Dine Brands Global, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Dine Brands Global, Inc. (NYSE:DIN), given that the company fell short of expectations when it released its third-quarter results last week. Results showed a clear earnings miss, with US$216m revenue coming in 2.0% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.48 missed the mark badly, arriving some 30% below what was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Dine Brands Global's six analysts is for revenues of US$909.5m in 2026. This reflects a modest 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 70% to US$3.90. Before this earnings report, the analysts had been forecasting revenues of US$906.5m and earnings per share (EPS) of US$3.46 in 2026. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Dine Brands Global

There's been no major changes to the consensus price target of US$27.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Dine Brands Global at US$32.00 per share, while the most bearish prices it at US$21.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Dine Brands Global's growth to accelerate, with the forecast 4.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. So it's clear that despite the acceleration in growth, Dine Brands Global is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dine Brands Global following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dine Brands Global analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for Dine Brands Global (1 is a bit concerning!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.