- More than 99 percent of IHOP restaurants are operated by franchisees, who are independent business people.
- As of September 30, 2010, there were 1,483 IHOP restaurants located in 50 states and the District of Columbia, Canada, Mexico, Puerto Rico and the U.S. Virgin Islands.
- National Pancake Day is IHOP's largest one-day event and to date has raised more than $5.35 million in support of Children's Miracle Network and other local charities
Tuesday, November 30, 2010
Most Interesting Thing I learned About My Company
The most interesting things I learned about my company was that it was owned by DinEquity, which also owns Applebee's. I also learned that:
Sunday, November 28, 2010
How Cheap Is DineEquity's Stock by the Numbers?
How Cheap Is DineEquity's Stock by the Numbers?
by Anand Chokkavelu - November 26, 2010 - 0 comments 
Numbers can lie -- yet they're the best first step in determining whether a stock is a buy. In this series, we use some carefully chosen metrics to size up a stock's true value based on the following clues:
- The current price multiples.
- The consistency of past earnings and cash flow.
- The amount of growth we can expect.
The current price multiplesFirst, we'll look at most investors' favorite metric: the price-to-earnings ratio. It divides the company's share price by its earnings per share (EPS). The lower the P/E, the better.
Then we'll take things up a notch with a more advanced metric: enterprise value to unlevered free cash flow. This tool divides the company's enterprise value (basically, its market cap plus its debt, minus its cash) by its unlevered free cash flow (its free cash flow, adding back the interest payments on its debt). As with the P/E, the lower this number is, the better.
Analysts argue about which is more important -- earnings or cash flow. Who cares? A good buy ideally has low multiples on both.
DineEquity has a P/E ratio of 232.1 and an EV/FCF ratio of 12.0 over the trailing 12 months. If we stretch and compare current valuations with the five-year averages for earnings and free cash flow, we see that DineEquity has a negative P/E ratio and a five-year EV/FCF ratio of 17.4.
A one-year ratio of less than 10 for both metrics is ideal. For a five-year metric, less than 20 is ideal.
DineEquity has a mixed performance in hitting the ideal targets, but let's see how it stacks up against some of its competitors and industry mates.
Company | 1-Year P/E | 1-Year EV/FCF | 5-Year P/E | 5-Year EV/FCF |
|---|---|---|---|---|
| DineEquity | 232.1 | 12.0 | NM | 17.4 |
| Cheesecake Factory (Nasdaq: CAKE) | 31.2 | 14.4 | 28.0 | 33.9 |
| Brinker International (NYSE: EAT) | 12.4 | 9.7 | 12.7 | 13.5 |
| Cracker Barrel Old Country Store(Nasdaq: CBRL) | 15.5 | 11.1 | 13.3 | 18.6 |
Source: Capital IQ, a division of Standard & Poor's; NM = not meaningful.
Numerically, we've seen how DineEquity's valuation rates on both an absolute and relative basis. Next, let's examine …
The consistency of past earnings and cash flowAn ideal company will be consistently strong in its earnings and cash-flow generation.
In the past five years, DineEquity's net income margin has ranged from -4.4% to 12.6%. In that same time frame, unlevered free cash flow margin has ranged from 14.0% to 22.4%.
How do those figures compare with those of the company's peers? See for yourself:
In addition, over the past five years, DineEquity has tallied up three years of positive earnings and five years of positive free cash flow.
Next, let's figure out …
How much growth we can expectAnalysts tend to comically overstate their five-year growth estimates. If you accept them at face value, you will overpay for stocks. But even though you should definitely take the analysts' prognostications with a grain of salt, they can still provide a useful starting point when compared with similar numbers from a company's closest rivals.
Let's start by seeing what this company's done over the past five years. Because of prior losses, DineEquity's EPS growth rate isn't meaningful. Meanwhile, Wall Street's analysts expect future growth rates of 14.0%.
