Dine Brands Global (DIN)

Ken Diptee Executive Director of Investor Relations
John Peyton Chief Executive Officer
Allison Hall Interim Chief Financial Officer and Controller
Jay Johns President of IHOP
John Cywinski President of Applebee's
Brian Mullan Deutsche Bank
Jake Bartlett Truist Securities
Brian Vaccaro Raymond James
Eric Gonzalez KeyBanc
Brett Levy MKM Partners
Nick Setyan Wedbush Securities
Jeffrey Bernstein Barclays
Todd Brooks C.L. King & Associates
Call transcript
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Hello, and welcome to the First Quarter 2021 Dine Brands Global Earnings Conference Call. My name is Christian, and I’ll be your conference operator today. After the speaker's presentation, there will be a question-and-answer session. But we ask that you please limit your question to one and one follow-up. Please also note that today's conference is being recorded. the to turn now will call Mr. over I Investor Diptee, Executive of Director Ken Relations. begin. you Sir, may

Ken Diptee

CFO and morning, Conference John Hall, President President joined XXXX Dine John and Call. by Jay Cywinski, Interim of Allison IHOP; CEO; Applebee's. Good Peyton, to I'm welcome Brands of Controller; Johns, and First Quarter

information. over the Before please our I call turn safe remember John, to harbor regarding forward-looking

no the and factors, also discuss the During Dine that update We With our context obligation these is turn implied. statements. and cause known described to which management also which refer release are supplement available to on involves Brands' John. which as filings. XX-Q other and may or forward-looking information these in assumes results statements of different or may unknown call, The forward-looking non-GAAP be release uncertainties and today's the in and risks, are the expressed are to the website. to financial than press certain actual may forward-looking press call detailed factors, measures, information over those in I'll evaluate and Please of that, today

John Peyton

morning, thousands is for renaissance staff what I to is and today. we our and and of Dip] my especially cusp and notion of our Dine this flourishing think people exactly hardworking joining last love company that We're and day at of world. franchisees it's managers the I And is And to and willingness Ken. renaissance. our around pushing turbo-charging When and our the members creativity and resurgence Brands. organization, brands creativity shared every and here. proud management beyond all the doing restaurant because I'm I'm adapt our today A it about everyone, our the industry teams, belief established our team we quarter, were [Audio team from us our headline I And and the we're on learn I'm of changing that's the why renaissance franchisees. of the Thanks, spoke servers. to throughout that way company experimentation. our general that's proud see Good particular thanks restaurant in a are restaurant boundaries.

I as on it's look remarkable we quarter, and back to how grow. Now persevere first the continue

Our on this Allison, distortion John, brands to first profound be and and period comp due sales. pandemic’s XXXX posted Jay same I meaningful during improvements to sales the quarter the comparing the will in XXXX of call,

through each total results of generation revenue to because sales, the cash those share lens the me store let and obviously So one leads next.

rising, underlying business. our performance $XXX us Average Box, Black first, different Applebee's higher high revenue free that increase exceeded view QX off-premise same-store indicating during sales optimistic encouraged federal well both we're the restaurants beginning weekly $XX.X since early performance flow opened levels So the and XXX% throughout first year. million several times enabled by and Applebee's that I'm importantly, to to to as profitable when we business. levels, strong in million, generated the lowest build restaurants savings. $XX.X as of also the our we market strength unemployment which March. on casual with consumer vaccinations our XXXX, Contributing outperformed March, looks QX that the absolute off-premise EBITDA of IHOP growth. dining rate segment. for QX sales IHOP we've than tailwinds throughout $XXX.X economic the confident across drive in part the firming the in cash Revenue; XXXX. of reached in began. brands. power bill, the impressive, this quarter. our economic The certainly deliver they're is incremental sales. repay Off-premise; in enjoying new towards new indicating during largely million gains potential achieved the in reflecting growth million, And growth the this staying We're pre-pandemic our and will XX strong is spending and Cash; performance revolver that were we'll pivot of franchisees that infrastructure and to that According dollar and And sustain quarter, a is at sales both the historically pandemic been resilience Applebee's very us to and share

one, fundamental franchise cash. strengths our an a XX% we is many significant that Now something asset-light are generator love Number model are have. of to would CEOs

actually got Second, as number team we've still competencies. are with new today, resilient the competitive dining the in gave And both and got next two the that pandemic been, members we've categories. most And tough generation third, industry most the along us workers iconic one hired. in has to world-class talented, year the the casual of past be family brands as

have imagined no we could have pre-COVID. today what both We've that business even off-premise incremental significant Here's got brands. one in

and add to quickly teams the aggressively Our and nurture operations business. and needed moved sustain capability tech to this new

our creativity and of advanced wallet. our the that Second, new will loyalty digital like and franchisees, that Cosmic kitchens horizon into on of others our and heavily we virtual all our due of programs for people. and of we offer revenue Wings talent to brands platform dine sources increase the that leaned ghost And in share

first and that So in country, the challenge traffic eased restrictions a hiring, all and we widely be with in seeing couple the available might are certainly vaccine more about across of today COVID-XX increased industry your around questions being that restaurants. is the country. A our and now capacity appointments mind, is on

help creative the you XX,XXX And our know And we're their We're the leveraging example franchisees we launching easy that big want to great goal days social adequate national hiring makes it and both to a on to recruiting very demand. with via next week. franchisees apply a dine are difference. XXth and So working in-person, generate new for and aggressively campaigns are to more members. is this the with I IHOP of in to interest. accommodate Applebee's where collaborating campaigns recruit scale text, staffing email increase brands team XXth making and than are two of

procurement. you Your chain. be second that working around continuity to know supply I question to today want we're our And might secure the of

as our input the Nonetheless, costs. actually surge just due upward purchasing During engaged commodity heavily created food year to in co-op outpaced see we've in generally eat a higher moment supply, and slightly with terrible the that problem time. and months, not brands remains as this going adjusted few full forecast past our has out to have, guests it is demand both to we a

demand prices forecast for the we equilibrium We to set fall remainder the are the to and business. However, to want adjust IHOP the world suppliers year. Applebee’s know open our over back to right that as of now new

is and of place, of TV, code a them that plans marketing in Applebee's focused media, protocols. and platforms, set practices tables our terrific and job one-to-one a with upon safe cleaning welcome course, national enhanced encompass back, of we So environment. like digital adhering on media remain And menus and use best the procedures masks standard to aren't seated, have marketing. our Both request, we guests have and until QR employees welcoming providing social guests done proper as the IHOP operating

