Dine will experience strong margin expansion driven by a 100% franchised business model. The model is scalable and will lead to declining S,G, & A costs as a percentage of revenues. Operating margins will expand 500 bps.
Dine also plans to add 250 model international locations over the next 4 years. These will be located in Canada, Mexico and the Middle East.
Dine also has a proven ability to grow same store sales in tough macro environments. In the third quarter of 2018, Applebee's SSS was 7.7% while IHOP's was 1.2%. This was in a quarter where the casual dining industry suffered at the hands of the fast casual industry.