Here's how DineEquity compares with its peers for trailing five-year growth:
And here's how it measures up with regard to the growth analysts expect over the next five years:
The bottom line
The pile of numbers we've plowed through has shown us how cheap shares of DineEquity are trading, how consistent its performance has been, and what kind of growth profile it has -- both on an absolute and a relative basis.
The more consistent a company's performance has been and the more growth we can expect, the more we should be willing to pay. We've gone well beyond looking at a 232.1 P/E ratio.
I find the three comp companies more enticing than DineEquity and its Applebee's and International House of Pancakes brands. But that's just me.
If you find DineEquity's numbers compelling, don't stop here. Continue your due-diligence process until you're confident that the initial numbers aren't lying to you.
Monday, November 22, 2010
Thursday, November 18, 2010
Chapter 12
The part of Chapter 12 that most pertains to my company is "Grounding the Culture in Core Values and Ethics." This is an excerpt from DinEquity's website, under Responsibilty:
"We operate under a cultural framework that we call our Vision and Values. Our Vision and Values are the foundation of our relationships with our guests, suppliers, neighborhoods and each other. It is an articulation of our values and behaviors that defines who we are and how we work. We value innovation, collaboration and diversity and we behave with integrity. These core values and beliefs are also how we hold ourselves and each other accountable to the vision of what we want DineEquity to be."
"We operate under a cultural framework that we call our Vision and Values. Our Vision and Values are the foundation of our relationships with our guests, suppliers, neighborhoods and each other. It is an articulation of our values and behaviors that defines who we are and how we work. We value innovation, collaboration and diversity and we behave with integrity. These core values and beliefs are also how we hold ourselves and each other accountable to the vision of what we want DineEquity to be."
Tuesday, November 16, 2010
Saturday, November 13, 2010
Assignment 11
I could not find any scandals about my company, but I found many YouTube videos. There were a lot of people just scarfing as many pancakes as they could handle.
IHOP looks forward to the holiday season because they change their menu slightly just for the occasion. They offer specialty pancakes during the holiday season.
I must say, I look forward to it as well.
IHOP looks forward to the holiday season because they change their menu slightly just for the occasion. They offer specialty pancakes during the holiday season.
I must say, I look forward to it as well.
Friday, November 12, 2010
Veterans Day
Applebee's(R) Says 'Thank You' to More Than 1 Million Veterans and Active Duty Military With a Free Meal on Veterans Day
Posted on: Fri, 12 Nov 2010 09:45:00 EST
Symbols: DIN
LENEXA, KS, Nov 12, 2010 (MARKETWIRE via COMTEX) -- Applebee's Neighborhood Grill & Bar (R) gave a heartfelt thanks to the nation's military yesterday as 1,024,000 veterans and active duty troops enjoyed a free meal in honor of Veterans Day.
Across the country, members of the military gathered at their neighborhood Applebee's to connect with fellow soldiers, swap stories and remember the sacrifices they made on behalf of our country. Neighborhoods came together as lines formed at 1900 Applebee's restaurants from coast to coast. This marked the third year Applebee's honored veterans and active duty military with a free meal.
"We are proud to serve America's heroes on this day of respect and remembrance," said Mike Archer, president of Applebee's Services, Inc. "It's an absolute honor to meet our nation's military, hear their stories and serve them a great meal -- on the house. It's a small gesture of thanks for all the sacrifices they've made on our behalf."
Military personnel could select from seven of Applebee's top menu items. The most popular item? Applebee's 7 oz. House Sirloin. More than 391,000 Veterans and Active Duty military enjoyed a steak on the house as thanks for their service. Additionally, Applebee's served 163,000 Bacon Cheeseburgers and 146,000 Double Crunch Shrimp meals.
Applebee's Facebook page included a virtual wall of honor where thousands of Americans posted messages of thanks to our military. Meanwhile, veterans and active duty military from World War II to Afghanistan posted messages of gratitude on the company's Facebook page, many sharing the sentiment that the day was not so much about free food, but about the opportunity to connect with fellow soldiers.