Number And we've doubling we're place, renaissance. in safety we're on with specifically build fuel off-premise of is the new and having smaller developing five good that advantage. Flybuy. growth down restaurant thinking. in so to is Number four like a new prototypes two dine’s Cosmic Number innovation virtual kitchens. example for and Wings. investing both got competitive in our brands, Number ghost And three, Flip'd one, think platforms is technology brands

new for and running and Saudi in coming Cosmic Wings, Burritos Arabia; & Bowls. running And Kuwait creations culinary IHOP’s as like Philadelphia soon and always, we're in IHOP, L.A., Applebee's and we're Dubai, For focused up we're Miami. and and in up on

I the waiting review top we're more tell bigger, to currently that I But strategic spoke will I a tell into difference in future. that quarter. lean last our for we So our the that since of – I part and for business. we're a And vision conducting that you you north embracing know long-term decided bottom holistic to the plan. make of comprehensive three a growth that can process, in know And as investments you're we've already can near-term, incremental

is the guest First experience. that technology enhances

ihop.com redesign of as the IHOP Applebee's. the We're for accelerating website and support the and accelerating IHOP programs Flip’d the as app, and to our loyalty We’re app. platform well its needed

the by We'll I coming some the Flip’d by stay accelerate performers domestic this investment our to based Applebee's soon. portfolio the Carolinas, IHOP IHOP. increase the just on company-owned improve way, Second, among that leaning topic, which And brand. news to the system we're for tuned on say, investments in into making in restaurants of sister consistently experience in top XX launch Applebee's third, can And the sales. rank we're guest of

So these an an don't We G&A investments in them they in alter are $X I three our mentioned previously represent investment last that additional spoke. just since and issued CapEx, expect CapEx we largely million to guidance.

an we'll for create in announcement. it enables An team. And now restaurant and and sheet our progress of future confident important part use give confident because you you plans those a as results. story Allison a on I'm to update the all to of as on management that building well our renaissance, continue identified as our the our for So the is will way story. of We've blocks follow strong to balance very our us that financial in

Allison Hall

do Brands on everyone. as with great I an to we’re John. begin that’s business. overview the Good we’re things you, a doing. Dine mean, update well at I'll of Thank going as exciting morning, currently

being restrictions gradual for of pent-up XX% performance end of we million. and restrictions. first approximately as country; March, achieve dining $X We pleased of for our government the to our from first states the I'm restaurants of At our with administered are easing early quarter consumer that repaid domestic in facility savings in stimulus brands; reiterate credit now the some across $XXX opened checks; Our the interest the in drawdown vaccines distribution the the annual revolving dining expect XXXX reflects room planned. demand quarter, million an to operations, of

and statement. Our against $XXX.X with results. $XXX strong. This of Switching operating of last compares million. total of start facility, the gears first a quarter unrestricted cash fourth credit year, position the was unrestricted to with $XXX.X income our for increase. million I'll to million cash the XX% gone ended revolving that remains quarter our cash We

higher represents For Applebee's latest the restaurants in from improvement attributed quarter company the primarily the million Those resulting March check. to The profits was $XX.X in base a and for compared to from government $XX average increased due XXXX. to first lease underperforming same quarter of decline of of to operating planned as Rental is The of revenue distribution Applebee's impacted XXXX. closures the for tax shifts. rent, by partially the average on segment company first round gross percentage for points quarter and mix XX.X% XXXX, for improvement was the also of compared year-over-year IHOP adjusted heavily the buy-outs, of daypart retail of the check which the increased Rental profit in well sequential was based driven revenue higher as and primarily and XXXX traffic. segment by period stimulus decrease a quarter, due same in The check the both of variance million XX fourth the We a to favorable and $X.XX in traffic of restaurants compared closures last expense, believe to first percentage is quarter year. to increase EPS same gross restaurants to $X.XX product sales. quarter to of points X% franchisees' lower quarter income increase X.X to profit rental favorably average This percentage more the for impacted restaurants. related for XXXX. due compared check first was charges was

for the first GAAP rate to tax Turning our quarter. effective

departure for XXXX. for tax other tax the negative compared CEO. previous quarter XXXX XX.X% to The primarily of quarter one-time to XXXX travel partially effective compared lower of our benefits was first higher G&A the with of rate The due was increase rate tax same was costs due same change for X.X% for in compensation related effective million compensation, first of Our recognition on primarily the of stock-based year. the $XX.X the to offset $XX.X to G&A. of Switching costs. quarter million and quarter to associated equity-based personnel last was to gears by incentive excess

the for organization. a We G&A to significant continue as view lever

Turning stock-based to cash same statement. excess was increase the million for for of the The compared quarter last on due benefits primarily to to XXXX flow $XX.X $XX.X compensation. Cash first the year. the quarter was of operations from tax recognition million

discussed, adjusted model operations, lower quarter first quarter will invest Our for as the The to the of in in XXXX cash of We from continue disciplined that flow just the and same grow variance to franchised G&A compared strong highly the to first million primarily in our recovery ongoing $XX.X quarter believe CapEx free continues. XXXX. the management, and and the compared the was for position, the cash to business generate from $XX.X due year. improvement to from our prior cash allow strong, of cash increase us million operation, pandemic

in restaurant decisions our flexibility, and financial are operations Regarding driven our capital by the improvements and allocation conditions. industry business

our we business repay decisions early continue to progressive chose to allocation. on We'll against result $XXX capital the our As which will in the evaluate our a recovery, revolver drawn March. of influence million performance,

Turning assistance franchisees to program. our

our pre-pandemic brands remain As Brands cash rent and of make that meaningful across has both pleased payment Dine year March first investments quarter. both increased levels repaid. to Both to half allowing about the the a comp IHOP deferrals in to certain XXX in position, us started very XX, fees strong. weekly million our XXXX, We're $XX.X Brands we quarter the to Average Applebee's XX% and bands second in provided franchisees Dine and with royalty, with for of year. weeks the during the of been improvement start additional We optimistic sequential sales sales. dollars posted the ended in first strong business. in advertising

from more hear will John? at the will brand we're who making President, significant you about John tell Now progress our Cywinski, Applebee's. you

John Cywinski

and you, represented thank year extraordinarily and After an navigating April inflection the brand. the Allison, of March point job, for everyone. positive Great a hello, pandemic, Applebee's

years honestly the the it two delivered four than of inception than more Applebee's as monthly President better I in brand in of moment. very Applebee's, achieved the position this just at fact, In being dine-in can't highest has recall is XXXX. volumes sales since We

can all-time quite stimulus, XX our fact, XXXX, goes history baseline. and delivered is brand, highest sales Momentum the In likely the were years. What marketing April two and excellence. comp to XX-year months really as March represent of most result it's versus but of reflecting April confirm volume importantly as this back positive our March that can't sales the in XXXX I same X.X% only continued operational in I a versus confirm consumer accelerate confluence of compelling comp Applebee's plus that database XX.X%

how again clear government this be to is versus it's that to While of me attributed determine very full-force. stimulus out impossible to dining can momentum demand. in It's America much

Applebee's This big is example guests Irresist-A-Bowls posted likable from average real we QX Band. points. outperformed it advertising In evidence of as on year, this many the be just is in the This and Back firmly of the an So Box what XXXX significantly more anthem in respects get XX abundant of XXXX XXX most frankly of at the here's burgers powerful the Black, According to consecutive story. of is team well checks, Black talented outside weeks results. of weeks. wings comps behind Clearly of our event. returned return emergence April message positive Chicken currently XX we Brown really Fried to in started successful emerge and to Applebee's this way. Applebee's February, remember AC/DC industry. introduced that the before important delivered has a consecutive and and week to COVID. of returned momentum and marketing innovate momentum This resonated our Applebee's It's the of flavor and breakthrough industry when campaign to stimulus before value. choreographed very now with this last enduring, was the friends around comp continuing dining sales reminiscent has rock Zac I referenced, to believe ad our the when latest the versus entire category in for lyrics Applebee's memorable classic And last of casual air I providing popular John basis enormously signature it's

course, behind pride teams our good Of something our the about entire organization. that's point the franchise talking I'm eating and the time our innovation $X the real neighborhood, of in And partners, it hear team face. smile about restaurant our for our all We deliver guests to continues Equally advertising guests. Cocktails. always to a important is from brings to Mucho my Applebee's our

constraints, seating and normalcy. opportunities after the easing late clear to begin the spending very business back the February, our is as capacity with QX, incremental year the brand. re-emergence our night pre-COVID through quarters steadily now January of The well return progress and bar of and the we in represent for year. throughout plan substantial scaling in national opening see the As we comparisons of XXXX, the media alcohol media of And QX balanced same equally bodes of daypart and each to QX growth which with favorable remainder

all Additionally, brand our consistently other awareness continue there And and satisfaction, significantly variety, casual and category Applebee's nature, guest competitors. outpace outperformed the likelihood such to as menu advertising metrics unaided are key indicators average. to affordability, visit short-term brand isn't performance dining affinity in awareness that

off-premise insights like few I'd our business. on-premise Now a and regarding to share

week. For April an restaurant March Applebee's and averaged sales $XX,XXX per both impressive

question important Without and convenience restrictions per eased. off-premise volume steady the its As $XX,XXX relevance reach here has reflecting staying on-premise worth broadened have held this has power It's driven and noting significantly steadily within our between week of this Applebee's segment. as business. restaurant off-premise business increased has dining per anticipated $XX,XXX our that

consisted delivery. market delivery XX% coverage. week of have and new XX% per sales and dine-in, car in XX Wings brand sales about To-Go reflecting with virtual restaurant For the side Included Eats our mix $XXX averaged Wings Uber about of variability in month after segment is XX% April, significant Applebee's Cosmic geographic weeks this Cosmic per

high to range individual context, $XXX week restaurants a of For per week. from below per $X,XXX

Now, include can of Cosmic In meantime, importantly, trial. business. should Postmates size the of you which this the be significantly then your what Wings mean addition I add able expansion, to to imagination month, visibility distribution, we and this will the week After opportunity. may delivery Wings DoorDash for DoorDash quantify and Cosmic enhance use later to the expand the this as

Now, to with in to about of operations, integration challenges country, with staffing across these Applebee's restaurant encouraged respect hedge I'm the with handheld against very inflation labor tablets restaurants, the a tablets meaningful far provide our XXX make bottom care the easier while efficient love their service and in money. more tablets taking enabling because makes more the job be servers them these guests, of allows to line it

reduction as Additionally, this restaurant food resulting year also The was quietly for deployment. the focused menu been operation. should past one our margins on innovation future in I our of have that teams an positive XX% our as labor the the have the and core culinary awesome restaurant reinforce building of over outcomes approximate had and simplification and execution. beverage impact on marketing favorable well initiatives past pipeline technology of a year of benefits

to partners year. over America solid, So advertising Virtually to now our in XXXX, we're me is our all it's moving for are work wrapping royalty remain that quite fund trusts beginning this a forward. to restaurants to past our what lever see us Applebee's of franchise comparable was collections in goodwill create the rock it and open, hard as that big the benefits, up, so it's evident now

aligned only had this our eagerly in and an in day, plan We our and but team franchisees ability have been are waiting business not behind environment. perform, thrive this to exceptionally to confident who talented

full the For time now time, the own and we long poised potential a our great control this I in first believe brand. are destiny to of we unlock

my that way, be about our Thank now, And going I'm right genuine there partner, always optimistic I While with am Applebee's are. to it I'm be has more momentum you. right Jay. turn to along future sure challenges the and there'll couldn't I than other now.

Jay Johns

compared John, franchisees I Like great during those results know morning, we've job. accomplishing you of and so progress be made proud and nice must well. your really Good it, this of team right were everyone. now. to where proud quarter, are I'm what the we pandemic very Applebee's, as

to sales compared by quarter first Our points fourth quarter. improved sequentially percentage X.X comp the

business XX,XXX. stimulus dollars grown quarter XX,XXX As March average for of guests sales sequentially increased for in has our during levels under our our reaching buying checks approximately sales surpassed pre-pandemic improved, for January significantly just provided times with and weekly approximately XX,XXX to additional at power. as weekly Average the and high quarter were a the

XX. of were our as restaurant business, XX States indoor of guests to of for Regarding dine-in with dine-in compares to XX% XX%. with to to XX% in in-restaurant return domestic we're that of restaurants eager December the capacity March restaurant open California only restrictions approximately our open service makes domestic increased California for as dining up business. most pleased With recently in presence XX% IHOP’s

So sustainable overall the to we're To strategies. we're four potential optimistic execute drive there. continuing about against growth lift

last growth. As our our with maintaining you are our p.m. lastly, gains discussed dayparts, quarter, sales compelling these providing and value, off-premise development on focusing in I in

even to our two our dayparts a that X:XX p.m. in broad business our sales, first tangible mainly IHOPPY during value selection results, of drive provide guests daypart year of focusing color improves PM launched continues on across Our Hour September some those in on as XX:XX IHOPPY non-peak to incremental have last strategies, hours, to to plans yielded we all options Hour offer dayparts. value PM.

IHOPs been our in well actually This over to is increase Hours in than which the plan items menu digit menu, guests. times by the to very received to update to leading Hour two maintain lift further category rest entire the innovating low-to-mid We dining. day. To IHOPPY time. family higher compared We're appeal has equates position to by IHOPPY the continually for sales the single we of launched three XXXX, traffic day September, when a Additionally, it.

Obsession menu Steakhouse to thick This solidify across Premium value Bacon, continues is restaurant available cut this of new our offer is menu. dayparts. breakfast dining the first innovation all national to latest Bacon highlights which our and chain IHOP of IHOPs both on family to our makes The and in Obsession bacon. the new as Our our position type commitment Bacon innovation leader premium

really dine restaurants, played occasions. But but to we also in our we have and XXXX, into menu for both We the During at well thrive also been launches ready very & defense return Hour during, appealing both changes of remain Burritos and on-premise. completely menu also culminated heavily to making to choose offense pandemic. and our by and defense guests our invested We since guests. Burritos accommodate in moving to play received Bowls, This the after IHOPPY we by our signature heavily in when or it off-premise who promotion. we order fresh times and operational Bowls to wanted to resilient our total launched incidents and guests preparation fill a XX% enjoy & ticket for recovery. be with the to it they prepare gap had capture perfectly of X% the continues menu minimal and to with

while menu overarching innovation being go. also and breakfast both underscores supports non-breakfast on guests for portable Our and strategy the occasions

XX.X% generally total of compared sales, in capacity quarter, that's to first despite flat of our the sales gears across maintaining restrictions fourth third switch the let's gains eased off-premise steady in the at country Now quarter. our to our off-premise sales being held strategy

steady a sales dollars. net in seen in off-premise increase we've However,

mix XX.X% our quarter, sales of dine-in, delivery. first and consists the XX.X% XX.X% For To-Go

feasible the to a sales post-pandemic at of continue dine-in in sustaining and believe is a that business. anticipated We return mix a rate strongly much environment compliment higher off-premise will

when March XXX% believe certainly convenience Bowls. change in shutdowns. year, the first adapted has innovation & IHOP. remain appealing we behavior to the To-Go off-premise dollar influenced of the weekly changes Burritos our fact, behavior In height such as at off-premise as developing overall how The We highly of business last higher to quarter so increased the portable takeout guests. a will even consumer the and our In business. and and through use in pandemic than reached were sales levels We as items, his delivery the guests

to small our that restaurants the the we we of have flipped to first prototype development our locations, year. globally being that to benefit a by the strategy, formats, for to fourth and includes new intend expect due plan remainder opened test include this traditional development, we These Turning development quarter, year, paused eight to with platforms. different to first the In resume provide IHOP our now open our franchisees four our we – non-traditional which franchisees are in new pandemic. and the was XXXX of able

average Looking we restaurants XXXX. ahead, in approximately annual its We have more exceed starting of the robust brand in potentially development XX a historical for place the plan believe over can new decade. opened last

of a have seeing growth four executing progress types We're are our these made for to strategies years, the results. thoughts to successfully over coming last to over against call between three we and strength tangible and intend Peyton vehicles. four out of to IHOP on and next this blended we Applebee's to I'm months. going are plan We mix John growth. begin development turn back remains closing for As for position long-term great of the IHOP a it's positioned now pandemic. our how John? thrive the XX in poised

John Peyton

place of in to QX. the our that telling today. the can't during and a do it that. enough because in I John, society we got are an really evidence believe Allison after all our is our locked so being people our future, great part I your you essential celebrate. QX much restaurant of call, of for And restaurants thanks certainly that and of confidence to what is months gather on and that. story Jay say and to all here led And and houses, XX renaissance quarter of in leadership XXXX I've want ready are Americans is a Thanks, to performance

energizing why I visit when they're in our ready that parents' high resilient. I get of the of team restaurant that that's demonstrated to enthusiasm when do the future. and challenge my And into gotten team our and from two brands recent I worked last the this of restaurants. told love extreme me managers restaurant truly job every was on and members in to is guests members time last our back the They've to and school that the about in me country unbelievable I guests after I XX want into are my optimism most to they our again, impressed the kitchen back visits people, met what favorite across and with do think mentioned to weeks. part is restaurants. months franchisees, hosts, team our my restaurant was they and And the couple field, even welcome And all member time and Our of staff it's teams, the amazingly I've with finally I the to greeted general thousands the I time welcome our servers, in invigorating.

And the platforms to transitioned I growth. environment, looking will in So strategic post-pandemic as with we that, continue forward your taking sustainable will innovation know will questions. and to drive And Dine it operator. that are back to to invest we a turn long-term we


that you please again, question ask [Operator Instructions] your one limit follow-up. to and one we And

from Brian is Bank. Your question first Deutsche from Mullan

Brian Mullan

Hey, thank you.

unit it actually at if Jay, John Any your Could a you be business get hold? way But, Just X% year? growth, net non-traditional, great. in helpful outlook unit and be add traditional, over business to to take Is be want your you is a normalized get opportunities, a outlined Flip’d potential IHOP. this domestic remarks, all would too. this conversion what small it if take, anything to to when layer maybe think about for thoughts it pace avenues a for multi-year net prepared the to would four growth question Peyton, right in X% near-term like would X% up, great different more initiatives that about development to the X% period? growth you And prototype. the on In

John Peyton

I'll So Jay second and specifically come question. IHOP, back half on will think I that about talk of the

Jay Johns

can and we And sites is first, we're answer really already way conversions. question development a of ramp conversions us your up we're this bring Yes. seeing where looking of kind think at of coming franchisees good Brian, are obviously, out we very we're that this to the our last lot at pandemic.

used our system be something a else. have third about We of to

develop we environment prototypical of And out do a I coming we prototypes up lot a will that conversions do this lot pandemic. the new work, in while ramp of So and as of well. think

But as we'll think being get initially heavier stood and over think development of get as that probably will traditional up Flip’d, forward, I and couple we growing of I the there, results keeps we load up. non-traditional last the see years. more move the speed

conversions conversions going doing prototypical to includes we're and not only be in prototype I smaller those the think small to as buildings us speed conversions small the be prototype as new prototypes going that thoughts, philosophies well. two up but bring we're And we'll will some into as that have testing, we're theories testing I marrying applying small as And seeing think well. well. we're already franchisees

John Peyton

Yes, have the want growth. But to that we you John that And and guidance to potential when to will careful where it brands the I growth and challenge I'll we here, Brian. give on comes to think development don't I've And you think I given both where want specific land. tell tell for right? be Jay I'll to I both

at been know, to IHOP XX you XX As restaurants has new year, grows at historical a about rates.

challenge double market, is put different us that can the we're the at looking My plans that there. we if I say, And see get prototypes to together to look discussed. to look four I at Jay's As Jay that pace.

brand portfolio restaurants that cleaning of to on again. neighborhood new a to somewhere want And I has. pivot John a And XX XX to we've hundred possible, but grow comes the from the have challenge. give Applebee's effort of in He’s as another When to giving to We've the focus a that with on spent reduced couple plans that's not our to the our the it you plan three under give I'm of cleaning a months. it that group years but it's with. before have next point careful, think think forecast, can now the of think you we the so we're can our it pivot John's together much high-performing Applebee's, I up and we restaurants portfolio. move last we year. – just that's be tighter potential forward working but I have up the again, the us And forecast, the a where we the leaders and restaurants we I challenge at by quarter think tightening that put over growing we several I challenge leadership now

Brian Mullan

want partners, prepared thank And add you. color harder? Applebee's. a know a looking stand you're DoorDash that, some that fact this your where is thoughts. see initiative you had for my your a some there rather Postmates of over level Thank hear Wings you related and think franchise Cosmic the pivoting than to Applebee's John, system to you After will just as you that to make that the about then brand in virtual Thanks. evaluate, sales to Okay. And I'd that an of Does and threshold is you've time is as long-term? follow-up, do over behind be to curious company-owned? launching just remarks. you that

John Cywinski

love Wings. Hey, Good We questions. Cosmic Brian.

It's incremental. not complicating operation. our So business is

full pretty Our as come able that online. franchisees it well. Phase be dimensionalize Postmates well. to our potential as our go I'll until We're DoorDash That's call, next going X not On mentioned. love and I to

than to aligned and I As other partnership that strategic more say have versus within a comment anytime, with a on complicated they're we partners. have do behind case business, everything growth, incremental whether a to And we've can't our XX business represents had in franchisees. together issues business it. We're here. got that company-owned no franchise exceptional We it's

my So there from I see perspective. a don't difference

Brian Mullan

Thank you.

John Cywinski

Thank you.


Your next question is Securities. from from Jake Bartlett Truist

Jake Bartlett

is of it? see the Great. things in reasons recovery, those. question. I less If there's night you help like us at kind anything, performance to And as quantify IHOP, for any the for is are main versus IHOP in the just of trailing the And difference imagine one specifically is late for taking way looking Applebee's at but the understand you some Applebee's. sales that Jay. just what Thanks differential business, recovery the April, first why can My

Jay Johns

a question, I think great that's Jake.

this and after. every I think day different mission to John when for its get is a my that has up I to and few set close go gap, things a high bar me

So my It I that. me actually toes. appreciate on keeps

hit doing I see just think I And without specific great And numbers, need that I is the really It I been restrictions weekend. very big again about capacity is if don't is at weekends. we weekdays. hard then look sales trends getting what's really, capacity, well during sales can ours. obvious doing happening here talked – my the as my we've we've off the extra the before, see difference on on us we’re the as into dip with back

weekend, As impact. that on we're capacity off squeezes seeing the that

slower are bit and well-documented I the think themselves doing the piece a But days trying moment. to we're industry as for recruiting slow franchisees about little the like that said at places and back issue an in XX/X our California. a typically of staffed, overnight the staffing big a hours as And business. it's we they us of other capable And very online that. that's are type is franchisees process, in get is and days adding are

in we're to opportunity still going That's a well. for used to longer take have. day our third way. obviously some So some This missing And of the come the is is then new the parts us. and of to as we part, sales an back hours that this little

out. talked necessarily home, breakfast way we stopping They're working. about working not before, used people new from for As they the way they're not the going to. They're are

that off-premise business. When with been little absolute full operation close are those that the I Applebee's. we our think bigger We've able capacity, get locations, To-Go hours the think is pattern the So of and full absolute gap back of I different. to at with business But of a pieces. having we'll can to off of fend some all

John Peyton

now, Adam effect. it. And for name we new on weekends It's the Sandler have called a the

So capacity Adam IHOP can't on then in on have constraints. a get truly we weekend, if

Jake Bartlett

average It’s on follow-up wanted next question trends the in is My for April. and just the Cywinski. commentary to Right. sales John that understand weekly better March I

sales As I in heard average would been like was it have that it, same improved months. But just the the store in same sales looks it from weekly April. both sounded

gauge clarify off-premise can you seen I'm has of just trying mix as if maybe April to then And you've So off-premise, business how of well the kind that. just said, within $XX,XXX you kind in the held. of see the just $XX,XXX. that acceleration, to

John Cywinski

core competency terrific. Yes, us. new Jake. off-premise The business That's is a for

– great. metrics the our satisfaction in it before, has really And Our very range. restaurants in now $XX,XXX now at good held are business they were $XX,XXX they’re guest that see to we that

you So the as come back, on look percentage mix has declined a it basis. dine-in at if has

on-premise fluid being particular share a the If And up, and business you mix delivery opened dollar it's – have to and look on XX% at restaurants steady. held Yes. off-premise To-Go think but that our it's with of as business. lion's being is, be the basis, it about it back in continues the between being To-Go of off-premise balance

Jake Bartlett

much. very you Thank Great.

John Cywinski

To weekly XXXX. XX% answer from roll you to very terms swing with has from in over dollar consistent X% of the to do Jake, the question, first average month, base your and reason per see a $XX,XXX volume, comps

Jake Bartlett

Got appreciate I it. that.

John Cywinski

Thank you.


question is next Brian from Your from Raymond Vaccaro James.

Brian Vaccaro

revisit a I Thanks. a $XX,XXX in what but the the side. missed I Good – Jay, weekly just you $XX,XXX on average morning. you on and IHOP said. March if and just that clear sales I April. wanted wasn't to $XX,XXX was could I in $XXX,XXX heard

just recent months? seeing average kind of you're in you clarify sales weekly the dollars could So

Jay Johns

by doing – sequentially basically. I that I what month, said Yes. believe was I it we was when

at January, we we we March, at So did have at out $XX,XXX. $XX,XXX. were $XX,XXX, I And in in and peaked were we some by said there, weeks

Brian Vaccaro

where as weekly here are you share, And Applebee’s could for Got average side April it. did on sales John in the IHOP?

Jay Johns

I We out. release we put that our in think – was versus… Well,

Brian Vaccaro

the I'm the weekly For sorry, dollars. dollars. sales average

Jay Johns

percentage We just that. X.X% the be would April. The haven't was disclosed It down percentage. in

Brian Vaccaro

Okay, got it. it. Got

XXX% further. above have Just easing less at effective maybe frame still the give April it restrictions? you the also I XX% you than units the more the how think attribute or I much units the than those then? is of obviously you idea capacity trying appreciated details benefit the restrictions XX%? to percent now might of and of could a how months end I at much that future Could of brands at both since capacity XX-Q be the my in ease in was an made March. more how two-thirds what around On capacity buckets side, or then of it guess as And at to question progress are much improvement a noted

John Peyton

I Jay, can start. I guess Liz,

is this time. It all think the I very changes fluid.

matter color places So California L.A. we've progress few their change as had of and in a a of today a bit in code fact County little think. made I

completely and announced York New to Jersey month, going New the XXth go on open. of they're this

be up over getting So this by – the there's keep just up better. July, complete on into And open I by they're completely. as course think June said, to I going is been there'll to going of June, think I this month, communities, opened

trickle side, and but just coming. overnight. the a just It's on So that I just light flips think it's switch keep on keeps this to is IHOP getting better, a not going slow

John Cywinski

that, We headroom for from brands fully with on into capacity Applebee's. Jake, concur that I represents optimized future. the were foreseeable both with far

Brian Vaccaro

the these enhancements guest And the on to if And experience. enhance it the doing what franchisees? by not, one, specifically Understood. look there. like just timeline rest then mentioned ask, rolling Have what last might system? Please been you're the made you of I the investments want other to to for some expand

John Cywinski

that tablets? a is handheld Jake, reference to

Brian Vaccaro

Brian Sorry, this is Vaccaro.

John Cywinski

sorry. Brian,

Brian Vaccaro

the the mentioned company stores, handheld, the some mentioned John, think XX guess I in he company then and of investments Well, John stores handheld. I

I across things a the broader then other doing thinking you're enhance there system? that was And of just to Is of the So experience? part that it. kind assume

John Cywinski

pandemic. a lost Carolina the and deferred With maintenance portfolio, company-owned with portfolio, period Yes. XX-month to respect We was the repair some work candidly and bit have there. that we

We investing investing performance. people. we're our So the the in we're in assets, loved

As performer XX franchise John groups. said, five out of it's a top our

Carolinas. people of of taking expect the would that you're place technology, investments you in and and all the so terms in asset And

Brian Vaccaro

Got you. it. I’ll on. pass Thank it


Eric KeyBanc. from from is next question Your Gonzalez

Eric Gonzalez

at the IHOP, off-premise Hey, your thanks staying for up math roughly comp XX% Applebee's dine-in down to brands. maybe down, the at and Is in suggested XX.X% Applebee's and at XXXX April growth the X.X% in at IHOP month. low below of question. to to don't XX% mix that Presumably versus both the with at levels business XX% ballpark? that I XX% in that is My mid-XX%s know, maybe last

Jay Johns

the on same think at percentage, I Well, exactly off-premise my you if QX. the IHOP numbers, at a my basically as side, business look stayed XX% versus

sales my So we’re as progress. at the making boats So yes, with my other, I are going message, in our I'm total said, is, right? up, are up happening lockstep moving each what's almost same rate. floating in

business more though the getting dine-in, up. I'm are same, sales is staying total the simultaneously, as why So going on getting the even mix which I'm lists same the is on To-Go

well franchisees flow-through me can business at even that not how for house to I've incremental people long-term, yet out my that the back what I'm I So quite are we important not on the pandemic, Those way of and dollar higher than it's before likely that the to the that's be will off-premise, know get stay willing out dine-in incremental don't pandemic. and some open XX% to have XX%, more are business, sales. because at of did get full hold those I if the but when all looking at – if XX%, got backside and we're and will my will I eat. come Maybe point no, drop fully mix

going vary now improving at in are some that's will that I'm right but the holding. now lockstep right probably things point, as So

Eric Gonzalez

question capacity getting through you closed business? traditional maybe the ask or a Just of this terms dine-in the in sort and a drivers fruit be back innovation that sales, of will do marketing asked, think really more way. think towards I I'll of, think low-hanging it's just that's the was that do that just gap issue The in in different but of you dine-in majority majority to

Jay Johns

this – think is again. Jay I

we're solve – you to you're I levels. if when versus really, because to XXXX, is two right think think I all pre-pandemic back different see it's it answers, if what now compare we which that can doing

great do innovation, a new items. job going We're we're and and I is great to think with capacity up. marketing. We with operation. of we going That's all steal growing. great there go job just a just else Everything with can going hours get it menu share us think with upside job afterwards. do keep to with incremental, makes I be We to

with and I think can we to capacity where just back the were and we hours. get the beyond

John Cywinski

they've side, of facilitating off-premise folks about strength to Applebee's become I've a that. a purpose. They're Eric, dine-in believed been And will long dine-out business a and the hungry that drink, been on over again. longing again. core there's emotional connection our and between It's our much think too connection, meal on brand for focus the segment

indulgence, And so about very from the home. convenience dine-in clear on about position it's our love but relaxed driven We being front. a that drivers, has served occasion it's occasion is escape about connection, that and being and little

John Peyton

off-premise absolute that not business is pull brands we're for were I months pre-pandemic, it's one that Hey, to has than on and the off-premise Eric, slightly just and out, months months. point, it important for they're steady both Jay's it's on, business So value right of focused less that in about dine a off-prem third. I right? and is XX% it's is where that the for comment now at want John Peyton. And and to this to which both brands, make the third and at dollar now is and holding There's think

nurturing that we're one that. in to IHOP, that us. back very not off-premise and business focused welcoming guests significantly could our via investing talked at that we're need the now before argue they are. off-premise to and incremental pandemic, about, the looks on focused and as restaurants, consideration on keep technology like marketing in are we John the set And So we same business. and Applebee's our And time to

Eric Gonzalez

Yes, mean, if ask the I side. absolutely one I that makes Maybe could sense. labor on

longer-term be. may this that to due labor to You've benefits? as demand that the supply, issue a government others it's wondering current the exists as for is of as whether market, and some balance concerned a not really see temporary labor state a or due it, temporary what is heard the others might Do view see be huge be some the issue. Just you management unemployment will you issue staffing house this on teams saying and

John Peyton

working Yes, I'll that and again we of they're itself sorting we're there. And want talking that. by And even and point in who is think leveraging out and are like. think I what time. stimulus have six a a unemployment They where would going that the hiring market of the to campaigns a are and market Peyton us get as both take, for consistently from in in work, to we've We and economic center a for though past enhanced months, take we're It's of the support three Applebee's looks think are to they post-pandemic both state people the been work IHOP And that. restaurants to saying we we is places those the and do labor we XX,XXX We where on I to and for this is this people steady environment. it's benefits side right? other federal labor need, aspirational their transitioned brands. to think we've the months point time start the John funding for that in couple hiring love been actually about neighborhoods people brands who

Eric Gonzalez

it That's I'll great. pass along.


from is MKM question next Partners. Your from Levy Brett

Brett Levy

Great. Thanks. the color. Appreciate

pressures whether you an on on both focused take you still about messaging as of your if key as – pertains while about mind. you wouldn't – bit pillar, to those, as thinking between there then little on as on there, a disconnect as Thanks. just going you're the talked ability value just also side a like that? on you're the Could to feel how the additional labor. as the of key forward You the cost you seeing share earlier food more made well And a color is pricing mention inflationary it that dynamics a offset

John Peyton

it's the and Brett of or Jay menu I'll John Peyton pricing And the side comment again. might then John commodity Yes. on impact. take it.

supply in I time like As I has the And volume our of at the guests give disconnect pork it's versus last it X.X%. take mentioned costs. packaging, are food been specific about mix, were pancake during issue But and out to of labor prepared our there restaurants IHOP what in to a as is chain a think of and and catches IHOP them moment chicken suppliers couple is X.X% the up. months, between To the clearly Both putting pressure to at costs food just generally paper then driven by Applebee's X.X% inflation, range, on looking them. X.X% which you to and meet. is

reflect throughout as see a we year. can Jay are we and again, this pricing, equilibrium So, that. work comes John to on in it'll to market our itself the we demand, which think as up with the we way and in catch it When suppliers where that out in being difficult menu comment

John Cywinski

plus food profit We're labor The couple I've points initiative, to against brands on, mentioned our have very John, led that the as The there's we if And candidly in again this it's one-third are up. with early at really the provide initiatives hedged P&Ls, benefit there shelf are XX give Brett – on points certainly I we our have three cost very our meaningful XXXX. pandemic, restarting significant that at savings I didn't is we moment, that or only start but couple couple going Brett, restaurant And we that. put not Both XX the particular We work, basis work menu, the past food that'll the one, a captured system we've labor cost PWC and that of a hundred spent the past of in specific have think challenges, that'll challenges, of did we is a has on server that I referenced only in here. we hedge. look though simplifying there. at benefits it did fact up early mention. particular during to months years, tablets the even of and of reduction. you recall restaurant over our a

Jay Johns

is X% to is in they're historically This in how it's is think markets local the annually they I think to a to balancing they and side our X% on what franchisees IHOP take take challenge Jay, your IHOP anything. always between right traffic and act. take thing top the franchisees more going but bottom line absolute price help And and take the their need now. lose sales line offset because get not price you the do most back, If helps profitability can than to get can our your important costs, we that

low-end more them, will is percentage buy half about that with the thing if people full value people need sure mixture that our X% and but drive that the are come that items lot of they come high-end of key platform, to value the taking IHOPPY so people like platform on is taking but that, I'm there's who other and they help cases, the items, the them be buying So with of value in you probably. a they're they'll with interesting overall franchisees whether that's than of Value of ours, come their drive The restaurants. pillar is, to maintain that's it that will in that well the a on the traffic, profitability. are particular sure what where situation will our menu be most any a dictate X% depending of I'm in range price, to we price do Hour

sure to traffic lose though. of act. to that I'm will We there'll take. want going price be a be it's they So because don't balancing some

John Cywinski

ranked love ways that sort and all to a simply casual We And number We an the position to that there make of Brett, perspective. Applebee's on from convey are final price. dining. on consumer one I'll value affordability point and beyond

Brett Levy

Thank you.

Jay Johns

Thank you.


next Your from Nick Wedbush question is Setyan Securities. from

Nick Setyan

of beneficial. you. permanent to Thank changes seem be there some the and post-COVID Obviously that are

on Yeah, are they You've menu helpful? be historically the versus growth very marketing innovation going message if Any QX, change and does to color talked focus XXXX? QX, about say value, new there all? introductions be at the there's year-over-year heavy the higher a in been in how QX, would does

John Peyton

repeat? will you be could Nick, You higher? said, what

Nick Setyan

innovation. menu New

John Peyton

yeah. Oh

as So reduced many certain on menu the simplified, innovation, on have. Applebee's front we we brands the took a we pause

in messaging and too see always our emphasis right strike we in is innovating we leverage and is critically always seriously. some and between that. this that We very been important having creative It's part elevated business. environment And forward. moving us, don't take an is fine balance you'll fun for complicating, Music important has the then recognizing welcoming and operation. and a So a ourselves innovation on culture, do we're balance the between reassuring being being our hospitality a of

have pace And that so how sequence we and to and that's with well. partnership understanding a and our do franchisees

Jay Johns

the I brand they mission probably we've this I is think make you're our our John, unlock brand to up with. now, is it messaging time, right love Nick syncs fans how right side, Jay a to CMO on the line. familiar for IHOP. we hear now our all love have And IHOP this that sure the that And that's got IHOP. We and new love as into Hey, activate have marketing, mission the that love bottom much the our

Nick Setyan

room but the layers given menu term about of think mix, do complicated as follow-up, should premise we dining less these of incremental sort how the we sales? a the as off margin back given have medium-to-longer business comes the higher then And implications

John Peyton

question that demand, is I the Nick, capacity question? is your that satisfy – think The to

Nick Setyan

the capacity While a food it's layers so does structure going and have have forward? sales margin How the cost. now does and a menu, back we less-complicated incremental we that How change dynamic of benefit comes margin that lower around around permanently labor off-premise.

John Peyton

in the folks while an off-premise the the it and placing and really include we typically out escalate check is of interesting the economizing one refrigerator. doesn't mix, average we additional items food dynamics Well, beverage saw of pandemic of purchasing the component saw and

it But So is satisfy we the for it and economic The dine-in check we has and through look moved off-premise both for it state like than model a North, little guests which when very good. we've revenue flows And on-premise. a for see you their occasion, very off-premise and to business. different their is volumes is game attractive our is late, find well this us. much seen regardless need very of

Jay Johns

money. king is to Yes, Nick IHOP thing are same when for sales Jay, making this comes franchisees, it

give You restaurant, high a me a you lot a makes of restaurant money. I'll give volume

doesn't they're give struggle. very good going to me sales, You have one that

like in can through up of is have when So to these sales it's there sales sales flywheel can if up, can the and you're positive any of go we maintain – at what up. productivity thanks ends that we increase people an where more line. goes And to there think before, you just picture, profitability, the our Sure, help and happening as demand I the business compared this a higher open the to goes in extra and keep get that's restaurants to when we fully we overcome, come going to flow our we because be all But than talk back, about for us did we inflation. from think food level, there. we're cost being going were get overall are heard costs to business big profitability we just pre-pandemic, off-premise top that's I

John Peyton

in to guest you're reinforce to would for delivery, that important the that pass again on I about if we asking and that along willing convenience, Nick pay particular, business. cost guest. we And that's off-premise to is that know them And

always on-premise talking has off-premise rather and be objective Our been regardless which you're agnostic on to neutral, margin of channel about.

typically our are they with beverage capture one that are with franchisees So they a the they benefit whole, would occasion. exception dine-in don't

Nick Setyan

Thank much. very you

John Peyton

Thank you


from Your next Bernstein is from Barclays. question Jeffrey

Jeffrey Bernstein

we Thank focused standpoint. seems wondering on it much. lot a just just you on corporate one cost very the Two side, I'm like a – Great. from the sales questions,

XX% you opportunity as leverage spend line? a a just that think lever or is know of about going that as G&A P&L, and you reiterated targeted significant your that you're do as normalized much incurring. the a should a to how cost I as G&A that percentage the whether you think on you that but goes wondering mentioned think guidance, lever the revenues, XXXXs what opportunities G&A we being or You dollars how forward, is biggest franchise system, the

Allison Hall

really back you to mentioned, our refer As we guidance.

to to million million just full XXX continue pre-pandemic that ramp conditions continue savings is improve. the to you what to the is have probably but have to that in of range cost know, of in-line we're we the currently industry Our going more XXX travel year and will kind with hiring the the did believe part out levels, first let for business be the some we to we get up in year, as back and

the just So to look I for would now. guidance

Jeffrey Bernstein

at and Got beyond a reduce opportunities you as it it. whether have sales, or or of at or percentage XXXX you target an one-year – outlook is just But whether not look of is in to terms a as go there's there a any that, time?

Allison Hall

– would at looking I now are. what we say to see Right just we're industry conditions the

look just So I at this would year.

John Peyton

John that its opportunities allocation, capital to company, our for at team really would review as top working growth, I'm say at our that at Jeff looks structure. the conduct to Yeah, of the bottom I Peyton, looking we're also with the our cost

think a in So that long-term is model for them. the progress I that's something in is of work what terms

Jeffrey Bernstein

I you seven just roughly release sitting you the cash did in then a it, the now you obviously And usage, pay in debt your March, think calculate way leverage you mentioned, down short the at at dividend you're I'm is the mentioned big Gotcha. wondering where target options, that your allocation How one alternatives? wondering how step you Thank or down levels. to more repurchase prioritize would versus just the and but prioritize you versus desired you. in pay go you is other turns. long-term

Allison Hall

strong have We're a goal. quantitative a cash very in We don't really position.

free to flow. challenges have We cash

quite of in are right flexibility. we're terms happy we where our So now financial with

John Peyton

of I we have and John it's that, to would so. continue will a lot generates dine-in Jeff do we cash again, historically, Yes. add

alluded you degree intent And capital repurchase through to, share dividend program. returning to a As is some of return got we've programs. to a to that history to shareholders our robust and

dividend. we've step and that two things first settling to done we there's revolver, Our recommit deliberately to the see was to the which need

into and the side also we new shareholders, that includes feel capital only company like I'd unlike the been the still confident overall we are we're looking we're sequential like that see unprecedented And two is now as state to as we've implications. at the new overall Each also to plan make on we're and mentioning. other the settled not mentioned that to before, to the to normal. view example, quarter. where For I've the other pandemic we in know quarters that times returning steady need the quarter any And grow I investments but need of of us,

those So at that lenses are I'm looking the it two through.

Jeffrey Bernstein

the is further pay you're before is it that something to those down comfortable Understood, consider seven but times with leverage options? or you planned

John Peyton

is year during part of allocation. going slightly in the of capital terms it's doing analysis the think long-term our I improve it's the we're with to

or So I'd before you on I like that. to take target quarter two give another a

Allison Hall

Yes, actually we time. deliver – will over delever

Jeffrey Bernstein

you. Thank Okay.


question from Associates. & next Your is King Brooks C.L. from Todd

Todd Brooks

Thanks squeezing for me in.

closures of playing Any in or the is these bias you're competitive some potential set competitive driver on is near look seeing? wondering Just case starting a the a level couple out can restaurant the in of that at the spike talking as if of And trends you've you the the that updates for survivor franchise comment or in brand that on John been out renaissance industry. either seeing business I'm play we're at if about questions, the term? you to level Peyton,

John Peyton

with mostly we tough But closed and brands way, to they're pandemic it's that Todd the are as this board there's interpret been forward. Applebee's the in strength XX% think we different something I that's well Yes, our like pandemic I'll that are think think Well, it's think why of brands both strong country had strong in which brand iconic strong doing weathered restaurants the I franchisee a good visions have I from for a our move emerge win times. because with both because they to how resonate have networks quarter. survivor independence. IHOP consumers, of the – that bias brands is I and And times think and I on

Todd Brooks

relative alcohol of signs then all that helpful. and component about for business. where Thank that fiscal you. that the out bar at talking of as us? the maybe to were the How consumers And great. is side Can some of the follow-up you John you liquor component question early bar on unfolding Okay, of experiences liquor be for a back normalized dimensionalize would comeback the levels dining XXXX house in kind rushing is a

John Cywinski

Sure Todd.

about, go We point the was which dining of therefore was negligible, coming is were year, a of mutual back to let's one not the some the XXX% of consumption go, off-premise substance with there rooms in a think exception alcohol a So time opportunities of cocktails emerging open. were kind where and out and pandemic.

recent when that XX% trend to you history, Our XX% when alcohol mix mix that I has But indulgence. we've XX% historically of a year-over-year, moved been hit. to it holding just at some XX% of sales, from XX% a very to seen see dine-in look wouldn't off-premise call the you'll that And of business north indication XX% XX% took steady. to

late pandemic hardest while. hit and enjoying come with at part, their particular, we things ordered alcoholic pandemic in hasn't appetizers perhaps of a We this look and out guests frequency opportunity really in and others. night as growth which the that being like As taken significant and alcohol occasion place in a for perhaps special the now and some business with day the desserts beverages experience quite was us

Todd Brooks

you. thank great, That's

John Peyton

Thank you.


Ladies is the for I'll call closing all turn Q&A that Peyton remarks. have now the for time we and to gentlemen, back John Mr. session.

John Peyton

want mentioned we want correct questions, I East do IHOP appreciate thanks Middle one I that thanks your the ghost I to had it. for made. and just guys has Hey, ghost that a IHOP there's just as and East kitchen an in kitchens and in Applebee's to Christian well. ghost comment I in kitchen clarify clear has ghost the be in Applebee's that kitchens to Kuwait, Dubai Middle

little that So Thanks it thank can bit throughout answer many to important you all day next the staying We much. Take as was for past so your care. quarter. sure And appreciate we a it. as the to questions. but questions us I hour, for Thank talk and possible. you you will make to


concludes gentlemen, and today's Ladies conference this call.

disconnect. now may You