |
Restricted cash | 38,929 | 47,541 |
Prepaid gift card costs | 30,235 | 28,175 |
Prepaid income taxes | 3,063 | 10,529 |
Other current assets | 17,901 | 6,728 |
Total current assets | 479,764 | 574,353 |
Other intangible assets, net | 597,028 | 539,390 |
Operating lease right-of-use assets | 289,123 | 335,428 |
Goodwill | 253,956 | 251,628 |
Property and equipment, net | 145,277 | 179,411 |
Deferred rent receivable | 42,329 | 50,257 |
Long-term receivables, net of allowance of $5,529 (2022) and $6,897 (2021) | 39,697 | 42,493 |
Non-current restricted cash | 16,400 | 16,400 |
Other non-current assets, net | 17,917 | 10,006 |
Total assets | 1,881,491 | 1,999,366 |
Current liabilities: | ||
Current maturities of long-term debt | 100,000 | 0 |
Accounts payable | 52,067 | 55,956 |
Gift card liability | 171,966 | 165,530 |
Current maturities of operating lease obligations | 59,071 | 72,079 |
Current maturities of finance lease and financing obligations | 7,542 | 10,693 |
Accrued employee compensation and benefits | 23,456 | 40,785 |
Accrued advertising expenses | 24,157 | 33,752 |
Dividends payable | 8,017 | 6,919 |
Other accrued expenses | 24,446 | 25,016 |
Total current liabilities | 470,722 | 410,730 |
Long-term debt, net, less current maturities | 1,241,914 | 1,279,623 |
Operating lease obligations, less current maturities | 275,120 | 320,848 |
Finance lease obligations, less current maturities | 30,377 | 59,625 |
Financing obligations, less current maturities | 28,358 | 31,967 |
Deferred income taxes, net | 74,651 | 76,228 |
Deferred franchise revenue, long-term | 42,343 | 46,100 |
Other non-current liabilities | 19,090 | 17,052 |
Total liabilities | 2,182,575 | 2,242,173 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $1 par value, 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; shares: 40,000,000 authorized; 2022 -24,959,972 issued, 15,599,239 outstanding; 2021 - 24,992,275 issued, 17,163,946 outstanding | 250 | 250 |
Additional paid-in-capital | 259,339 | 256,189 |
Retained earnings | 84,538 | 35,415 |
Accumulated other comprehensive loss | (65) | (59) |
Treasury stock, at cost; shares: 2022 - 9,360,733; 2021 - 7,828,329 | (645,146) | (534,602) |
Total stockholders' deficit | (301,084) | (242,807) |
Total liabilities and stockholders' deficit | $ 1,881,491 | $ 1,999,366 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for credit loss | $ 4,806 | $ 4,959 |
Long-term receivables, allowance for credit loss | $ 5,529 | $ 6,897 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 24,959,972 | 24,992,275 |
Common stock, shares outstanding (in shares) | 15,599,239 | 17,163,946 |
Treasury stock, shares (in shares) | 9,360,733 | 7,828,329 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Rental revenues | $ 116,491 | $ 113,933 | $ 105,939 |
Total revenues | 909,402 | 896,167 | 689,268 |
Cost of revenues: | |||
Franchise expenses | 321,908 | 295,887 | 238,972 |
Bad debt expense (credit) | 261 | (4,928) | 12,756 |
Company restaurant expenses | 121,722 | 136,748 | 111,550 |
Interest expense from finance leases | 2,962 | 3,446 | 4,563 |
Other rental expenses | 85,033 | 84,397 | 84,939 |
Total rental expenses | 87,995 | 87,843 | 89,502 |
Financing expenses | 419 | 464 | 528 |
Total cost of revenues | 532,044 | 520,942 | 440,552 |
Gross profit | 377,358 | 375,225 | 248,716 |
General and administrative expenses | 190,746 | 171,838 | 144,791 |
Interest expense, net | 60,742 | 63,331 | 66,895 |
Closure and impairment charges | 3,062 | 5,409 | 132,620 |
Amortization of intangible assets | 10,559 | 10,679 | 10,903 |
(Gain) loss on disposition of assets | (2,536) | 2,045 | 2,069 |
Income (loss) before income taxes | 114,785 | 121,923 | (108,562) |
Income tax (provision) benefit | (33,674) | (24,059) | 4,568 |
Net income (loss) | 81,111 | 97,864 | (103,994) |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment | (6) | (4) | 3 |
Total comprehensive income (loss) | 81,105 | 97,860 | (103,991) |
Net income (loss) available to common stockholders: | |||
Net income (loss) | 81,111 | 97,864 | (103,994) |
Less: Net income allocated to unvested participating restricted stock | (2,174) | (2,295) | (420) |
Net income (loss) available to common stockholders | $ 78,937 | $ 95,569 | $ (104,414) |
Net income (loss) available to common stockholders per share: | |||
Basic (in dollars per share) | $ 4.97 | $ 5.69 | $ (6.43) |
Diluted (in dollars per share) | $ 4.96 | $ 5.66 | $ (6.43) |
Weighted average shares outstanding: | |||
Basic (in shares) | 15,873 | 16,799 | 16,230 |
Diluted (in shares) | 15,901 | 16,890 | 16,230 |
Franchise Revenues | |||
Revenues: | |||
Revenue from contract with customer | $ 662,438 | $ 631,936 | $ 469,453 |
Royalties, franchise fees and other | |||
Revenues: | |||
Revenue from contract with customer | 373,110 | 357,146 | 267,959 |
Advertising revenues | |||
Revenues: | |||
Revenue from contract with customer | 289,328 | 274,790 | 201,494 |
Company restaurant sales | |||
Revenues: | |||
Revenue from contract with customer | 126,869 | 146,000 | 108,054 |
Financing revenues | |||
Revenues: | |||
Revenue from contract with customer | 3,604 | 4,298 | 5,822 |
Advertising expenses | |||
Revenues: | |||
Revenue from contract with customer | 289,328 | 274,790 | 201,494 |
Cost of revenues: | |||
Franchise expenses | 287,063 | 272,303 | 202,012 |
Other franchise expenses | |||
Cost of revenues: | |||
Franchise expenses | $ 34,584 | $ 28,512 | $ 24,204 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period Of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Common stock, shares, outstanding, beginning (in shares) at Dec. 31, 2019 | 16,522,000 | |||||||
Stockholders' equity, beginning of the period at Dec. 31, 2019 | $ (241,774) | $ (497) | $ 249 | $ 246,192 | $ 61,653 | $ (497) | $ (58) | $ (549,810) |
Treasury stock, shares, beginning (in shares) at Dec. 31, 2019 | 8,404,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (103,994) | (103,994) | ||||||
Other comprehensive gain | 3 | 3 | ||||||
Purchase of common stock (in shares) | (460,000) | (460,000) | ||||||
Purchase of common stock | $ (26,527) | $ (26,527) | ||||||
Reissuance of treasury stock (in shares) | 433,477 | 433,000 | 433,000 | |||||
Reissuance of treasury stock | $ 20,522 | 1,102 | $ 19,420 | |||||
Net issuance of shares for stock plans (in shares) | (8,000) | |||||||
Repurchase of restricted shares (in shares) | (36,000) | |||||||
Repurchase of restricted shares for taxes | (2,479) | (2,479) | ||||||
Stock-based compensation | 12,508 | 12,508 | ||||||
Dividends on common stock | (12,208) | 507 | (12,715) | |||||
Tax payments for share settlement of restricted stock units | (205) | (205) | ||||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2020 | 16,452,000 | |||||||
Stockholders' equity, ending of the period at Dec. 31, 2020 | (354,651) | $ 249 | 257,625 | (55,553) | (55) | $ (556,917) | ||
Treasury stock, shares, ending (in shares) at Dec. 31, 2020 | 8,430,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 97,864 | 97,864 | ||||||
Other comprehensive gain | (4) | (4) | ||||||
Purchase of common stock (in shares) | (59,000) | (59,000) | ||||||
Purchase of common stock | $ (4,480) | $ (4,480) | ||||||
Reissuance of treasury stock (in shares) | 660,718 | 661,000 | 661,000 | |||||
Reissuance of treasury stock | $ 25,337 | $ 1 | (1,459) | $ 26,795 | ||||
Net issuance of shares for stock plans (in shares) | 132,000 | |||||||
Repurchase of restricted shares (in shares) | (22,000) | |||||||
Repurchase of restricted shares for taxes | (1,771) | (1,771) | ||||||
Stock-based compensation | 11,577 | 11,577 | ||||||
Dividends on common stock | (6,896) | (6,896) | ||||||
Tax payments for share settlement of restricted stock units | $ (9,783) | (9,783) | ||||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2021 | 17,163,946 | 17,164,000 | ||||||
Stockholders' equity, ending of the period at Dec. 31, 2021 | $ (242,807) | $ 250 | 256,189 | 35,415 | (59) | $ (534,602) | ||
Treasury stock, shares, ending (in shares) at Dec. 31, 2021 | 7,828,329 | 7,828,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 81,111 | 81,111 | ||||||
Other comprehensive gain | (6) | (6) | ||||||
Purchase of common stock (in shares) | (1,738,000) | (1,738,000) | ||||||
Purchase of common stock | $ (120,163) | $ (120,163) | ||||||
Reissuance of treasury stock (in shares) | 205,293 | 205,000 | 205,000 | |||||
Reissuance of treasury stock | $ 241 | (9,378) | $ 9,619 | |||||
Net issuance of shares for stock plans (in shares) | 7,000 | |||||||
Repurchase of restricted shares (in shares) | (39,000) | |||||||
Repurchase of restricted shares for taxes | (2,867) | (2,867) | ||||||
Stock-based compensation | 16,131 | 16,131 | ||||||
Dividends on common stock | (31,769) | 219 | (31,988) | |||||
Tax payments for share settlement of restricted stock units | $ (955) | (955) | ||||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2022 | 15,599,239 | 15,599,000 | ||||||
Stockholders' equity, ending of the period at Dec. 31, 2022 | $ (301,084) | $ 250 | $ 259,339 | $ 84,538 | $ (65) | $ (645,146) | ||
Treasury stock, shares, ending (in shares) at Dec. 31, 2022 | 9,360,733 | 9,361,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 81,111 | $ 97,864 | $ (103,994) |
Adjustments to reconcile net income (loss) to cash flows provided by operating activities: | |||
Depreciation and amortization | 37,952 | 39,885 | 42,829 |
Non-cash stock-based compensation expense | 16,131 | 11,577 | 12,508 |
Non-cash closure and impairment charges | 2,927 | 5,324 | 132,501 |
Non-cash interest expense | 3,016 | 2,852 | 2,698 |
Deferred income taxes | (1,071) | (2,065) | (20,049) |
Deferred revenue | (4,474) | (6,573) | (7,111) |
(Gain) loss on disposition of assets | (2,536) | 2,041 | 2,069 |
Other | (5,160) | (1,593) | (1,246) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (2,574) | 7,301 | (9,750) |
Deferred rent receivable | 7,928 | 6,192 | 13,859 |
Current income tax receivables and payables | 8,326 | (3,837) | 16,143 |
Operating lease assets and liabilities | (11,823) | (18,212) | (15,179) |
Gift card receivables and payables | 2,783 | 14,759 | 12,231 |
Other current assets | (12,706) | (629) | (2,191) |
Accounts payable | (3,665) | 13,131 | 6,455 |
Accrued employee compensation and benefits | (16,264) | 19,714 | (1,909) |
Accrued advertising expenses | (10,020) | 12,111 | 12,881 |
Other current liabilities | (545) | (4,007) | 3,758 |
Cash flows provided by operating activities | 89,336 | 195,835 | 96,503 |
Cash flows from investing activities | |||
Principal receipts from notes, equipment contracts and other long-term receivables | 17,057 | 20,230 | 31,155 |
Net additions to property and equipment | (35,318) | (16,849) | (10,927) |
Proceeds from sale of property and equipment | 17,028 | 946 | 537 |
Additions to long-term receivables | (1,069) | 0 | (1,475) |
Acquisition of business, net of cash acquired | (78,264) | 0 | 0 |
Other | (338) | (466) | (565) |
Cash flows (used in) provided by investing activities | (80,904) | 3,861 | 18,725 |
Cash flows from financing activities | |||
Repayment of long-term debt | (38,768) | (9,750) | (3,250) |
Borrowings from revolving credit facility | 100,000 | 0 | 220,000 |
Repayments of revolving credit facility | 0 | (220,000) | 0 |
Payment of debt issuance costs | (6,289) | 0 | 0 |
Dividends paid on common stock | (30,765) | 0 | (23,934) |
Repurchase of common stock | (120,452) | (4,191) | (29,853) |
Principal payments of finance lease obligations | (8,946) | (10,238) | (12,451) |
Proceeds from stock options exercised | 241 | 25,337 | 20,523 |
Repurchase of restricted stock for tax payments upon vesting | (2,867) | (1,771) | (2,480) |
Tax payments for share settlement of restricted stock units | (955) | (9,783) | (205) |
Cash flows (used in) provided by financing activities | (108,801) | (230,396) | 168,350 |
Net change in cash, cash equivalents and restricted cash | (100,369) | (30,700) | 283,578 |
Cash, cash equivalents and restricted cash at beginning of year | 425,353 | 456,053 | 172,475 |
Cash, cash equivalents and restricted cash at end of year | 324,984 | 425,353 | 456,053 |
Supplemental disclosures | |||
Interest paid | 64,599 | 65,229 | 69,208 |
Income taxes paid | 28,085 | 31,300 | 11,873 |
Non-cash conversion of accounts receivable to notes receivable | $ 84 | $ 4,258 | $ 1,307 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company The first International House of Pancakes ® (“IHOP”) restaurant opened in 1958 in Toluca Lake, California. Shortly thereafter, the Company began developing and franchising additional restaurants. The Company was incorporated as IHOP Corp. under the laws of the State of Delaware in 1976. In November 2007, the Company acquired Applebee's International, Inc., which became a wholly-owned subsidiary of the Company. Effective June 2, 2008, the name of the Company was changed to DineEquity, Inc. and on February 20, 2018, the name of the Company was changed to Dine Brands Global, Inc. ® (“Dine Brands Global”). In December 2022, the Company acquired FTO Holding Company, LLC (“Fuzzy's”), which owns the Fuzzy's Taco Shop ® concept and became a wholly-owned subsidiary of the Company. The Company owns, franchises and operates three restaurant concepts: Applebee's Neighborhood Grill + Bar ® (“Applebee's”), in the American full-service restaurant segment within the casual dining category of the restaurant industry; IHOP ® , in the family dining mid-scale full-service category of the restaurant industry; and Fuzzy’s Taco Shop ® , in the Mexican food segment within the fast-casual dining category of the restaurant industry. As of December 31, 2022, there were 1,781 IHOP restaurants, of which 1,625 were subject to franchise agreements and 156 were subject to area license agreements. These IHOP restaurants were located in all 50 states of the United States, the District of Columbia, two United States territories and nine countries outside the United States. As of December 31, 2022, there were 1,678 Applebee's ® restaurants, all of which were subject to franchise agreements. These Applebee's restaurants were located in 49 states of the United States, two United States territories and 11 countries outside the United States. As of December 31, 2022, the Company had 137 Fuzzy restaurants in 18 states of the United States, of which 134 were subject to franchise agreements and three were company-operated. References herein to Applebee's, IHOP, and Fuzzy's restaurants are to these restaurant concepts, whether operated by franchisees, area licensees or the Company. Retail sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Dine Brands Global, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fiscal Periods The Company has a 52/53 week fiscal year that ends on the Sunday nearest to December 31 of each year. In a 52-week fiscal year, each fiscal quarter contains 13 weeks, comprised of two, four-week fiscal months followed by a five-week fiscal month. In a 53-week fiscal year, the last month of the fourth fiscal quarter contains six weeks. For convenience, the Company refers to its fiscal years as ending on December 31 and its fiscal quarters as ending on March 31, June 30 and September 30. The December 31, 2022 fiscal year ended January 1, 2023 and contained 52 weeks. The 2021 fiscal year ended January 2, 2022 contained 52 weeks. The 2020 fiscal year ended January 3, 2021 contained 53 weeks. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires the Company's management to make estimates and assumptions 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 tangible and intangible assets and goodwill; 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. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the outbreak of a novel strain of coronavirus, designated “COVID-19” and declared to be a pandemic in March 2020. The Company first began to experience impacts from COVID-19 in March 2020, as federal, state and local governments reacted to the public health crisis by encouraging and/or requiring social distancing, instituting shelter-in-place orders, and requiring, in varying degrees, restaurant dine-in limitations and other restrictions that largely limited the restaurants of the Company's franchisees and its company-operated restaurants to take-out and delivery sales during the initial stages of the pandemic. Subsequently, government-imposed dine-in restrictions have been relaxed, removed and reinstated as incidents of infection decrease or increase within the respective governmental jurisdictions. As of December 31, 2022, almost all of the restaurants were open and operating without government-mandated restriction. We cannot predict how long the pandemic will last, whether/when recurrences of the virus and its variants may arise, what restrictions on in-restaurant dining may be enacted or re-enacted, the availability and acceptance of vaccines, the timing and extent of customer re-engagement with the Company's brands and, in general, what the short- and long-term impact on consumer discretionary spending the COVID-19 pandemic might have on the Company and the restaurant industry as a whole, all of which are uncertain and cannot be predicted. As such, the extent to which the COVID-19 pandemic may continue to materially impact the Company's financial condition, liquidity, or results of operations remains highly uncertain. Concentration of Credit Risk The Company's cash, cash equivalents, restricted cash and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are creditworthy. The Company does not believe that it is exposed to any significant credit risk on cash, cash equivalents and restricted cash. At times, cash, cash equivalents and restricted cash balances may be in excess of FDIC insurance limits. Accounts receivable are derived from revenues earned from franchisees and area licensees located primarily in the United States. Financing receivables arise from the financing of restaurant equipment, real estate leases or franchise fees with the Company by IHOP franchisees. The Company is subject to a concentration of credit risk with respect to receivables from franchisees that own a large number of Applebee's or IHOP restaurants. As of December 31, 2022, two franchisees (one Applebee's franchisee and one franchisee with cross-brand ownership) operated a combined total of 825 Applebee's and IHOP restaurants in the United States, which comprised 25.4% of the total Applebee's and IHOP franchise and area license restaurants in the United States. Revenues from these two franchisees represented 18.8%, 18.0%, and 17.1% of total consolidated revenue for the years ended December 31, 2022, 2021 and 2020, respectively. One franchisee represented 12.5%, 11.8%, and 11.0% of total consolidated revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Receivables from these franchisees totaled $20.9 million and $19.7 million at December 31, 2022 and 2021, respectively. Cash and Cash Equivalents The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. These cash equivalents are stated at cost which approximates market value. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds. The components of cash and cash equivalents were as follows: December 31, 2022 2021 (In millions) Money market funds $ 75.0 $ 30.0 IHOP advertising funds and gift card programs 96.7 101.5 Other depository accounts 98.0 229.9 Total cash and cash equivalents $ 269.7 $ 361.4 Restricted Cash Current Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's and Fuzzy's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. The components of current restricted cash were as follows: December 31, 2022 2021 (In millions) Securitized debt reserves $ 32.4 $ 29.9 Applebee's advertising funds 5.4 17.5 Other 1.1 0.1 Total current restricted cash $ 38.9 $ 47.5 Non-current Non-current restricted cash of $16.4 million and $16.4 million at December 31, 2022 and 2021, respectively, represents interest reserves set aside for the duration of the securitized debt. The required reserve is approximately one quarter's interest payment on the Company's securitized debt. The Company voluntarily increased the amount held in non-current cash to twice the required amount during the year ended December 31, 2020 and reduced the reserve back to the minimum amount during the year ended December 31, 2021. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Properties under finance leases are stated at the present value of the minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or remaining useful lives. Leasehold improvements and properties under finance leases are amortized on a straight-line basis over their estimated useful lives or the lease term, if less. The general ranges of depreciable and amortizable lives are as follows: Category Depreciable Life Buildings and improvements 25 to 40 years Leaseholds and improvements Shorter of primary lease term or between three Equipment and fixtures Three Internal-use software Three Properties under finance leases Primary lease term or remaining primary lease term Long-Lived Assets On a regular basis, the Company assesses whether events or changes in circumstances have occurred that potentially indicate the carrying value of long-lived assets (primarily assets related to property and equipment leased or subleased to franchisees) may not be recoverable. The analysis is performed at the restaurant level for indicators of impairment. The Company tests for impairment using current and historical operating results and cash flows as well as other relevant facts and circumstances as the primary basis for estimates of future cash flows. The Company considers factors such as the number of years the franchisee's restaurant has been in operation, sales trends, cash flow trends, remaining lease life and other factors which apply on a case-by-case basis. Continuing losses associated with an asset are an indicator of impairment. If it is decided that there has been an impairment, the carrying amount of the asset is written down to the estimated fair value as determined in accordance with U.S. GAAP governing fair value measurements. The primary method of estimating fair value is based on a discounted cash flow analysis. Any loss resulting from impairment is recognized as a charge against operations. See Note 13 - Closure and Long-lived Tangible Asset Impairment Charges , of the Notes to the Consolidated Financial Statements for additional information. Goodwill and Intangible Assets Goodwill is recorded when the aggregate purchase price of an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Intangible assets resulting from an acquisition are accounted for using the purchase method of accounting and are estimated by management based on the fair value of the assets received. The Company's identifiable intangible assets are comprised primarily of the Applebee's tradename and Applebee's franchise agreements and as of December 2022, the Fuzzy's tradename and Fuzzy's franchise agreements. Identifiable intangible assets with finite lives (franchise agreements) are amortized over the period of estimated benefit using the straight-line method and estimated useful lives. Goodwill and intangible assets considered to have an indefinite life (primarily the tradenames) are not subject to amortization. The determination of indefinite life is subject to reassessment if changes in facts and circumstances indicate the period of benefit has become finite. Goodwill has been allocated to four reporting units. The significant majority of the Company's goodwill resulted from the November 29, 2007 acquisition of Applebee's and was allocated to the Applebee's franchised restaurants unit (“Applebee's franchise unit”). Smaller amounts of goodwill arising from other business combinations have been allocated to the Fuzzy's franchised restaurants unit (“Fuzzy's franchise unit”), the IHOP franchised restaurants unit (“IHOP franchise unit”) and the Applebee's company restaurants unit (“Applebee's company unit”). See Note 6 - Goodwill , of the Notes to the Consolidated Financial Statements for additional information. The Company evaluates the goodwill of the Applebee's franchise and company units and the indefinite-lived Applebee's tradename for impairment as of October 31 of each year. The Company evaluates the goodwill of the IHOP franchise unit and the Fuzzy's franchise unit for impairment as of December 31 of each year. In addition to the annual evaluation for impairment, goodwill and indefinite-lived intangible assets are evaluated more frequently if the Company believes indicators of impairment exist. When evaluating goodwill and indefinite-lived intangible assets for impairment, under U.S. GAAP, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit or the intangible asset is more-likely-than-not greater than the carrying amount. Such qualitative factors include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, current and future income tax rates, the competitive environment, fluctuations in the market value of the Company's common stock, absolute and relative to peers, overall financial performance and results of past impairment tests. If, based on a review of the qualitative factors, the Company determines it is more-likely-than-not that the fair value is greater than the carrying value, the Company may bypass a quantitative test for impairment. In performing the quantitative test for impairment of goodwill, the Company primarily uses the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method. Significant assumptions used to determine fair value under the discounted cash flow method include expected future trends in sales, operating expenses, overhead expenses, capital expenditures and changes in working capital, along with an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt. Significant assumptions used to determine fair value under the guideline public company method include the selection of guideline companies and the valuation multiples applied. The Company measures impairment as the excess of a reporting unit's carrying amount over its fair value as determined by the quantitative test described above. In the process of performing its quantitative impairment review of intangible assets considered to have an indefinite life, the Company primarily uses the relief of royalty method under the income approach method of valuation. Significant assumptions used to determine fair value under the relief of royalty method include future trends in sales, a royalty rate and an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt to be applied to the forecast revenue stream. Business Combinations From time to time, we may enter into business combinations. In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, the Company applies the acquisition method for acquisitions that meet the definition of a business combination. Under the acquisition method, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. Acquired intangible assets are valued using different methods under the income approach, including but not limited to, the multi-period excess earnings method for tradenames and franchising rights and the relief-from-royalty method for recipes. The Company measures goodwill as the excess of consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. Goodwill is assigned to each reporting unit that is expected to benefit from the synergies of the business combination. Acquisition-related expenses and transaction costs associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Comprehensive Income (Loss). Revenue Recognition The Company's revenues are recorded in four categories: franchise operations, company restaurant operations, rental operations and financing operations. Franchise revenue (which comprises most of the Company's revenues) and revenue from company-operated restaurants are recognized in accordance with ASC 606 - Revenue from Contracts with Customers (“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. The Company's rental and financing revenues are recognized in accordance with other U.S. GAAP accounting standards and are not subject to ASC 606. Franchise Revenues The Company franchises the Applebee’s, IHOP and Fuzzy's restaurant concepts. The franchise arrangement for the 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 the 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 revenues 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 revenues are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either 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. In determining the amount and timing of revenue from contracts with customers, the Company exercises judgment with respect to collectibility of the amount; however, the timing of recognition does not require significant judgment as it is based on either the franchise term, the month of sale as reported 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. Company Restaurant Revenues Company restaurant revenues comprise retail sales at company-operated restaurants. 