wedbush analyst Nick Setyan updated Dine Global Brands, Inc. OF to Outperform from Neutral, raising the forecast price to $47 from $34.
The analyst identifies key catalysts for Dine Brands' multiple expansions over the next twelve months. According to Setyan, an accelerated share buyback plan worth more than $100 million is likely to be implemented in the second half of 2025 following the refinancing of Dine Brands, representing more than 20% of the current market capitalization of the company.
The analyst forecasts adjusted free cash flow of $99.2 million in 2024 and $107.5 million in 2025, or free cash flow yields of 22% and 25%, respectively.
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Additionally, the company's strong free cash flow generation is expected to support ongoing annual buybacks of over $60 million post-ASR.
Both Applebee's and IHOP are poised to optimize their value propositions heading into 2025, with current offerings stabilizing and near-term same-store sales growth remaining largely in line, the analyst notes.
Dividend payments are $31.8 million and $30.9 million in 2024 and 2025, respectively, with a current dividend yield of 6.5%. The analyst raised the company's FY25 EPS estimate to $6.43 from $6.34.
Is DIN a good stock to buy?
An investor can make a few decisions when deciding if a stock is a good buy. In addition to the valuation metrics and price action that you can find on Benzinga stock pages, like the Dine Brands Global page, for example, there are factors like whether or not a company pays a dividend or buys a large share of their actions every quarter.
These are known as capital allocation programs. Dine Brands pays a dividend, yielding 5.06% annually as of the closing price on October 1, 2024. Feel free to search Benzinga's dividend calendar for the next company due to pay a dividend and determine what type of performance you will get. You can earn by owning a share of the company.
For example, if you want to earn an annualized return of 13.44%, you will need to purchase a share of Saba Cap Inc & Opps before October 9, 2024. Once this is done, you can expect to receive a nominal payment. of $0.09 on October 31, 2024.
Buyback programs are obviously different and highly variable. A company may approve a repurchase program and purchase shares as it sees fit during the course of the time in which the repurchase was authorized. When looking at the latest news about Dine Brands Global, you will often know whether or not the company has recently approved a buyback program. Buyback programs often support stock prices and support demand.
Price action: DIN shares are trading up 13.1% at $35.32 at last check on Tuesday.
Photo via Wikimedia Commons
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