"That's what this day is about for us," said Archer. "Saying thank you to our neighbors who served and giving them a chance to connect."
Across the country, members of the military gathered at their neighborhood Applebee's to connect with fellow soldiers, swap stories and remember the sacrifices they made on behalf of our country. Neighborhoods came together as lines formed at 1900 Applebee's restaurants from coast to coast. This marked the third year Applebee's honored veterans and active duty military with a free meal.
"We are proud to serve America's heroes on this day of respect and remembrance," said Mike Archer, president of Applebee's Services, Inc. "It's an absolute honor to meet our nation's military, hear their stories and serve them a great meal -- on the house. It's a small gesture of thanks for all the sacrifices they've made on our behalf."
Military personnel could select from seven of Applebee's top menu items. The most popular item? Applebee's 7 oz. House Sirloin. More than 391,000 Veterans and Active Duty military enjoyed a steak on the house as thanks for their service. Additionally, Applebee's served 163,000 Bacon Cheeseburgers and 146,000 Double Crunch Shrimp meals.
Applebee's Facebook page included a virtual wall of honor where thousands of Americans posted messages of thanks to our military. Meanwhile, veterans and active duty military from World War II to Afghanistan posted messages of gratitude on the company's Facebook page, many sharing the sentiment that the day was not so much about free food, but about the opportunity to connect with fellow soldiers.
"That's what this day is about for us," said Archer. "Saying thank you to our neighbors who served and giving them a chance to connect."
Monday, November 8, 2010
Thursday, November 4, 2010
Chapter 10
It was difficult to find a lot to relate from Ch 10 to my company. However, I did find this on DinEquity's website. It shows the importance they place on employees:
"We believe that our most important strength is having the right people in the right positions,
motivated to perform individually and collectively. We strive to provide a work environment
where all team members have the opportunity to reach their full potential and contribute to the
company’s success."
This statement says a lot. You have to have the right workers for the job if you want your strategy to work, and they emphasize that. They also encourage workers to contribute. This is unlike a command and control environment, where workers only do what they are told. Workers need to feel like they have contributed something if you want them happy. Happy workers make for a better implemented strategy.
Investor Day on November 9th
Nov. 4, 2010, 4:00 p.m. EDT
DineEquity, Inc. to Host Investor Day on November 9th
GLENDALE, CA, Nov 04, 2010 (MARKETWIRE via COMTEX) -- DineEquity, Inc. /quotes/comstock/13*!din/quotes/nls/din (DIN 51.22, +0.29, +0.57%) , the parent company of Applebee's Neighborhood Grill & Bar and IHOP Restaurants, invites investors and the media to join DineEquity's 2010 Investor Day via webcast on Tuesday, November 9, 2010 beginning at 10:00 a.m. and concluding at 3:00 p.m. Eastern Time. The Company's Investor Day will include presentations by the DineEquity, Applebee's and IHOP management teams, which will focus on a discussion of Applebee's and IHOP's growth strategies and the strength of DineEquity's highly franchise business model, among other topics.
A live webcast of DineEquity's Investor Day will be available on the Company's Web site at www.dineequity.com, and may be accessed by visiting Calls & Presentations under the site's Investor Information section. Participants should allow approximately ten minutes prior to the event's start time to visit the site and download any streaming media software needed to listen to the webcast. An online archive of the Investor Day webcast also will be available on the Investor Information section of DineEquity's Web site shortly after the conclusion of the event. About DineEquity, Inc.
Based in Glendale, California, DineEquity, Inc., through its subsidiaries, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. With nearly 3,500 restaurants combined, DineEquity is the largest full-service restaurant company in the world. For more information on DineEquity, visit the Company's Web site located at www.dineequity.com.
SOURCE: DineEquity, Inc.
Monday, November 1, 2010
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