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, with no significant judgments required. Rental Revenues Rental operations revenues include revenues from operating leases and interest income from real estate leases. See Basis of Presentation and Summary of Significant Accounting Policies - Leases. Financing Revenues Financing operations revenues consist primarily of interest income from the financing of franchise fees and equipment leases, other notes receivable from franchisees and sales of equipment associated with refranchised IHOP restaurants. Interest income is recorded as earned. Gift Card The Company administers gift card programs for each restaurant concept. The Company records a liability in the period in which a gift card is sold and recognizes costs associated with its administration of the gift card programs as prepaid assets when the costs are incurred. The liability and prepaid asset recorded on the Company's books are relieved when gift cards are redeemed. If redemption occurs at a franchisee-operated restaurant, the gift card revenue, net of costs, is remitted to the franchisee. The Company receives gift card breakage revenue only from gift cards redeemed at company-operated restaurants. Breakage revenue for gift cards estimated to be redeemable at company-operated restaurants for the years ended December 31, 2022, 2021 and 2020 was $0.3 million in each year. Allowance for Credit Losses The allowance for credit losses is the Company's best estimate of the amount of probable credit losses incurred on existing receivables; however, changes in circumstances relating to receivables may result in changes to the allowance in the future. The Company determines the allowance based on historical losses, current conditions, and reasonable and supportable forecasts used in assessing the franchisee's or area licensee's ability to pay outstanding balances. The primary indicator of credit quality is delinquency, which is considered to be a receivable balance greater than 90 days past due. The Company continually reviews the allowance for credit losses. Past due balances and future obligations are reviewed individually for collectability. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. See Note 4, Current Expected Credit Losses , of the Notes to the Consolidated Financial Statements for additional information. Leases The Company accounts for its leasing activities in accordance with accounting guidance for leases, as codified in Accounting Standards Topic 842 (“ASC 842”), adopted as of the beginning of its 2019 fiscal year. In adopting ASC 842, the Company utilized expedients that allowed it to retain the classification, as either an operating lease or a finance lease, that was previously determined under prior accounting guidance for leases. The Company reassesses this classification upon renewal, extension or the modification of an existing lease agreement. The Company determines the appropriate classification upon entering into a new contract determined to contain a lease. Operating lease assets and liabilities are recognized at the lease commencement date, or were recognized upon adoption of ASC 842. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the Company's right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of operating lease assets. The Company's lease agreements generally do not provide information to determine the implicit interest rate in the agreements. This requires the Company to estimate an incremental borrowing rate to be used in calculating operating lease liabilities as of the adoption or commencement date. The Company estimates the incremental borrowing rate primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption or commencement date; and (iii) adjustments for differences between these rates and the lease term. The cost of an operating lease is recognized over the lease term on a straight-line basis. The lease term commences on the date the Company has the right to control the use of the leased property. Certain leases may contain provisions for rent holidays and fixed-step escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and fixed-step escalations are reflected in rent expense on a straight-li ne basis over the expected lease term. Differences between amounts paid and amounts expensed are recorded as deferred rent. Certain leases may include rent escalations based on inflation indexes and fair market value adjustments. Certain leases may contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales. Subsequent escalations subject to such an index and contingent rental payments are recognized as variable lease expense. The rental payments (as lessee) or receipts (as lessor) on those property leases that meet the finance lease criteria result in the recognition of interest expense or interest income and a reduction of finance lease obligation or financing lease receivable, respectively. Finance lease obligations are amortized based on the Company's incremental borrowing rate and real estate leases receivable are amortized using the implicit interest rate. Pre-opening Expenses Expenditures related to the opening of new or relocated restaurants are charged to expense when incurred. Advertising Advertising expense reflected in the Consolidated Statements of Comprehensive Income (Loss) includes contributions to the national advertising funds made by Applebee's and IHOP, local marketing advertising costs incurred by company-operated restaurants, and certain advertising costs incurred by the Company to benefit future franchise operations. Costs of advertising typically are expensed either as incurred or the first time the advertising takes place. Any excess or deficiency of advertising fee revenue compared to advertising expenditures, is recognized in the fourth quarter of the Company's fiscal year. Any excess of revenue over expenditures is recognized only to the extent of previously recognized deficits. When advertising revenues exceed the related advertising expenses and there is no recovery of a previously recognized deficit of advertising revenues, advertising costs are accrued up to the amount of revenues. Advertising expense included in company restaurant operations for the years ended December 31, 2022, 2021 and 2020 was $5.6 million, $6.8 million and $5.2 million, respectively. Fair Value Measurements The Company determines the fair market values of its financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis, based on the fair value hierarchy established in U.S. GAAP. As necessary, the Company measures its financial assets and liabilities using inputs from the following three levels of the fair value hierarchy: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 inputs are unobservable and reflect the Company's own assumptions. The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. None of the Company's non-financial assets or non-financial liabilities is required to be measured at fair value on a recurring basis. Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include items such as property and equipment, operating lease assets, goodwill and other intangible assets, which are measured at fair value if determined to be impaired. The Company has not elected to use fair value measurement for any assets or liabilities for which fair value measurement is not presently required. The Company believes the fair values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. The fair values of non-current financial instruments, determined based on Level 2 inputs, are shown in the following table: December 31, 2022 2021 (In millions) Face value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,247.0 $ 1,287.0 Fair value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,167.0 $ 1,312.9 Income Taxes The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records estimated tax liabilities to the extent the contingencies are probable and can be reasonably estimated. The Company recognizes interest accrued related to unrecognizable tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss). The Company is taxed on global intangible low-tax income ("GILTI") earned by certain foreign subsidiaries and recognizes the current tax on GILTI as an expense in the period the tax is incurred. The Company includes the current tax impact of GILTI in our effective tax rate. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on its technical merits, including all appeals or litigation processes. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. For each reporting period, management applies a consistent methodology to measure and adjust all uncertain tax positions based on the available information. Stock-Based Compensation Members of the Board of Directors and certain employees are eligible to receive stock options, restricted stock, restricted stock units and performance units pursuant to the Dine Brands Global, Inc. 2019 Stock Incentive Plan. Shares of unvested restricted stock are subject to restrictions on transfer and forfeiture under certain circumstances. The holder of unvested restricted stock has the right to vote and receive regular cash dividends with respect to the shares of unvested restricted stock. The Company accounts for all stock-based payments to employees and non-employee directors, including grants of stock options, restricted stock, restricted stock units and performance units to be recognized in the financial statements, based on their respective grant date fair values. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods. The grant date fair value of restricted stock and stock-settled restricted stock units is determined based on the Company's stock price on the grant date. The Company estimates the grant date fair value of stock option awards using the Black-Scholes option pricing model, which considers, among other factors, a risk-free interest rate, the expected life of the award and the historical volatility of the Company's stock price. The Company estimates the grant date fair value of awards with performance-based market conditions using a Monte Carlo simulation method which considers, among other factors, the performance-based market condition, a risk-free interest rate, the expected life of the award and the historical volatility of the Company's stock price. Awards of cash-settled restricted stock units are classified as liabilities with the liability and compensation expense related to cash-settled awards adjusted to fair value at each balance sheet date. Net Income (Loss) Per Share Net income (loss) per share is calculated using the two-class method prescribed in U.S. GAAP. Basic net income (loss) per share is computed by dividing the net income (loss) available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) available to common stockholders for the period by the weighted average number of common shares and potential shares of common |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table disaggregates our franchise revenues by major type for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 Franchise Revenues (In thousands) Royalties $ 303,724 $ 292,372 $ 215,214 Advertising fees 289,328 274,790 201,494 Pancake and waffle dry mix sales and other 60,749 51,250 38,936 Franchise and development fees 8,637 13,524 13,809 Total franchise revenues $ 662,438 $ 631,936 $ 469,453 Accounts and other receivables related to franchise revenues as of December 31, 2022 and 2021 were $69 million (net of allowance of $1.3 million) and $66 million (net of allowance of $1.1 million), respectively, and were included in receivables, net in the Consolidated Balance Sheets. Changes in the Company's deferred franchise revenue during the year ended December 31, 2022 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2021 $ 53,346 Recognized as revenue during the year ended December 31, 2022 (8,518) Fees deferred during the year ended December 31, 2022 4,044 Acquisition addition 621 Balance at December 31, 2022 $ 49,493 The balance of deferred franchise revenue as of December 31, 2022 is expected to be recognized as follows: (In thousands) 2023 $ 7,150 2024 6,478 2025 5,699 2026 4,850 2027 3,954 Thereafter 21,362 Total $ 49,493 |
Current Expected Credit Losses
Current Expected Credit Losses ("CECL") | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses ("CECL") | Current Expected Credit Losses ( “ CECL ” ) The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. In applying the CECL methodology, the Company developed its estimated loss reserves in the following manner. The Company continued to record specific reserves against account balances of franchisees deemed “at-risk” when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed “at-risk,” an allowance is recorded based on expected loss rates derived pursuant to the following CECL methodology that assesses four components: (1) historical losses, (2) current conditions, (3) reasonable and supportable forecasts, and (4) reversion to history, if applicable. Historical Losses Historical loss rates over a five-year span were calculated for financial assets with common risk characteristics. The Company determined historical loss rate data for each franchise brand concept was more relevant than a single blended rate. Historical losses were determined based on the average charge-off method. Historical loss rates are further adjusted by factors related to current conditions and forecasts of future economic conditions. Current Conditions The Company identified three metrics that it believes provide the most relevant reflection of the current risks inherent in the Company’s franchisee-based restaurant business, as follows: (1) delinquency status, (2) system-wide same-restaurant sales, and (3) restaurant unit-level economics. The current conditions adjustment factor was adjusted to account for the impact of the COVID-19 pandemic. Reasonable and Supportable Forecasts The third component in the CECL methodology involves consideration of macroeconomic conditions that can impact the estimate of expected credit losses in the future. The Company has not developed an internal methodology in this regard; rather, the Company utilizes existing, publicly accessible sources of economic data, primarily forecasts of overall unemployment rate as well as consumer spending based on the personal consumption expenditure index. Reversion to History The Company has determined that reversion to history was not required since the remaining average lives of the Company’s financial assets are not exceedingly lengthy. The Company considers its portfolio segments to be the following: Accounts Receivable (Franchise-Related) Most of the Company’s short-term receivables due from franchisees are derived from royalty, advertising and other franchise-related fees. Gift Card Receivables Gift card receivables consist primarily of amounts due from third-party vendors. Receivables related to gift card sales are subject to seasonality and usually peak around year end as a result of the December holiday season. Notes Receivable Notes receivable balances primarily relate to the conversion of certain Applebee's franchisee accounts receivable to notes receivable, cash loans to franchisees for working capital purposes, a note receivable in connection with the sale of IHOP company restaurants in June 2017, and IHOP franchise fee and other notes. The notes are typically collateralized by the franchise. The notes generally have a term from one Equipment Leases Receivable Equipment leases receivable primarily relate to IHOP franchise development activity prior to 2003. IHOP provided the financing for the leasing of the equipment. Equipment lease contracts are collateralized by the equipment in the restaurant. Equipment lease contracts are due in equal weekly installments, and bear interest averaging 9.8% and 9.9% per annum at December 31, 2022 and 2021, respectively. The term of an equipment lease contract typically coincides with the term of the corresponding restaurant building lease. The weighted average remaining life of the Company’s equipment leases is 3.9 years as of December 31, 2022. The estimated fair value of the equipment collateralizing these lease contracts are not deemed to be significant given the very seasoned and mature nature of this portfolio. Real Estate Leases Receivable Real estate lease receivable also primarily relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant, and then franchised the restaurant to a franchisee. IHOP provided the financing for leasing or subleasing the site. Real estate lease receivables at December 31, 2022, were comprised of 48 leases with a weighted average remaining life of 10.2 years, and relate to locations that IHOP is leasing from third parties and subleasing to franchisees. Where applicable, building leases and equipment contracts contain cross-default provisions wherein a default under one constitutes a default under all. Distributor Receivables Receivables due from distributors are related to the sale of IHOP’s proprietary pancake and waffle dry mix to franchisees through the Company’s network of suppliers and distributors and are included as part of Other receivables. Total receivables balances at December 31, 2022 and 2021 were as follows: Receivables 2022 2021 (In millions) Accounts receivable $ 67.5 $ 63.6 Gift card receivables 34.6 33.4 Notes receivable 17.2 19.7 Financing receivables: Equipment leases receivable 26.6 33.4 Real estate leases receivable 18.5 16.7 Other receivables 5.6 7.6 170.0 174.4 Less: allowance for doubtful accounts and notes receivable (10.3) (11.9) 159.7 162.5 Less: current portion (120.0) (120.0) Long-term receivables $ 39.7 $ 42.5 Changes in the allowance for credit losses during the years ended December 31, 2022 and 2021 were as follows: Accounts Receivable Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Balance, December 31, 2020 $ 11.2 $ 3.6 $ 5.3 $ 0.4 $ 2.3 $ 0.3 $ 23.1 Bad debt (credit) expense (8.2) 1.4 1.1 0.1 0.8 (0.1) (4.9) Advertising provision adjustment (1.8) (0.3) 0.2 — — — (1.9) Write-offs (0.2) (0.9) — (0.5) (3.0) — (4.6) Recoveries 0.0 — — 0.2 — — 0.2 Balance, December 31, 2021 $ 1.0 $ 3.8 $ 6.6 $ 0.2 $ 0.1 $ 0.2 $ 11.9 Bad debt (credit) expense (0.1) 1.4 (1.1) 0.0 (0.0) 0.0 0.3 Advertising provision adjustment 0.5 (0.8) (0.2) — — — (0.5) Write-offs (0.3) (0.9) — (0.0) (0.0) (0.3) (1.5) Recoveries 0.1 — — 0.0 0.0 0.0 0.1 Balance, December 31, 2022 $ 1.2 $ 3.5 $ 5.3 $ 0.2 $ 0.1 $ (0.1) $ 10.3 _________________________________ (1) Primarily consists of distributor receivables, gift card receivables, and credit card receivables. The Company's primary credit quality indicator for all portfolio segments is delinquency. The delinquency status of receivables (other than accounts receivable, gift card receivables and distributor receivables) at December 31, 2022 was as follows: Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Current $ 4.9 $ 10.7 $ 18.5 $ 26.6 $ 0.0 $ 60.7 30-59 days — — — — — — 60-89 days — — — — — — 90-119 days — — — — — — 120+ days 1.6 — — — — 1.6 Total $ 6.5 $ 10.7 $ 18.5 $ 26.6 0.0 $ 62.3 _________________________________ (1) Primarily consists of credit card receivables. The year of origination of the Company's financing receivables at December 31, 2022 as follows: Notes receivable, short and long-term Lease Receivables Equipment Receivables Total (In millions) 2022 $ 1.6 $ 8.5 $ — $ 10.1 2021 10.1 2.5 — 12.6 2020 0.4 1.3 — 1.7 2019 — 0.7 — 0.7 2018 — — — 0.0 Prior 5.1 5.5 26.6 37.2 Total $ 17.2 $ 18.5 $ 26.6 $ 62.3 The Company does not place its financing receivables in non-accrual status. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment by category at December 31, 2022 and 2021 were as follows: 2022 2021 (In millions) Leaseholds and improvements $ 211.5 $ 221.1 Properties under finance leases 56.7 94.6 Equipment and fixtures 41.5 52.5 Buildings and improvements 51.3 54.2 Land 47.8 51.3 Internal-use software 52.6 55.7 Construction in progress 17.6 5.5 Property and equipment, gross 479.0 534.9 Less: accumulated depreciation and amortization (333.7) (355.5) Property and equipment, net $ 145.3 $ 179.4 The Company recorded depreciation expense on property and equipment of $27.4 million, $29.2 million and $31.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The significant majority of the Company's goodwill arose from the November 29, 2007 acquisition of Applebee's. In October 2022, the disposition of assets of $4.6 million was related to the refranchising and sale of the restaurant assets of 69 Applebee's company-operated restaurants. In December 2022, the addition to goodwill of $7.0 million arose from the acquisition of Fuzzy's, which was determined to be a separate reporting unit. Changes in the carrying amount of goodwill for the years ended December 31, 2022, 2021 and 2020 are as follows: Applebee's Franchise Unit Applebee's Company Unit IHOP Franchise Unit Fuzzy's Franchise Unit Total (In millions) Balance at December 31, 2019 $ 328.4 $ 4.6 $ 10.8 $ — $ 343.8 Impairment loss (92.2) — — — (92.2) Balance at December 31, 2020 $ 236.2 $ 4.6 $ 10.8 $ — $ 251.6 Balance at December 31, 2021 $ 236.2 $ 4.6 $ 10.8 $ — $ 251.6 Disposition of assets — (4.6) — — (4.6) Business acquisition — — — 7.0 7.0 Balance at December 31, 2022 $ 236.2 $ — $ 10.8 $ 7.0 $ 254.0 Gross and net carrying amounts of goodwill at December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net (In millions) Applebee's Franchise Unit $ 686.7 $ (450.5) $ 236.2 $ 686.7 $ (450.5) $ 236.2 Applebee's Company Unit 4.6 (4.6) — 4.6 — 4.6 IHOP Franchise Unit 10.8 — 10.8 10.8 — 10.8 Fuzzy's Franchise Unit 7.0 — 7.0 — — — Total $ 709.1 $ (455.1) $ 254.0 $ 702.1 $ (450.5) $ 251.6 The Company assesses goodwill for impairment in accordance with its policy described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies . The Company evaluates its goodwill and the indefinite-lived tradenames for impairment annually in the fourth quarter of each year or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. Definite-lived intangible assets and long-lived tangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted future cash flows. 2022 and 2021 Assessments In the fourth quarters of 2022 and 2021, the Company performed qualitative assessments of its goodwill in accordance with its accounting policies. As result of the qualitative assessment, the Company concluded it was more likely than not that the fair values of each unit exceeded the respective carrying amounts and therefore, a quantitative test of impairment was not necessary. 2020 Assessment Because of the risks and uncertainties associated with the COVID-19 pandemic, the Company performed an interim assessment to determine whether the impact of COVID-19 indicated a potential impairment to its goodwill and intangible assets. In the second quarter of 2020, the Company noted that its common stock had recovered less of its early March 2020 (pre-pandemic) market value than the overall U.S. stock market had recovered. The Company also was able to assess several months of data as to the impact of the COVID-19 pandemic on its operations and, in turn, assess the impact that might have on the risk premium incorporated into its discount rate. Based on these developments, the Company determined that an interim quantitative test for impairment of the goodwill of the Applebee's Franchise and Company units should be performed as of May 24, 2020. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The fair value technique used in this instance is classified as Level 3, where unobservable inputs are used when little or no market data is available. In performing the quantitative test for impairment of goodwill, the Company used the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method to determine the fair value of goodwill and intangible assets. Significant assumptions made by management in estimating fair value under the discounted cash flow model include future trends in sales, operating expenses, overhead expenses, depreciation, capital expenditures and changes in working capital, along with an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt. Significant assumptions used to determine fair value under the guideline public company method include the selection of guideline companies and the valuation multiples applied. As a result of performing the quantitative test of impairment, the Company recognized an impairment loss of $92.2 million in 2020 to the goodwill of the Applebee's Franchise unit. The majority of the impairment was due to an increase in the assessed risk premium incorporated into the discount rate assumption. There was no impairment of the Applebee's Company unit. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Other Intangible Assets | Other Intangible Assets The significant majority of the Company's other intangible assets arose from the November 29, 2007 acquisition of Applebee's. Changes in the carrying amounts for the years ended December 31, 2022, 2021 and 2020 are as follows: Not Subject to Amortization Subject to Amortization Tradenames Other Franchising Reacquired Franchise Rights Favorable Leaseholds Total (In millions) Balance at December 31, 2019 $ 479.0 $ 3.2 $ 79.0 $ 9.8 $ 4.1 $ 575.1 Impairment (11.0) — — (3.3) (0.8) (15.1) Amortization expense — — (10.0) (0.8) (0.1) (10.9) Additions — 0.6 — — — 0.5 Balance at December 31, 2020 468.0 3.8 69.0 5.7 3.2 549.7 Amortization expense — — (10.0) (0.6) (0.1) (10.7) Additions — 0.4 — — — 0.4 Balance at December 31, 2021 468.0 4.2 59.0 5.1 3.1 539.4 Amortization expense — — (10.0) (0.4) (0.1) (10.6) Additions 57.2 0.8 14.8 — — 72.8 Disposition — — — (4.7) — (4.7) Balance at December 31, 2022 $ 525.2 $ 5.0 $ 63.8 $ — $ 3.0 $ 597.0 In December 2022, the Company acquired Fuzzy's and recorded $57.2 million of tradename, $14.8 million of franchising rights and $0.5 million of recipes as intangible assets. Additions of other intangibles for the years ended December 31, 2022, 2021 and 2020 are individually insignificant. In October 2022, the $4.7 million disposition of assets was related to the refranchising and sale of the restaurant assets of 69 Applebee's company-operated restaurants. Impairments in 2020 As discussed in Note 6 - Goodwill , the Company determined that indicators of impairment existed prior to the annual test for impairment and performed an interim quantitative test for impairment of Applebee's tradename and reacquired franchise rights in the second quarter of 2020. In performing the impairment test of the tradename, the Company used the relief of royalty method under the income approach method of valuation. Significant assumptions used to determine fair value under the relief of royalty method include future trends in sales, a royalty rate and a discount rate applied to the forecast revenue stream. As a result of performing the quantitative test of impairment, the Company recognized an impairment Annual amortization expense for the next five fiscal years is estimated to be approximately $14.4 million per year. Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net (In millions) Franchising rights $ 214.8 $ (151.0) $ 63.8 $ 200.0 $ (141.0) $ 59.0 Reacquired franchise rights — — — 8.3 (3.2) 5.1 Favorable leaseholds 3.4 (0.4) 3.0 $ 3.4 $ (0.3) 3.1 Total $ 218.2 $ (151.4) $ 66.8 $ 211.7 $ (144.5) $ 67.2 In the fourth quarter of fiscal 2022 and 2021, the Company performed a qualitative assessment of the Applebee's tradename and concluded the fair value exceeded the carrying amount. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at December 31, 2022 and 2021 consists of the following components: 2022 2021 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 653.0 $ 693.0 Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 594.0 594.0 Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 100.0 — Debt issuance costs (5.1) (7.4) Long-term debt, net of debt issuance costs 1,341.9 1,279.6 Current portion of long-term debt (100.0) — Long-term debt $ 1,241.9 $ 1,279.6 Long-Term Debt On June 5, 2019, Applebee’s Funding LLC and IHOP Funding LLC (the “Co-Issuers”), each a special purpose, wholly-owned indirect subsidiary of the Company, issued two tranches of fixed rate senior secured notes, the Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I (“Class A-2-I Notes”) in an initial aggregate principal amount of $700 million and the Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II (“Class A-2-II Notes”) in an initial aggregate principal amount of $600 million (the “Class A-2-II Notes” and, together with the Class A-2-I Notes, the “2019 Class A-2 Notes”). The 2019 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended. On August 12, 2022, the Co-Issuers established a new revolving financing facility, the 2022-1 Variable Funding Notes, Class A-1 (the “Credit Facility”), that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. In connection with this transaction, the Co-Issuers terminated their $225 million revolving financing facility, the 2019-1 Variable Funding Notes, Class A-1 (the “Previous Credit Facility”). The Credit Facility and the 2019 Class A-2 Notes are referred to collectively herein as the “Notes.” The Notes were issued in securitization transactions pursuant to which substantially all the domestic revenue-generating assets and domestic intellectual property held by the Co-Issuers and certain other special-purpose, wholly-owned indirect subsidiaries of the Company (the “Guarantors”) were pledged as collateral to secure the Notes. The Notes were issued under a Base Indenture, dated as of September 30, 2014, and amended and restated as of June 5, 2019 (the “Base Indenture”). In addition, the 2019 Class A-2 Notes were issued under the related Series 2019-1 Supplement to the Base Indenture, dated June 5, 2019 (the “Series 2019-1 Supplement”), among the Co-Issuers and Citibank, N.A., as the trustee (in such capacity, the “Trustee”) and securities intermediary and the Credit Facility was issued under the related Series 2022-1 Supplement to the Base Indenture, dated August 12, 2022 (“Series 2022-1 Supplement”), among the Co-Issuers and Citibank, N.A., as Trustee and securities intermediary. The Base Indenture, Series 2019-1 Supplement and Series 2022-1 Supplement (collectively, the “Indenture”) will allow the Co-Issuers to issue additional series of notes in the future subject to certain conditions set forth therein. 2019 Class A-2 Notes The legal final maturity of the 2019 Class A-2 Notes is in June 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the Class A-2-I Notes will be repaid in June 2024 (the “Class A-2-I Anticipated Repayment Date”) and the Class A-2-II Notes will be repaid in June 2026 (the “Class A-2-II Anticipated Repayment Date”). If the Co-Issuers have not repaid or refinanced the Class A-2-I Notes by the Class A-2-I Anticipated Repayment Date or the Class A-2-II Notes by the Class A-2-II Anticipated Repayment Date, then additional interest will accrue on the Class A-2-I Notes and the Class A-2-II Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the applicable Class A-2 Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the applicable anticipated repayment date of the United States Treasury Security having a term closest to 10 years plus (y) 5.0%, plus (z) 2.15% for the Class A-2-I Notes and 2.64% for the Class A-2-II Notes. While the 2019 Class A-2 Notes are outstanding, payment of principal and interest is required to be made on the 2019 Class A-2 Notes on a quarterly basis. The payment of principal on the 2019 Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x. Exceeding the leverage ratio of 5.25x does not violate any covenant related to the Notes. In general, the leverage ratio is the Company's indebtedness (as defined in the Indenture) divided by adjusted EBITDA (as defined in the Indenture) for the four preceding quarterly periods. The complete definitions of all calculation elements of the leverage ratio are contained in the Indenture. As of December 31, 2022 the Company's leverage ratio was 4.4x. As a result, quarterly principal payments on the 2019 Class A-2 Notes of $3.25 million currently are not required. During fiscal 2021, the Company's leverage ratio exceeded 5.25x until the quarterly payment period ended September 30, 2021. Accordingly, the Company made three principal payments totaling $9.75 million in fiscal 2021. The Company may voluntarily repay the 2019 Class A-2 Notes at any time; however, if the 2019 Class A-2 Notes are repaid prior to certain dates, the Company would be required to pay make-whole premiums. As of December 31, 2022, the make-whole premium associated with voluntary prepayment of the Class A-2-I Notes was zero and will remain as such. As of December 31, 2022, the make-whole premium associated with voluntary prepayment of the Class A-2-II Notes was approximately $0.5 million; this amount declines each quarter to zero in June 2024. The Company would also be subject to a make-whole premium in the event of a mandatory prepayment required following a Rapid Amortization Event (as defined in the Indenture) or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded in the New Notes that must be bifurcated for separate valuation. The Company estimated the fair value of these derivatives to be immaterial as of December 31, 2022, based on the probability-weighted discounted cash flows associated with either event. 2019 Class A-1 Notes The Previous Credit Facility allowed for drawings up to $225 million of variable funding notes on a revolving basis and the issuance of letters of credit. In March 2020, the Company borrowed $220.0 million against the Previous Credit Facility. The $220.0 million was repaid on March 5, 2021, and as of December 31, 2021, there were no outstanding borrowings under the Previous Credit Facility. The interest rate for borrowings under the Previous Credit Facility was the three-month LIBOR rate plus 2.15% for 60% of the advances and the commercial paper funding rate of our conduit investor plus 2.15% for 40% of the advances. The weighted average interest rate for the period outstanding during the year ended December 31, 2021 was 2.42%. 2022 Class A-1 Notes In August 2022, the Co-Issuers entered into the Credit Facility that allows for drawings up to $325 million of variable funding notes on a revolving basis and the issuance of letters of credit. The applicable interest rate under the Credit Facility depends on the type of borrowing by the Co-Issuers. The applicable interest rate for advances is generally calculated at a per annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Term SOFR Rate, in either case, plus 2.50%. The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (a) the greatest of (i) the Prime Rate in effect from time to time; (ii) the Federal Funds Rate in effect from time to time plus 0.50%; and (iii) Term SOFR for a one-month tenor in effect at such time plus 0.50% plus (b) 2.00%. The legal final maturity of the Credit Facility is June 2052, but amortization will apply if there are outstanding amounts under the Credit Facility after June 2027 (the “Class A-1 Renewal Date”). The Class A-1 Renewal Date may be extended at the Co-Issuers’ election for up to two successive one-year periods if certain conditions are met. If the Co-Issuers have not repaid or refinanced the Credit Facility by the Class A-1 Renewal Date (after giving effect to any extensions), then interest will accrue on the Credit Facility at a rate equal to 5.00% in addition to the regular interest rate applicable to the Credit Facility. In August 2022, the Company borrowed $100 million against the Credit Facility, all of which was outstanding at December 31, 2022. The amount of $3.4 million was pledged against the Credit Facility for outstanding letters of credit, leaving $221.6 million of the Credit Facility available for borrowing at December 31, 2022. It is anticipated that any principal and interest on the Credit Facility outstanding will be repaid in full on or prior to the quarterly payment date in June 2027, subject to two additional one Management Agreement Under the terms of the Management Agreement, dated September 30, 2014, as amended and restated as of September 5, 2018, as further amended and restated as of June 5, 2019 and as amended by that certain Amendment No. 1 to Management Agreement dated November 21, 2019, among the Co-Issuers and the Guarantors (collectively, the “Securitization Entities”), the Company, Applebee’s Services, Inc., International House of Pancakes, LLC and the Trustee, the Company will act as the manager with respect to substantially all of the assets of the Securitization Entities (the “Securitized Assets”). The primary responsibilities of the manager will be to perform certain franchising, distribution, intellectual property and operational functions on behalf of the Securitization Entities with respect to the Securitized Assets pursuant to the Management Agreement. The manager will be entitled to the payment of the weekly management fee, as set forth in the Management Agreement and will be subject to the liabilities set forth in the Management Agreement. The Company, as Manager, voluntarily began waiving its receipt of the weekly management fee in April 2020 and resumed its receiving the weekly management fee in July 2020. Covenants and Restrictions The New Notes are subject to a series of covenants and restrictions customary for transactions of this type, including: (i) that the Co-Issuers maintain specified reserve accounts to be used to make required payments in respect of the New Notes, (ii) provisions relating to optional and mandatory prepayments, and the related payment of specified amounts, including specified call redemption premiums in the case of Class A-2 Notes under certain circumstances; (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the New Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The New Notes are subject to customary rapid amortization events provided for in the Indenture, including events tied to failure of the Securitization Entities to maintain the stated debt service coverage ratio (“DSCR”), the sum of domestic retail sales for all restaurants being below certain levels on certain measurement dates, certain manager termination events, certain events of default and the failure to repay or refinance the Class A-2 Notes on the anticipated repayment dates. The New Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the New Notes, failure of the Securitization Entities to maintain the stated DSCR, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties and certain judgments. In general, the DSCR ratio is Net Cash Flow (as defined in the Indenture) for the four quarters preceding the calculation date divided by the total debt service payments (as defined in the Indenture) of the preceding four quarters. The complete definitions of the DSCR and all calculation elements are contained in the Indenture. Failure to maintain a prescribed DSCR can trigger a Cash Flow Sweeping Event, a Rapid Amortization Event, a Manager Termination Event or a Default Event as described below. In a Cash Flow Sweeping Event, the Trustee is required to retain 50% of excess Cash Flow (as defined in the Indenture) in a restricted account. In a Rapid Amortization Event, all excess Cash Flow is retained and used to retire principal amounts of debt. In a Manager Termination Event, the Company may be replaced as manager of the assets securitized under the Indenture. In a Default Event, the outstanding principal amount and any accrued but unpaid interest can be called to become immediately due and payable. Key DSCRs are as follows: • DSCR less than 1.75x - Cash Flow Sweeping Event • DSCR less than 1.20x - Rapid Amortization Event • Interest-only DSCR less than 1.20x - Manager Termination Event • Interest-only DSCR less than 1.10x - Default Event The Company's DSCR for the reporting period ended December 31, 2022 was approximately 4.1x. (Gain)/Loss on Extinguishment of Debt In connection with the termination of the Previous Credit Facility during the year ended December 31, 2022, the Company recognized a loss on extinguishment of debt of $1.2 million, representing the remaining unamortized debt issuance costs associated with the Previous Credit Facility. In addition, the Company purchased $40.0 million of its 2019 Class A-2 Notes under par and recognized a $1.4 million gain on extinguishment of debt during the three months ended December 31, 2022. Debt Issuance Costs 2022 Class A-1 Notes In August 2022, the Company incurred costs of approximately $6.3 million in connection with the issuance of the Credit Facility. These debt issuance costs are being amortized over the estimated life of the Credit Facility. Amortization of $0.4 million of these costs was included in interest expense for the year ended December 31, 2022. Unamortized debt issuance costs of $5.9 million related to the Credit Facility are classified as other non-current assets in the Consolidated Balance Sheets. 2019 Class A-2 Notes The Company incurred costs of approximately $12.9 million in connection with the issuance of the 2019 Class A-2 Notes. These debt issuance costs are being amortized using the effective interest method over estimated life of each tranche of the 2019 Class A-2 Notes. Amortization costs of $2.4 million, $2.2 million, and $2.1 million included in interest expense for the years ended December 31, 2022, 2021 and 2020, respectively. Unamortized debt issuance costs of $5.1 million are reported as a direct reduction of the Class A-2 Notes in the Consolidated Balance Sheets. Amortization costs incurred in connection with the Previous Credit Facility of $0.4 million, $0.6 million, and $0.6 million were included in interest expense for the years ended December 31, 2022, 2021 and 2020, respectively. Total unamortized debt issuance costs of $1.5 million related to the Previous Credit Facility were classified as other long-term assets because there are no borrowings outstanding against the Credit Facility at December 31, 2021. Maturities of Long-term Debt • The legal final maturity of the Class A-2 Notes is in June 2049, but it is anticipated that, unless repaid earlier, the Class A-2-I Notes will be repaid in June 2024 and the Class A-2-II Notes will be repaid in June 2026. • The renewal date of the Credit Facility is June 2027, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions. • Quarterly principal payments on the Class A-2-I and Class A-2-II Notes totaling $3.25 million ($13.0 million per annum) are required if the Company's leverage ratio is greater than 5.25x. |
Financing Obligations
Financing Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Financing Obligations | Financing Obligations On May 19, 2008, the Company entered into a Purchase and Sale Agreement relating to the sale and leaseback of 181 parcels of real property (the “Sale-Leaseback Transaction”), each of which is improved with a restaurant operating as an Applebee's Neighborhood Grill and Bar (the “Properties”). On June 13, 2008, the closing date of the Sale-Leaseback Transaction, the Company entered into a Master Land and Building Lease (“Master Lease”) for the Properties. The proceeds received from the transaction were $337.2 million. The Master Lease calls for an initial term of twenty years and four, five-year options to extend the term. The Sale-Leaseback Transaction does not qualify as a sale under current U.S. GAAP. Accordingly, the Sale-Leaseback Transaction continues to be recorded under the financing method. The value of the land and leasehold improvements will remain on the Company's books and the leasehold improvements will continue to be depreciated over their remaining useful lives. The net proceeds received were recorded as a financing obligation. A portion of the lease payments is recorded as a decrease to the financing obligation and a portion is recognized as interest expense. In the event the lease obligation of any individual property or group of properties is assumed by a qualified franchisee, the portion of the transaction related to that property or group of properties is recorded as a sale in accordance with U.S. GAAP and the net book value of those properties will be removed from the Company's books, along with a ratable portion of the remaining financing obligation. As of December 31, 2022, the portion of the original Sale-Leaseback Transaction related to 160 of the 181 Properties has qualified as a sale by assignment of the lease obligation to a qualified franchisee or a release from the lessor. In accordance with the accounting described above, the property and equipment and financing obligations have each been cumulatively reduced by approximately $286.9 million. As of December 31, 2022, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows: Fiscal Years (In millions) 2023 $ 4.0 2024 4.6 2025 4.6 2026 4.9 2027 4.6 Thereafter 22.5 Total minimum lease payments 45.2 Less: interest (15.8) Total financing obligations 29.4 Less: current portion (1) (1.0) Long-term financing obligations $ 28.4 _________________________________ (1) Included in current maturities of finance lease and financing obligations on the consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases 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 purchase or leasing 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 530 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant 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 52 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and will be moving to Pasadena, California. In addition, the Company leases office space for restaurant support centers in Leawood, Kansas and Irving, Texas. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five The individual lease agreements do not provide information to determine the implicit interest rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities. 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 interest rate for each grouping primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption date; and (iii) adjustments for differences in years to maturity. The Company's lease cost for the years ended December 31, 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Finance lease cost: (In millions) Amortization of right-of-use assets $ 3.6 $ 4.6 $ 5.0 Interest on lease liabilities 4.5 5.4 6.6 Operating lease cost (1) 83.5 84.4 90.6 Variable lease cost 7.6 7.0 0.8 Short-term lease cost 0.0 0.1 0.0 Sublease income (106.8) (104.6) (96.8) Lease cost $ (7.6) $ (3.1) $ 6.2 _________________________________ (1) Operating lease cost for the years ended December 31, 2021 and 2020 previously disclosed as $98.7 million and $109.8 million, respectively, were overstated due to the inclusion of certain finance lease activity. The correct operating lease cost for the years ended December 31, 2021 and 2020 was $84.4 million and $90.6 million, respectively, as reflected in the above table. The overstatement only impacted this note disclosure, and there was no impact to the Consolidated Statement of Comprehensive Income. Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 The weighted average remaining lease term as of December 31, 2022 was 7.41 years for finance leases and 6.25 years for operating leases. The weighted average discount rate as of December 31, 2022 was 10.5% for finance leases and 5.5% for operating leases. During the years ended December 31, 2022, 2021 and 2020, the Company made the following cash payments for leases: Year Ended December 31, 2022 2021 2020 (In millions) Principal payments on finance lease obligations $ 8.9 $ 10.2 $ 12.5 Interest payments on finance lease obligations $ 4.5 $ 5.4 $ 6.6 Payments on operating leases $ 83.5 $ 91.7 $ 101.1 Variable lease payments $ 7.6 $ 6.2 $ 0.7 The Company's income from operating leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Minimum lease payments $ 96.4 $ 96.0 $ 97.2 Variable lease income 16.9 15.3 5.2 Total operating lease income $ 113.3 $ 111.3 $ 102.4 Future minimum payments to be received as lessor under noncancellable operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 103.6 2024 94.8 2025 82.1 2026 67.6 2027 49.5 Thereafter 122.0 Total minimum rents receivable $ 519.6 The Company's income from real estate leases receivable at December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Selling profit $ 0.9 $ — $ — Interest income 1.5 2.1 3.4 Variable lease income 0.7 0.5 0.3 Total financing lease income $ 3.1 $ 2.6 $ 3.7 Future minimum payments to be received as lessor under noncancellable real estate leases as of December 31, 2022 were as follows: (In millions) 2023 $ 4.7 2024 2.6 2025 1.8 2026 1.8 2027 1.8 Thereafter 12.4 Total minimum rents receivable 25.1 Less: unearned income (6.6) Total real estate leases receivable 18.5 Less: current portion (3.6) Long-term real estate leases receivable $ 14.9 |
Leases | Leases 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 purchase or leasing 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 530 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant 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 52 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and will be moving to Pasadena, California. In addition, the Company leases office space for restaurant support centers in Leawood, Kansas and Irving, Texas. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five The individual lease agreements do not provide information to determine the implicit interest rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities. 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 interest rate for each grouping primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption date; and (iii) adjustments for differences in years to maturity. The Company's lease cost for the years ended December 31, 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Finance lease cost: (In millions) Amortization of right-of-use assets $ 3.6 $ 4.6 $ 5.0 Interest on lease liabilities 4.5 5.4 6.6 Operating lease cost (1) 83.5 84.4 90.6 Variable lease cost 7.6 7.0 0.8 Short-term lease cost 0.0 0.1 0.0 Sublease income (106.8) (104.6) (96.8) Lease cost $ (7.6) $ (3.1) $ 6.2 _________________________________ (1) Operating lease cost for the years ended December 31, 2021 and 2020 previously disclosed as $98.7 million and $109.8 million, respectively, were overstated due to the inclusion of certain finance lease activity. The correct operating lease cost for the years ended December 31, 2021 and 2020 was $84.4 million and $90.6 million, respectively, as reflected in the above table. The overstatement only impacted this note disclosure, and there was no impact to the Consolidated Statement of Comprehensive Income. Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 The weighted average remaining lease term as of December 31, 2022 was 7.41 years for finance leases and 6.25 years for operating leases. The weighted average discount rate as of December 31, 2022 was 10.5% for finance leases and 5.5% for operating leases. During the years ended December 31, 2022, 2021 and 2020, the Company made the following cash payments for leases: Year Ended December 31, 2022 2021 2020 (In millions) Principal payments on finance lease obligations $ 8.9 $ 10.2 $ 12.5 Interest payments on finance lease obligations $ 4.5 $ 5.4 $ 6.6 Payments on operating leases $ 83.5 $ 91.7 $ 101.1 Variable lease payments $ 7.6 $ 6.2 $ 0.7 The Company's income from operating leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Minimum lease payments $ 96.4 $ 96.0 $ 97.2 Variable lease income 16.9 15.3 5.2 Total operating lease income $ 113.3 $ 111.3 $ 102.4 Future minimum payments to be received as lessor under noncancellable operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 103.6 2024 94.8 2025 82.1 2026 67.6 2027 49.5 Thereafter 122.0 Total minimum rents receivable $ 519.6 The Company's income from real estate leases receivable at December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Selling profit $ 0.9 $ — $ — Interest income 1.5 2.1 3.4 Variable lease income 0.7 0.5 0.3 Total financing lease income $ 3.1 $ 2.6 $ 3.7 Future minimum payments to be received as lessor under noncancellable real estate leases as of December 31, 2022 were as follows: (In millions) 2023 $ 4.7 2024 2.6 2025 1.8 2026 1.8 2027 1.8 Thereafter 12.4 Total minimum rents receivable 25.1 Less: unearned income (6.6) Total real estate leases receivable 18.5 Less: current portion (3.6) Long-term real estate leases receivable $ 14.9 |
Leases | Leases 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 purchase or leasing 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 530 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant 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 52 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and will be moving to Pasadena, California. In addition, the Company leases office space for restaurant support centers in Leawood, Kansas and Irving, Texas. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five The individual lease agreements do not provide information to determine the implicit interest rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities. 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 interest rate for each grouping primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption date; and (iii) adjustments for differences in years to maturity. The Company's lease cost for the years ended December 31, 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Finance lease cost: (In millions) Amortization of right-of-use assets $ 3.6 $ 4.6 $ 5.0 Interest on lease liabilities 4.5 5.4 6.6 Operating lease cost (1) 83.5 84.4 90.6 Variable lease cost 7.6 7.0 0.8 Short-term lease cost 0.0 0.1 0.0 Sublease income (106.8) (104.6) (96.8) Lease cost $ (7.6) $ (3.1) $ 6.2 _________________________________ (1) Operating lease cost for the years ended December 31, 2021 and 2020 previously disclosed as $98.7 million and $109.8 million, respectively, were overstated due to the inclusion of certain finance lease activity. The correct operating lease cost for the years ended December 31, 2021 and 2020 was $84.4 million and $90.6 million, respectively, as reflected in the above table. The overstatement only impacted this note disclosure, and there was no impact to the Consolidated Statement of Comprehensive Income. Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 The weighted average remaining lease term as of December 31, 2022 was 7.41 years for finance leases and 6.25 years for operating leases. The weighted average discount rate as of December 31, 2022 was 10.5% for finance leases and 5.5% for operating leases. During the years ended December 31, 2022, 2021 and 2020, the Company made the following cash payments for leases: Year Ended December 31, 2022 2021 2020 (In millions) Principal payments on finance lease obligations $ 8.9 $ 10.2 $ 12.5 Interest payments on finance lease obligations $ 4.5 $ 5.4 $ 6.6 Payments on operating leases $ 83.5 $ 91.7 $ 101.1 Variable lease payments $ 7.6 $ 6.2 $ 0.7 The Company's income from operating leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Minimum lease payments $ 96.4 $ 96.0 $ 97.2 Variable lease income 16.9 15.3 5.2 Total operating lease income $ 113.3 $ 111.3 $ 102.4 Future minimum payments to be received as lessor under noncancellable operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 103.6 2024 94.8 2025 82.1 2026 67.6 2027 49.5 Thereafter 122.0 Total minimum rents receivable $ 519.6 The Company's income from real estate leases receivable at December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Selling profit $ 0.9 $ — $ — Interest income 1.5 2.1 3.4 Variable lease income 0.7 0.5 0.3 Total financing lease income $ 3.1 $ 2.6 $ 3.7 Future minimum payments to be received as lessor under noncancellable real estate leases as of December 31, 2022 were as follows: (In millions) 2023 $ 4.7 2024 2.6 2025 1.8 2026 1.8 2027 1.8 Thereafter 12.4 Total minimum rents receivable 25.1 Less: unearned income (6.6) Total real estate leases receivable 18.5 Less: current portion (3.6) Long-term real estate leases receivable $ 14.9 |
