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DinEquity Offers Capital Allocation Strategy

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DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar and IHOP Restaurants, today announced a capital allocation strategy that includes the approval by its Board of Directors of a first quarter cash dividend of $0.75 per share of common stock. DineEquity's Board of Directors today declared the dividend, payable on March 29, 2013, to the Company's shareholders of record as of the close of business on March 15, 2013.

The Board of Directors also approved a $100 million share repurchase authorization, effective immediately, which replaces the $45 million share repurchase authorization previously announced by the Company in August 2011. The Company remains subject to certain mandatory debt reduction requirements related to capital leases and the annual amortization payment of $4.7 million associated with the recently announced re-pricing of its senior secured credit facility.

“With the successful completion of our refranchising program and a less capital intensive business model, the time is right to announce our capital allocation plan. With continual long-term shareholder value creation clearly in mind, we are initiating a meaningful dividend and will also opportunistically seek to repurchase shares of common stock with strong free cash flow.” said Julia A. Stewart, Chairman and Chief Executive Officer of DineEquity, Inc. “The dividend, combined with the share repurchase authorization of $100 million, underscores our commitment to returning cash to our shareholders. While we expect dividends and share repurchases to be the primary components of our capital allocation strategy, we will also reduce debt when it is in the best interests of the Company to do so. We will continue to prudently manage our capital structure with a long-term view, placing real importance on positioning ourselves to potentially refinance our overall debt in the next few years.”

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