Casual restaurant chain Dine Brands (NYSE:DIN) will be announcing earnings results tomorrow before market open. Here's what you need to know.
Dine Brands missed analysts' revenue expectations by 2% last quarter, reporting revenues of $206.2 million, down 3.5% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Dine Brands a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Dine Brands's revenue to be flat year on year at $210.5 million, improving from the 12.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.64 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dine Brands has missed Wall Street's revenue estimates four times over the last two years.
Looking at Dine Brands's peers in the sit-down dining segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Roadhouse delivered year-on-year revenue growth of 14.5%, meeting analysts' expectations, and The Cheesecake Factory reported revenues up 4.4%, in line with consensus estimates. Texas Roadhouse traded up 2% following the results while The Cheesecake Factory was down 5.4%.
Read our full analysis of Texas Roadhouse's results here and The Cheesecake Factory's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the sit-down dining stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. Dine Brands is down 1.8% during the same time and is heading into earnings with an average analyst price target of $51.1 (compared to the current share price of $31.59).
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