Leases | Leases 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 purchase or leasing 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 530 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant 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 52 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and will be moving to Pasadena, California. In addition, the Company leases office space for restaurant support centers in Leawood, Kansas and Irving, Texas. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five The individual lease agreements do not provide information to determine the implicit interest rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities. 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 interest rate for each grouping primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption date; and (iii) adjustments for differences in years to maturity. The Company's lease cost for the years ended December 31, 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Finance lease cost: (In millions) Amortization of right-of-use assets $ 3.6 $ 4.6 $ 5.0 Interest on lease liabilities 4.5 5.4 6.6 Operating lease cost (1) 83.5 84.4 90.6 Variable lease cost 7.6 7.0 0.8 Short-term lease cost 0.0 0.1 0.0 Sublease income (106.8) (104.6) (96.8) Lease cost $ (7.6) $ (3.1) $ 6.2 _________________________________ (1) Operating lease cost for the years ended December 31, 2021 and 2020 previously disclosed as $98.7 million and $109.8 million, respectively, were overstated due to the inclusion of certain finance lease activity. The correct operating lease cost for the years ended December 31, 2021 and 2020 was $84.4 million and $90.6 million, respectively, as reflected in the above table. The overstatement only impacted this note disclosure, and there was no impact to the Consolidated Statement of Comprehensive Income. Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 The weighted average remaining lease term as of December 31, 2022 was 7.41 years for finance leases and 6.25 years for operating leases. The weighted average discount rate as of December 31, 2022 was 10.5% for finance leases and 5.5% for operating leases. During the years ended December 31, 2022, 2021 and 2020, the Company made the following cash payments for leases: Year Ended December 31, 2022 2021 2020 (In millions) Principal payments on finance lease obligations $ 8.9 $ 10.2 $ 12.5 Interest payments on finance lease obligations $ 4.5 $ 5.4 $ 6.6 Payments on operating leases $ 83.5 $ 91.7 $ 101.1 Variable lease payments $ 7.6 $ 6.2 $ 0.7 The Company's income from operating leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Minimum lease payments $ 96.4 $ 96.0 $ 97.2 Variable lease income 16.9 15.3 5.2 Total operating lease income $ 113.3 $ 111.3 $ 102.4 Future minimum payments to be received as lessor under noncancellable operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 103.6 2024 94.8 2025 82.1 2026 67.6 2027 49.5 Thereafter 122.0 Total minimum rents receivable $ 519.6 The Company's income from real estate leases receivable at December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Selling profit $ 0.9 $ — $ — Interest income 1.5 2.1 3.4 Variable lease income 0.7 0.5 0.3 Total financing lease income $ 3.1 $ 2.6 $ 3.7 Future minimum payments to be received as lessor under noncancellable real estate leases as of December 31, 2022 were as follows: (In millions) 2023 $ 4.7 2024 2.6 2025 1.8 2026 1.8 2027 1.8 Thereafter 12.4 Total minimum rents receivable 25.1 Less: unearned income (6.6) Total real estate leases receivable 18.5 Less: current portion (3.6) Long-term real estate leases receivable $ 14.9 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments In some instances, the Company enters into commitments to purchase advertising and other items. Most of these agreements are fixed price purchase commitments. At December 31, 2022, the outstanding purchase commitments were $95.6 million, of which $86.3 million related to advertising commitments over the next twelve months. Lease Guarantees In connection with the sale of Applebee's restaurants to franchisees and other parties, the Company has, in certain cases, guaranteed or had potential continuing liability for lease payments. The Company had outstanding lease guarantees or was contingently liable for approximately $445.1 million and $223.1 million as of December 31, 2022 and 2021, respectively. These amounts represent the maximum potential liability of 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 2023 through 2058. Excluding unexercised option periods, the Company's potential liability for future payments under these leases as of December 31, 2022 was $102.9 million. In the event of default, the indemnity and default clauses in our sale or assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities for these guarantees have been recorded as of December 31, 2022. Litigation, Claims and Disputes The Company is subject to various lawsuits, governmental inspections, 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 to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of the Company's litigation are expensed as such fees and expenses are incurred. In the opinion of management, these matters are adequately covered by insurance or, if not so covered, are without merit or are of such a nature or involve amounts that would not have a material adverse impact on the Company's business or consolidated financial statements. Management regularly assesses the Company's insurance deductibles, analyzes litigation information with the Company's attorneys and evaluates its loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which the Company 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. Letters of Credit The Company provides letters of credit, primarily to various insurance carriers to collateralize obligations for outstanding claims. As of December 31, 2022, the Company had approximately $3.4 million of unused letters of credit outstanding that reduce the Company's available borrowing under its 2022 Class A-1 Notes. These letters of credit expire on various dates in 2023 and are automatically renewed for an additional year if no cancellation notice is submitted. |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Stock Repurchase Programs 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 (the “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. On February 17, 2022, the Company's Board of Directors authorized a new share repurchase program, effective April 1, 2022, of up to $250 million (the “2022 Repurchase Program”). In connection with the approval of the 2022 Repurchase Program, the 2019 Repurchase Program terminated effective April 1, 2022. In 2022, the Company repurchased 588,108 shares of common stock at a cost of $41.4 million under the 2019 Repurchase Program through April 1, 2022. A summary of shares repurchased under the 2022 Repurchase Program and the 2019 Repurchase Program, during the years ended December 31, 2022, 2021 and 2020, and cumulatively for each program, is as follows: Shares Cost of shares (In millions) 2022 Repurchase Program Repurchased during the year ended December 31, 2022 1,149,589 $ 78.7 Cumulative (life-of-program) repurchases 1,149,589 $ 78.7 Remaining dollar value of shares that may be repurchased n/a $ 171.3 2019 Repurchase Program Repurchased during the year ended December 31, 2022 588,108 $ 41.4 Repurchased during the year ended December 31, 2021 59,099 $ 4.5 Repurchased during the year ended December 31, 2020 459,899 $ 26.5 Cumulative (life-of-program) repurchases 2,344,804 $ 175.8 Remaining dollar value of shares that may be repurchased n/a $ 24.2 Dividends During the fiscal years ended December 31, 2022, 2021 and 2020, the Company declared and paid dividends on common stock as follows: Year ended December 31, 2022 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) (In millions) Payment of prior year declaration (3) January 7, 2022 $ — $ 0.40 $ 6.9 First quarter February 17, 2022 April 1, 2022 0.46 0.46 7.8 Second quarter May 12, 2022 July 8, 2022 0.51 0.51 8.2 Third quarter September 9, 2022 September 30, 2022 0.51 0.51 8.1 Fourth quarter December 2, 2022 (2) 0.51 — — Total $ 1.99 $ 1.88 $ 31.0 Year ended December 31, 2021 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) Fourth quarter December 20, 2021 (3) $ 0.40 $ — $ — Total $ 0.40 $ — $ — Year ended December 31, 2020 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) Payment of prior year declaration (4) January 10, 2020 $ — $ 0.69 $ 11.7 First quarter February 20, 2020 April 3, 2020 0.76 0.76 12.7 Total $ 0.76 $ 1.45 $ 24.4 (1) Includes dividend equivalents paid on restricted stock units. (2) The fourth quarter 2022 dividend of $8.0 million was paid on January 6, 2023. (3) The fourth quarter 2021 dividend of $6.9 million was paid on January 7, 2022. (4) The fourth quarter 2019 dividend of $11.7 million was paid on January 10, 2020. Dividends declared on common stock are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends in excess of retained earnings are recorded as a reduction of additional paid-in capital. All dividends declared during the fiscal years ended December 31, 2022, 2021 and 2020 were declared from retained earnings. |
Closure and Long-lived Tangible
Closure and Long-lived Tangible Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Charges [Abstract] | |
Closure and Long-lived Tangible Asset Impairment Charges | Closure and Long-lived Tangible Asset Impairment Charges Closure and long-lived tangible asset impairment charges for the years ended December 31, 2022, 2021 and 2020 were as follows: Year Ended December 31, 2022 2021 2020 (In millions) Closure charges $ 1.7 $ 3.7 $ 3.0 Long-lived tangible asset impairment 1.4 1.7 22.3 Total closure and long-lived tangible asset impairment charges $ 3.1 $ 5.4 $ 25.3 Closure Charges The closure charges of $1.7 million for the year ended December 31, 2022 comprised $0.4 million related to three IHOP restaurants closed in fiscal 2022 and $1.3 million for revisions to existing closure reserves, including accretion, primarily for approximately 40 IHOP restaurants closed prior to December 31, 2021. The closure charges of $3.7 million for the year ended December 31, 2021 comprised $2.1 million related to 20 IHOP restaurants closed in 2021 and $1.6 million for revisions to existing closure reserves, including accretion, primarily for 28 IHOP restaurants closed prior to December 31, 2020. Approximately $1.6 million of closure charges for the year ended December 31, 2020 related to seven IHOP restaurants closed during 2020, with the remainder primarily related to adjustments to the reserve for IHOP and Applebee's restaurants closed prior to 2020. Long-lived Tangible Asset Impairment The long-lived asset impairment of $1.4 million for the year ended December 31, 2022 related to five IHOP franchisee-operated restaurants for which the carrying amount exceeded the future projected cash flows. The primary method of estimating fair value is based on a discounted cash flow analysis. The Company also considers factors such as the number of years the restaurant has been in operation, sales trends, cash flow trends, remaining lease life and other factors which apply on a case-by-case basis. For locations owned by the Company, current purchase offers, if any, or valuations from independent third party sources are utilized, if available. The analysis is performed at the restaurant level for indicators of permanent impairment. The impairment recorded represented the difference between the carrying value and the estimated fair value. The impairments primarily related to operating lease right-of-use assets. The long-lived asset impairment of $1.7 million for the year ended December 31, 2021 related to five IHOP franchisee-operated restaurants for which the carrying amount exceeded the future projected cash flows. The long-lived asset impairment of $22.3 million for the year ended December 31, 2020 related to 29 Applebee's company-operated restaurants and 29 IHOP franchisee-operated restaurants for which the carrying amount exceeded the undiscounted cash flows. Approximately $15.1 million of the total impairment related to operating lease right-of-use assets, while $7.2 million related to impairments of land, building, leasehold improvements and finance leases. The impairments by individual property varied in amount, ranging from the largest single-property impairment of $1.3 million to less than $5,000. |
Stock-Based Incentive Plans
Stock-Based Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Incentive Plans | Stock-Based Incentive Plans General Description Currently, the Company is authorized to grant stock options, stock appreciation rights, restricted stock, cash-settled and stock-settled restricted stock units and performance units to officers, other employees and non-employee directors under the Dine Brands Global, Inc. 2019 Stock Incentive Plan (the “2019 Plan”). The 2019 Plan was approved by stockholders on May 14, 2019 to permit the issuance of up to 2,050,000 shares (subject to adjustment as defined in the 2019 Plan for shares that may become available from prior plans) of the Company’s common stock for incentive stock awards. The 2019 Plan will expire in May 2029. The Dine Brands Global, Inc. 2016 Stock Incentive Plan (the “2016 Plan”) was adopted in 2016 to permit the issuance of up to 3,750,000 shares of the Company’s common stock for incentive stock awards. The 2016 Plan was terminated upon adoption of the 2019 Plan, but there are stock options (vested and unvested) and unvested restricted stock and restricted stock units issued under the 2016 Plan that are outstanding as of December 31, 2022. The DineEquity, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) was adopted in 2011 to permit the issuance of up to 1,500,000 shares of the Company’s common stock for incentive stock awards. The 2011 Plan was terminated upon adoption of the 2016 Plan, but there are vested stock options issued under the 2011 Plan that are outstanding as of December 31, 2022. The 2019 Plan, 2016 Plan and the 2011 Plan are collectively referred to as the “Plans.” Stock-Based Compensation Expense From time to time, the Company has granted non-qualified stock options, restricted stock, cash-settled and stock-settled restricted stock units and performance units to officers, other employees and non-employee directors of the Company under the Plans. The non-qualified stock options generally vest ratably over a three-year period in one-third increments and have a maturity of ten years from the grant date. Options vest immediately upon a change in control of the Company, as defined in the Plans. Option exercise prices equal the closing price of the Company's common stock on the New York Stock Exchange on the date of grant. Restricted stock and restricted stock units are issued at no cost to the holder and vest over terms determined by the Compensation Committee of the Company's Board of Directors, generally either three years from the date of grant or in one-third increments over three years, as well as immediately upon a change in control of the Company, as defined in the Plans. The Company either utilizes treasury stock or issues new shares from its authorized but unissued share pool when vested stock options are exercised, when restricted stock awards are granted and when restricted stock units settle in stock upon vesting. See Note 12, Stockholders' Deficit , of Notes to the Consolidated Financial Statements, for treasury shares utilized related to equity grants during the years ended December 31, 2022, 2021 and 2020. The following table summarizes the Company's stock-based compensation expense included as a component of general and administrative expenses in the consolidated financial statements: Year Ended December 31, 2022 2021 2020 (In millions) Stock-based compensation expense Equity classified awards expense $ 16.2 $ 11.6 $ 12.6 Liability classified awards expense 1.4 2.3 1.0 Total pretax stock-based compensation expense 17.6 13.9 13.6 Book income tax benefit (3.5) (3.5) (3.4) Total stock-based compensation expense, net of tax $ 14.1 $ 10.4 $ 10.2 As of December 31, 2022, total unrecognized compensation cost related to restricted stock and restricted stock units of $17.5 million and $2.7 million related to stock options is expected to be recognized over a weighted average period of approximately 1.5 years for restricted stock and restricted stock units and 1.3 years for stock options. Equity Classified Awards - Stock Options The per share fair values of the stock options granted have been estimated as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes model considers, among other factors, the expected life of the option and the historical volatility of the Company's stock price. The Black-Scholes model meets the requirements of U.S. GAAP, but the fair values generated by the model may not be indicative of the actual fair values of the Company's stock-based awards. The following table summarizes the assumptions used in the Black-Scholes model for stock options granted in the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Risk free interest rate 1.7 % 0.5 % 1.2 % Weighted average historical volatility 70.1 % 67.7 % 30.5 % Dividend yield 2.6 % — % 3.5 % Expected years until exercise 4.5 4.5 4.6 Weighted average fair value of options granted $ 33.23 $ 40.25 $ 17.53 Stock option activity for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: Number of Weighted Average Weighted Average Aggregate Intrinsic Outstanding at December 31, 2019 1,217,438 $ 66.43 Granted 167,969 87.17 Exercised (270,024) 76.01 Forfeited (45,247) 86.39 Expired (55,466) 107.78 Outstanding at December 31, 2020 1,014,670 64.16 Granted 95,891 75.28 Exercised (524,536) 48.79 Forfeited (59,468) 88.39 Expired (50,653) 98.61 Outstanding at December 31, 2021 475,904 76.65 Granted 75,795 70.08 Exercised (3,505) 68.80 Forfeited (6,171) 81.13 Expired (2,448) 94.43 Outstanding at December 31, 2022 539,575 $ 75.65 6.8 $ 3.5 Vested and Expected to Vest at December 31, 2022 528,037 $ 75.72 5.9 $ 1.5 Exercisable at December 31, 2022 378,811 $ 75.95 4.9 $ 1.3 The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $37 thousand, $17.9 million and $4.3 million, respectively. Cash received from options exercised under all stock-based payment arrangements for the years ended December 31, 2022, 2021 and 2020 was $0.2 million, $25.3 million and $20.5 million, respectively. The actual tax benefit realized for the tax deduction from option exercises under the stock-based payment arrangements totaled $9 thousand, $4.5 million and $1.1 million, respectively, for the years ended December 31, 2022, 2021 and 2020. Equity Classified Awards - Restricted Stock and Restricted Stock Units Activity in equity classified awards of restricted stock and restricted stock units for the years ended December 31, 2022, 2021 and 2020 is as follows: Shares of Restricted Stock Weighted Average Restricted Weighted Average Outstanding at December 31, 2019 224,515 $ 70.52 357,807 $ 30.35 Granted 163,522 73.68 30,997 77.33 Released (95,211) 55.75 (33,234) 63.98 Forfeited (38,495) 85.03 — — Outstanding at December 31, 2020 254,331 76.50 355,570 28.01 Granted 141,264 83.24 68,998 63.04 Released (60,407) 66.90 (318,976) 23.19 Forfeited (58,577) 82.09 — — Outstanding at December 31, 2021 276,611 80.85 105,592 71.00 Granted 201,789 70.12 60,914 49.36 Released (98,864) 86.36 (42,611) 66.63 Forfeited (23,636) 75.89 — — Outstanding at December 31, 2022 355,900 $ 73.57 123,895 $ 62.11 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 Outstanding at December 31, 2019 63,852 Granted 2,658 Released (1,426) Forfeited (12,128) Outstanding at December 31, 2020 52,956 Granted — Released (38,916) Forfeited (1,241) Outstanding at December 31, 2021 12,799 Granted 67 Released (12,866) Forfeited — Outstanding at December 31, 2022 — For the years ended December 31, 2022, 2021 and 2020, $0.2 million, $1.5 million and, $0.3 million respectively, was included as stock-based compensation expense related to cash-settled restricted stock units. At December 31, 2022 and 2021, liabilities of zero and $0.9 million, respectively, related to cash-settled restricted stock units were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets. Liability Classified Awards - Long-Term Incentive Awards The Company has granted cash long-term incentive awards to certain employees (“LTIP awards”). Annual LTIP awards vest over a three-year period and are determined using a multiplier from 0% to 200% of the target award based on the total stockholder return of the Company's common stock compared to the total stockholder returns of a peer group of companies. Though LTIP awards are only paid in cash, since the multiplier is primarily based on the price of the Company's common stock, the awards are considered stock-based compensation in accordance with U.S. GAAP and are classified as liabilities. For the years ended December 31, 2022, 2021 and 2020, expense of $1.2 million, $0.8 million and $0.7 million, respectively, was included in stock-based compensation expense related to the LTIP awards. At December 31, 2022 and 2021, liabilities of $2.1 million and $1.5 million, respectively, were included as accrued employee compensation and benefits in the Consolidated Balance Sheets. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans401(k) Savings and Investment PlanEffective January 1, 2013, the Company amended the Dine Brands Global, Inc. 401(k) Plan to (i) modify the Company matching formula and (ii) eliminate the one-year completed service requirement that previously had to be met to become eligible for Company matching contributions. As amended, the Company matches 100% of the first four percent of the employee's eligible compensation deferral and 50% of the next two percent of the employee's eligible compensation deferral. All contributions under this plan vest immediately. Company common stock is not an investment option for employees in the 401(k) Plan, other than shares transferred from a prior employee stock ownership plan. Substantially all of the administrative cost of the 401(k) plan is borne by the Company. The Company's matching contribution expense was $3.3 million, $2.9 million and $2.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Provision (benefit) for income taxes (In millions) Current Federal $ 27.5 $ 20.2 $ 11.0 State 5.5 4.6 3.1 Foreign 1.8 1.4 1.3 34.8 26.2 15.4 Deferred Federal (3.8) (2.3) (17.3) State 2.7 0.2 (2.7) (1.1) (2.1) (20.0) Provision (benefit) for income taxes $ 33.7 $ 24.1 $ (4.6) The provision (benefit) for income taxes differs from the expected federal income tax rates as follows: Year Ended December 31, 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Non-deductibility of goodwill 0.8 — (17.9) Non-deductibility of officer's compensation 2.9 2.2 (0.9) State and other taxes, net of federal tax benefit 3.1 3.1 1.2 Excess tax deficiencies or benefits (0.5) (7.1) 0.1 Change in unrecognized tax benefits — (0.1) 2.0 Change in valuation allowance (0.3) 0.5 (1.5) Changes in tax rates and state tax laws 3.4 0.2 (0.4) General business credits (1.4) (0.9) 0.8 Other 0.3 0.8 (0.2) Effective tax rate 29.3 % 19.7 % 4.2 % The fiscal year 2022 effective tax rate of 29.3% applied to pretax book income was different than the statutory Federal income tax rate of 21% due to the state and local income taxes and the non-deductibility of executive compensation. The effective tax rate further increased due to the increase in the effective state tax rate applied to revaluing deferred tax balances. The increase in the effective state tax rate was due to the non-recurring refranchising of 69 Applebee’s company-operated restaurants in the fourth quarter of 2022 and various state legislative changes. The fiscal year 2021 effective tax rate of 19.7% applied to pretax book income was different than the statutory Federal income tax rate of 21% primarily due to the one-time recognition of excess tax benefits on stock-based compensation, offset by non-deductibility of executive compensation and state and local income taxes. The fiscal year 2020 effective tax rate of 4.2% applied to pretax book loss was significantly different than the statutory Federal income tax rate of 21% primarily because of the $92.2 million impairment of goodwill incurred, which was not deductible for income tax purposes and therefore had no associated tax benefit. The Company files federal income tax returns and the Company or one of its subsidiaries file income tax returns in various state and international jurisdictions. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2018 and state or non-United States tax examinations by tax authorities for years before 2011. The Company believes that adequate reserves have been recorded relating to all matters contained in the tax periods open to examination. Net deferred tax assets (liabilities) at December 31, 2022 and 2021 consisted of the following components: 2022 2021 (In millions) Lease liabilities $ 93.6 $ 112.9 Employee compensation 9.7 12.1 Revenue recognition 37.1 35.4 Other 8.4 8.4 Deferred tax assets 148.8 168.8 Valuation allowance (3.5) (4.2) Total deferred tax assets after valuation allowance 145.3 164.6 Recognition of franchise and equipment sales (6.7) (8.2) Capitalization and depreciation (1) (121.0) (122.7) Lease assets (90.8) (108.6) Other (1.5) (1.3) Deferred tax liabilities (220.0) (240.8) Net deferred tax liabilities $ (74.7) $ (76.2) _________________________________ (1) Primarily related to the 2007 Applebee's acquisition. As of each reporting date, the Company considers new evidence, both positive and negative, that could impact management’s view with regards to future realization of deferred tax assets. During fiscal 2022, we released a valuation allowance of $1.1 million related to state deferred tax assets based on positive evidence which suggests that deferred tax assets will be more likely than not to be realizable in the future. We also believe that the future realizability of benefits arising from foreign tax credit carryforwards and certain state net operating loss carryforwards does not meet the more-likely-than-not threshold. In recognition of this risk, there is a valuation allowance of $3.5 million as of December 31, 2022. The Company had gross operating loss carryforwards for state tax purposes of $37.9 million and $23.6 million as of December 31, 2022 and 2021, respectively. Certain net operating loss carryforwards will expire in 2029 if not utilized. The total gross unrecognized tax benefit as of December 31, 2022 and 2021 was $2.1 million and $1.9 million, respectively, excluding interest, penalties and related income tax benefits. If recognized, these amounts would affect the Company's effective income tax rates. The Company estimates the unrecognized tax benefits may decrease over the upcoming 12 months by an amount up to less than $0.5 million related to settlements with taxing authorities and statute of limitations expirations. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonable estimate as to when cash settlement with a taxing authority will occur. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2022 2021 2020 (In millions) Unrecognized tax benefit as of January 1 $ 1.9 $ 2.2 $ 7.6 Changes for tax positions of prior years 0.1 0.5 — Increases for tax positions related to the current year 0.4 0.3 0.2 Decreases relating to settlements and lapsing of statutes of limitations (0.3) (1.1) (5.6) Unrecognized tax benefit as of December 31 $ 2.1 $ 1.9 $ 2.2 As of December 31, 2022, the accrued interest was $0.7 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. As of December 31, 2021, the accrued interest and penalties were $0.6 million and less than $0.1 million, respectively, excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss). |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net Income (Loss) Per Share The computation of the Company's basic and diluted net income (loss) per share is as follows: Year Ended December 31, 2022 2021 2020 (in thousands, except per share data) Numerator for basic and diluted income (loss) per common share Net income (loss) $ 81,111 $ 97,864 $ (103,994) Less: Net income allocated to unvested participating restricted stock (2,174) (2,295) (420) Net income (loss) available to common stockholders - basic 78,937 95,569 (104,414) Effect of unvested participating restricted stock 1 13 — Numerator - income (loss) available to common shareholders - diluted $ 78,938 $ 95,582 $ (104,414) Denominator Weighted average outstanding shares of common stock - basic 15,873 16,799 16,230 Effect of dilutive securities: Stock options 28 91 — Weighted average outstanding shares of common stock - diluted 15,901 16,890 16,230 Net income (loss) per common share Basic $ 4.97 $ 5.69 $ (6.43) Diluted $ 4.96 $ 5.66 $ (6.43) For the year ended December 31, 2020, diluted loss per common share was computed using the basic weighted average number of shares outstanding during the period as the 100,056 shares from common stock equivalents would have been antidilutive. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Information on segments and a reconciliation of gross profit to income (loss) before income taxes is as follows: Year Ended December 31, 2022 2021 2020 Revenues (In millions) Franchise operations $ 662.4 $ 631.9 $ 469.5 Rental operations 116.5 113.9 105.9 Company restaurants 126.9 146.0 108.1 Financing operations 3.6 4.3 5.8 Total $ 909.4 $ 896.2 $ 689.3 Gross profit (loss), by segment Franchise operations $ 340.5 $ 336.0 $ 230.5 Rental operations 28.5 26.1 16.4 Company restaurants 5.1 9.3 (3.5) Financing operations 3.2 3.8 5.3 Total gross profit 377.3 375.2 248.7 Corporate and unallocated expenses, net (262.6) (253.3) (357.3) Income (loss) before income taxes $ 114.8 $ 121.9 $ (108.6) Interest expense Rental operations $ 4.3 $ 4.9 $ 6.3 Company restaurants 2.6 3.3 2.7 Corporate 60.7 63.3 66.9 Total $ 67.6 $ 71.5 $ 75.9 Depreciation and amortization Franchise operations $ 10.0 $ 10.1 $ 10.1 Rental operations 10.7 11.1 12.3 Company restaurants 4.3 7.0 7.0 Corporate 13.0 11.7 13.4 Total $ 38.0 $ 39.9 $ 42.8 Goodwill and intangible assets, closure and other impairment charges Franchise operations $ 3.1 $ 1.7 $ 122.1 Company restaurants — 3.7 10.5 Total $ 3.1 $ 5.4 $ 132.6 Capital expenditures Company restaurants $ 4.3 $ 6.5 $ 2.7 Corporate 31.0 10.3 8.2 Total $ 35.3 $ 16.8 $ 10.9 Goodwill Franchise operations $ 254.0 $ 247.0 $ 247.0 Company restaurants — 4.6 4.6 Total $ 254.0 $ 251.6 $ 251.6 Total assets Franchise operations $ 1,123.0 $ 991.0 $ 997.7 Rental operations 390.6 426.6 451.5 Company restaurants 3.3 117.2 121.1 Financing operations 31.8 39.7 49.9 Corporate 332.8 424.9 454.7 Total $ 1,881.5 $ 1,999.4 $ 2,074.9 |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisition On December 13, 2022, the Company purchased all of the issued and outstanding membership interests of Fuzzy’s for approximately $80 million in cash, pursuant to the Membership Interest Purchase Agreement, dated as of December 2, 2022, with Fuzzy’s becoming a wholly-owned subsidiary of the Company. Fuzzy’s is a dining company that develops, franchises and operates casual dining restaurants that offer a specialized menu of Baja-style Mexican food under the Fuzzy’s Taco Shop brand. The Company acquired Fuzzy’s as part of the Company’s goal to investing in a high growth concept to accelerate growth. The Company reviewed the SEC guidance in Regulation S-X on the significance of an acquired business that determines if an acquired business is required to provide financial statements and pro forma statements if the business exceeds 20% significance to the Company. Based on the three required tests (asset, investment and income) that were performed by the Company, the acquisition was not deemed to be a significant acquisition, and therefore the required disclosures are limited in these Consolidated Financial Statements. The results of operations related to Fuzzy's have been included in the consolidated results of the Company subsequent to the acquisition date. The acquisition of Fuzzy’s has been accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations , with the Company treated as the accounting acquirer, which requires that the assets acquired, and liabilities assumed be recognized at their acquisition date fair value. The Company received a third-party actuarial valuation report to determine the fair value assigned to the assets acquired and liabilities assumed. The intangible assets acquired include franchising rights with an estimated useful life of 20 years and a tradename with an indefinite useful life (see Note 7). The fair value of franchising rights was estimated based on the estimated future cash flows to be generated from these franchise agreements. The earnings expected to be generated by the franchising rights were forecasted over the estimated duration of the intangible asset. The earnings were then discounted to present value at a rate commensurate with the risk of the asset. The fair value of the tradename was estimated based on the multi-period excess earnings method, a variation of the income approach, using cash flows (“excess earnings”) attributable only to the tradename intangible asset. These excess earnings were discounted to present value at a rate commensurate with the risk of the asset. The fair value of the tangible personal property and other working capital assets and liabilities was assumed to approximate book value. Operating lease liabilities were calculated using the present value of lease payments not yet paid and operating lease assets were calculated based upon the operating lease liabilities adjusted for prepayments or accrued lease payments. The contractual rent payments were determined to approximate market rates. The following table summarizes the estimated fair value of net assets acquired at December 13, 2022: (In millions) Receivables and other current assets $ 1.1 Property and equipment and other non-current assets 2.1 Tradename 57.2 Franchise agreements 14.8 Other intangible assets 0.5 Goodwill 7.0 Accounts payable and other liabilities (4.4) Net cash paid for acquisition $ 78.3 The excess of the purchase price over the fair value of identifiable net assets acquired amounted to approximately $7.0 million. The acquisition goodwill arises from the expected synergies from combining the operations of the Company and Fuzzy’s. The allocation of the purchase price is subject to potential changes due to working capital adjustments expected to be completed within approximately 90 days of the acquisition date. The Company’s goodwill balance also may change during the allowable allocation period, which is up to one year from the acquisition date if additional information becomes available. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 16, 2023, the Company's Board of Directors authorized a debt repurchase program of up to $100 million. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Dine Brands Global, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Periods | Fiscal PeriodsThe Company has a 52/53 week fiscal year that ends on the Sunday nearest to December 31 of each year. In a 52-week fiscal year, each fiscal quarter contains 13 weeks, comprised of two, four-week fiscal months followed by a five-week fiscal month. In a 53-week fiscal year, the last month of the fourth fiscal quarter contains six weeks. For convenience, the Company refers to its fiscal years as ending on December 31 and its fiscal quarters as ending on March 31, June 30 and September 30. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires the Company's management to make estimates and assumptions 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 tangible and intangible assets and goodwill; 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. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the outbreak of a novel strain of coronavirus, designated “COVID-19” and declared to be a pandemic in March 2020. The Company first began to experience impacts from COVID-19 in March 2020, as federal, state and local governments reacted to the public health crisis by encouraging and/or requiring social distancing, instituting shelter-in-place orders, and requiring, in varying degrees, restaurant dine-in limitations and other restrictions that largely limited the restaurants of the Company's franchisees and its company-operated restaurants to take-out and delivery sales during the initial stages of the pandemic. Subsequently, government-imposed dine-in restrictions have been relaxed, removed and reinstated as incidents of infection decrease or increase within the respective governmental jurisdictions. As of December 31, 2022, almost all of the restaurants were open and operating without government-mandated restriction. We cannot predict how long the pandemic will last, whether/when recurrences of the virus and its variants may arise, what restrictions on in-restaurant dining may be enacted or re-enacted, the availability and acceptance of vaccines, the timing and extent of customer re-engagement with the Company's brands and, in general, what the short- and long-term impact on consumer discretionary spending the COVID-19 pandemic might have on the Company and the restaurant industry as a whole, all of which are uncertain and cannot be predicted. As such, the extent to which the COVID-19 pandemic may continue to materially impact the Company's financial condition, liquidity, or results of operations remains highly uncertain. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's cash, cash equivalents, restricted cash and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are creditworthy. The Company does not believe that it is exposed to any significant credit risk on cash, cash equivalents and restricted cash. At times, cash, cash equivalents and restricted cash balances may be in excess of FDIC insurance limits. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. These cash equivalents are stated at cost which approximates market value. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds. |
Restricted Cash | Restricted Cash Current Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's and Fuzzy's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. The components of current restricted cash were as follows: December 31, 2022 2021 (In millions) Securitized debt reserves $ 32.4 $ 29.9 Applebee's advertising funds 5.4 17.5 Other 1.1 0.1 Total current restricted cash $ 38.9 $ 47.5 Non-current Non-current restricted cash of $16.4 million and $16.4 million at December 31, 2022 and 2021, respectively, represents interest reserves set aside for the duration of the securitized debt. The required reserve is approximately one quarter's interest payment on the Company's securitized debt. The Company voluntarily increased the amount held in non-current cash to twice the required amount during the year ended December 31, 2020 and reduced the reserve back to the minimum amount during the year ended December 31, 2021. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Properties under finance leases are stated at the present value of the minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or remaining useful lives. Leasehold improvements and properties under finance leases are amortized on a straight-line basis over their estimated useful lives or the lease term, if less. The general ranges of depreciable and amortizable lives are as follows: Category Depreciable Life Buildings and improvements 25 to 40 years Leaseholds and improvements Shorter of primary lease term or between three Equipment and fixtures Three Internal-use software Three Properties under finance leases Primary lease term or remaining primary lease term |
Long-Lived Assets | Long-Lived Assets On a regular basis, the Company assesses whether events or changes in circumstances have occurred that potentially indicate the carrying value of long-lived assets (primarily assets related to property and equipment leased or subleased to franchisees) may not be recoverable. The analysis is performed at the restaurant level for indicators of impairment. The Company tests for impairment using current and historical operating results and cash flows as well as other relevant facts and circumstances as the primary basis for estimates of future cash flows. The Company considers factors such as the number of years the franchisee's restaurant has been in operation, sales trends, cash flow trends, remaining lease life and other factors which apply on a case-by-case basis. Continuing losses associated with an asset are an indicator of impairment. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is recorded when the aggregate purchase price of an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Intangible assets resulting from an acquisition are accounted for using the purchase method of accounting and are estimated by management based on the fair value of the assets received. The Company's identifiable intangible assets are comprised primarily of the Applebee's tradename and Applebee's franchise agreements and as of December 2022, the Fuzzy's tradename and Fuzzy's franchise agreements. Identifiable intangible assets with finite lives (franchise agreements) are amortized over the period of estimated benefit using the straight-line method and estimated useful lives. Goodwill and intangible assets considered to have an indefinite life (primarily the tradenames) are not subject to amortization. The determination of indefinite life is subject to reassessment if changes in facts and circumstances indicate the period of benefit has become finite. Goodwill has been allocated to four reporting units. The significant majority of the Company's goodwill resulted from the November 29, 2007 acquisition of Applebee's and was allocated to the Applebee's franchised restaurants unit (“Applebee's franchise unit”). Smaller amounts of goodwill arising from other business combinations have been allocated to the Fuzzy's franchised restaurants unit (“Fuzzy's franchise unit”), the IHOP franchised restaurants unit (“IHOP franchise unit”) and the Applebee's company restaurants unit (“Applebee's company unit”). See Note 6 - Goodwill , of the Notes to the Consolidated Financial Statements for additional information. The Company evaluates the goodwill of the Applebee's franchise and company units and the indefinite-lived Applebee's tradename for impairment as of October 31 of each year. The Company evaluates the goodwill of the IHOP franchise unit and the Fuzzy's franchise unit for impairment as of December 31 of each year. In addition to the annual evaluation for impairment, goodwill and indefinite-lived intangible assets are evaluated more frequently if the Company believes indicators of impairment exist. When evaluating goodwill and indefinite-lived intangible assets for impairment, under U.S. GAAP, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit or the intangible asset is more-likely-than-not greater than the carrying amount. Such qualitative factors include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, current and future income tax rates, the competitive environment, fluctuations in the market value of the Company's common stock, absolute and relative to peers, overall financial performance and results of past impairment tests. If, based on a review of the qualitative factors, the Company determines it is more-likely-than-not that the fair value is greater than the carrying value, the Company may bypass a quantitative test for impairment. In performing the quantitative test for impairment of goodwill, the Company primarily uses the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method. Significant assumptions used to determine fair value under the discounted cash flow method include expected future trends in sales, operating expenses, overhead expenses, capital expenditures and changes in working capital, along with an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt. Significant assumptions used to determine fair value under the guideline public company method include the selection of guideline companies and the valuation multiples applied. The Company measures impairment as the excess of a reporting unit's carrying amount over its fair value as determined by the quantitative test described above. |
Business Combinations | Business Combinations From time to time, we may enter into business combinations. In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, the Company applies the acquisition method for acquisitions that meet the definition of a business combination. Under the acquisition method, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. Acquired intangible assets are valued using different methods under the income approach, including but not limited to, the multi-period excess earnings method for tradenames and franchising rights and the relief-from-royalty method for recipes. The Company measures goodwill as the excess of consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. Goodwill is assigned to each reporting unit that is expected to benefit from the synergies of the business combination. Acquisition-related expenses and |
Revenue Recognition | Revenue Recognition The Company's revenues are recorded in four categories: franchise operations, company restaurant operations, rental operations and financing operations. Franchise revenue (which comprises most of the Company's revenues) and revenue from company-operated restaurants are recognized in accordance with ASC 606 - Revenue from Contracts with Customers (“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. The Company's rental and financing revenues are recognized in accordance with other U.S. GAAP accounting standards and are not subject to ASC 606. Franchise Revenues The Company franchises the Applebee’s, IHOP and Fuzzy's restaurant concepts. The franchise arrangement for the 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 the 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 revenues 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 revenues are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either 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. In determining the amount and timing of revenue from contracts with customers, the Company exercises judgment with respect to collectibility of the amount; however, the timing of recognition does not require significant judgment as it is based on either the franchise term, the month of sale as reported 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. Company Restaurant Revenues Company restaurant revenues comprise retail sales at company-operated restaurants. 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, with no significant judgments required. Rental Revenues Rental operations revenues include revenues from operating leases and interest income from real estate leases. See Basis of Presentation and Summary of Significant Accounting Policies - Leases. Financing Revenues Financing operations revenues consist primarily of interest income from the financing of franchise fees and equipment leases, other notes receivable from franchisees and sales of equipment associated with refranchised IHOP restaurants. Interest income is recorded as earned. Gift Card The Company administers gift card programs for each restaurant concept. The Company records a liability in the period in which a gift card is sold and recognizes costs associated with its administration of the gift card programs as prepaid assets when the costs are incurred. The liability and prepaid asset recorded on the Company's books are relieved when gift cards are redeemed. If redemption occurs at a franchisee-operated restaurant, the gift card revenue, net of costs, is remitted to the franchisee. The Company receives gift card breakage revenue only from gift cards redeemed at company-operated restaurants. Breakage revenue for gift cards estimated to be redeemable at company-operated restaurants for the years ended December 31, 2022, 2021 and 2020 was $0.3 million in each year. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is the Company's best estimate of the amount of probable credit losses incurred on existing receivables; however, changes in circumstances relating to receivables may result in changes to the allowance in the future. The Company determines the allowance based on historical losses, current conditions, and reasonable and supportable forecasts used in assessing the franchisee's or area licensee's ability to pay outstanding balances. The primary indicator of credit quality is delinquency, which is considered to be a receivable balance greater than 90 days past due. The Company continually reviews the allowance for credit losses. Past due balances and future obligations are reviewed individually for collectability. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. See Note 4, Current Expected Credit Losses , of the Notes to the Consolidated Financial Statements for additional information. |
Leases | Leases The Company accounts for its leasing activities in accordance with accounting guidance for leases, as codified in Accounting Standards Topic 842 (“ASC 842”), adopted as of the beginning of its 2019 fiscal year. In adopting ASC 842, the Company utilized expedients that allowed it to retain the classification, as either an operating lease or a finance lease, that was previously determined under prior accounting guidance for leases. The Company reassesses this classification upon renewal, extension or the modification of an existing lease agreement. The Company determines the appropriate classification upon entering into a new contract determined to contain a lease. Operating lease assets and liabilities are recognized at the lease commencement date, or were recognized upon adoption of ASC 842. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the Company's right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of operating lease assets. The Company's lease agreements generally do not provide information to determine the implicit interest rate in the agreements. This requires the Company to estimate an incremental borrowing rate to be used in calculating operating lease liabilities as of the adoption or commencement date. The Company estimates the incremental borrowing rate primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption or commencement date; and (iii) adjustments for differences between these rates and the lease term. The cost of an operating lease is recognized over the lease term on a straight-line basis. The lease term commences on the date the Company has the right to control the use of the leased property. Certain leases may contain provisions for rent holidays and fixed-step escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and fixed-step escalations are reflected in rent expense on a straight-li ne basis over the expected lease term. Differences between amounts paid and amounts expensed are recorded as deferred rent. Certain leases may include rent escalations based on inflation indexes and fair market value adjustments. Certain leases may contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales. Subsequent escalations subject to such an index and contingent rental payments are recognized as variable lease expense. The rental payments (as lessee) or receipts (as lessor) on those property leases that meet the finance lease criteria result in the recognition of interest expense or interest income and a reduction of finance lease obligation or financing lease receivable, respectively. Finance lease obligations are amortized based on the Company's incremental borrowing rate and real estate leases receivable are amortized using the implicit interest rate. |
Pre-opening Expenses | Pre-opening Expenses Expenditures related to the opening of new or relocated restaurants are charged to expense when incurred. |
Advertising | AdvertisingAdvertising expense reflected in the Consolidated Statements of Comprehensive Income (Loss) includes contributions to the national advertising funds made by Applebee's and IHOP, local marketing advertising costs incurred by company-operated restaurants, and certain advertising costs incurred by the Company to benefit future franchise operations. Costs of advertising typically are expensed either as incurred or the first time the advertising takes place. |
Fair Value Measurements | Fair Value Measurements The Company determines the fair market values of its financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis, based on the fair value hierarchy established in U.S. GAAP. As necessary, the Company measures its financial assets and liabilities using inputs from the following three levels of the fair value hierarchy: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 inputs are unobservable and reflect the Company's own assumptions. The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. None of the Company's non-financial assets or non-financial liabilities is required to be measured at fair value on a recurring basis. Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include items such as property and equipment, operating lease assets, goodwill and other intangible assets, which are measured at fair value if determined to be impaired. The Company has not elected to use fair value measurement for any assets or liabilities for which fair value measurement is not presently required. The Company believes the fair values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. |
Income Taxes | Income Taxes The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records estimated tax liabilities to the extent the contingencies are probable and can be reasonably estimated. The Company recognizes interest accrued related to unrecognizable tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss). The Company is taxed on global intangible low-tax income ("GILTI") earned by certain foreign subsidiaries and recognizes the current tax on GILTI as an expense in the period the tax is incurred. The Company includes the current tax impact of GILTI in our effective tax rate. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on its technical merits, including all appeals or litigation processes. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. For each reporting period, management applies a consistent methodology to measure and adjust all uncertain tax positions based on the available information. |
Stock-Based Compensation | Stock-Based Compensation Members of the Board of Directors and certain employees are eligible to receive stock options, restricted stock, restricted stock units and performance units pursuant to the Dine Brands Global, Inc. 2019 Stock Incentive Plan. Shares of unvested restricted stock are subject to restrictions on transfer and forfeiture under certain circumstances. The holder of unvested restricted stock has the right to vote and receive regular cash dividends with respect to the shares of unvested restricted stock. The Company accounts for all stock-based payments to employees and non-employee directors, including grants of stock options, restricted stock, restricted stock units and performance units to be recognized in the financial statements, based on their respective grant date fair values. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Net income (loss) per share is calculated using the two-class method prescribed in U.S. GAAP. Basic net income (loss) per share is computed by dividing the net income (loss) available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) available to common stockholders for the period by the weighted average number of common shares and potential shares of common stock outstanding during the period if their effect is dilutive. The Company uses the treasury stock method to calculate the weighted average shares used in the diluted earnings per share calculation. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock. |
Treasury Stock | Treasury Stock The Company may from time to time utilize treasury stock when vested 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 method. |
Dividends | DividendsDividends declared on common stock are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the dividend declaration. Dividends declared in excess of retained earnings are recorded as a reduction of additional paid-in capital. |
Reporting Segments | Reporting Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company has six operating segments: Applebee's franchise operations, IHOP franchise operations, Fuzzy's franchise operations, rental operations, financing operations and company-operated restaurant operations. The Company has four reporting segments: franchise operations, (an aggregation of each restaurant concept's franchise operations), rental operations, financing operations and company-operated restaurant 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. Franchise Segment As of December 31, 2022, the franchise operations reportable segment consisted of 1,678 restaurants operated by Applebee's franchisees in the United States, two United States territories and 11 countries outside the United States; 1,781 restaurants operated by IHOP franchisees and area licensees in the United States, two United States territories and nine countries outside the United States; and 134 restaurants operated by Fuzzy's franchisees in the United States. Franchise operations revenue consists primarily of royalties and advertising fees based on a percentage of the franchisee's gross sales, sales of proprietary products (primarily IHOP pancake and waffle dry mixes) and other franchise fees. Franchise operations expenses include advertising expense, the cost of proprietary products, pre-opening training expenses and other franchise-related costs. Rental Segment Rental operations revenue includes revenue from operating leases and interest income from real estate leases. Rental operations expenses are costs of operating leases and interest expense of finance leases on franchisee-operated restaurants. The rental operations revenue and expenses are primarily generated by IHOP. Applebee's has an insignificant amount of rental activity. Financing Segment Financing operations revenue primarily consists of interest income from the financing of IHOP franchise fees and equipment leases, notes receivable from Applebee's and IHOP franchisees and sales of equipment associated with refranchised IHOP restaurants. Financing expenses are the cost of restaurant equipment. Company Segment As of December 31, 2022, the company-operated three Fuzzy's restaurants that were acquired in December 2022. During 2022, 2021 and 2020, the company-operated 69 Applebee's restaurants that were acquired from a former franchisee in December 2018. The 69 Applebee's company-operated restaurants were sold in October 2022. All company-operated restaurants were located in the United States. Company restaurant sales are retail sales at company-operated restaurants. Company restaurant expenses are operating expenses at company-operated restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. |
Accounting Standards Adopted in the Current Fiscal Year and Newly Issued Accounting Standards Not Yet Adopted | Accounting Standards Adopted in the Current Fiscal Year In July 2021, the FASB issued guidance which affect lessors with lease contracts that (i) have variable lease payments that do not depend on a reference index or a rate and (ii) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. The amendments are effective for fiscal years beginning after December 15, 2021. Adoption did not have any material effect on the consolidated financial statements. In March 2020, with an update in January 2021, the FASB issued guidance which provides optional expedients and exceptions for applying current U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. Adoption did not have any material effect on the consolidated financial statements. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2022 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 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 when adoption is required in the future. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of cash and cash equivalents were as follows: December 31, 2022 2021 (In millions) Money market funds $ 75.0 $ 30.0 IHOP advertising funds and gift card programs 96.7 101.5 Other depository accounts 98.0 229.9 Total cash and cash equivalents $ 269.7 $ 361.4 |
Restrictions on Cash and Cash Equivalents | The components of current restricted cash were as follows: December 31, 2022 2021 (In millions) Securitized debt reserves $ 32.4 $ 29.9 Applebee's advertising funds 5.4 17.5 Other 1.1 0.1 Total current restricted cash $ 38.9 $ 47.5 |
Property and Equipment Depreciable Lives | The general ranges of depreciable and amortizable lives are as follows: Category Depreciable Life Buildings and improvements 25 to 40 years Leaseholds and improvements Shorter of primary lease term or between three Equipment and fixtures Three Internal-use software Three Properties under finance leases Primary lease term or remaining primary lease term |
Fair Value of Financial Instruments | The fair values of non-current financial instruments, determined based on Level 2 inputs, are shown in the following table: December 31, 2022 2021 (In millions) Face value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,247.0 $ 1,287.0 Fair value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,167.0 $ 1,312.9 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our franchise revenues by major type for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 Franchise Revenues (In thousands) Royalties $ 303,724 $ 292,372 $ 215,214 Advertising fees 289,328 274,790 201,494 Pancake and waffle dry mix sales and other 60,749 51,250 38,936 Franchise and development fees 8,637 13,524 13,809 Total franchise revenues $ 662,438 $ 631,936 $ 469,453 |
Schedule of Changes in Deferred Revenue | Changes in the Company's deferred franchise revenue during the year ended December 31, 2022 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2021 $ 53,346 Recognized as revenue during the year ended December 31, 2022 (8,518) Fees deferred during the year ended December 31, 2022 4,044 Acquisition addition 621 Balance at December 31, 2022 $ 49,493 |
Schedule of Remaining Performance Obligations | The balance of deferred franchise revenue as of December 31, 2022 is expected to be recognized as follows: (In thousands) 2023 $ 7,150 2024 6,478 2025 5,699 2026 4,850 2027 3,954 Thereafter 21,362 Total $ 49,493 |
Current Expected Credit Losse_2
Current Expected Credit Losses ("CECL") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Receivables and Allowance for Doubtful Accounts | Total receivables balances at December 31, 2022 and 2021 were as follows: Receivables 2022 2021 (In millions) Accounts receivable $ 67.5 $ 63.6 Gift card receivables 34.6 33.4 Notes receivable 17.2 19.7 Financing receivables: Equipment leases receivable 26.6 33.4 Real estate leases receivable 18.5 16.7 Other receivables 5.6 7.6 170.0 174.4 Less: allowance for doubtful accounts and notes receivable (10.3) (11.9) 159.7 162.5 Less: current portion (120.0) (120.0) Long-term receivables $ 39.7 $ 42.5 |
Financing Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses during the years ended December 31, 2022 and 2021 were as follows: Accounts Receivable Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Balance, December 31, 2020 $ 11.2 $ 3.6 $ 5.3 $ 0.4 $ 2.3 $ 0.3 $ 23.1 Bad debt (credit) expense (8.2) 1.4 1.1 0.1 0.8 (0.1) (4.9) Advertising provision adjustment (1.8) (0.3) 0.2 — — — (1.9) Write-offs (0.2) (0.9) — (0.5) (3.0) — (4.6) Recoveries 0.0 — — 0.2 — — 0.2 Balance, December 31, 2021 $ 1.0 $ 3.8 $ 6.6 $ 0.2 $ 0.1 $ 0.2 $ 11.9 Bad debt (credit) expense (0.1) 1.4 (1.1) 0.0 (0.0) 0.0 0.3 Advertising provision adjustment 0.5 (0.8) (0.2) — — — (0.5) Write-offs (0.3) (0.9) — (0.0) (0.0) (0.3) (1.5) Recoveries 0.1 — — 0.0 0.0 0.0 0.1 Balance, December 31, 2022 $ 1.2 $ 3.5 $ 5.3 $ 0.2 $ 0.1 $ (0.1) $ 10.3 _________________________________ (1) Primarily consists of distributor receivables, gift card receivables, and credit card receivables. |
Financing Receivable, Past Due | The Company's primary credit quality indicator for all portfolio segments is delinquency. The delinquency status of receivables (other than accounts receivable, gift card receivables and distributor receivables) at December 31, 2022 was as follows: Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Current $ 4.9 $ 10.7 $ 18.5 $ 26.6 $ 0.0 $ 60.7 30-59 days — — — — — — 60-89 days — — — — — — 90-119 days — — — — — — 120+ days 1.6 — — — — 1.6 Total $ 6.5 $ 10.7 $ 18.5 $ 26.6 0.0 $ 62.3 _________________________________ (1) Primarily consists of credit card receivables. |
Financing Receivable Credit Quality Indicators | The year of origination of the Company's financing receivables at December 31, 2022 as follows: Notes receivable, short and long-term Lease Receivables Equipment Receivables Total (In millions) 2022 $ 1.6 $ 8.5 $ — $ 10.1 2021 10.1 2.5 — 12.6 2020 0.4 1.3 — 1.7 2019 — 0.7 — 0.7 2018 — — — 0.0 Prior 5.1 5.5 26.6 37.2 Total $ 17.2 $ 18.5 $ 26.6 $ 62.3 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment by category at December 31, 2022 and 2021 were as follows: 2022 2021 (In millions) Leaseholds and improvements $ 211.5 $ 221.1 Properties under finance leases 56.7 94.6 Equipment and fixtures 41.5 52.5 Buildings and improvements 51.3 54.2 Land 47.8 51.3 Internal-use software 52.6 55.7 Construction in progress 17.6 5.5 Property and equipment, gross 479.0 534.9 Less: accumulated depreciation and amortization (333.7) (355.5) Property and equipment, net $ 145.3 $ 179.4 |
Goodwill - (Tables)
Goodwill - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2022, 2021 and 2020 are as follows: Applebee's Franchise Unit Applebee's Company Unit IHOP Franchise Unit Fuzzy's Franchise Unit Total (In millions) Balance at December 31, 2019 $ 328.4 $ 4.6 $ 10.8 $ — $ 343.8 Impairment loss (92.2) — — — (92.2) Balance at December 31, 2020 $ 236.2 $ 4.6 $ 10.8 $ — $ 251.6 Balance at December 31, 2021 $ 236.2 $ 4.6 $ 10.8 $ — $ 251.6 Disposition of assets — (4.6) — — (4.6) Business acquisition — — — 7.0 7.0 Balance at December 31, 2022 $ 236.2 $ — $ 10.8 $ 7.0 $ 254.0 Gross and net carrying amounts of goodwill at December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net (In millions) Applebee's Franchise Unit $ 686.7 $ (450.5) $ 236.2 $ 686.7 $ (450.5) $ 236.2 Applebee's Company Unit 4.6 (4.6) — 4.6 — 4.6 IHOP Franchise Unit 10.8 — 10.8 10.8 — 10.8 Fuzzy's Franchise Unit 7.0 — 7.0 — — — Total $ 709.1 $ (455.1) $ 254.0 $ 702.1 $ (450.5) $ 251.6 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Other Intangible Assets Roll Forward | Changes in the carrying amounts for the years ended December 31, 2022, 2021 and 2020 are as follows: Not Subject to Amortization Subject to Amortization Tradenames Other Franchising Reacquired Franchise Rights Favorable Leaseholds Total (In millions) Balance at December 31, 2019 $ 479.0 $ 3.2 $ 79.0 $ 9.8 $ 4.1 $ 575.1 Impairment (11.0) — — (3.3) (0.8) (15.1) Amortization expense — — (10.0) (0.8) (0.1) (10.9) Additions — 0.6 — — — 0.5 Balance at December 31, 2020 468.0 3.8 69.0 5.7 3.2 549.7 Amortization expense — — (10.0) (0.6) (0.1) (10.7) Additions — 0.4 — — — 0.4 Balance at December 31, 2021 468.0 4.2 59.0 5.1 3.1 539.4 Amortization expense — — (10.0) (0.4) (0.1) (10.6) Additions 57.2 0.8 14.8 — — 72.8 Disposition — — — (4.7) — (4.7) Balance at December 31, 2022 $ 525.2 $ 5.0 $ 63.8 $ — $ 3.0 $ 597.0 |
Schedule of Finite-Lived Intangible Assets by Major Class | Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net (In millions) Franchising rights $ 214.8 $ (151.0) $ 63.8 $ 200.0 $ (141.0) $ 59.0 Reacquired franchise rights — — — 8.3 (3.2) 5.1 Favorable leaseholds 3.4 (0.4) 3.0 $ 3.4 $ (0.3) 3.1 Total $ 218.2 $ (151.4) $ 66.8 $ 211.7 $ (144.5) $ 67.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Components | Long-term debt at December 31, 2022 and 2021 consists of the following components: 2022 2021 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 653.0 $ 693.0 Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 594.0 594.0 Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 100.0 — Debt issuance costs (5.1) (7.4) Long-term debt, net of debt issuance costs 1,341.9 1,279.6 Current portion of long-term debt (100.0) — Long-term debt $ 1,241.9 $ 1,279.6 |
Financing Obligations (Tables)
Financing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Finance Lease Liability Future Maturity | As of December 31, 2022, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows: Fiscal Years (In millions) 2023 $ 4.0 2024 4.6 2025 4.6 2026 4.9 2027 4.6 Thereafter 22.5 Total minimum lease payments 45.2 Less: interest (15.8) Total financing obligations 29.4 Less: current portion (1) (1.0) Long-term financing obligations $ 28.4 _________________________________ (1) Included in current maturities of finance lease and financing obligations on the consolidated balance sheets. Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The Company's lease cost for the years ended December 31, 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Finance lease cost: (In millions) Amortization of right-of-use assets $ 3.6 $ 4.6 $ 5.0 Interest on lease liabilities 4.5 5.4 6.6 Operating lease cost (1) 83.5 84.4 90.6 Variable lease cost 7.6 7.0 0.8 Short-term lease cost 0.0 0.1 0.0 Sublease income (106.8) (104.6) (96.8) Lease cost $ (7.6) $ (3.1) $ 6.2 _________________________________ (1) Operating lease cost for the years ended December 31, 2021 and 2020 previously disclosed as $98.7 million and $109.8 million, respectively, were overstated due to the inclusion of certain finance lease activity. The correct operating lease cost for the years ended December 31, 2021 and 2020 was $84.4 million and $90.6 million, respectively, as reflected in the above table. The overstatement only impacted this note disclosure, and there was no impact to the Consolidated Statement of Comprehensive Income. |
Schedule of Operating Lease Liability Future Maturity | Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 |
Schedule of Finance Lease Liability Future Maturity | As of December 31, 2022, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows: Fiscal Years (In millions) 2023 $ 4.0 2024 4.6 2025 4.6 2026 4.9 2027 4.6 Thereafter 22.5 Total minimum lease payments 45.2 Less: interest (15.8) Total financing obligations 29.4 Less: current portion (1) (1.0) Long-term financing obligations $ 28.4 _________________________________ (1) Included in current maturities of finance lease and financing obligations on the consolidated balance sheets. Future minimum lease payments under noncancellable leases as lessee as of December 31, 2022 were as follows: Finance Operating (In millions) 2023 $ 8.8 $ 63.7 2024 7.3 74.3 2025 5.9 63.9 2026 5.3 55.3 2027 4.3 37.1 Thereafter 16.3 110.0 Total minimum lease payments 47.9 404.3 Less: interest/imputed interest (10.9) (70.1) Total obligations 37.0 334.2 Less: current portion (6.6) (59.1) Long-term lease obligations $ 30.4 $ 275.1 |
Schedule of Lease Payments | During the years ended December 31, 2022, 2021 and 2020, the Company made the following cash payments for leases: Year Ended December 31, 2022 2021 2020 (In millions) Principal payments on finance lease obligations $ 8.9 $ 10.2 $ 12.5 Interest payments on finance lease obligations $ 4.5 $ 5.4 $ 6.6 Payments on operating leases $ 83.5 $ 91.7 $ 101.1 Variable lease payments $ 7.6 $ 6.2 $ 0.7 |
Schedule of Operating Lease Income | The Company's income from operating leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Minimum lease payments $ 96.4 $ 96.0 $ 97.2 Variable lease income 16.9 15.3 5.2 Total operating lease income $ 113.3 $ 111.3 $ 102.4 |
Schedule of Future Minimum Payments as a Lessor Under Operating Leases | Future minimum payments to be received as lessor under noncancellable operating leases as of December 31, 2022 were as follows: (In millions) 2023 $ 103.6 2024 94.8 2025 82.1 2026 67.6 2027 49.5 Thereafter 122.0 Total minimum rents receivable $ 519.6 |
Schedule of Direct Finance Lease Income | The Company's income from real estate leases receivable at December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In millions) Selling profit $ 0.9 $ — $ — Interest income 1.5 2.1 3.4 Variable lease income 0.7 0.5 0.3 Total financing lease income $ 3.1 $ 2.6 $ 3.7 |
Schedule of Future Minimum Payments as a Lessor Under Direct Financing Leases | Future minimum payments to be received as lessor under noncancellable real estate leases as of December 31, 2022 were as follows: (In millions) 2023 $ 4.7 2024 2.6 2025 1.8 2026 1.8 2027 1.8 Thereafter 12.4 Total minimum rents receivable 25.1 Less: unearned income (6.6) Total real estate leases receivable 18.5 Less: current portion (3.6) Long-term real estate leases receivable $ 14.9 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Repurchase Agreements | A summary of shares repurchased under the 2022 Repurchase Program and the 2019 Repurchase Program, during the years ended December 31, 2022, 2021 and 2020, and cumulatively for each program, is as follows: Shares Cost of shares (In millions) 2022 Repurchase Program Repurchased during the year ended December 31, 2022 1,149,589 $ 78.7 Cumulative (life-of-program) repurchases 1,149,589 $ 78.7 Remaining dollar value of shares that may be repurchased n/a $ 171.3 2019 Repurchase Program Repurchased during the year ended December 31, 2022 588,108 $ 41.4 Repurchased during the year ended December 31, 2021 59,099 $ 4.5 Repurchased during the year ended December 31, 2020 459,899 $ 26.5 Cumulative (life-of-program) repurchases 2,344,804 $ 175.8 Remaining dollar value of shares that may be repurchased n/a $ 24.2 |
Dividends Declared | During the fiscal years ended December 31, 2022, 2021 and 2020, the Company declared and paid dividends on common stock as follows: Year ended December 31, 2022 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) (In millions) Payment of prior year declaration (3) January 7, 2022 $ — $ 0.40 $ 6.9 First quarter February 17, 2022 April 1, 2022 0.46 0.46 7.8 Second quarter May 12, 2022 July 8, 2022 0.51 0.51 8.2 Third quarter September 9, 2022 September 30, 2022 0.51 0.51 8.1 Fourth quarter December 2, 2022 (2) 0.51 — — Total $ 1.99 $ 1.88 $ 31.0 Year ended December 31, 2021 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) Fourth quarter December 20, 2021 (3) $ 0.40 $ — $ — Total $ 0.40 $ — $ — Year ended December 31, 2020 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) Payment of prior year declaration (4) January 10, 2020 $ — $ 0.69 $ 11.7 First quarter February 20, 2020 April 3, 2020 0.76 0.76 12.7 Total $ 0.76 $ 1.45 $ 24.4 (1) Includes dividend equivalents paid on restricted stock units. (2) The fourth quarter 2022 dividend of $8.0 million was paid on January 6, 2023. (3) The fourth quarter 2021 dividend of $6.9 million was paid on January 7, 2022. (4) The fourth quarter 2019 dividend of $11.7 million was paid on January 10, 2020. |
Closure and Long-lived Tangib_2
Closure and Long-lived Tangible Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Charges [Abstract] | |
Schedule of Impairment and Closure Charges | Closure and long-lived tangible asset impairment charges for the years ended December 31, 2022, 2021 and 2020 were as follows: Year Ended December 31, 2022 2021 2020 (In millions) Closure charges $ 1.7 $ 3.7 $ 3.0 Long-lived tangible asset impairment 1.4 1.7 22.3 Total closure and long-lived tangible asset impairment charges $ 3.1 $ 5.4 $ 25.3 |
Stock-Based Incentive Plans (Ta
Stock-Based Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the Company's stock-based compensation expense included as a component of general and administrative expenses in the consolidated financial statements: Year Ended December 31, 2022 2021 2020 (In millions) Stock-based compensation expense Equity classified awards expense $ 16.2 $ 11.6 $ 12.6 Liability classified awards expense 1.4 2.3 1.0 Total pretax stock-based compensation expense 17.6 13.9 13.6 Book income tax benefit (3.5) (3.5) (3.4) Total stock-based compensation expense, net of tax $ 14.1 $ 10.4 $ 10.2 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in the Black-Scholes model for stock options granted in the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Risk free interest rate 1.7 % 0.5 % 1.2 % Weighted average historical volatility 70.1 % 67.7 % 30.5 % Dividend yield 2.6 % — % 3.5 % Expected years until exercise 4.5 4.5 4.6 Weighted average fair value of options granted $ 33.23 $ 40.25 $ 17.53 |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: Number of Weighted Average Weighted Average Aggregate Intrinsic Outstanding at December 31, 2019 1,217,438 $ 66.43 Granted 167,969 87.17 Exercised (270,024) 76.01 Forfeited (45,247) 86.39 Expired (55,466) 107.78 Outstanding at December 31, 2020 1,014,670 64.16 Granted 95,891 75.28 Exercised (524,536) 48.79 Forfeited (59,468) 88.39 Expired (50,653) 98.61 Outstanding at December 31, 2021 475,904 76.65 Granted 75,795 70.08 Exercised (3,505) 68.80 Forfeited (6,171) 81.13 Expired (2,448) 94.43 Outstanding at December 31, 2022 539,575 $ 75.65 6.8 $ 3.5 Vested and Expected to Vest at December 31, 2022 528,037 $ 75.72 5.9 $ 1.5 Exercisable at December 31, 2022 378,811 $ 75.95 4.9 $ 1.3 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Activity in equity classified awards of restricted stock and restricted stock units for the years ended December 31, 2022, 2021 and 2020 is as follows: Shares of Restricted Stock Weighted Average Restricted Weighted Average Outstanding at December 31, 2019 224,515 $ 70.52 357,807 $ 30.35 Granted 163,522 73.68 30,997 77.33 Released (95,211) 55.75 (33,234) 63.98 Forfeited (38,495) 85.03 — — Outstanding at December 31, 2020 254,331 76.50 355,570 28.01 Granted 141,264 83.24 68,998 63.04 Released (60,407) 66.90 (318,976) 23.19 Forfeited (58,577) 82.09 — — Outstanding at December 31, 2021 276,611 80.85 105,592 71.00 Granted 201,789 70.12 60,914 49.36 Released (98,864) 86.36 (42,611) 66.63 Forfeited (23,636) 75.89 — — Outstanding at December 31, 2022 355,900 $ 73.57 123,895 $ 62.11 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | 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 Outstanding at December 31, 2019 63,852 Granted 2,658 Released (1,426) Forfeited (12,128) Outstanding at December 31, 2020 52,956 Granted — Released (38,916) Forfeited (1,241) Outstanding at December 31, 2021 12,799 Granted 67 Released (12,866) Forfeited — Outstanding at December 31, 2022 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Provision (benefit) for income taxes (In millions) Current Federal $ 27.5 $ 20.2 $ 11.0 State 5.5 4.6 3.1 Foreign 1.8 1.4 1.3 34.8 26.2 15.4 Deferred Federal (3.8) (2.3) (17.3) State 2.7 0.2 (2.7) (1.1) (2.1) (20.0) Provision (benefit) for income taxes $ 33.7 $ 24.1 $ (4.6) |
Schedule of Effective Income Tax Rate Reconciliation | The provision (benefit) for income taxes differs from the expected federal income tax rates as follows: Year Ended December 31, 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Non-deductibility of goodwill 0.8 — (17.9) Non-deductibility of officer's compensation 2.9 2.2 (0.9) State and other taxes, net of federal tax benefit 3.1 3.1 1.2 Excess tax deficiencies or benefits (0.5) (7.1) 0.1 Change in unrecognized tax benefits — (0.1) 2.0 Change in valuation allowance (0.3) 0.5 (1.5) Changes in tax rates and state tax laws 3.4 0.2 (0.4) General business credits (1.4) (0.9) 0.8 Other 0.3 0.8 (0.2) Effective tax rate 29.3 % 19.7 % 4.2 % |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets (liabilities) at December 31, 2022 and 2021 consisted of the following components: 2022 2021 (In millions) Lease liabilities $ 93.6 $ 112.9 Employee compensation 9.7 12.1 Revenue recognition 37.1 35.4 Other 8.4 8.4 Deferred tax assets 148.8 168.8 Valuation allowance (3.5) (4.2) Total deferred tax assets after valuation allowance 145.3 164.6 Recognition of franchise and equipment sales (6.7) (8.2) Capitalization and depreciation (1) (121.0) (122.7) Lease assets (90.8) (108.6) Other (1.5) (1.3) Deferred tax liabilities (220.0) (240.8) Net deferred tax liabilities $ (74.7) $ (76.2) _________________________________ (1) Primarily related to the 2007 Applebee's acquisition. |
Summary of Income Tax Contingencies | Year Ended December 31, 2022 2021 2020 (In millions) Unrecognized tax benefit as of January 1 $ 1.9 $ 2.2 $ 7.6 Changes for tax positions of prior years 0.1 0.5 — Increases for tax positions related to the current year 0.4 0.3 0.2 Decreases relating to settlements and lapsing of statutes of limitations (0.3) (1.1) (5.6) Unrecognized tax benefit as of December 31 $ 2.1 $ 1.9 $ 2.2 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Share | The computation of the Company's basic and diluted net income (loss) per share is as follows: Year Ended December 31, 2022 2021 2020 (in thousands, except per share data) Numerator for basic and diluted income (loss) per common share Net income (loss) $ 81,111 $ 97,864 $ (103,994) Less: Net income allocated to unvested participating restricted stock (2,174) (2,295) (420) Net income (loss) available to common stockholders - basic 78,937 95,569 (104,414) Effect of unvested participating restricted stock 1 13 — Numerator - income (loss) available to common shareholders - diluted $ 78,938 $ 95,582 $ (104,414) Denominator Weighted average outstanding shares of common stock - basic 15,873 16,799 16,230 Effect of dilutive securities: Stock options 28 91 — Weighted average outstanding shares of common stock - diluted 15,901 16,890 16,230 Net income (loss) per common share Basic $ 4.97 $ 5.69 $ (6.43) Diluted $ 4.96 $ 5.66 $ (6.43) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information on segments and a reconciliation of gross profit to income (loss) before income taxes is as follows: Year Ended December 31, 2022 2021 2020 Revenues (In millions) Franchise operations $ 662.4 $ 631.9 $ 469.5 Rental operations 116.5 113.9 105.9 Company restaurants 126.9 146.0 108.1 Financing operations 3.6 4.3 5.8 Total $ 909.4 $ 896.2 $ 689.3 Gross profit (loss), by segment Franchise operations $ 340.5 $ 336.0 $ 230.5 Rental operations 28.5 26.1 16.4 Company restaurants 5.1 9.3 (3.5) Financing operations 3.2 3.8 5.3 Total gross profit 377.3 375.2 248.7 Corporate and unallocated expenses, net (262.6) (253.3) (357.3) Income (loss) before income taxes $ 114.8 $ 121.9 $ (108.6) Interest expense Rental operations $ 4.3 $ 4.9 $ 6.3 Company restaurants 2.6 3.3 2.7 Corporate 60.7 63.3 66.9 Total $ 67.6 $ 71.5 $ 75.9 Depreciation and amortization Franchise operations $ 10.0 $ 10.1 $ 10.1 Rental operations 10.7 11.1 12.3 Company restaurants 4.3 7.0 7.0 Corporate 13.0 11.7 13.4 Total $ 38.0 $ 39.9 $ 42.8 Goodwill and intangible assets, closure and other impairment charges Franchise operations $ 3.1 $ 1.7 $ 122.1 Company restaurants — 3.7 10.5 Total $ 3.1 $ 5.4 $ 132.6 Capital expenditures Company restaurants $ 4.3 $ 6.5 $ 2.7 Corporate 31.0 10.3 8.2 Total $ 35.3 $ 16.8 $ 10.9 Goodwill Franchise operations $ 254.0 $ 247.0 $ 247.0 Company restaurants — 4.6 4.6 Total $ 254.0 $ 251.6 $ 251.6 Total assets Franchise operations $ 1,123.0 $ 991.0 $ 997.7 Rental operations 390.6 426.6 451.5 Company restaurants 3.3 117.2 121.1 Financing operations 31.8 39.7 49.9 Corporate 332.8 424.9 454.7 Total $ 1,881.5 $ 1,999.4 $ 2,074.9 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of net assets acquired at December 13, 2022: (In millions) Receivables and other current assets $ 1.1 Property and equipment and other non-current assets 2.1 Tradename 57.2 Franchise agreements 14.8 Other intangible assets 0.5 Goodwill 7.0 Accounts payable and other liabilities (4.4) Net cash paid for acquisition $ 78.3 |
The Company (Details)
The Company (Details) | Dec. 31, 2022 restaurant territory uSState country | Dec. 31, 2021 restaurant | Dec. 31, 2020 restaurant |
IHOP | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,781 | ||
Number of states in which entity operates | uSState | 50 | ||
Number of territories in which entity operates | territory | 2 | ||
Number of countries outside the United States in which the entity operates | country | 9 | ||
IHOP | Franchised | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,625 | ||
IHOP | Licensing Agreements | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 156 | ||
Applebee's | |||
Franchisor Disclosure [Line Items] | |||
Number of states in which entity operates | uSState | 49 | ||
Number of territories in which entity operates | territory | 2 | ||
Number of countries outside the United States in which the entity operates | country | 11 | ||
Applebee's | Franchised | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,678 | ||
Applebee's | Entity Operated Units | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 69 | 69 | 69 |
Fuzzy's | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 137 | ||
Number of states in which entity operates | uSState | 18 | ||
Fuzzy's | Franchised | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 134 | ||
Fuzzy's | Entity Operated Units | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment reportableUnit revenueCategory territory restaurant country franchisee | Dec. 31, 2021 USD ($) restaurant | Dec. 31, 2020 USD ($) restaurant | Oct. 31, 2022 restaurant | |
Concentration Risk [Line Items] | ||||
Non-current restricted cash | $ | $ 16,400 | $ 16,400 | ||
Number of reporting units | reportableUnit | 4 | |||
Category of revenue categories | revenueCategory | 4 | |||
Advertising expense | $ | $ 5,600 | 6,800 | $ 5,200 | |
Number of operating segments | segment | 6 | |||
Number of reporting segments | segment | 4 | |||
Gift Card Breakage Revenue | ||||
Concentration Risk [Line Items] | ||||
Total franchise revenues | $ | $ 300 | $ 300 | $ 300 | |
Sales Revenue, Net | Revenue from Rights Concentration Risk | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Concentration risk by percentage | 18.80% | 18% | 17.10% | |
Sales Revenue, Net | Revenue from Rights Concentration Risk | Largest Franchisees | Franchisee One | ||||
Concentration Risk [Line Items] | ||||
Concentration risk by percentage | 12.50% | 11.80% | 11% | |
Accounts Receivable | Revenue from Rights Concentration Risk | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Net accounts receivable | $ | $ 20,900 | $ 19,700 | ||
Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of territories in which entity operates | territory | 2 | |||
Number of countries outside the United States in which the entity operates | country | 11 | |||
Applebee's | Franchised | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,678 | |||
Applebee's | Entity Operated Units | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 69 | 69 | 69 | |
Number of restaurants sold | 69 | |||
IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,781 | |||
Number of territories in which entity operates | territory | 2 | |||
Number of countries outside the United States in which the entity operates | country | 9 | |||
IHOP | Franchised | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,625 | |||
IHOP | Franchised Units or Licensing Agreements | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,781 | |||
Fuzzy's | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 137 | |||
Fuzzy's | Franchised | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 134 | |||
Fuzzy's | Entity Operated Units | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 3 | |||
Domestic | Sales Revenue, Net | Revenue from Rights Concentration Risk | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | franchisee | 2 | |||
Number of restaurants | 825 | |||
Concentration risk by percentage | 25.40% | |||
Domestic | Applebee's | Sales Revenue, Net | Revenue from Rights Concentration Risk | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | franchisee | 1 | |||
Domestic | IHOP | Sales Revenue, Net | Revenue from Rights Concentration Risk | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | franchisee | 1 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 269,655 | $ 361,412 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 75,000 | 30,000 |
IHOP advertising funds and gift card programs | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 96,700 | 101,500 |
Other depository accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 98,000 | $ 229,900 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Components of Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | $ 38.9 | $ 47.5 |
Securitized debt reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | 32.4 | 29.9 |
Applebee's advertising funds | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | 5.4 | 17.5 |
Other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | $ 1.1 | $ 0.1 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - General Range of Depreciable and Amortizable Property and Equipment Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | Buildings and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 25 years |
Minimum | Leaseholds and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Minimum | Equipment and fixtures | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Minimum | Internal-use software | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Maximum | Buildings and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 40 years |
Maximum | Leaseholds and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 40 years |
Maximum | Equipment and fixtures | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Maximum | Internal-use software | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 10 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Face value of Series 2019-1 Fixed Rate Senior Secured Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed rate senior secured notes | $ 1,247 | $ 1,287 |
Fair value of Series 2019-1 Fixed Rate Senior Secured Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed rate senior secured notes | $ 1,167 | $ 1,312.9 |
Revenue - Disaggregation of Fra
Revenue - Disaggregation of Franchise Revenue by Major Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Franchise Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | $ 662,438 | $ 631,936 | $ 469,453 |
Royalties | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | 303,724 | 292,372 | 215,214 |
Advertising fees | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | 289,328 | 274,790 | 201,494 |
Pancake and waffle dry mix sales and other | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | 60,749 | 51,250 | 38,936 |
Franchise and development fees | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | $ 8,637 | $ 13,524 | $ 13,809 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - Receivables From Franchise Revenue Transactions - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and unbilled receivables | $ 69 | $ 66 |
Billed and unbilled receivables, accumulated allowance for credit loss | $ 1.3 | $ 1.1 |
Revenue - Changes in the Compan
Revenue - Changes in the Company's contract liability for deferred franchise and development fees (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2021 | $ 53,346 |
Recognized as revenue during the year ended December 31, 2022 | (8,518) |
Fees deferred during the year ended December 31, 2022 | 4,044 |
Acquisition addition | 621 |
Balance at December 31, 2022 | $ 49,493 |
Revenue - Deferred revenue expe
Revenue - Deferred revenue expected to be recognized (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 49,493 |
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 | $ 7,150 |
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 | $ 6,478 |
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]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 5,699 |
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]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 4,850 |
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]: 2027-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 3,954 |
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]: 2028-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 21,362 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing |
Current Expected Credit Losse_3
Current Expected Credit Losses ("CECL") - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) lease | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, interest rate | 5.30% | 4% |
Operating lease, weighted average remaining lease term | 6 years 3 months | |
Finance lease, weighted average remaining lease term | 7 years 4 months 28 days | |
IHOP | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average interest rate | 9.80% | 9.90% |
Notes Receivable Portfolio Segment | Applebee's | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and financing receivable, allowance for credit loss | $ | $ 8.8 | |
Equipment Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Operating lease, weighted average remaining lease term | 3 years 10 months 24 days | |
Real estate leases receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of properties subject to ground leases | lease | 48 | |
Finance lease, weighted average remaining lease term | 10 years 2 months 12 days | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, term | 1 year | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, term | 8 years |
Current Expected Credit Losse_4
Current Expected Credit Losses ("CECL") - Components of Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables | ||
Accounts receivable | $ 67,500 | $ 63,600 |
Gift card receivables | 34,600 | 33,400 |
Notes receivable | 17,200 | 19,700 |
Financing receivables | 62,300 | |
Accounts and financing receivable, before allowance for credit loss | 170,000 | 174,400 |
Less: allowance for doubtful accounts and notes receivable | (10,300) | (11,900) |
Receivables, net | 159,700 | 162,500 |
Less: current portion | (119,981) | (119,968) |
Long-term receivables | 39,700 | 42,500 |
Equipment leases receivable | ||
Receivables | ||
Financing receivables | 26,600 | 33,400 |
Real estate leases receivable | ||
Receivables | ||
Financing receivables | 18,500 | 16,700 |
Other receivables | ||
Receivables | ||
Financing receivables | $ 5,600 | $ 7,600 |
Current Expected Credit Losse_5
Current Expected Credit Losses ("CECL") - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 11,900 | $ 23,100 | |
Bad debt (credit) expense | 261 | (4,928) | $ 12,756 |
Advertising provision adjustment | (500) | (1,900) | |
Write-offs | (1,500) | (4,600) | |
Recoveries | 100 | 200 | |
Ending balance | 10,300 | 11,900 | 23,100 |
Accounts Receivable | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,000 | 11,200 | |
Bad debt (credit) expense | (100) | (8,200) | |
Advertising provision adjustment | 500 | (1,800) | |
Write-offs | (300) | (200) | |
Recoveries | 100 | 0 | |
Ending balance | 1,200 | 1,000 | 11,200 |
Notes receivable, short-term | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,800 | 3,600 | |
Bad debt (credit) expense | 1,400 | 1,400 | |
Advertising provision adjustment | (800) | (300) | |
Write-offs | (900) | (900) | |
Recoveries | 0 | 0 | |
Ending balance | 3,500 | 3,800 | 3,600 |
Notes receivable, long-term | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 6,600 | 5,300 | |
Bad debt (credit) expense | (1,100) | 1,100 | |
Advertising provision adjustment | (200) | 200 | |
Write-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 5,300 | 6,600 | 5,300 |
Lease Receivables | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 200 | 400 | |
Bad debt (credit) expense | 0 | 100 | |
Advertising provision adjustment | 0 | 0 | |
Write-offs | 0 | (500) | |
Recoveries | 0 | 200 | |
Ending balance | 200 | 200 | 400 |
Equipment Receivables | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 100 | 2,300 | |
Bad debt (credit) expense | 0 | 800 | |
Advertising provision adjustment | 0 | 0 | |
Write-offs | 0 | (3,000) | |
Recoveries | 0 | 0 | |
Ending balance | 100 | 100 | 2,300 |
Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 200 | 300 | |
Bad debt (credit) expense | 0 | (100) | |
Advertising provision adjustment | 0 | 0 | |
Write-offs | (300) | 0 | |
Recoveries | 0 | 0 | |
Ending balance | $ (100) | $ 200 | $ 300 |
Current Expected Credit Losse_6
Current Expected Credit Losses ("CECL") - Delinquency Status of Receivables (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | $ 62.3 |
Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 60.7 |
30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 1.6 |
Notes receivable, short-term | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 6.5 |
Notes receivable, short-term | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 4.9 |
Notes receivable, short-term | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, short-term | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, short-term | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, short-term | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 1.6 |
Notes receivable, long-term | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 10.7 |
Notes receivable, long-term | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 10.7 |
Notes receivable, long-term | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, long-term | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, long-term | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, long-term | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 18.5 |
Lease Receivables | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 18.5 |
Lease Receivables | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 26.6 |
Equipment Receivables | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 26.6 |
Equipment Receivables | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | $ 0 |
Current Expected Credit Losse_7
Current Expected Credit Losses ("CECL") - Year of Origination of Financing Receivables (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 62.3 |
Total | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 10.1 |
2021 | 12.6 |
2020 | 1.7 |
2019 | 0.7 |
2018 | 0 |
Prior | 37.2 |
Total | 62.3 |
Notes receivable, short and long-term | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 1.6 |
2021 | 10.1 |
2020 | 0.4 |
2019 | 0 |
2018 | 0 |
Prior | 5.1 |
Total | 17.2 |
Lease Receivables | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 8.5 |
2021 | 2.5 |
2020 | 1.3 |
2019 | 0.7 |
2018 | 0 |
Prior | 5.5 |
Total | 18.5 |
Equipment Receivables | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
Prior | 26.6 |
Total | $ 26.6 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 479,000 | $ 534,900 |
Less: accumulated depreciation and amortization | (333,700) | (355,500) |
Property and equipment, net | 145,277 | 179,411 |
Leaseholds and improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 211,500 | 221,100 |
Properties under finance leases | ||
Property and Equipment [Line Items] | ||
Properties under finance leases | 56,700 | 94,600 |
Equipment and fixtures | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 41,500 | 52,500 |
Buildings and improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 51,300 | 54,200 |
Land | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 47,800 | 51,300 |
Internal-use software | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 52,600 | 55,700 |
Construction in progress | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 17,600 | $ 5,500 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on property equipment | $ 27.4 | $ 29.2 | $ 31.9 |
Accumulated amortization for properties under finance lease | $ 45.3 | $ 52.7 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2022 USD ($) restaurant | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Goodwill [Line Items] | |||
Disposition of assets | $ 4,600,000 | ||
Goodwill acquired during period | 7,000,000 | ||
Goodwill, impairment loss | $ 92,200,000 | ||
Entity Operated Units | Applebee's | |||
Goodwill [Line Items] | |||
Disposition of assets | $ 4,600,000 | ||
Number of restaurants sold | restaurant | 69 | ||
Goodwill acquired during period | 0 | ||
Goodwill, impairment loss | 0 | ||
Franchised | Applebee's | |||
Goodwill [Line Items] | |||
Disposition of assets | 0 | ||
Goodwill acquired during period | 0 | ||
Goodwill, impairment loss | 92,200,000 | ||
Franchised | Fuzzy's | |||
Goodwill [Line Items] | |||
Disposition of assets | 0 | ||
Goodwill acquired during period | $ 7,000,000 | ||
Goodwill, impairment loss | $ 0 |
Goodwill - Changes In Carrying
Goodwill - Changes In Carrying Amount of Goodwill (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 251,628,000 | $ 343,800,000 | |
Impairment loss | (92,200,000) | ||
Disposition of assets | (4,600,000) | ||
Business acquisition | 7,000,000 | ||
Goodwill, ending balance | 253,956,000 | 251,600,000 | |
Applebee's | Franchised | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 236,200,000 | 328,400,000 | |
Impairment loss | (92,200,000) | ||
Disposition of assets | 0 | ||
Business acquisition | 0 | ||
Goodwill, ending balance | 236,200,000 | 236,200,000 | |
Applebee's | Entity Operated Units | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 4,600,000 | 4,600,000 | |
Impairment loss | 0 | ||
Disposition of assets | $ (4,600,000) | ||
Business acquisition | 0 | ||
Goodwill, ending balance | 0 | 4,600,000 | |
IHOP | Franchised | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 10,800,000 | 10,800,000 | |
Impairment loss | 0 | ||
Disposition of assets | 0 | ||
Business acquisition | 0 | ||
Goodwill, ending balance | 10,800,000 | 10,800,000 | |
Fuzzy's | Franchised | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 0 | 0 | |
Impairment loss | 0 | ||
Disposition of assets | 0 | ||
Business acquisition | 7,000,000 | ||
Goodwill, ending balance | $ 7,000,000 | $ 0 |
Goodwill - Gross and net carryi
Goodwill - Gross and net carrying amounts of goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | ||||
Gross | $ 709,100 | $ 702,100 | ||
Accumulated Impairment Loss | (455,100) | (450,500) | ||
Net | 253,956 | 251,628 | $ 251,600 | $ 343,800 |
Franchised | Applebee's | ||||
Goodwill [Line Items] | ||||
Gross | 686,700 | 686,700 | ||
Accumulated Impairment Loss | (450,500) | (450,500) | ||
Net | 236,200 | 236,200 | 236,200 | 328,400 |
Franchised | IHOP | ||||
Goodwill [Line Items] | ||||
Gross | 10,800 | 10,800 | ||
Accumulated Impairment Loss | 0 | 0 | ||
Net | 10,800 | 10,800 | 10,800 | 10,800 |
Franchised | Fuzzy's | ||||
Goodwill [Line Items] | ||||
Gross | 7,000 | 0 | ||
Accumulated Impairment Loss | 0 | 0 | ||
Net | 7,000 | 0 | 0 | 0 |
Entity Operated Units | Applebee's | ||||
Goodwill [Line Items] | ||||
Gross | 4,600 | 4,600 | ||
Accumulated Impairment Loss | (4,600) | 0 | ||
Net | $ 0 | $ 4,600 | $ 4,600 | $ 4,600 |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Closure and impairment charges | ||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning of period | $ 67,200 | ||
Amortization expense | (10,559) | $ (10,679) | $ (10,903) |
End of period | 66,800 | 67,200 | |
Total other intangible assets, beginning of period | 539,390 | 549,700 | 575,100 |
Total intangible assets, impairment | (15,100) | ||
Total intangible assets, amortization expense | (10,559) | (10,679) | (10,903) |
Total Intangible assets, additions | 72,800 | 400 | 500 |
Total intangible assets, disposition | (4,700) | ||
Total other intangible assets, end of period | 597,028 | 539,390 | 549,700 |
Tradenames | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Beginning of period | 468,000 | 468,000 | 479,000 |
Impairment | (11,000) | ||
Additions | 57,200 | 0 | 0 |
Disposition | 0 | ||
End of period | 525,200 | 468,000 | 468,000 |
Other | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Beginning of period | 4,200 | 3,800 | 3,200 |
Impairment | 0 | ||
Additions | 800 | 400 | 600 |
Disposition | 0 | ||
End of period | 5,000 | 4,200 | 3,800 |
Franchising Rights | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning of period | 59,000 | 69,000 | 79,000 |
Impairment | 0 | ||
Amortization expense | (10,000) | (10,000) | (10,000) |
Additions | 14,800 | 0 | 0 |
Disposition | 0 | ||
End of period | 63,800 | 59,000 | 69,000 |
Total intangible assets, amortization expense | (10,000) | (10,000) | (10,000) |
Reacquired Franchise Rights | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning of period | 5,100 | 5,700 | 9,800 |
Impairment | (3,300) | ||
Amortization expense | (400) | (600) | (800) |
Additions | 0 | 0 | 0 |
Disposition | (4,700) | ||
End of period | 0 | 5,100 | 5,700 |
Total intangible assets, amortization expense | (400) | (600) | (800) |
Favorable leaseholds | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning of period | 3,100 | 3,200 | 4,100 |
Impairment | (800) | ||
Amortization expense | (100) | (100) | (100) |
Additions | 0 | 0 | 0 |
Disposition | 0 | ||
End of period | 3,000 | 3,100 | 3,200 |
Total intangible assets, amortization expense | $ (100) | $ (100) | $ (100) |
Other Intangible Assets - Narra
Other Intangible Assets - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 USD ($) restaurant | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Disposition of assets | $ 4.6 | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Closure and impairment charges | |||
Amortization expense 2023 | 14.4 | |||
Amortization expense 2024 | 14.4 | |||
Amortization expense 2025 | 14.4 | |||
Amortization expense 2026 | 14.4 | |||
Amortization expense 2027 | 14.4 | |||
Entity Operated Units | Applebee's | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Disposition of assets | $ 4.6 | |||
Number of restaurants sold | restaurant | 69 | |||
Franchising Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 14.8 | $ 0 | $ 0 | |
Impairment of intangible assets, finite-lived | 0 | |||
Recipes | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 0.5 | |||
Reacquired Franchise Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 0 | 0 | 0 | |
Impairment of intangible assets, finite-lived | 3.3 | |||
Reacquired Franchise Rights | Applebee's | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, finite-lived | 3.3 | |||
Favorable leaseholds | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | 0 | 0 | 0 | |
Impairment of intangible assets, finite-lived | 0.8 | |||
Favorable leaseholds | Applebee's | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, finite-lived | 0.8 | |||
Tradenames | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets acquired | $ 57.2 | $ 0 | 0 | |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 11 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | $ 218.2 | $ 211.7 | ||
Accumulated Amortization | (151.4) | (144.5) | ||
Net | 66.8 | 67.2 | ||
Franchising Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 214.8 | 200 | ||
Accumulated Amortization | (151) | (141) | ||
Net | 63.8 | 59 | $ 69 | $ 79 |
Reacquired Franchise Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 0 | 8.3 | ||
Accumulated Amortization | 0 | (3.2) | ||
Net | 0 | 5.1 | 5.7 | 9.8 |
Favorable leaseholds | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 3.4 | 3.4 | ||
Accumulated Amortization | (0.4) | (0.3) | ||
Net | $ 3 | $ 3.1 | $ 3.2 | $ 4.1 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt Components (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 05, 2019 |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ (5,100) | $ (7,400) | |
Long-term debt, net of debt issuance costs | 1,341,900 | 1,279,600 | |
Current portion of long-term debt | (100,000) | 0 | |
Long-term debt, net, less current maturities | 1,241,914 | 1,279,623 | |
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 653,000 | $ 693,000 | |
Debt interest rate (percent) | 4.194% | 4.194% | 4.194% |
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 594,000 | $ 594,000 | |
Debt interest rate (percent) | 4.723% | 4.723% | 4.723% |
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 100,000 | $ 0 | |
Debt interest rate (percent) | 5.50% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 05, 2019 USD ($) extensionTerm | Aug. 31, 2022 USD ($) renewalPeriod | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) Rate | Dec. 31, 2022 USD ($) Rate | Dec. 31, 2021 USD ($) Rate | Dec. 31, 2020 USD ($) | Aug. 12, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Threshold percentage | 50% | 50% | ||||||
Cash sweeping event | Rate | 175% | 175% | ||||||
Rapid amortization event | Rate | 120% | 120% | ||||||
Manager termination event | Rate | 120% | 120% | ||||||
Interest-only debt service coverage ratio, default event | Rate | 110% | 110% | ||||||
Debt service coverage ratio | Rate | 410% | 410% | ||||||
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II and Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of tranches issued | extensionTerm | 2 | |||||||
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate (percent) | 4.194% | 4.194% | 4.194% | 4.194% | ||||
Debt instrument, face amount | $ 700,000,000 | |||||||
Debt instrument, make-whole premium | $ 0 | $ 0 | ||||||
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | Ten Year United States Treasury Bill Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.15% | |||||||
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate (percent) | 4.723% | 4.723% | 4.723% | 4.723% | ||||
Debt instrument, face amount | $ 600,000,000 | |||||||
Debt instrument, make-whole premium | $ 500,000 | $ 500,000 | ||||||
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | Ten Year United States Treasury Bill Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.64% | |||||||
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate (percent) | 5.50% | 5.50% | ||||||
Letters of credit outstanding | $ 3,400,000 | $ 3,400,000 | ||||||
Line of credit facility, current borrowing capacity | $ 221,600,000 | $ 221,600,000 | ||||||
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 325,000,000 | $ 325,000,000 | ||||||
Proceeds from long-term lines of credit | $ 100,000,000 | |||||||
Debt, weighted average interest rate | 3.64% | 3.64% | ||||||
Number of renewal periods | renewalPeriod | 2 | |||||||
Renewal period term (in years) | 1 year | |||||||
Interest rate percentage after renewal date | 5% | |||||||
Debt issuance costs, gross | $ 6,300,000 | |||||||
Amortization of financing costs | $ 400,000 | |||||||
Debt issuance costs, net | $ 5,900,000 | 5,900,000 | ||||||
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | Letter of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | Letter of Credit | Federal Funds Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | Letter of Credit | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2% | |||||||
Series 2019-1 Variable Funding Senior Notes Class A-1 [Member] | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | ||||||
Line of credit facility, expired amount | $ 225,000,000 | |||||||
Proceeds from long-term lines of credit | $ 220,000,000 | |||||||
Repayments of long-term lines of credit | $ 220,000,000 | |||||||
Line of credit facility, amount outstanding | $ 0 | |||||||
Debt, weighted average interest rate | 2.42% | 2.42% | ||||||
Gain (loss) on extinguishment of debt | $ 1,400,000 | $ (1,200,000) | ||||||
Extinguishment of debt | 40,000,000 | |||||||
Amortization of financing costs | 400,000 | $ 600,000 | $ 600,000 | |||||
Debt issuance costs, net | $ 1,500,000 | $ 1,500,000 | ||||||
Series 2019-1 Variable Funding Senior Notes Class A-1 [Member] | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.15% | |||||||
Line of credit facility, percentage of advances drawn | 60% | |||||||
Series 2019-1 Variable Funding Senior Notes Class A-1 [Member] | Revolving Credit Facility | Commercial Paper Funding Rate Of Conduit Investor | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.15% | |||||||
Line of credit facility, percentage of advances drawn | 40% | |||||||
2019 Class A-2 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional interest on fixed rate | 5% | |||||||
Debt instrument, term | 10 years | |||||||
Covenant compliance, leverage ratio, maximum | Rate | 525% | 525% | 525% | |||||
Ratio of indebtedness to net capital | Rate | 440% | 440% | ||||||
Debt instrument, periodic payment, principal | $ 3,250,000 | $ 3,250,000 | ||||||
Repayments of debt, principle | $ 9,750,000 | |||||||
Debt issuance costs, gross | $ 12,900,000 | 12,900,000 | ||||||
Amortization of financing costs | 2,400,000 | $ 2,200,000 | $ 2,100,000 | |||||
Debt issuance costs, net | 5,100,000 | 5,100,000 | ||||||
Debt instrument, annual principal payment | $ 13,000,000 | $ 13,000,000 | ||||||
2019 Class A-2 Notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Ratio of indebtedness to net capital | Rate | 525% | 525% |
Financing Obligations - Narrati
Financing Obligations - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2008 termExtensionOption | Dec. 31, 2022 USD ($) realProperty | Jun. 13, 2008 USD ($) | May 19, 2008 realProperty | |
Sale Leaseback Transaction Agreement for Properties | ||||
Sale Leaseback Transaction [Line Items] | ||||
Parcels of real property under sale leaseback transaction | 181 | |||
Master Lease Agreement | ||||
Sale Leaseback Transaction [Line Items] | ||||
Parcels of real property under sale leaseback transaction | 181 | |||
Gross proceeds of sale leaseback transaction | $ | $ 337.2 | |||
Sale leaseback initial term | 20 years | |||
Number of options to extend initial leaseback term | termExtensionOption | 4 | |||
Extension period for options to extend sale leaseback initial term (in years) | 5 years | |||
Properties assigned to franchisee or released from lessor | 160 | |||
Reduction in property and equipment and financing obligations as a result of sales transactions | $ | $ 286.9 |
Financing Obligations - Future
Financing Obligations - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Sale Leaseback Transaction [Line Items] | ||
2023 | $ 8,800 | |
2024 | 7,300 | |
2025 | 5,900 | |
2026 | 5,300 | |
2027 | 4,300 | |
Thereafter | 16,300 | |
Total minimum lease payments | 47,900 | |
Less: interest/imputed interest | (10,900) | |
Total obligations | 37,000 | |
Less: current portion | (6,600) | |
Finance lease obligations, less current maturities | 30,377 | $ 59,625 |
Sale-Leaseback Transactions | ||
Sale Leaseback Transaction [Line Items] | ||
2023 | 4,000 | |
2024 | 4,600 | |
2025 | 4,600 | |
2026 | 4,900 | |
2027 | 4,600 | |
Thereafter | 22,500 | |
Total minimum lease payments | 45,200 | |
Less: interest/imputed interest | (15,800) | |
Total obligations | 29,400 | |
Less: current portion | (1,000) | |
Finance lease obligations, less current maturities | $ 28,400 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2022 lease restaurant |
Lessee, Lease, Description [Line Items] | |
Lessor, number of leases requiring additional rent payments based on a percentage of restaurant sales | lease | 325,000 |
Lessee, number of leases requiring additional rent payments based on a percentage of restaurant sales | lease | 65,000 |
Finance lease, weighted average remaining lease term | 7 years 4 months 28 days |
Operating lease, weighted average remaining lease term | 6 years 3 months |
Finance lease, weighted average discount rate, percent | 10.50% |
Operating lease, weighted average discount rate, percent | 5.50% |
IHOP | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 530 |
Number of properties leased | 52 |
Lessee, operating lease, renewal term | 5 years |
IHOP | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
IHOP | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 25 years |
Applebee's | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 1 |
Number of properties leased | 1 |
Applebee's | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Lessee, operating lease, renewal term | 5 years |
Applebee's | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 20 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 3.6 | $ 4.6 | $ 5 |
Interest on lease liabilities | 4.5 | 5.4 | 6.6 |
Operating lease cost | 83.5 | 84.4 | 90.6 |
Variable lease cost | 7.6 | 7 | 0.8 |
Short-term lease cost | 0 | 0.1 | 0 |
Sublease income | (106.8) | (104.6) | (96.8) |
Lease cost | $ (7.6) | (3.1) | 6.2 |
Previously Reported | |||
Finance lease cost: | |||
Operating lease cost | $ 98.7 | $ 109.8 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Noncancelable Leases as Lessee (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finance Leases | ||
2023 | $ 8.8 | |
2024 | 7.3 | |
2025 | 5.9 | |
2026 | 5.3 | |
2027 | 4.3 | |
Thereafter | 16.3 | |
Total minimum lease payments | 47.9 | |
Less: interest/imputed interest | (10.9) | |
Total obligations | $ 37 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of finance lease and financing obligations | Current maturities of finance lease and financing obligations |
Less: current portion | $ (6.6) | |
Long-term lease obligations | 30.4 | |
Operating Leases | ||
2023 | 63.7 | |
2024 | 74.3 | |
2025 | 63.9 | |
2026 | 55.3 | |
2027 | 37.1 | |
Thereafter | 110 | |
Total minimum lease payments | 404.3 | |
Less: interest/imputed interest | (70.1) | |
Total obligations | 334.2 | |
Less: current portion | (59.1) | |
Long-term lease obligations | $ 275.1 |
Leases - Payment for Leases (De
Leases - Payment for Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Principal payments on finance lease obligations | $ 8,946 | $ 10,238 | $ 12,451 |
Interest payments on finance lease obligations | 4,500 | 5,400 | 6,600 |
Payments on operating leases | 83,500 | 91,700 | 101,100 |
Variable lease payments | $ 7,600 | $ 6,200 | $ 700 |
Leases - Components of Lease In
Leases - Components of Lease Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Minimum lease payments | $ 96.4 | $ 96 | $ 97.2 |
Variable lease income | 16.9 | 15.3 | 5.2 |
Total operating lease income | $ 113.3 | $ 111.3 | $ 102.4 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Rental revenues | Rental revenues | Rental revenues |
Leases - Future Minimum Payment
Leases - Future Minimum Payments to be Received as Lessor Under Noncancelable Operating Leases (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 103.6 |
2024 | 94.8 |
2025 | 82.1 |
2026 | 67.6 |
2027 | 49.5 |
Thereafter | 122 |
Total minimum rents receivable | $ 519.6 |
Leases - Schedule of Income Fro
Leases - Schedule of Income From Direct Financing Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Selling profit | $ 0.9 | $ 0 | $ 0 |
Interest income | 1.5 | 2.1 | 3.4 |
Variable lease income | $ 0.7 | $ 0.5 | $ 0.3 |
Direct Financing Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Rental revenues | Rental revenues | Rental revenues |
Total financing lease income | $ 3.1 | $ 2.6 | $ 3.7 |
Leases - Future Minimum Payme_2
Leases - Future Minimum Payments to be Received as Lessor Under Noncancelable Direct Financing Leases (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 4.7 |
2024 | 2.6 |
2025 | 1.8 |
2026 | 1.8 |
2027 | 1.8 |
Thereafter | 12.4 |
Total minimum rents receivable | 25.1 |
Less: unearned income | (6.6) |
Total real estate leases receivable | 18.5 |
Less: current portion | (3.6) |
Long-term real estate leases receivable | $ 14.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Outstanding purchase commitments | $ 95.6 | |
Letter of Credit | Series 2022-1 Variable Funding Class A-1, Variable Rate of 5.50% at December 31, 2022 | ||
Loss Contingencies [Line Items] | ||
Line of credit facility, available remaining borrowing capacity | 3.4 | |
Property Lease Guarantee | Applebee's | ||
Loss Contingencies [Line Items] | ||
Potential liability for guaranteed leases | 445.1 | $ 223.1 |
Potential liability for guaranteed leases excluding unexercised option periods | 102.9 | |
Advertising | ||
Loss Contingencies [Line Items] | ||
Outstanding purchase commitments | $ 86.3 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 17, 2022 | Feb. 28, 2019 | |
Class of Stock [Line Items] | |||||
Stock repurchased during period, value | $ 120,163,000 | $ 4,480,000 | $ 26,527,000 | ||
Reissuance of treasury stock (in shares) | (205,293) | (660,718) | (433,477) | ||
Reissuance of treasury stock | $ 241,000 | $ 25,337,000 | $ 20,522,000 | ||
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Reissuance of treasury stock | $ 9,600,000 | $ 26,800,000 | $ 19,400,000 | ||
2019 Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Authorized amount | $ 200,000,000 | ||||
Stock repurchased during period (in shares) | 588,108 | 59,099 | 459,899 | ||
Stock repurchased during period, value | $ 41,400,000 | $ 4,500,000 | $ 26,500,000 | ||
2022 Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Authorized amount | $ 250,000,000 | ||||
Stock repurchased during period (in shares) | 1,149,589 | ||||
Stock repurchased during period, value | $ 78,700,000 |
Stockholders' Deficit - Share R
Stockholders' Deficit - Share Repurchases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Stock repurchased during period, value | $ 120,163 | $ 4,480 | $ 26,527 |
2022 Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (in shares) | 1,149,589 | ||
Stock repurchased during period, value | $ 78,700 | ||
Cumulative amount of shares repurchased (in shares) | 1,149,589 | ||
Cumulative payments for repurchase of common stock | $ 78,700 | ||
Remaining dollar value of shares that may be repurchased | $ 171,300 | ||
2019 Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (in shares) | 588,108 | 59,099 | 459,899 |
Stock repurchased during period, value | $ 41,400 | $ 4,500 | $ 26,500 |
Cumulative amount of shares repurchased (in shares) | 2,344,804 | ||
Cumulative payments for repurchase of common stock | $ 175,800 | ||
Remaining dollar value of shares that may be repurchased | $ 24,200 |
Stockholders' Deficit - Schedul
Stockholders' Deficit - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||||||||||
Jan. 06, 2023 | Dec. 02, 2022 | Sep. 30, 2022 | Sep. 09, 2022 | Jul. 08, 2022 | May 12, 2022 | Apr. 01, 2022 | Feb. 17, 2022 | Jan. 07, 2022 | Dec. 20, 2021 | Apr. 03, 2020 | Feb. 20, 2020 | Jan. 10, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.46 | $ 0.40 | $ 0.76 | $ 1.99 | $ 0.40 | $ 0.76 | |||||||
Dividends paid per common share (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.46 | $ 0.40 | $ 0.76 | $ 0.69 | $ 1.88 | $ 1.45 | ||||||||
Dividends paid | $ 8.1 | $ 8.2 | $ 7.8 | $ 6.9 | $ 12.7 | $ 11.7 | $ 31 | $ 24.4 | ||||||||
Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends paid | $ 8 |
Closure and Long-lived Tangib_3
Closure and Long-lived Tangible Asset Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |||
Closure charges | $ 1.7 | $ 3.7 | $ 3 |
Long-lived tangible asset impairment | 1.4 | 1.7 | 22.3 |
Total closure and long-lived tangible asset impairment charges | $ 3.1 | $ 5.4 | $ 25.3 |
Closure and Long-lived Tangib_4
Closure and Long-lived Tangible Asset Impairment Charges - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) restaurant | Dec. 31, 2021 USD ($) restaurant | Dec. 31, 2020 USD ($) restaurant | |
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 1,700 | $ 3,700 | $ 3,000 |
Long-lived tangible asset impairment | 1,400 | 1,700 | 22,300 |
Operating lease, impairment loss | 15,100 | ||
Land, Building, Leasehold Improvements And Finance Leases | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating lease, impairment loss | 7,200 | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Long-lived tangible asset impairment per asset | 1,300 | ||
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Long-lived tangible asset impairment per asset | 5 | ||
IHOP | |||
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 1,600 | ||
Exit costs | $ 400 | $ 2,100 | |
Number of restaurants related to exit costs | restaurant | 3 | ||
Number of restaurants related to prior period closure charge revisions | restaurant | 40 | 28 | |
Revision to existing closure reserves | $ 1,600 | ||
Number of restaurants subject to closure charges | restaurant | 20 | 7 | |
Number of restaurants subject to asset impairment | restaurant | 5 | 5 | |
IHOP | Franchised | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of restaurants subject to asset impairment | restaurant | 29 | ||
Applebee's | Entity Operated Units | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of restaurants subject to asset impairment | restaurant | 29 |
Stock-Based Incentive Plans - N
Stock-Based Incentive Plans - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 14, 2019 | Dec. 31, 2016 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, options, exercises in period, intrinsic value | $ 37,000 | $ 17,900,000 | $ 4,300,000 | |||
Proceeds from stock options exercised | 241,000 | 25,337,000 | 20,523,000 | |||
Tax benefit realized for tax deduction from option exercises | 9,000 | 4,500,000 | 1,100,000 | |||
Share-based payment arrangement, expense | 17,600,000 | 13,900,000 | 13,600,000 | |||
Employee-related liabilities, current | 23,456,000 | 40,785,000 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 2,700,000 | |||||
Unrecognized compensation cost, recognition period | 1 year 3 months 18 days | |||||
Restricted Stock and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 17,500,000 | |||||
Unrecognized compensation cost, recognition period | 1 year 6 months | |||||
Cash-Settled Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ 200,000 | 1,500,000 | 300,000 | |||
Employee-related liabilities, current | $ 0 | 900,000 | ||||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Share-based payment arrangement, expense | $ 1,200,000 | 800,000 | $ 700,000 | |||
Employee-related liabilities, current | $ 2,100,000 | $ 1,500,000 | ||||
LTIP | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Multiplier for target award | 0% | |||||
LTIP | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Multiplier for target award | 200% | |||||
Officers, Directors, and Employees | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, expiration period | 10 years | |||||
Award vesting period | 3 years | |||||
Officers, Directors, and Employees | Restricted Stock and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Vesting share-based awards percentage | 33.33% | |||||
2019 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Company’s common stock for incentive stock awards (in shares) | 2,050,000 | |||||
DineEquity, Inc. 2016 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Company’s common stock for incentive stock awards (in shares) | 3,750,000 | |||||
DineEquity, Inc. 2011 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Company’s common stock for incentive stock awards (in shares) | 1,500,000 |
Stock-Based Incentive Plans - S
Stock-Based Incentive Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Equity classified awards expense | $ 16.2 | $ 11.6 | $ 12.6 |
Liability classified awards expense | 1.4 | 2.3 | 1 |
Total pretax stock-based compensation expense | 17.6 | 13.9 | 13.6 |
Book income tax benefit | (3.5) | (3.5) | (3.4) |
Total stock-based compensation expense, net of tax | $ 14.1 | $ 10.4 | $ 10.2 |
Stock-Based Incentive Plans - E
Stock-Based Incentive Plans - Equity Classified Awards Stock Options (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 1.70% | 0.50% | 1.20% |
Weighted average historical volatility | 70.10% | 67.70% | 30.50% |
Dividend yield | 2.60% | 0% | 3.50% |
Expected years until exercise | 4 years 6 months | 4 years 6 months | 4 years 7 months 6 days |
Weighted average fair value of options granted (in USD per share) | $ 33.23 | $ 40.25 | $ 17.53 |
Stock-Based Incentive Plans -_2
Stock-Based Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares Under Option | |||
Beginning of period, outstanding (in shares) | 475,904 | 1,014,670 | 1,217,438 |
Granted (in shares) | 75,795 | 95,891 | 167,969 |
Exercised (in shares) | (3,505) | (524,536) | (270,024) |
Forfeited (in shares) | (6,171) | (59,468) | (45,247) |
Expired (in shares) | (2,448) | (50,653) | (55,466) |
End of period, outstanding (in shares) | 539,575 | 475,904 | 1,014,670 |
Vested and expected to vest (in shares) | 528,037 | ||
Exercisable (in shares) | 378,811 | ||
Weighted Average Exercise Price Per Share | |||
Beginning of period, outstanding (in USD per share) | $ 76.65 | $ 64.16 | $ 66.43 |
Granted (in USD per share) | 70.08 | 75.28 | 87.17 |
Exercised (in USD per share) | 68.80 | 48.79 | 76.01 |
Forfeited (in USD per share) | 81.13 | 88.39 | 86.39 |
Expired (in USD per share) | 94.43 | 98.61 | 107.78 |
End of period, outstanding (in USD per share) | 75.65 | $ 76.65 | $ 64.16 |
Vested and expected to vest (in USD per share) | 75.72 | ||
Exercisable (in USD per share) | $ 75.95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual term, outstanding (in years) | 6 years 9 months 18 days | ||
Weighted average remaining contractual term, vested and expected to vest (in years) | 5 years 10 months 24 days | ||
Weighted average remaining contractual term, exercisable (in years) | 4 years 10 months 24 days | ||
Aggregate intrinsic value, outstanding | $ 3.5 | ||
Aggregate intrinsic value, vested and expected to vest | 1.5 | ||
Aggregate intrinsic value, exercisable | $ 1.3 |
Stock-Based Incentive Plans - D
Stock-Based Incentive Plans - Disclosure of Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Number of Shares | |||
Beginning of period, outstanding (shares) | 276,611 | 254,331 | 224,515 |
Granted (shares) | 201,789 | 141,264 | 163,522 |
Released (in shares) | (98,864) | (60,407) | (95,211) |
Forfeited (shares) | (23,636) | (58,577) | (38,495) |
End of period, outstanding (shares) | 355,900 | 276,611 | 254,331 |
Weighted Average Grant-Date Per Share Fair Value | |||
Beginning of period, outstanding (in USD per share) | $ 80.85 | $ 76.50 | $ 70.52 |
Granted (in USD per share) | 70.12 | 83.24 | 73.68 |
Released (in USD per share) | 86.36 | 66.90 | 55.75 |
Forfeited (in USD per share) | 75.89 | 82.09 | 85.03 |
End of period, outstanding (in USD per share) | $ 73.57 | $ 80.85 | $ 76.50 |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Beginning of period, outstanding (shares) | 105,592 | 355,570 | 357,807 |
Granted (shares) | 60,914 | 68,998 | 30,997 |
Released (in shares) | (42,611) | (318,976) | (33,234) |
Forfeited (shares) | 0 | 0 | 0 |
End of period, outstanding (shares) | 123,895 | 105,592 | 355,570 |
Weighted Average Grant-Date Per Share Fair Value | |||
Beginning of period, outstanding (in USD per share) | $ 71 | $ 28.01 | $ 30.35 |
Granted (in USD per share) | 49.36 | 63.04 | 77.33 |
Released (in USD per share) | 66.63 | 23.19 | 63.98 |
Forfeited (in USD per share) | 0 | 0 | 0 |
End of period, outstanding (in USD per share) | $ 62.11 | $ 71 | $ 28.01 |
Stock-Based Incentive Plans - L
Stock-Based Incentive Plans - Liability Classified Awards - Cash-settled Restricted Stock Units (Details) - Cash-Settled Restricted Stock Units - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash-Settled Restricted Stock Units | |||
Beginning of period, outstanding (shares) | 12,799 | 52,956 | 63,852 |
Granted (shares) | 67 | 0 | 2,658 |
Released (shares) | (12,866) | (38,916) | (1,426) |
Forfeited (shares) | 0 | (1,241) | (12,128) |
End of period, outstanding (shares) | 0 | 12,799 | 52,956 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2013 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions made to 401(k) | $ 3.3 | $ 2.9 | $ 2.8 | |
First Tier of Deferral | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of gross pay | 100% | |||
Percent of eligible deferral | 4% | |||
Second Tier of Deferral | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of gross pay | 50% | |||
Percent of eligible deferral | 2% |
Income Taxes - Provision (benef
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Provision (benefit) for income taxes | |||
Federal | $ 27,500 | $ 20,200 | $ 11,000 |
State | 5,500 | 4,600 | 3,100 |
Foreign | 1,800 | 1,400 | 1,300 |
Current income tax expense | 34,800 | 26,200 | 15,400 |
Deferred | |||
Federal | (3,800) | 2,300 | 17,300 |
State | 2,700 | 200 | (2,700) |
Deferred income tax expense (benefit) | (1,071) | (2,065) | (20,049) |
Provision (benefit) for income taxes | $ 33,674 | $ 24,059 | $ (4,568) |
Income Taxes - Income tax rate
Income Taxes - Income tax rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
Non-deductibility of goodwill | 0.80% | 0% | (17.90%) |
Non-deductibility of officer's compensation | 2.90% | 2.20% | (0.90%) |
State and other taxes, net of federal tax benefit | 3.10% | 3.10% | 1.20% |
Excess tax deficiencies or benefits | (0.50%) | (7.10%) | 0.10% |
Change in unrecognized tax benefits | 0% | (0.10%) | 2% |
Change in valuation allowance | (0.30%) | 0.50% | (1.50%) |
Changes in tax rates and state tax laws | 3.40% | 0.20% | (0.40%) |
General business credits | (1.40%) | (0.90%) | 0.80% |
Other | 0.30% | 0.80% | (0.20%) |
Effective tax rate | 29.30% | 19.70% | 4.20% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2022 restaurant | Dec. 31, 2019 USD ($) | |
Income Tax Disclosure [Line Items] | |||||
Effective tax rate | 29.30% | 19.70% | 4.20% | ||
Goodwill, impairment loss | $ 92,200,000 | ||||
Operating loss carryforwards, valuation allowance | $ 1,100,000 | ||||
Valuation allowance | (3,500,000) | $ (4,200,000) | |||
Operating loss carryforwards | 37,900,000 | 23,600,000 | |||
Unrecognized tax benefits | 2,100,000 | 1,900,000 | 2,200,000 | $ 7,600,000 | |
Unrecognized tax benefit changes in next 12 months | 500,000 | ||||
Unrecognized tax benefits, interest on income taxes accrued | 700,000 | 600,000 | |||
Unrecognized tax benefits, income tax penalties accrued | $ 100,000 | $ 100,000 | |||
Entity Operated Units | Applebee's | |||||
Income Tax Disclosure [Line Items] | |||||
Number of restaurants sold | restaurant | 69 | ||||
Goodwill, impairment loss | $ 0 |
Income Taxes - Net deferred tax
Income Taxes - Net deferred tax assets (liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Lease liabilities | $ 93.6 | $ 112.9 |
Employee compensation | 9.7 | 12.1 |
Revenue recognition | 37.1 | 35.4 |
Other | 8.4 | 8.4 |
Deferred tax assets | 148.8 | 168.8 |
Valuation allowance | (3.5) | (4.2) |
Total deferred tax assets after valuation allowance | 145.3 | 164.6 |
Recognition of franchise and equipment sales | (6.7) | (8.2) |
Capitalization and depreciation | (121) | (122.7) |
Lease assets | (90.8) | (108.6) |
Other | (1.5) | (1.3) |
Deferred tax liabilities | (220) | (240.8) |
Net deferred tax liabilities | $ (74.7) | $ (76.2) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 1.9 | $ 2.2 | $ 7.6 |
Changes for tax positions of prior years | 0.1 | 0.5 | 0 |
Increases for tax positions related to the current year | 0.4 | 0.3 | 0.2 |
Decreases relating to settlements and lapsing of statutes of limitations | (0.3) | (1.1) | (5.6) |
Unrecognized tax benefit as of December 31 | $ 2.1 | $ 1.9 | $ 2.2 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for basic and diluted income (loss) per common share | |||
Net income (loss) | $ 81,111 | $ 97,864 | $ (103,994) |
Less: Net income allocated to unvested participating restricted stock | (2,174) | (2,295) | (420) |
Net income (loss) available to common stockholders | 78,937 | 95,569 | (104,414) |
Effect of unvested participating restricted stock | 1 | 13 | 0 |
Numerator - income (loss) available to common shareholders - diluted | $ 78,938 | $ 95,582 | $ (104,414) |
Denominator | |||
Weighted average outstanding shares of common stock - basic (in shares) | 15,873 | 16,799 | 16,230 |
Stock options (in shares) | 28 | 91 | 0 |
Weighted average outstanding shares of common stock - diluted (in shares) | 15,901 | 16,890 | 16,230 |
Net income (loss) per common share | |||
Basic (in dollars per share) | $ 4.97 | $ 5.69 | $ (6.43) |
Diluted (in dollars per share) | $ 4.96 | $ 5.66 | $ (6.43) |
Net (Loss) Income Per Share - N
Net (Loss) Income Per Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,056 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 116,491 | $ 113,933 | $ 105,939 | |
Total revenues | 909,402 | 896,167 | 689,268 | |
Gross profit (loss), by segment | 114,785 | 121,923 | (108,562) | |
Interest expense | 67,600 | 71,500 | 75,900 | |
Depreciation and amortization | 37,952 | 39,885 | 42,829 | |
Goodwill and intangible assets, closure and other impairment charges | 3,100 | 5,400 | 132,600 | |
Capital expenditures | 35,318 | 16,849 | 10,927 | |
Goodwill | 253,956 | 251,628 | 251,600 | $ 343,800 |
Total assets | 1,881,491 | 1,999,366 | 2,074,900 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 377,300 | 375,200 | 248,700 | |
Goodwill | 254,000 | 251,600 | 251,600 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | (262,600) | (253,300) | (357,300) | |
Interest expense | 60,700 | 63,300 | 66,900 | |
Depreciation and amortization | 13,000 | 11,700 | 13,400 | |
Capital expenditures | 31,000 | 10,300 | 8,200 | |
Total assets | 332,800 | 424,900 | 454,700 | |
Franchise operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 662,438 | 631,936 | 469,453 | |
Company restaurants | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 126,869 | 146,000 | 108,054 | |
Financing operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 3,604 | 4,298 | 5,822 | |
Franchise operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 340,500 | 336,000 | 230,500 | |
Depreciation and amortization | 10,000 | 10,100 | 10,100 | |
Goodwill and intangible assets, closure and other impairment charges | 3,100 | 1,700 | 122,100 | |
Total assets | 1,123,000 | 991,000 | 997,700 | |
Franchise operations | Franchise operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 662,400 | 631,900 | 469,500 | |
Goodwill | 254,000 | 247,000 | 247,000 | |
Rental operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 116,500 | 113,900 | 105,900 | |
Gross profit (loss), by segment | 28,500 | 26,100 | 16,400 | |
Interest expense | 4,300 | 4,900 | 6,300 | |
Depreciation and amortization | 10,700 | 11,100 | 12,300 | |
Total assets | 390,600 | 426,600 | 451,500 | |
Company restaurants | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 5,100 | 9,300 | (3,500) | |
Interest expense | 2,600 | 3,300 | 2,700 | |
Depreciation and amortization | 4,300 | 7,000 | 7,000 | |
Goodwill and intangible assets, closure and other impairment charges | 0 | 3,700 | 10,500 | |
Capital expenditures | 4,300 | 6,500 | 2,700 | |
Total assets | 3,300 | 117,200 | 121,100 | |
Company restaurants | Company restaurants | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 126,900 | 146,000 | ||
Company restaurants | Company restaurants | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 108,100 | |||
Goodwill | 0 | 4,600 | 4,600 | |
Financing operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 3,200 | 3,800 | 5,300 | |
Total assets | 31,800 | 39,700 | 49,900 | |
Financing operations | Financing operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | $ 3,600 | $ 4,300 | $ 5,800 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ in Thousands | Dec. 13, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 253,956 | $ 251,628 | $ 251,600 | $ 343,800 | |
Fuzzy's | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 80,000 | ||||
Goodwill | $ 7,000 | ||||
Fuzzy's | Franchise agreements | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 20 years |
Business Acquisition - Net Asse
Business Acquisition - Net Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 13, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 253,956 | $ 251,628 | $ 251,600 | $ 343,800 | |
Fuzzy's | |||||
Business Acquisition [Line Items] | |||||
Receivables and other current assets | $ 1,100 | ||||
Property and equipment and other non-current assets | 2,100 | ||||
Other intangible assets | 500 | ||||
Goodwill | 7,000 | ||||
Accounts payable and other liabilities | (4,400) | ||||
Net cash paid for acquisition | 78,300 | ||||
Fuzzy's | Tradenames | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 57,200 | ||||
Fuzzy's | Franchise agreements | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 14,800 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Feb. 16, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Debt repurchase program, maximum amount authorized | $ 100 |
Uncategorized Items - din-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |