Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15283 | |
Entity Registrant Name | Dine Brands Global, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-3038279 | |
Entity Address, Address Line One | 450 North Brand Boulevard, | |
Entity Address, City or Town | Glendale, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91203-1903 | |
City Area Code | (818) | |
Local Phone Number | 240-6055 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DIN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,157,339 | |
Entity Central Index Key | 0000049754 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 179,567 | $ 383,369 |
Receivables, net of allowance of $11,854 (2021) and $15,057 (2020) | 107,387 | 121,897 |
Restricted cash | 60,063 | 39,884 |
Prepaid gift card costs | 22,581 | 29,080 |
Prepaid income taxes | 6,940 | 6,178 |
Other current assets | 9,171 | 6,098 |
Total current assets | 385,709 | 586,506 |
Other intangible assets, net | 547,098 | 549,671 |
Operating lease right-of-use assets | 338,572 | 346,086 |
Goodwill | 251,628 | 251,628 |
Property and equipment, net | 182,661 | 187,977 |
Long-term receivables, net of allowance of $6,455 (2021) and $7,999 (2020) | 51,605 | 54,512 |
Deferred rent receivable | 54,713 | 56,449 |
Non-current restricted cash | 32,800 | 32,800 |
Other non-current assets, net | 11,503 | 9,316 |
Total assets | 1,856,289 | 2,074,945 |
Current liabilities: | ||
Current maturities of long-term debt | 13,000 | 13,000 |
Accounts payable | 33,522 | 37,424 |
Gift card liability | 121,814 | 144,159 |
Current maturities of operating lease obligations | 70,270 | 69,672 |
Current maturities of finance lease and financing obligations | 11,052 | 11,293 |
Accrued employee compensation and benefits | 14,554 | 21,237 |
Deferred franchise revenue, short-term | 8,990 | 7,682 |
Accrued advertising | 44,477 | 21,641 |
Other accrued expenses | 17,417 | 22,460 |
Total current liabilities | 335,096 | 348,568 |
Long-term debt | 1,271,438 | 1,491,996 |
Operating lease obligations, less current maturities | 334,361 | 345,163 |
Finance lease obligations, less current maturities | 66,234 | 69,012 |
Financing obligations, less current maturities | 32,598 | 32,797 |
Deferred income taxes, net | 70,006 | 78,293 |
Deferred franchise revenue, long-term | 49,364 | 52,237 |
Other non-current liabilities | 14,594 | 11,530 |
Total liabilities | 2,173,691 | 2,429,596 |
Commitments and contingencies | ||
Stockholders’ deficit: | ||
Preferred stock, $1 par value, 10,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; shares: 40,000,000 authorized; March 31, 2021 - 25,033,181 issued, 17,142,367 outstanding; December 31, 2020 - 24,882,122 issued, 16,452,174 outstanding | 250 | 249 |
Additional paid-in-capital | 247,498 | 257,625 |
Accumulated deficit | (29,950) | (55,553) |
Accumulated other comprehensive loss | (56) | (55) |
Treasury stock, at cost; shares: March 31, 2021 - 7,890,814; December 31, 2020 - 8,429,948 | (535,144) | (556,917) |
Total stockholders’ deficit | (317,402) | (354,651) |
Total liabilities and stockholders’ deficit | $ 1,856,289 | $ 2,074,945 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for credit loss | $ 11,854 | $ 15,057 |
Long-term receivables, allowance for credit loss | $ 6,455 | $ 7,999 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 25,033,181 | 24,882,122 |
Common stock, shares outstanding (in shares) | 17,142,367 | 16,452,174 |
Treasury stock, shares (in shares) | 7,890,814 | 8,429,948 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Rental revenues | $ 26,142 | $ 29,009 |
Total revenues | 204,199 | 206,884 |
Cost of revenues: | ||
Franchise expenses | 64,943 | 69,450 |
Company restaurant expenses | 32,884 | 30,332 |
Interest expense from finance leases | 962 | 1,210 |
Other rental expenses | 19,996 | 21,323 |
Total rental expenses | 20,958 | 22,533 |
Financing expenses | 128 | 142 |
Total cost of revenues | 118,913 | 122,457 |
Gross profit | 85,286 | 84,427 |
General and administrative expenses | 39,911 | 37,608 |
Interest expense, net | 16,496 | 15,172 |
Closure and impairment charges (credit) | 2,010 | (12) |
Amortization of intangible assets | 2,688 | 2,826 |
Loss (gain) on disposition of assets | 167 | (233) |
Income before income taxes | 24,014 | 29,066 |
Income tax benefit (provision) | 1,589 | (6,738) |
Net income | 25,603 | 22,328 |
Other comprehensive income net of tax: | ||
Foreign currency translation adjustment | (1) | 0 |
Total comprehensive income | 25,602 | 22,328 |
Net income available to common stockholders: | ||
Net income | 25,603 | 22,328 |
Less: Net income allocated to unvested participating restricted stock | (548) | (748) |
Net income available to common stockholders | $ 25,055 | $ 21,580 |
Net income available to common stockholders per share: | ||
Basic (USD per share) | $ 1.52 | $ 1.33 |
Diluted (USD per share) | $ 1.51 | $ 1.31 |
Weighted average shares outstanding: | ||
Basic (in shares) | 16,460 | 16,263 |
Diluted (in shares) | 16,630 | 16,470 |
Franchise revenues | ||
Revenues: | ||
Revenue from contract with customer | $ 140,976 | $ 145,037 |
Royalties, franchise fees and other | ||
Revenues: | ||
Revenue from contract with customer | 80,091 | 83,314 |
Advertising revenues | ||
Revenues: | ||
Revenue from contract with customer | 60,885 | 61,723 |
Company restaurant sales | ||
Revenues: | ||
Revenue from contract with customer | 35,949 | 31,300 |
Financing revenues | ||
Revenues: | ||
Revenue from contract with customer | 1,132 | 1,538 |
Advertising fees | ||
Revenues: | ||
Revenue from contract with customer | 60,885 | 61,723 |
Cost of revenues: | ||
Franchise expenses | 60,885 | 61,723 |
Bad debt (credit) expense | ||
Cost of revenues: | ||
Franchise expenses | (1,993) | 518 |
Other franchise expenses | ||
Cost of revenues: | ||
Franchise expenses | $ 6,051 | $ 7,209 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period Of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Common stock, beginning balance (in shares) at Dec. 31, 2019 | 16,522,000 | |||||||
Stockholders' equity balance, beginning of the period at Dec. 31, 2019 | $ (241,774) | $ (497) | $ 249 | $ 246,192 | $ 61,653 | $ (497) | $ (58) | $ (549,810) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2019 | 8,404,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Net income | $ 22,328 | 22,328 | ||||||
Purchase of Company common stock (in shares) | (460,000) | (460,000) | ||||||
Purchase of Company common stock | (26,527) | $ (26,527) | ||||||
Reissuance of treasure stock (in shares) | 367,000 | 368,000 | ||||||
Reissuance of treasury stock | 20,524 | 3,967 | $ 16,557 | |||||
Net issuance of shares for stock plans (in shares) | 18,000 | |||||||
Repurchase of restricted shares for taxes (in shares) | (26,000) | |||||||
Repurchase of restricted shares for taxes | (2,000) | (2,000) | ||||||
Stock-based compensation | 4,038 | 4,038 | ||||||
Dividends on common stock | (12,469) | 246 | (12,715) | |||||
Common stock, ending balance (in shares) at Mar. 31, 2020 | 16,421,000 | |||||||
Stockholders' equity balance, ending of the period at Mar. 31, 2020 | $ (236,377) | $ 249 | 252,443 | 70,769 | (58) | $ (559,780) | ||
Treasury stock, ending balance (in shares) at Mar. 31, 2020 | 8,496,000 | |||||||
Common stock, beginning balance (in shares) at Dec. 31, 2020 | 16,452,174 | 16,452,000 | ||||||
Stockholders' equity balance, beginning of the period at Dec. 31, 2020 | $ (354,651) | $ 249 | 257,625 | (55,553) | (55) | $ (556,917) | ||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | 8,429,948 | 8,430,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 25,603 | 25,603 | ||||||
Other comprehensive income | $ (1) | (1) | ||||||
Reissuance of treasure stock (in shares) | 539,134 | 539,000 | 539,000 | |||||
Reissuance of treasury stock | $ 19,484 | $ 1 | (2,290) | $ 21,773 | ||||
Net issuance of shares for stock plans (in shares) | 166,000 | |||||||
Repurchase of restricted shares for taxes (in shares) | (15,000) | |||||||
Repurchase of restricted shares for taxes | (1,220) | (1,220) | ||||||
Stock-based compensation | 3,094 | 3,094 | ||||||
Tax withheld related to settlement of restricted stock units | $ (9,711) | (9,711) | ||||||
Common stock, ending balance (in shares) at Mar. 31, 2021 | 17,142,367 | 17,142,000 | ||||||
Stockholders' equity balance, ending of the period at Mar. 31, 2021 | $ (317,402) | $ 250 | $ 247,498 | $ (29,950) | $ (56) | $ (535,144) | ||
Treasury stock, ending balance (in shares) at Mar. 31, 2021 | 7,890,814 | 7,891,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 25,603 | $ 22,328 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Non-cash closure and impairment charges (credit) | 1,959 | (12) |
Depreciation and amortization | 9,995 | 10,641 |
Non-cash stock-based compensation expense | 3,094 | 4,038 |
Non-cash interest expense | 712 | 655 |
Deferred income taxes | (8,267) | (10,491) |
Deferred revenue | (1,565) | (1,417) |
Loss (gain) on disposition of assets | 167 | (227) |
Other | (1,580) | (1,293) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (4,323) | 12,077 |
Current income tax receivables and payables | (552) | 6,443 |
Gift card receivables and payables | (3,246) | 11,693 |
Other current assets | (3,072) | (2,347) |
Accounts payable | 809 | (12,748) |
Accrued employee compensation and benefits | (6,968) | (12,190) |
Accrued advertising | 22,836 | (4,719) |
Other current liabilities | (5,037) | 7,214 |
Cash flows provided by operating activities | 30,565 | 29,645 |
Cash flows from investing activities: | ||
Principal receipts from notes, equipment contracts and other long-term receivables | 4,651 | 5,544 |
Net additions to property and equipment | (2,357) | (5,084) |
Proceeds from sale of property and equipment | 946 | 6 |
Additions to long-term receivables | 0 | (1,511) |
Other | (110) | (195) |
Cash flows provided by (used in) investing activities | 3,130 | (1,240) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (3,250) | 0 |
Borrowing from revolving credit facility | 0 | 220,000 |
Repayment of revolving credit facility | (220,000) | 0 |
Dividends paid on common stock | 0 | (11,451) |
Repurchase of common stock | 0 | (29,853) |
Principal payments on finance lease obligations | (2,621) | (2,981) |
Proceeds from stock options exercised | 19,484 | 20,524 |
Tax payments for restricted stock upon vesting | (1,220) | (2,000) |
Tax payments for share settlement of restricted stock units | (9,711) | 0 |
Cash flows (used in) provided by financing activities | (217,318) | 194,239 |
Net change in cash, cash equivalents and restricted cash | (183,623) | 222,644 |
Cash, cash equivalents and restricted cash at beginning of period | 456,053 | 172,475 |
Cash, cash equivalents and restricted cash at end of period | 272,430 | 395,119 |
Supplemental disclosures: | ||
Interest paid in cash | 17,240 | 16,446 |
Income taxes paid in cash | 7,441 | 10,818 |
Non-cash conversion of accounts receivable to notes receivable | $ 1,269 | $ 0 |
General
General | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited consolidated financial statements of Dine Brands Global, Inc. (the “Company” or “Dine Brands Global”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2021. The consolidated balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2021 began on January 4, 2021 and ended on April 4, 2021. The first fiscal quarter of 2020 began on December 30, 2019 and ended on March 29, 2020. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, if any, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates may include the calculation and assessment of the following: impairment of goodwill, other intangible assets and tangible assets; income taxes; allowance for credit losses on accounts and notes receivables; lease accounting estimates; contingencies; and stock-based compensation. On an ongoing basis, the Company evaluates its estimates based on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. Risks and Uncertainties The Company was subject to risks and uncertainties as a result of the continuing outbreak of a novel strain of coronavirus, designated “COVID-19.” The extent of the continued impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as measures taken in response to and the effect of the pandemic has varied and continues to vary by state and municipalities within states. Assessments of the success of measures taken and the timing of any further restrictions, or lifting of such restrictions, is rapidly evolving. The Company first began to experience impacts from COVID-19 in March 2020, as federal, state, local and international governments began to react to the public health crisis by encouraging “social distancing” and requiring, in varying degrees, restaurant dine-in limitations and other restrictions that largely limited the restaurants of the Company's franchisees and its company-operated restaurants to take-out and delivery sales. Subsequently, government-imposed dine-in restrictions have been relaxed in many of the locations in which the Company operates as incidents of infection decline within the respective governmental jurisdictions, although dining room capacity continues to be limited to 50% or less at over two-thirds of the Company's restaurants as of March 31, 2021. The Company took several actions to mitigate the effects of the COVID-19 pandemic on its operations and its franchisees, as follows: (i) drew down $220 million from its revolving credit facility in March 2020 and repaid the borrowing in March 2021;(ii) suspended repurchases of common stock; (iii) the Company's Board of Directors has not declared dividends after the first quarter of 2020; (iv) voluntarily increased the interest reserve for securitized debt from the required $16.4 million (approximately one quarter of estimated interest) to $32.8 million; (v) deferred franchisee payment of royalty, advertising and other fees, and lease obligations for up to two months on a case-by-case basis; (vi) deferred franchisee remodel and development obligations for up to 15 months; and (vii) negotiated deferrals and abatements for properties on which the Company was lessee. The severity of the continued impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, how long the pandemic will last, whether/when recurrences of the virus and variants of the virus may arise, the availability and acceptance of vaccines, what restrictions on in-restaurant dining may be imposed or re-imposed, the timing and extent of customer re-engagement with the Company's brands and, in general, what the short- and long-term impact on consumer discretionary spending the COVID-19 pandemic might have on the Company and the restaurant industry as a whole, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could adversely be impacted by the length of time dine-in restrictions remain in place and the success of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by itself and its franchisees. As such, the extent to which the COVID-19 pandemic may continue to materially impact the Company's financial condition, liquidity, or results of operations is highly uncertain. |
Accounting Standards Adopted an
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted | Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted Accounting Standards Adopted in the Current Fiscal Year In December 2019, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to simplify the accounting for income taxes, change the accounting for certain income tax transactions, and make other minor changes. The Company adopted the new guidance at the beginning of the first fiscal quarter of 2021. Adoption did not have any material effect on the consolidated financial statements. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2021 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years. Newly Issued Accounting Standards Not Yet Adopted In March 2020, with an update in January 2021, the FASB issued guidance which provides optional expedients and exceptions for applying current U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. We are currently evaluating our contracts that reference LIBOR and the potential effects of adopting this new guidance. The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable to the Company's operations or that no material effect is expected on the Company's financial statements when adoption is required in the future. |
Revenue Disclosures
Revenue Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | Revenue DisclosuresFranchise revenue and revenue from company-operated restaurants are recognized in accordance with current guidance for revenue recognition as codified in Accounting Standards Topic 606 (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods. Franchising Activities The Company owns, franchises and operates the Applebee's Neighborhood Grill & Bar ® (“Applebee's”) concept in the casual dining category of the restaurant industry and the Company owns and franchises the International House of Pancakes ® (“IHOP”) concept in the family dining category of the restaurant industry. The franchise arrangement for both brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brands that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the respective brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. The transaction price in a standard franchise arrangement for both brands primarily consists of (a) initial franchise/development fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required. All domestic IHOP franchise agreements require franchisees to purchase proprietary pancake and waffle dry mix from the Company. The Company recognizes the primary components of the transaction price as follows: • Franchise and development fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the restaurant opening date. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time; • The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenue are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either what is considered a contract asset (unbilled receivable) or, once billed, accounts receivable, and are included in “receivables, net” in the Consolidated Balance Sheets. • Revenue from the sale of proprietary pancake and waffle dry mix is recognized in the period in which distributors ship the franchisee's order; recognition of revenue results in an accounts receivable included in “receivables, net” in the Consolidated Balance Sheets. In determining the amount and timing of revenue from contracts with customers, the Company exercises significant judgment with respect to collectibility of the amount; however, the timing of recognition does not require significant judgments as it is based on either the term of the franchise agreement, the month of reported sales by the franchisee or the date of product shipment, none of which require estimation. The Company does not incur a significant amount of contract acquisition costs in conducting franchising activities. The Company's franchising arrangements do not contain a significant financing component. Company Restaurant Revenue Sales by company-operated restaurants are recognized when food and beverage items are sold. Company restaurant sales are reported net of sales taxes collected from guests that are remitted to the appropriate taxing authorities. The following table disaggregates franchise revenue by major type for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (In thousands) Franchise Revenue: Royalties $ 65,767 $ 67,600 Advertising fees 60,885 61,723 Pancake and waffle dry mix sales and other 10,890 12,848 Franchise and development fees 3,434 2,866 Total franchise revenue $ 140,976 $ 145,037 Accounts and other receivables from franchisees as of March 31, 2021 and December 31, 2020 were $79.5 million (net of allowance of $7.7 million) and $76.3 million (net of allowance of $11.4 million), respectively, and were included in receivables, net in the Consolidated Balance Sheets. Changes in the Company's contract liability for deferred franchise and development fees during the three months ended March 31, 2021 are as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2020 $ 59,919 Recognized as revenue during the three months ended March 31, 2021 (3,354) Fees deferred during the three months ended March 31, 2021 1,789 Balance at March 31, 2021 $ 58,354 The balance of deferred revenue as of March 31, 2021 is expected to be recognized as follows: (In thousands) Remainder of 2021 $ 7,931 2022 7,130 2023 6,629 2024 6,044 2025 5,268 Thereafter 25,352 Total $ 58,354 |
Current Expected Credit Losses
Current Expected Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses | Current Expected Credit Losses The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. The Company records specific reserves against account balances of franchisees deemed at-risk when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed at-risk, an allowance is recorded based on expected loss rates derived pursuant to the Company's CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable. The Company considers its portfolio segments to be the following: Accounts Receivable (Franchise-Related) Most of the Company’s short-term receivables due from franchisees are derived from royalty, advertising and other franchise-related fees. Gift Card Receivables Gift card receivables consist primarily of amounts due from third-party vendors. Receivables related to gift card sales are subject to seasonality and usually peak around year end as a result of the December holiday season. Notes Receivable Notes receivable balances primarily relate to the conversion of certain Applebee's franchisee accounts receivable to notes receivable, cash loans to franchisees for working capital purposes, a note receivable in connection with the sale of IHOP company restaurants and IHOP franchise fee and other notes. The notes are typically collateralized by the franchise. A significant portion of these notes have specific reserves recorded against them amounting to $9.4 million as of March 31, 2021. Equipment Leases Receivable Equipment leases receivable also relate to IHOP franchise development activity prior to 2003. Equipment lease contracts are collateralized by the equipment in the restaurant. The estimated fair value of the equipment collateralizing these lease contracts are not deemed to be significant given the very seasoned and mature nature of this portfolio. The weighted average remaining life of the Company’s equipment leases is 5.2 years as of March 31, 2021. Direct Financing Leases Receivable Direct financing lease receivables relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant, then franchised the restaurant to a franchisee. IHOP provided the financing for leasing or subleasing the site. Direct financing leases at March 31, 2021, comprised 85 leases with a weighted average remaining life of 4.1 years, and relate to locations that IHOP is leasing from third parties and subleasing to franchisees. Distributor Receivables Receivables due from distributors are related to the sale of IHOP’s proprietary pancake and waffle dry mix to franchisees through the Company’s network of suppliers and distributors and are included as part of Other receivables. March 31, 2021 December 31, 2020 (In millions) Accounts receivable $ 84.8 $ 85.7 Gift card receivables 5.4 22.5 Notes receivable 20.4 18.6 Financing receivables: Equipment leases receivable 40.8 43.9 Direct financing leases receivable 20.1 22.7 Franchise fee notes receivable 0.1 0.1 Other 5.7 6.0 177.3 199.5 Less: allowance for credit losses (18.3) (23.1) 159.0 176.4 Less: current portion (107.4) (121.9) Long-term receivables $ 51.6 $ 54.5 Changes in the allowance for credit losses during the three months ended March 31, 2021 were as follows: Accounts Receivable Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Notes Other (1) Total (In millions) Balance, December 31, 2020 $ 11.2 $ 3.6 $ 5.3 $ 0.4 $ 2.3 $ 0.3 $ 23.1 Bad debt (credit) expense for the three months ended March 31, 2021 (2.0) 0.5 (0.0) (0.3) (0.1) (0.1) (2.0) Advertising provision adjustment (1.4) (0.0) — — — — (1.4) Write-offs (0.2) — — 0.0 (1.2) — (1.4) Recoveries — — — 0.0 — — 0.0 Balance, March 31, 2021 $ 7.6 $ 4.1 $ 5.3 $ 0.1 $ 1.0 $ 0.2 $ 18.3 (1) Primarily distributor receivables, gift card receivables and credit card receivables The Company's primary credit quality indicator for all portfolio segments is delinquency. The delinquency status of receivables (other than accounts receivable, gift card receivables and distributor receivables) at March 31, 2021 was as follows: Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Notes Other (1) Total (In millions) Current $ 5.2 $ 12.7 $ 20.1 $ 40.8 $ 2.2 $ 81.0 30-59 days 0.1 — — — — 0.1 60-89 days 0.1 — — — — 0.1 90-119 days 0.1 — — — — 0.1 120+ days 2.2 — — — — 2.2 Total $ 7.7 $ 12.7 $ 20.1 $ 40.8 $ 2.2 $ 83.5 (1) Primarily c redit card receivables The year of origination of the Company's financing receivables is as follows: Notes receivable, short and long-term Lease Receivables Equipment Notes Total (In millions) 2021 $ 2.2 $ — $ — $ 2.2 2020 1.2 1.5 — 2.7 2019 2.6 0.9 — 3.5 2018 8.0 — — 8.0 2017 6.3 — — 6.3 2016 0.1 17.7 40.8 58.6 Total $ 20.4 $ 20.1 $ 40.8 $ 81.3 |
Lease Disclosures
Lease Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 550 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 55 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and restaurant support centers in Kansas City, Missouri and Raleigh, North Carolina. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five The Company's lease cost for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Finance lease cost: Amortization of right-of-use assets $ 1.2 $ 1.3 Interest on lease liabilities 1.4 1.7 Operating lease cost 25.1 26.5 Variable lease cost 0.3 0.4 Short-term lease cost 0.0 0.0 Sublease income (24.2) (26.6) Lease cost $ 3.8 $ 3.3 Future minimum lease payments under noncancelable leases as lessee as of March 31, 2021 were as follows: Finance Operating (In millions) 2021 (remaining nine months) $ 11.7 $ 69.0 2022 14.4 86.2 2023 11.6 71.0 2024 9.7 65.8 2025 8.5 57.0 Thereafter 50.8 146.6 Total minimum lease payments 106.7 495.6 Less: interest/imputed interest (30.2) (90.9) Total obligations 76.5 404.7 Less: current portion (10.3) (70.3) Long-term lease obligations $ 66.2 $ 334.4 The weighted average remaining lease term as of March 31, 2021 was 7.2 years for finance leases and 9.2 years for operating leases. The weighted average discount rate as of March 31, 2021 was 10.2% for finance leases and 5.6% for operating leases. During the three months ended March 31, 2021 and 2020, the Company made the following cash payments for leases: Three months ended March 31, 2021 2020 (In millions) Principal payments on finance lease obligations $ 2.6 $ 3.0 Interest payments on finance lease obligations $ 1.5 $ 1.7 Payments on operating leases $ 23.0 $ 23.4 Variable lease payments $ 0.3 $ 0.1 The Company's income from operating leases for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Minimum lease payments $ 23.8 $ 25.4 Variable lease income 1.6 2.4 Total operating lease income $ 25.4 $ 27.8 Minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2021 were as follows: (In millions) 2021 (remaining nine months) $ 75.6 2022 98.8 2023 95.0 2024 86.9 2025 75.0 Thereafter 164.3 Total minimum rents receivable $ 595.6 The Company's income from direct financing leases for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Interest income $ 0.6 $ 1.0 Variable lease income 0.1 0.2 Total operating lease income $ 0.7 $ 1.2 Minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2021 were as follows: (In millions) 2021 (remaining nine months) $ 7.5 2022 7.5 2023 3.6 2024 1.5 2025 0.7 Thereafter 3.1 Total minimum rents receivable 23.9 Less: unearned income (3.8) Total net investment in direct financing leases 20.1 Less: current portion (7.9) Long-term investment in direct financing leases $ 12.2 |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 550 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 55 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and restaurant support centers in Kansas City, Missouri and Raleigh, North Carolina. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five The Company's lease cost for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Finance lease cost: Amortization of right-of-use assets $ 1.2 $ 1.3 Interest on lease liabilities 1.4 1.7 Operating lease cost 25.1 26.5 Variable lease cost 0.3 0.4 Short-term lease cost 0.0 0.0 Sublease income (24.2) (26.6) Lease cost $ 3.8 $ 3.3 Future minimum lease payments under noncancelable leases as lessee as of March 31, 2021 were as follows: Finance Operating (In millions) 2021 (remaining nine months) $ 11.7 $ 69.0 2022 14.4 86.2 2023 11.6 71.0 2024 9.7 65.8 2025 8.5 57.0 Thereafter 50.8 146.6 Total minimum lease payments 106.7 495.6 Less: interest/imputed interest (30.2) (90.9) Total obligations 76.5 404.7 Less: current portion (10.3) (70.3) Long-term lease obligations $ 66.2 $ 334.4 The weighted average remaining lease term as of March 31, 2021 was 7.2 years for finance leases and 9.2 years for operating leases. The weighted average discount rate as of March 31, 2021 was 10.2% for finance leases and 5.6% for operating leases. During the three months ended March 31, 2021 and 2020, the Company made the following cash payments for leases: Three months ended March 31, 2021 2020 (In millions) Principal payments on finance lease obligations $ 2.6 $ 3.0 Interest payments on finance lease obligations $ 1.5 $ 1.7 Payments on operating leases $ 23.0 $ 23.4 Variable lease payments $ 0.3 $ 0.1 The Company's income from operating leases for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Minimum lease payments $ 23.8 $ 25.4 Variable lease income 1.6 2.4 Total operating lease income $ 25.4 $ 27.8 Minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2021 were as follows: (In millions) 2021 (remaining nine months) $ 75.6 2022 98.8 2023 95.0 2024 86.9 2025 75.0 Thereafter 164.3 Total minimum rents receivable $ 595.6 The Company's income from direct financing leases for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Interest income $ 0.6 $ 1.0 Variable lease income 0.1 0.2 Total operating lease income $ 0.7 $ 1.2 Minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2021 were as follows: (In millions) 2021 (remaining nine months) $ 7.5 2022 7.5 2023 3.6 2024 1.5 2025 0.7 Thereafter 3.1 Total minimum rents receivable 23.9 Less: unearned income (3.8) Total net investment in direct financing leases 20.1 Less: current portion (7.9) Long-term investment in direct financing leases $ 12.2 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt At March 31, 2021 and December 31, 2020, long-term debt consisted of the following: March 31, 2021 December 31, 2020 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 696.5 $ 698.3 Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 597.0 598.5 Series 2019-1 Variable Funding Senior Notes Class A-1, variable interest rate of 2.42% at December 31, 2020 — 220.0 Debt issuance costs (9.1) (11.8) Long-term debt, net of debt issuance costs 1,284.4 1,505.0 Current portion of long-term debt (13.0) (13.0) Long-term debt $ 1,271.4 $ 1,492.0 On June 5, 2019, Applebee’s Funding LLC and IHOP Funding LLC (the “Co-Issuers”), each a special purpose, wholly-owned indirect subsidiary of the Company, issued two tranches of fixed rate senior secured notes, the Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I (“Class A-2-I Notes”) in an initial aggregate principal amount of $700 million and the Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II (“Class A-2-II Notes”) in an initial aggregate principal amount of $600 million (the “Class A-2-II Notes” and, together with the Class A-2-I Notes, the “2019 Class A-2 Notes”). The 2019 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended. The Co-Issuers also entered into a revolving financing facility, the 2019-1 Variable Funding Senior Notes, Class A-1 (the “Credit Facility”), that allows for drawings up to $225 million of variable funding notes and the issuance of letters of credit. The Credit Facility and the 2019 Class A-2 Notes are referred to collectively herein as the “New Notes.” The New Notes were issued in a securitization transaction pursuant to which substantially all the domestic revenue-generating assets and domestic intellectual property held by the Co-Issuers and certain other special-purpose, wholly-owned indirect subsidiaries of the Company (the “Guarantors”) were pledged as collateral to secure the New Notes. The New Notes were issued under a Base Indenture, dated as of September 30, 2014, and amended and restated as of June 5, 2019 (the “Base Indenture”), and the related Series 2019-1 Supplement to the Base Indenture, dated June 5, 2019 (the “Series 2019-1 Supplement”), among the Co-Issuers and Citibank, N.A., as the trustee (in such capacity, the “Trustee”) and securities intermediary. The Base Indenture and the Series 2019-1 Supplement (collectively, the “Indenture”) will allow the Co-Issuers to issue additional series of notes in the future subject to certain conditions set forth therein. 2019 Class A-2 Notes The legal final maturity of the 2019 Class A-2 Notes is in June 2049, but rapid amortization will apply if the Class A-2-I Notes are not repaid by June 2024 (the “Class A-2-I Anticipated Repayment Date”) and for the Class A-2-II Notes if not repaid by June 2026 (the “Class A-2-II Anticipated Repayment Date”). If the Co-Issuers have not repaid or refinanced the Class A-2-I Notes by the Class A-2-I Anticipated Repayment Date or the Class A-2-II Notes by the Class A-2-II Anticipated Repayment Date, then additional interest will accrue on the Class A-2-I Notes and the Class A-2-II Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the applicable Series 2019-1 Class A-2 Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the applicable anticipated repayment date of the United States Treasury Security having a term closest to 10 years plus (y) 5.0%, plus (z) 2.15% for the Series 2019-1 Class A-2-I Notes and 2.64% for the Series 2019-1 Class A-2-II Notes. While the 2019 Class A-2 Notes are outstanding, payment of principal and interest is required to be made on the 2019 Class A-2 Notes on a quarterly basis. The quarterly principal payment of $3.25 million on the 2019 Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x. In general, the leverage ratio is the Company's indebtedness (as defined in the Indenture) divided by adjusted EBITDA (as defined in the Indenture) for the four preceding quarterly periods. The complete definitions of all calculation elements of the leverage ratio are contained in the Indenture. As of March 31, 2021, the Company's leverage ratio was 7.02x. As a result, quarterly principal payments on the 2019 Class A-2 Notes of $3.25 million continue to be required. Exceeding the leverage ratio of 5.25x does not violate any covenant related to the New Notes. The Company may voluntarily repay the 2019 Class A-2 Notes at any time; however, if the 2019 Class A-2 Notes are repaid prior to certain dates, the Company would be required to pay make-whole premiums. As of March 31, 2021, the make-whole premium associated with voluntary prepayment of the Class A-2-I Notes was approximately $29 million; this amount declines progressively each quarter to zero in June 2022. As of March 31, 2021, the make-whole premium associated with voluntary prepayment of the Class A-2-II Notes was approximately $59 million; this amount declines progressively each quarter to zero in June 2024. The Company would also be subject to a make-whole premium in the event of a mandatory prepayment required following a Rapid Amortization Event or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded in the New Notes that must be bifurcated for separate valuation. The Company estimated the fair value of these derivatives to be immaterial as of March 31, 2021, based on the probability-weighted discounted cash flows associated with either event. 2019 Class A-1 Notes The Co-Issuers entered into the Credit Facility that allows for drawings up to $225 million of variable funding notes and the issuance of letters of credit. The applicable interest rate under the Credit Facility depends on the type of borrowing by the Co-Issuers. The applicable interest rate for advances is generally calculated at a per annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Eurodollar Funding Rate, in either case, plus 2.15%. The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (a) 1.15% plus (b) the greatest of (i) the Prime Rate in effect from time to time, (ii) the Federal Funds Rate in effect from time to time plus 0.50% and (iii) the one-month Eurodollar Funding Rate plus 1.00%. There is no upfront fee for the Credit Facility. There is a fee of 50 basis points on any unused portion of the revolving financing facility. Undrawn face amounts of outstanding letters of credit that are not cash collateralized accrue a fee of 2.15% per annum. In March 2020, the Company borrowed $220.0 million against the Credit Facility. The maximum amount of borrowings from the Credit Facility outstanding during the three months ended March 31, 2021 was $220.0 million. The $220.0 million was repaid on March 5, 2021 and as of March 31, 2021, there were no outstanding borrowings under the Credit Facility. The interest rate for borrowings under the Credit Facility is the three-month LIBOR rate plus 2.15% for 60% of the advances and the commercial paper funding rate of our conduit investor plus 2.15% for 40% of the advances. The weighted average interest rate on Credit Facility borrowings for the period outstanding during the three months ended March 31, 2021 was 2.4%. At March 31, 2021, $3.3 million was pledged against the Credit Facility for outstanding letters of credit, leaving $221.7 million available for borrowing. The letters of credit are used primarily to satisfy insurance-related collateral requirements. Covenants and Restrictions The New Notes are subject to a series of covenants and restrictions customary for transactions of this type, including: (i) that the Co-Issuers maintain specified reserve accounts to be used to make required payments in respect of the New Notes, (ii) provisions relating to optional and mandatory prepayments, and the related payment of specified amounts, including specified call redemption premiums in the case of Class A-2 Notes under certain circumstances; (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the New Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The New Notes are subject to customary rapid amortization events provided for in the Indenture, including events tied to failure of the Securitization Entities (as defined in the Indenture) to maintain the stated debt service coverage ratio (“DSCR”), the sum of domestic retail sales for all restaurants being below certain levels on certain measurement dates, certain manager termination events, certain events of default and the failure to repay or refinance the Class A-2 Notes on the anticipated repayment dates. The New Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the New Notes, failure of the Securitization Entities to maintain the stated DSCR, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties and certain judgments. In general, the DSCR ratio is Net Cash Flow (as defined in the Indenture) for the four quarters preceding the calculation date divided by the total debt service payments (as defined in the Indenture) of the preceding four quarters. The complete definitions of the DSCR and all calculation elements are contained in the Indenture. Failure to maintain a prescribed DSCR can trigger a Cash Flow Sweeping Event, A Rapid Amortization Event, a Manager Termination Event or a Default Event as described below. In a Cash Flow Sweeping Event, the Trustee is required to retain 50% of excess Cash Flow (as defined in the Indenture) in a restricted account. In a Rapid Amortization Event, all excess Cash Flow is retained and used to retire principal amounts of debt. In a Manager Termination Event, the Company may be replaced as manager of the assets securitized under the Indenture. In a Default Event, the outstanding principal amount and any accrued but unpaid interest can be called to become immediately due and payable. Key DSCRs are as follows: • DSCR less than 1.75x - Cash Flow Sweeping Event • DSCR less than 1.20x - Rapid Amortization Event • Interest-only DSCR less than 1.20x - Manager Termination Event • Interest-only DSCR less than 1.10x - Default Event The Company's DSCR for the reporting period ended March 31, 2021 was approximately 3.45x. Debt Issuance Costs Amortization of costs incurred in connection with the issuance of the 2019 Class A-2 Notes of $0.5 million and $0.5 million were included in interest expense for the three months ended March 31, 2021 and 2020, respectively. Amortization costs incurred in connection with the Company's Credit Facility and prior credit facility of $0.2 million and $0.2 million were included in interest expense for the three months ended March 31, 2021 and 2020, respectively. At March 31, 2021, total unamortized debt issuance costs of $9.1 million are reported as a direct reduction of the 2019 Class A-2 Notes in the Consolidated Balance Sheets. At March 31, 2021, total unamortized debt issuance costs of $2.0 million related to the Credit Facility and prior credit facility are classified as other long-term assets because there are no borrowings outstanding against the Credit Facility. Maturities of Long-term Debt • The anticipated repayment date of the Class A-2-I Notes is June 2024. • The anticipated repayment date of the Class A-2-II Notes is in June 2026. • Quarterly principal payments on the Class A-2-I and Class A-2-II Notes totaling $3.25 million ($13.0 million per annum) are required if the Company's leverage ratio is greater than 5.25x. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Dividends Dividends declared and paid per share for the three months ended March 31, 2021 and 2020 were as follows: Three months ended March 31, 2021 2020 Dividends declared per common share $ — $ 0.76 Dividends paid per common share $ — $ 0.69 Stock Repurchase Program In February 2019, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $200 million of the Company’s common stock (the “2019 Repurchase Program”) on an opportunistic basis from time to time in the open market or in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The 2019 Repurchase Program, as approved by the Board of Directors, does not require the repurchase of a specific number of shares and can be terminated at any time. The Company did not repurchase any shares during three months ended March 31, 2021, as compared to repurchasing 459,899 shares during the three months ended March 31, 2020. As of March 31, 2021, cumulative repurchases of stock total 1,697,597 shares at a cost of $129.8 million, with a dollar value of $70.2 million remaining for repurchase under the 2019 Repurchase Program. Treasury Stock |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was (6.6)% (a tax benefit of $1.6 million on the pretax book income of $24.0 million) for the three months ended March 31, 2021, as compared to 23.2% for the three months ended March 31, 2020. The effective tax rate for the three months ended March 31, 2021 was lower than the rate of the prior year period primarily due to the recognition of excess tax benefits on stock-based compensation. The total gross unrecognized tax benefit as of March 31, 2021 and December 31, 2020 was $2.5 million and $2.2 million, respectively, excluding interest, penalties and related tax benefits. The Company estimates the unrecognized tax benefit as of March 31, 2021 may decrease over the upcoming 12 months by an amount up to $0.8 million related to settlements with taxing authorities and expiring statutes of limitations. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonable estimate as to when cash settlement with a taxing authority will occur. As of March 31, 2021, accrued interest was $0.9 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. As of December 31, 2020, accrued interest was $0.9 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of its income tax provision recognized in its Consolidated Statements of Comprehensive Income. The Company files federal income tax returns and the Company or one of its subsidiaries file income tax returns in various state and international jurisdictions. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2017 and state or non-United States tax examinations by tax authorities for years before 2011. The Company believes that adequate reserves have been provided related to all matters contained in the tax periods open to examination. On March 11, 2021, the American Rescue Plan Act of 2021 (“ARP Act”) was enacted in response to the COVID-19 pandemic. The Company is continuing to evaluate the impact of the ARP Act, but at present does not expect the ARP Act would result in a material impact to our income tax benefit or provision. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income: Three months ended March 31, 2021 2020 Total stock-based compensation expense: (In millions) Equity classified awards expense $ 3.1 $ 4.1 Liability classified awards expense (credit) 1.5 (0.6) Total pre-tax stock-based compensation expense 4.6 3.5 Book income tax benefit (1.1) (0.9) Total stock-based compensation expense, net of tax $ 3.5 $ 2.6 As of March 31, 2021, total unrecognized compensation expense of $23.6 million related to restricted stock and restricted stock units and $4.6 million related to stock options are expected to be recognized over a weighted average period of 1.7 years for restricted stock and restricted stock units and 1.8 years for stock options. Fair Value Assumptions The Company granted 91,743 stock options during the three months ended March 31, 2021 for which the fair value was estimated using a Black-Scholes option pricing model. The following summarizes the weighted average assumptions used in the Black-Scholes model: Risk-free interest rate 0.5 % Historical volatility 67.7 % Dividend yield — % Expected years until exercise 4.5 Fair value of options granted $39.85 Equity Classified Awards - Stock Options Stock option balances at March 31, 2021, and activity for the three months ended March 31, 2021 were as follows: Shares Weighted Weighted Average Aggregate Outstanding at December 31, 2020 1,014,670 $ 64.16 Granted 91,743 74.57 Exercised (428,376) 45.48 Expired (20,169) 98.11 Forfeited (36,093) 88.46 Outstanding at March 31, 2021 621,775 76.06 6.7 $ 10.5 Vested at March 31, 2021 and Expected to Vest 595,541 75.87 6.6 $ 10.2 Exercisable at March 31, 2021 423,603 $ 72.91 5.6 $ 8.7 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the first quarter of 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2021. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options. Equity Classified Awards - Restricted Stock and Restricted Stock Units Outstanding balances as of March 31, 2021, and activity related to restricted stock and restricted stock units for the three months ended March 31, 2021 were as follows: Restricted Weighted Stock-Settled Restricted Weighted Outstanding at December 31, 2020 254,331 $ 76.50 355,570 $ 28.01 Granted 110,840 82.44 68,578 62.92 Released (40,416) 66.16 (314,713) 22.84 Forfeited (18,644) 84.15 — — Outstanding at March 31, 2021 306,111 $ 79.55 109,435 $ 64.76 Liability Classified Awards - Cash-settled Restricted Stock Units The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end. Cash-Settled Restricted Outstanding at December 31, 2020 52,956 Released (38,171) Forfeited (54) Outstanding at March 31, 2021 14,731 For the three months ended March 31, 2021 and 2020, an expense of $1.4 million and a credit of $1.3 million, respectively, was included as stock-based compensation expense related to cash-settled restricted stock units. At March 31, 2021 and December 31, 2020, liabilities of $0.8 million and $2.1 million, respectively, related to cash-settled restricted stock units were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets. Liability Classified Awards - Long-Term Incentive Awards |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company currently has five operating segments: Applebee's franchise operations, Applebee's company-operated restaurant operations, IHOP franchise operations, rental operations and financing operations. The Company has four reportable segments: franchise operations, (an aggregation of Applebee's and IHOP franchise operations), company-operated restaurant operations, rental operations and financing operations. The Company considers these to be its reportable segments, regardless of whether any segment exceeds 10% of consolidated revenues, income before income tax provision or total assets. As of March 31, 2021, the franchise operations segment consisted of (i) 1,636 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 11 countries outside the United States and (ii) 1,749 restaurants operated by IHOP franchisees and area licensees in the United States, two U.S. territories and seven countries outside the United States. Franchise operations revenue consists primarily of franchise royalty revenues, franchise advertising revenue, sales of proprietary products to franchisees (primarily pancake and waffle dry mixes for the IHOP restaurants), and franchise fees. Franchise operations expenses include advertising expenses, the cost of IHOP proprietary products, bad debt expense, franchisor contributions to marketing funds, pre-opening training expenses and other franchise-related costs. Company restaurant sales are retail sales at 69 Applebee's company-operated restaurants. Company restaurant expenses are operating expenses at company-operated restaurants and include food, labor, utilities, rent and other restaurant operating costs. Rental operations revenue includes revenue from operating leases and interest income from direct financing leases. Rental operations expenses are costs of operating leases and interest expense from finance leases on which the Company is the lessee. Financing revenues primarily consist of interest income from the financing of IHOP equipment leases and franchise fees and interest income on Applebee's notes receivable from franchisees. Financing expenses are the cost of taxes related to IHOP equipment leases. Information on segments is as follows: Three months ended March 31, 2021 2020 (In millions) Revenues from external customers: Franchise operations $ 141.0 $ 145.1 Rental operations 26.1 29.0 Company restaurants 36.0 31.3 Financing operations 1.1 1.5 Total $ 204.2 $ 206.9 Interest expense: Rental operations $ 1.3 $ 1.6 Company restaurants 0.9 0.5 Corporate 16.5 15.2 Total $ 18.7 $ 17.3 Depreciation and amortization: Franchise operations $ 2.5 $ 2.6 Rental operations 2.8 3.1 Company restaurants 1.8 1.6 Corporate 2.9 3.3 Total $ 10.0 $ 10.6 Gross profit, by segment: Franchise operations $ 76.0 $ 75.6 Rental operations 5.2 6.5 Company restaurants 3.1 1.0 Financing operations 1.0 1.3 Total gross profit 85.3 84.4 Corporate and unallocated expenses, net (61.3) (55.3) Income before income taxes $ 24.0 $ 29.1 |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The computation of the Company's basic and diluted net income per share is as follows: Three months ended March 31, 2021 2020 (In thousands, except per share data) Numerator for basic and diluted income per common share: Net income $ 25,603 $ 22,328 Less: Net income allocated to unvested participating restricted stock (548) (748) Net income available to common stockholders - basic 25,055 21,580 Effect of unvested participating restricted stock in two-class calculation 6 4 Net income available to common stockholders - diluted $ 25,061 $ 21,584 Denominator: Weighted average outstanding shares of common stock - basic 16,460 16,263 Dilutive effect of stock options 170 207 Weighted average outstanding shares of common stock - diluted 16,630 16,470 Net income per common share: Basic $ 1.52 $ 1.33 Diluted $ 1.51 $ 1.31 |
Closure and Impairment Charges
Closure and Impairment Charges | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Closure and Impairment Charges | Closure and Impairment Charges Closure and Long-lived Asset Impairment Charges Closure and long-lived tangible asset impairment charges for the three months ended March 31, 2021 were as follows: Three Months Ended March 31, 2021 2020 (In millions) Closure charges $ 1.9 $ (0.0) Long-lived tangible asset impairment 0.1 0.0 Total closure and long-lived asset impairment charges $ 2.0 $ (0.0) Closure Charges The closure charges of $1.9 million for the three months ended March 31, 2021 related to the establishment of or revision to closure reserves for approximately 35 IHOP restaurants. Long-lived Tangible Asset Impairment |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured on a recurring basis at fair value. The Company is not a party to any material derivative financial instruments. The Company does not have a material amount of non-financial assets or non-financial liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. The Company has not elected to use the fair value measurement option, as permitted under U.S. GAAP, for any assets or liabilities for which fair value measurement is not presently required. The Company believes the fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. The fair values of the Company's 2019 Class A-2 Notes at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 (In millions) Face Value of Class A-2 Notes $ 1,293.5 $ 1,296.8 Fair Value of Class A-2 Notes $ 1,338.5 $ 1,259.5 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation, Claims and Disputes The Company is subject to various lawsuits, administrative proceedings, audits and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages. The Company is required under U.S. GAAP to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of the Company's litigation are expensed as such fees and expenses are incurred. Management regularly assesses the Company's insurance coverage, analyzes litigation information with the Company's attorneys and evaluates the Company's loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which it is currently a party will ultimately have a material adverse impact on the Company, there can be no assurance that the Company will prevail in all the proceedings the Company is party to, or that the Company will not incur material losses from them. Lease Guarantees |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and Cash Equivalents The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. These cash equivalents are stated at cost which approximates market value. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds. The components of cash and cash equivalents were as follows: March 31, 2021 December 31, 2020 (In millions) Money market funds $ 30.0 $ 175.0 IHOP advertising funds and gift card programs 72.0 71.6 Other depository accounts 77.6 136.8 Total cash and cash equivalents $ 179.6 $ 383.4 The decrease in total cash and cash equivalents between December 31, 2020 and March 31, 2021 was due to the repayment of $220.0 million previously drawn on the Company's Credit Facility. Current Restricted Cash Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. The components of current restricted cash were as follows: March 31, 2021 December 31, 2020 (In millions) Securitized debt reserves $ 33.9 $ 27.0 Applebee's advertising funds 26.1 12.8 Other 0.1 0.1 Total current restricted cash $ 60.1 $ 39.9 Non-current Restricted Cash |
Accounting Standards Adopted _2
Accounting Standards Adopted and Newly Issued Accounting Standards Not Yet Adopted (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Period | The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first fiscal quarter of 2021 began on January 4, 2021 and ended on April 4, 2021. The first fiscal quarter of 2020 began on December 30, 2019 and ended on March 29, 2020. |
Risks and Uncertainties | Risks and UncertaintiesThe Company was subject to risks and uncertainties as a result of the continuing outbreak of a novel strain of coronavirus, designated “COVID-19.” The extent of the continued impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as measures taken in response to and the effect of the pandemic has varied and continues to vary by state and municipalities within states. Assessments of the success of measures taken and the timing of any further restrictions, or lifting of such restrictions, is rapidly evolving. The Company first began to experience impacts from COVID-19 in March 2020, as federal, state, local and international governments began to react to the public health crisis by encouraging “social distancing” and requiring, in varying degrees, restaurant dine-in limitations and other restrictions that largely limited the restaurants of the Company's franchisees and its company-operated restaurants to take-out and delivery sales. Subsequently, government-imposed dine-in restrictions have been relaxed in many of the locations in which the Company operates as incidents of infection decline within the respective governmental jurisdictions, although dining room capacity continues to be limited to 50% or less at over two-thirds of the Company's restaurants as of March 31, 2021. |
Accounting Standards Adopted in the Current Fiscal Year and Not Yet Adopted | Accounting Standards Adopted in the Current Fiscal Year In December 2019, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to simplify the accounting for income taxes, change the accounting for certain income tax transactions, and make other minor changes. The Company adopted the new guidance at the beginning of the first fiscal quarter of 2021. Adoption did not have any material effect on the consolidated financial statements. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2021 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years. Newly Issued Accounting Standards Not Yet Adopted In March 2020, with an update in January 2021, the FASB issued guidance which provides optional expedients and exceptions for applying current U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. We are currently evaluating our contracts that reference LIBOR and the potential effects of adopting this new guidance. The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable to the Company's operations or that no material effect is expected on the Company's financial statements when adoption is required in the future. |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates franchise revenue by major type for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (In thousands) Franchise Revenue: Royalties $ 65,767 $ 67,600 Advertising fees 60,885 61,723 Pancake and waffle dry mix sales and other 10,890 12,848 Franchise and development fees 3,434 2,866 Total franchise revenue $ 140,976 $ 145,037 |
Schedule of Changes in Deferred Revenue | Changes in the Company's contract liability for deferred franchise and development fees during the three months ended March 31, 2021 are as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2020 $ 59,919 Recognized as revenue during the three months ended March 31, 2021 (3,354) Fees deferred during the three months ended March 31, 2021 1,789 Balance at March 31, 2021 $ 58,354 |
Schedule of Remaining Performance Obligations | The balance of deferred revenue as of March 31, 2021 is expected to be recognized as follows: (In thousands) Remainder of 2021 $ 7,931 2022 7,130 2023 6,629 2024 6,044 2025 5,268 Thereafter 25,352 Total $ 58,354 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | March 31, 2021 December 31, 2020 (In millions) Accounts receivable $ 84.8 $ 85.7 Gift card receivables 5.4 22.5 Notes receivable 20.4 18.6 Financing receivables: Equipment leases receivable 40.8 43.9 Direct financing leases receivable 20.1 22.7 Franchise fee notes receivable 0.1 0.1 Other 5.7 6.0 177.3 199.5 Less: allowance for credit losses (18.3) (23.1) 159.0 176.4 Less: current portion (107.4) (121.9) Long-term receivables $ 51.6 $ 54.5 |
Schedule of Changes in Allowance for Credit Losses | Changes in the allowance for credit losses during the three months ended March 31, 2021 were as follows: Accounts Receivable Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Notes Other (1) Total (In millions) Balance, December 31, 2020 $ 11.2 $ 3.6 $ 5.3 $ 0.4 $ 2.3 $ 0.3 $ 23.1 Bad debt (credit) expense for the three months ended March 31, 2021 (2.0) 0.5 (0.0) (0.3) (0.1) (0.1) (2.0) Advertising provision adjustment (1.4) (0.0) — — — — (1.4) Write-offs (0.2) — — 0.0 (1.2) — (1.4) Recoveries — — — 0.0 — — 0.0 Balance, March 31, 2021 $ 7.6 $ 4.1 $ 5.3 $ 0.1 $ 1.0 $ 0.2 $ 18.3 (1) Primarily distributor receivables, gift card receivables and credit card receivables |
Schedule of Delinquency Status of Receivable | The Company's primary credit quality indicator for all portfolio segments is delinquency. The delinquency status of receivables (other than accounts receivable, gift card receivables and distributor receivables) at March 31, 2021 was as follows: Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Notes Other (1) Total (In millions) Current $ 5.2 $ 12.7 $ 20.1 $ 40.8 $ 2.2 $ 81.0 30-59 days 0.1 — — — — 0.1 60-89 days 0.1 — — — — 0.1 90-119 days 0.1 — — — — 0.1 120+ days 2.2 — — — — 2.2 Total $ 7.7 $ 12.7 $ 20.1 $ 40.8 $ 2.2 $ 83.5 (1) Primarily c redit card receivables |
Financing Receivable Credit Quality Indicators | The year of origination of the Company's financing receivables is as follows: Notes receivable, short and long-term Lease Receivables Equipment Notes Total (In millions) 2021 $ 2.2 $ — $ — $ 2.2 2020 1.2 1.5 — 2.7 2019 2.6 0.9 — 3.5 2018 8.0 — — 8.0 2017 6.3 — — 6.3 2016 0.1 17.7 40.8 58.6 Total $ 20.4 $ 20.1 $ 40.8 $ 81.3 |
Lease Disclosures (Tables)
Lease Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The Company's lease cost for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Finance lease cost: Amortization of right-of-use assets $ 1.2 $ 1.3 Interest on lease liabilities 1.4 1.7 Operating lease cost 25.1 26.5 Variable lease cost 0.3 0.4 Short-term lease cost 0.0 0.0 Sublease income (24.2) (26.6) Lease cost $ 3.8 $ 3.3 |
Schedule of Operating Lease Liability Future Maturity | Future minimum lease payments under noncancelable leases as lessee as of March 31, 2021 were as follows: Finance Operating (In millions) 2021 (remaining nine months) $ 11.7 $ 69.0 2022 14.4 86.2 2023 11.6 71.0 2024 9.7 65.8 2025 8.5 57.0 Thereafter 50.8 146.6 Total minimum lease payments 106.7 495.6 Less: interest/imputed interest (30.2) (90.9) Total obligations 76.5 404.7 Less: current portion (10.3) (70.3) Long-term lease obligations $ 66.2 $ 334.4 |
Schedule of Finance Lease Liability Future Maturity | Future minimum lease payments under noncancelable leases as lessee as of March 31, 2021 were as follows: Finance Operating (In millions) 2021 (remaining nine months) $ 11.7 $ 69.0 2022 14.4 86.2 2023 11.6 71.0 2024 9.7 65.8 2025 8.5 57.0 Thereafter 50.8 146.6 Total minimum lease payments 106.7 495.6 Less: interest/imputed interest (30.2) (90.9) Total obligations 76.5 404.7 Less: current portion (10.3) (70.3) Long-term lease obligations $ 66.2 $ 334.4 |
Schedule of Lease Payments | During the three months ended March 31, 2021 and 2020, the Company made the following cash payments for leases: Three months ended March 31, 2021 2020 (In millions) Principal payments on finance lease obligations $ 2.6 $ 3.0 Interest payments on finance lease obligations $ 1.5 $ 1.7 Payments on operating leases $ 23.0 $ 23.4 Variable lease payments $ 0.3 $ 0.1 |
Schedule of Operating Lease Income | The Company's income from operating leases for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Minimum lease payments $ 23.8 $ 25.4 Variable lease income 1.6 2.4 Total operating lease income $ 25.4 $ 27.8 |
Schedule of Future Minimum Payments as a Lessor Under Operating Leases | Minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2021 were as follows: (In millions) 2021 (remaining nine months) $ 75.6 2022 98.8 2023 95.0 2024 86.9 2025 75.0 Thereafter 164.3 Total minimum rents receivable $ 595.6 |
Schedule of Direct Finance Lease Income | The Company's income from direct financing leases for the three months ended March 31, 2021 and 2020 was as follows: Three months ended March 31, 2021 2020 (In millions) Interest income $ 0.6 $ 1.0 Variable lease income 0.1 0.2 Total operating lease income $ 0.7 $ 1.2 |
Schedule of Future Minimum Payments as a Lessor Under Direct Financing Leases | Minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2021 were as follows: (In millions) 2021 (remaining nine months) $ 7.5 2022 7.5 2023 3.6 2024 1.5 2025 0.7 Thereafter 3.1 Total minimum rents receivable 23.9 Less: unearned income (3.8) Total net investment in direct financing leases 20.1 Less: current portion (7.9) Long-term investment in direct financing leases $ 12.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | At March 31, 2021 and December 31, 2020, long-term debt consisted of the following: March 31, 2021 December 31, 2020 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 696.5 $ 698.3 Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 597.0 598.5 Series 2019-1 Variable Funding Senior Notes Class A-1, variable interest rate of 2.42% at December 31, 2020 — 220.0 Debt issuance costs (9.1) (11.8) Long-term debt, net of debt issuance costs 1,284.4 1,505.0 Current portion of long-term debt (13.0) (13.0) Long-term debt $ 1,271.4 $ 1,492.0 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Dividends Declared | Dividends declared and paid per share for the three months ended March 31, 2021 and 2020 were as follows: Three months ended March 31, 2021 2020 Dividends declared per common share $ — $ 0.76 Dividends paid per common share $ — $ 0.69 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Components of the Company’s Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income: Three months ended March 31, 2021 2020 Total stock-based compensation expense: (In millions) Equity classified awards expense $ 3.1 $ 4.1 Liability classified awards expense (credit) 1.5 (0.6) Total pre-tax stock-based compensation expense 4.6 3.5 Book income tax benefit (1.1) (0.9) Total stock-based compensation expense, net of tax $ 3.5 $ 2.6 |
Schedule of Stock Option Valuation Assumptions | The following summarizes the weighted average assumptions used in the Black-Scholes model: Risk-free interest rate 0.5 % Historical volatility 67.7 % Dividend yield — % Expected years until exercise 4.5 Fair value of options granted $39.85 |
Schedule of Stock Option Activity | Stock option balances at March 31, 2021, and activity for the three months ended March 31, 2021 were as follows: Shares Weighted Weighted Average Aggregate Outstanding at December 31, 2020 1,014,670 $ 64.16 Granted 91,743 74.57 Exercised (428,376) 45.48 Expired (20,169) 98.11 Forfeited (36,093) 88.46 Outstanding at March 31, 2021 621,775 76.06 6.7 $ 10.5 Vested at March 31, 2021 and Expected to Vest 595,541 75.87 6.6 $ 10.2 Exercisable at March 31, 2021 423,603 $ 72.91 5.6 $ 8.7 |
Schedule of Restricted Stock Unit Activity | Outstanding balances as of March 31, 2021, and activity related to restricted stock and restricted stock units for the three months ended March 31, 2021 were as follows: Restricted Weighted Stock-Settled Restricted Weighted Outstanding at December 31, 2020 254,331 $ 76.50 355,570 $ 28.01 Granted 110,840 82.44 68,578 62.92 Released (40,416) 66.16 (314,713) 22.84 Forfeited (18,644) 84.15 — — Outstanding at March 31, 2021 306,111 $ 79.55 109,435 $ 64.76 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end. Cash-Settled Restricted Outstanding at December 31, 2020 52,956 Released (38,171) Forfeited (54) Outstanding at March 31, 2021 14,731 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information on segments is as follows: Three months ended March 31, 2021 2020 (In millions) Revenues from external customers: Franchise operations $ 141.0 $ 145.1 Rental operations 26.1 29.0 Company restaurants 36.0 31.3 Financing operations 1.1 1.5 Total $ 204.2 $ 206.9 Interest expense: Rental operations $ 1.3 $ 1.6 Company restaurants 0.9 0.5 Corporate 16.5 15.2 Total $ 18.7 $ 17.3 Depreciation and amortization: Franchise operations $ 2.5 $ 2.6 Rental operations 2.8 3.1 Company restaurants 1.8 1.6 Corporate 2.9 3.3 Total $ 10.0 $ 10.6 Gross profit, by segment: Franchise operations $ 76.0 $ 75.6 Rental operations 5.2 6.5 Company restaurants 3.1 1.0 Financing operations 1.0 1.3 Total gross profit 85.3 84.4 Corporate and unallocated expenses, net (61.3) (55.3) Income before income taxes $ 24.0 $ 29.1 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of the Company’s Basic and Diluted Net Income per Share | The computation of the Company's basic and diluted net income per share is as follows: Three months ended March 31, 2021 2020 (In thousands, except per share data) Numerator for basic and diluted income per common share: Net income $ 25,603 $ 22,328 Less: Net income allocated to unvested participating restricted stock (548) (748) Net income available to common stockholders - basic 25,055 21,580 Effect of unvested participating restricted stock in two-class calculation 6 4 Net income available to common stockholders - diluted $ 25,061 $ 21,584 Denominator: Weighted average outstanding shares of common stock - basic 16,460 16,263 Dilutive effect of stock options 170 207 Weighted average outstanding shares of common stock - diluted 16,630 16,470 Net income per common share: Basic $ 1.52 $ 1.33 Diluted $ 1.51 $ 1.31 |
Closure and Impairment Charges
Closure and Impairment Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Impairment of Long-Lived Assets Held and Used by Asset | Closure and long-lived tangible asset impairment charges for the three months ended March 31, 2021 were as follows: Three Months Ended March 31, 2021 2020 (In millions) Closure charges $ 1.9 $ (0.0) Long-lived tangible asset impairment 0.1 0.0 Total closure and long-lived asset impairment charges $ 2.0 $ (0.0) |
Schedule of Restructuring Reserve by Type of Cost | Closure and long-lived tangible asset impairment charges for the three months ended March 31, 2021 were as follows: Three Months Ended March 31, 2021 2020 (In millions) Closure charges $ 1.9 $ (0.0) Long-lived tangible asset impairment 0.1 0.0 Total closure and long-lived asset impairment charges $ 2.0 $ (0.0) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Non-Current Financial Liabilities | The fair values of the Company's 2019 Class A-2 Notes at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 (In millions) Face Value of Class A-2 Notes $ 1,293.5 $ 1,296.8 Fair Value of Class A-2 Notes $ 1,338.5 $ 1,259.5 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of cash and cash equivalents were as follows: March 31, 2021 December 31, 2020 (In millions) Money market funds $ 30.0 $ 175.0 IHOP advertising funds and gift card programs 72.0 71.6 Other depository accounts 77.6 136.8 Total cash and cash equivalents $ 179.6 $ 383.4 |
Restrictions on Cash and Cash Equivalents | The components of current restricted cash were as follows: March 31, 2021 December 31, 2020 (In millions) Securitized debt reserves $ 33.9 $ 27.0 Applebee's advertising funds 26.1 12.8 Other 0.1 0.1 Total current restricted cash $ 60.1 $ 39.9 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Proceeds from line of credit | $ 0 | $ 220,000 | |||
Interest reserve for secured debt | $ 32,800 | $ 16,400 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Proceeds from line of credit | $ 220,000 |
Revenue Disclosures - Disaggreg
Revenue Disclosures - Disaggregation of Franchise Revenue by Major Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Franchise revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | $ 140,976 | $ 145,037 |
Royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | 65,767 | 67,600 |
Advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | 60,885 | 61,723 |
Pancake and waffle dry mix sales and other | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | 10,890 | 12,848 |
Franchise and development fees | ||
Disaggregation of Revenue [Line Items] | ||
Total franchise revenue | $ 3,434 | $ 2,866 |
Revenue Disclosures - Narrative
Revenue Disclosures - Narrative (Details) - Receivables from Franchise Revenue Transactions - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and unbilled receivables | $ 79.5 | $ 76.3 |
Billed and unbilled receivables, accumulated allowance for credit loss | $ 7.7 | $ 11.4 |
Revenue Disclosures - Changes i
Revenue Disclosures - Changes in the Company's Contract Liability for Deferred Franchise and Development Fees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2020 | $ 59,919 |
Recognized as revenue during the three months ended March 31, 2021 | (3,354) |
Fees deferred during the three months ended March 31, 2021 | 1,789 |
Balance at March 31, 2021 | $ 58,354 |
Revenue Disclosures - Deferred
Revenue Disclosures - Deferred Revenue Expected to be Recognized (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 58,354 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,931 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,130 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,629 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,044 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 5,268 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 25,352 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing |
Current Expected Credit Losse_2
Current Expected Credit Losses - Narrative (Details) $ in Millions | Mar. 31, 2021USD ($)lease |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Operating lease, weighted average remaining lease term | 9 years 2 months 12 days |
Finance lease, weighted average remaining lease term | 7 years 2 months 12 days |
Notes Receivable | Applebee's | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Accounts and financing receivable, allowance for credit loss | $ | $ 9.4 |
Lease Receivables | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of properties subject to ground leases | lease | 85 |
Finance lease, weighted average remaining lease term | 4 years 1 month 6 days |
Equipment Notes | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Operating lease, weighted average remaining lease term | 5 years 2 months 12 days |
Current Expected Credit Losse_3
Current Expected Credit Losses - Components of Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 84.8 | $ 85.7 |
Gift card receivables | 5.4 | 22.5 |
Notes receivable | 20.4 | 18.6 |
Financing receivables: | 81.3 | |
Accounts and financing receivable, before allowance for credit loss | 177.3 | 199.5 |
Less: allowance for credit losses | (18.3) | (23.1) |
Accounts and financing receivable, after allowance for credit loss | 159 | 176.4 |
Less: current portion | (107.4) | (121.9) |
Long-term receivables | 51.6 | 54.5 |
Equipment leases receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables: | 40.8 | 43.9 |
Direct financing leases receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables: | 20.1 | 22.7 |
Franchise fee notes receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables: | 0.1 | 0.1 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables: | $ 5.7 | $ 6 |
Current Expected Credit Losse_4
Current Expected Credit Losses - Changes in the Allowance for Credit Losses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | $ 23.1 |
Bad debt (credit) expense for the three months ended March 31, 2021 | (2) |
Advertising provision adjustment | (1.4) |
Write-offs | (1.4) |
Recoveries | 0 |
Balance, March 31, 2021 | 18.3 |
Accounts Receivable | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | 11.2 |
Bad debt (credit) expense for the three months ended March 31, 2021 | (2) |
Advertising provision adjustment | (1.4) |
Write-offs | (0.2) |
Recoveries | 0 |
Balance, March 31, 2021 | 7.6 |
Notes receivable, short-term | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | 3.6 |
Bad debt (credit) expense for the three months ended March 31, 2021 | 0.5 |
Advertising provision adjustment | 0 |
Write-offs | 0 |
Recoveries | 0 |
Balance, March 31, 2021 | 4.1 |
Notes receivable, long-term | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | 5.3 |
Bad debt (credit) expense for the three months ended March 31, 2021 | 0 |
Advertising provision adjustment | 0 |
Write-offs | 0 |
Recoveries | 0 |
Balance, March 31, 2021 | 5.3 |
Lease Receivables | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | 0.4 |
Bad debt (credit) expense for the three months ended March 31, 2021 | (0.3) |
Advertising provision adjustment | 0 |
Write-offs | 0 |
Recoveries | 0 |
Balance, March 31, 2021 | 0.1 |
Equipment Notes | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | 2.3 |
Bad debt (credit) expense for the three months ended March 31, 2021 | (0.1) |
Advertising provision adjustment | 0 |
Write-offs | (1.2) |
Recoveries | 0 |
Balance, March 31, 2021 | 1 |
Other | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance, December 31, 2020 | 0.3 |
Bad debt (credit) expense for the three months ended March 31, 2021 | (0.1) |
Advertising provision adjustment | 0 |
Write-offs | 0 |
Recoveries | 0 |
Balance, March 31, 2021 | $ 0.2 |
Current Expected Credit Losse_5
Current Expected Credit Losses - Delinquency Status of Receivables (Details) $ in Millions | Mar. 31, 2021USD ($) |
Financing Receivable, Past Due [Line Items] | |
Current | $ 81 |
Total | 83.5 |
30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0.1 |
60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0.1 |
90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0.1 |
120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 2.2 |
Notes receivable, short-term | |
Financing Receivable, Past Due [Line Items] | |
Current | 5.2 |
Total | 7.7 |
Notes receivable, short-term | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0.1 |
Notes receivable, short-term | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0.1 |
Notes receivable, short-term | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0.1 |
Notes receivable, short-term | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 2.2 |
Notes receivable, long-term | |
Financing Receivable, Past Due [Line Items] | |
Current | 12.7 |
Total | 12.7 |
Notes receivable, long-term | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Notes receivable, long-term | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Notes receivable, long-term | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Notes receivable, long-term | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Lease Receivables | |
Financing Receivable, Past Due [Line Items] | |
Current | 20.1 |
Total | 20.1 |
Lease Receivables | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Lease Receivables | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Lease Receivables | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Lease Receivables | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Equipment Notes | |
Financing Receivable, Past Due [Line Items] | |
Current | 40.8 |
Total | 40.8 |
Equipment Notes | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Equipment Notes | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Equipment Notes | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Equipment Notes | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Other | |
Financing Receivable, Past Due [Line Items] | |
Current | 2.2 |
Total | 2.2 |
Other | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Other | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Other | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 0 |
Other | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | $ 0 |
Current Expected Credit Losse_6
Current Expected Credit Losses - Year of Origination of Financing Receivables (Details) $ in Millions | Mar. 31, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 2.2 |
2020 | 2.7 |
2019 | 3.5 |
2018 | 8 |
2017 | 6.3 |
2016 | 58.6 |
Total | 81.3 |
Notes receivable, short-term | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 2.2 |
2020 | 1.2 |
2019 | 2.6 |
2018 | 8 |
2017 | 6.3 |
2016 | 0.1 |
Total | 20.4 |
Lease Receivables | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 1.5 |
2019 | 0.9 |
2018 | 0 |
2017 | 0 |
2016 | 17.7 |
Total | 20.1 |
Equipment Notes | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 40.8 |
Total | $ 40.8 |
Lease Disclosures - Narrative (
Lease Disclosures - Narrative (Details) | Mar. 31, 2021restaurantConceptpropertiesrealProperty |
Lessee, Lease, Description [Line Items] | |
Number of company-operated restaurants located on leased real estate properties | properties | 69 |
Lessor, number of leases requiring additional rent payments based on a percentage of restaurant sales | realProperty | 240 |
Lessee, number of leases requiring additional rent payments based on a percentage of restaurant sales | realProperty | 30 |
Finance lease, weighted average remaining lease term | 7 years 2 months 12 days |
Operating lease, weighted average remaining lease term | 9 years 2 months 12 days |
Finance lease, weighted average discount rate, percent | 10.20% |
Operating lease, weighted average discount rate, percent | 5.60% |
IHOP | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 550 |
Number of properties leased | 55 |
Lessee, operating lease, renewal term | 5 years |
IHOP | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
IHOP | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 25 years |
Applebee's | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 1 |
Number of properties leased | 1 |
Applebee's | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Lessee, operating lease, renewal term | 5 years |
Applebee's | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 20 years |
Lease Disclosures Components of
Lease Disclosures Components of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 1.2 | $ 1.3 |
Interest on lease liabilities | 1.4 | 1.7 |
Operating lease cost | 25.1 | 26.5 |
Variable lease cost | 0.3 | 0.4 |
Short-term lease cost | 0 | 0 |
Sublease income | (24.2) | (26.6) |
Lease cost | $ 3.8 | $ 3.3 |
Lease Disclosures - Future Mini
Lease Disclosures - Future Minimum Lease Payments Under Noncancelable Leases as Lessee (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finance Leases | ||
2021 (remaining nine months) | $ 11,700 | |
2022 | 14,400 | |
2023 | 11,600 | |
2024 | 9,700 | |
2025 | 8,500 | |
Thereafter | 50,800 | |
Total minimum lease payments | 106,700 | |
Less: interest/imputed interest | (30,200) | |
Total obligations | 76,500 | |
Less: current portion | (10,300) | |
Long-term lease obligations | 66,234 | $ 69,012 |
Operating Leases | ||
2021 (remaining nine months) | 69,000 | |
2022 | 86,200 | |
2023 | 71,000 | |
2024 | 65,800 | |
2025 | 57,000 | |
Thereafter | 146,600 | |
Total minimum lease payments | 495,600 | |
Less: interest/imputed interest | (90,900) | |
Total obligations | 404,700 | |
Less: current portion | (70,270) | (69,672) |
Long-term lease obligations | $ 334,361 | $ 345,163 |
Lease Disclosures - Payment for
Lease Disclosures - Payment for Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Principal payments on finance lease obligations | $ 2,621 | $ 2,981 |
Interest payments on finance lease obligations | 1,500 | 1,700 |
Payments on operating leases | 23,000 | 23,400 |
Variable lease payments | $ 300 | $ 100 |
Lease Disclosures - Components
Lease Disclosures - Components of Lease Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Minimum lease payments | $ 23.8 | $ 25.4 |
Variable lease income | 1.6 | 2.4 |
Total operating lease income | $ 25.4 | $ 27.8 |
Lease Disclosures - Future Mi_2
Lease Disclosures - Future Minimum Payments to be Received as Lessor Under Noncancelable Operating Leases (Details) $ in Millions | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining nine months) | $ 75.6 |
2022 | 98.8 |
2023 | 95 |
2024 | 86.9 |
2025 | 75 |
Thereafter | 164.3 |
Total minimum rents receivable | $ 595.6 |
Lease Disclosures - Schedule of
Lease Disclosures - Schedule of Income From Direct Financing Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Interest income | $ 0.6 | $ 1 |
Variable lease income | 0.1 | 0.2 |
Total operating lease income | $ 0.7 | $ 1.2 |
Lease Disclosures - Future Mi_3
Lease Disclosures - Future Minimum Payments to be Received as Lessor Under Noncancelable Direct Financing Leases (Details) $ in Millions | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining nine months) | $ 7.5 |
2022 | 7.5 |
2023 | 3.6 |
2024 | 1.5 |
2025 | 0.7 |
Thereafter | 3.1 |
Total minimum rents receivable | 23.9 |
Less: unearned income | (3.8) |
Total net investment in direct financing leases | 20.1 |
Less: current portion | (7.9) |
Long-term investment in direct financing leases | $ 12.2 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 05, 2019 |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ (9,100) | $ (11,800) | |
Long-term debt, net of debt issuance costs | 1,284,400 | 1,505,000 | |
Current portion of long-term debt | (13,000) | (13,000) | |
Long-term debt | $ 1,271,438 | $ 1,491,996 | |
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | |||
Debt Instrument [Line Items] | |||
Debt interest rate (percent) | 4.194% | 4.194% | 4.194% |
Senior notes | $ 696,500 | $ 698,300 | |
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | |||
Debt Instrument [Line Items] | |||
Debt interest rate (percent) | 4.723% | 4.723% | |
Senior notes | $ 597,000 | $ 598,500 | |
Series 2019-1 Variable Funding Senior Notes Class A-1, variable interest rate of 2.42% at December 31, 2020 | |||
Debt Instrument [Line Items] | |||
Debt interest rate (percent) | 2.42% | ||
Senior notes | $ 0 | $ 220,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Mar. 05, 2021 | Jun. 30, 2026 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jun. 05, 2019 |
Debt Instrument [Line Items] | ||||||
Ratio of indebtedness to net capital | 702.00% | |||||
DSCR less than 1.75x - Cash Flow Sweeping Event | 175.00% | |||||
DSCR less than 1.20x - Rapid Amortization Event | 120.00% | |||||
Interest-only DSCR less than 1.20x - Manager Termination Event | 120.00% | |||||
Interest-only DSCR less than 1.10x - Default Event | 110.00% | |||||
Debt service coverage ratio | 345.00% | |||||
Amortization of debt issuance costs | $ 500,000 | $ 500,000 | ||||
Unamortized debt issuance costs | 9,100,000 | $ 11,800,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of long-term lines of credit | $ 220,000,000 | |||||
Letter of Credit | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Letter of Credit | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.15% | |||||
Letter of Credit | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
2019 Class A-2-I Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate (percent) | 4.194% | 4.194% | 4.194% | |||
Debt instrument, face amount | $ 700,000,000 | |||||
Quarterly principal payment | $ 3,250,000 | |||||
Make-whole premium | $ 29,000,000 | |||||
2019 Class A-2-I Notes | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Ratio of indebtedness to net capital | 525.00% | |||||
2019 Class A-2-I Notes | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Additional interest on fixed rate | 5.00% | |||||
Debt instrument, term | 10 years | |||||
2019 Class A-2-I Notes | Forecast | Ten Year United States Treasury Bill Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.15% | |||||
2019 Class A-2-II Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate (percent) | 4.723% | 4.723% | ||||
Debt instrument, face amount | 600,000,000 | |||||
Make-whole premium | $ 59,000,000 | |||||
2019 Class A-2-II Notes | Forecast | Ten Year United States Treasury Bill Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.64% | |||||
2019 Class A-2 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly principal payment | 3,250,000 | $ 3,250,000 | ||||
Annual principal payment | 13,000,000 | |||||
2019 Class A-2 Notes | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Additional interest on fixed rate | 5.00% | |||||
Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate (percent) | 2.42% | |||||
Letters of credit outstanding, amount | 3,300,000 | |||||
Line of credit facility, current borrowing capacity | $ 221,700,000 | |||||
Revolver | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate (percent) | 2.40% | |||||
Line of credit facility, maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | ||||
Fee on unused portion of line of credit (percent) | 0.50% | |||||
Long-term Line of Credit | 220,000,000 | |||||
Maximum amount outstanding during period | $ 220,000,000 | |||||
Repayments of long-term lines of credit | $ 220,000,000 | |||||
Unamortized debt issuance costs | $ 2,000,000 | |||||
Revolver | Revolving Credit Facility | Eurodollar | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.15% | |||||
Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.15% | |||||
Line Of Credit Facility, Percentage Of Advances Drawn | 60.00% | |||||
Revolver | Revolving Credit Facility | Commercial Paper Funding Rate Of Conduit Investor | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.15% | |||||
Line Of Credit Facility, Percentage Of Advances Drawn | 40.00% | |||||
Revolver | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.15% | |||||
2018-1 Class A-1 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of debt issuance costs | $ 200,000 | $ 200,000 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) | 3 Months Ended | 26 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Feb. 28, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase of Company common stock | $ 26,527,000 | |||
Reissuance of treasure stock (in shares) | 539,134 | |||
Reissuance of treasury stock | $ 19,484,000 | $ 20,524,000 | ||
Treasury Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase of Company common stock (in shares) | 460,000 | |||
Purchase of Company common stock | $ 26,527,000 | |||
Reissuance of treasure stock (in shares) | 539,000 | 368,000 | ||
Reissuance of treasury stock | $ 21,773,000 | $ 16,557,000 | ||
2019 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||
Purchase of Company common stock (in shares) | 0 | 459,899 | 1,697,597 | |
Purchase of Company common stock | $ 129,800,000 | |||
Remaining dollar value of shares that may be repurchased | $ 70,200,000 | $ 70,200,000 |
Stockholders' Deficit - Dividen
Stockholders' Deficit - Dividends Declared and Paid per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Dividends declared per common share (USD per share) | $ 0 | $ 0.76 |
Dividends paid per common share (USD per share) | $ 0 | $ 0.69 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (percent) | (6.60%) | 23.20% | |
Income Tax Benefit | $ 1,589 | $ (6,738) | |
pretax book income | 24,014 | $ 29,066 | |
Gross unrecognized tax benefit | 2,500 | $ 2,200 | |
Expected change in unrecognized tax benefits | 800 | ||
Accrued interest on income taxes | 900 | 900 | |
Accrued penalties on income taxes, less than | $ 100 | $ 100 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Equity classified awards expense | $ 3.1 | $ 4.1 |
Liability classified awards expense (credit) | 1.5 | (0.6) |
Total pre-tax stock-based compensation expense | 4.6 | 3.5 |
Book income tax benefit | (1.1) | (0.9) |
Total stock-based compensation expense, net of tax | $ 3.5 | $ 2.6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | 91,743 | ||
Share-based compensation expense | $ 4,600 | $ 3,500 | |
Liability classified awards (credit) expense | (1,500) | 600 | |
Accrued employee compensation and benefits | 14,554 | $ 21,237 | |
Stock-Settled Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | $ 23,600 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 1 year 8 months 12 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | $ 4,600 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 1 year 9 months 18 days | ||
Cash-settled Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1,400 | ||
Liability classified awards (credit) expense | (1,300) | ||
Accrued employee compensation and benefits | 800 | 2,100 | |
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 100 | $ 800 | |
Accrued employee compensation and benefits | $ 800 | $ 2,100 | |
Award vesting period (in years) | 3 years | ||
LTIP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Multiplier for target award based on total shareholder return on common stock (percent) | 0.00% | ||
LTIP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Multiplier for target award based on total shareholder return on common stock (percent) | 200.00% |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Value Assumptions (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (percent) | 0.50% |
Weighted average historical volatility (percent) | 67.70% |
Dividend yield (percent) | 0.00% |
Expected years until exercise (years) | 4 years 6 months |
Weighted average fair value of options granted (USD per share) | $ 39.85 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Stock Options $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 1,014,670 |
Granted (in shares) | shares | 91,743 |
Exercised (in shares) | shares | (428,376) |
Expired (in shares) | shares | (20,169) |
Forfeited (in shares) | shares | (36,093) |
Outstanding, end of period (in shares) | shares | 621,775 |
Vested and expected to vest (in shares) | shares | 595,541 |
Exercisable (in shares) | shares | 423,603 |
Weighted Average Exercise Price | |
Beginning of period (USD per share) | $ / shares | $ 64.16 |
Granted (USD per share) | $ / shares | 74.57 |
Exercised (USD per share) | $ / shares | 45.48 |
Expired (USD per share) | $ / shares | 98.11 |
Forfeited (USD per share) | $ / shares | 88.46 |
End of period (USD per share) | $ / shares | 76.06 |
Vested and expected to vest (USD per share) | $ / shares | 75.87 |
Exercisable (USD per share) | $ / shares | $ 72.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term (in years) | 6 years 8 months 12 days |
Weighted average remaining contractual term, vested and expected to vest (in years) | 6 years 7 months 6 days |
Weighted average remaining contractual term, exercisable (in years) | 5 years 7 months 6 days |
Options, outstanding, intrinsic value | $ | $ 10.5 |
Options, vested and expected to vest, intrinsic value | $ | 10.2 |
Options, vested and expected to vest, exercisable | $ | $ 8.7 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted Stock | |
Restricted Stock | |
Beginning of period (in shares) | shares | 254,331 |
Granted (in shares) | shares | 110,840 |
Released (in shares) | shares | (40,416) |
Forfeited (in shares) | shares | (18,644) |
End of period (in shares) | shares | 306,111 |
Weighted Average Grant Date Fair Value | |
Beginning balance (USD per share) | $ / shares | $ 76.50 |
Granted (USD per share) | $ / shares | 82.44 |
Released (USD per share) | $ / shares | 66.16 |
Forfeited (USD per share) | $ / shares | 84.15 |
Ending balance (USD per share) | $ / shares | $ 79.55 |
Stock-Settled Restricted Stock Units | |
Restricted Stock | |
Beginning of period (in shares) | shares | 355,570 |
Granted (in shares) | shares | 68,578 |
Released (in shares) | shares | (314,713) |
Forfeited (in shares) | shares | 0 |
End of period (in shares) | shares | 109,435 |
Weighted Average Grant Date Fair Value | |
Beginning balance (USD per share) | $ / shares | $ 28.01 |
Granted (USD per share) | $ / shares | 62.92 |
Released (USD per share) | $ / shares | 22.84 |
Forfeited (USD per share) | $ / shares | 0 |
Ending balance (USD per share) | $ / shares | $ 64.76 |
Stock-Based Compensation - Liab
Stock-Based Compensation - Liability Classified Awards - Cash-settled Restricted Stock Units (Details) - Cash-settled Restricted Stock Units | 3 Months Ended |
Mar. 31, 2021shares | |
Restricted Stock | |
Beginning of period (in shares) | 52,956 |
Released (in shares) | (38,171) |
Forfeited (in shares) | (54) |
End of period (in shares) | 14,731 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021restaurantterritorycountrysegment | |
Franchisor Disclosure [Line Items] | |
Number of operating segments (segment) | segment | 5 |
Number of reportable segments (segment) | segment | 4 |
Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of territories in which entity operates (territory) | territory | 2 |
Number of countries in which entity operates (country) | country | 11 |
IHOP | |
Franchisor Disclosure [Line Items] | |
Number of territories in which entity operates (territory) | territory | 2 |
Number of countries in which entity operates (country) | country | 7 |
Franchised Units | Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 1,636 |
Franchised Units | IHOP | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 1,749 |
Entity Operated Units | Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 69 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Rental revenues | $ 26,142 | $ 29,009 |
Total revenues | 204,199 | 206,884 |
Interest expense | 18,700 | 17,300 |
Depreciation and amortization | 9,995 | 10,641 |
Segment profit | 24,014 | 29,066 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 85,300 | 84,400 |
Corporate and unallocated expenses, net | ||
Segment Reporting Information [Line Items] | ||
Segment profit | (61,300) | (55,300) |
Franchise operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 2,500 | 2,600 |
Segment profit | 76,000 | 75,600 |
Rental operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Rental revenues | 26,100 | 29,000 |
Interest expense | 1,300 | 1,600 |
Depreciation and amortization | 2,800 | 3,100 |
Segment profit | 5,200 | 6,500 |
Company restaurants | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 900 | 500 |
Depreciation and amortization | 1,800 | 1,600 |
Segment profit | 3,100 | 1,000 |
Financing operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 1,000 | 1,300 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 16,500 | 15,200 |
Depreciation and amortization | 2,900 | 3,300 |
Franchise revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer | 140,976 | 145,037 |
Franchise revenues | Franchise operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer | 141,000 | 145,100 |
Company restaurant sales | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer | 35,949 | 31,300 |
Company restaurant sales | Company restaurants | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer | 36,000 | 31,300 |
Financing revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer | 1,132 | 1,538 |
Financing revenues | Financing operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue from contract with customer | $ 1,100 | $ 1,500 |
Net Income per Share - Computat
Net Income per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 25,603 | $ 22,328 |
Less: Net income allocated to unvested participating restricted stock | (548) | (748) |
Net income available to common stockholders - basic | 25,055 | 21,580 |
Effect of unvested participating restricted stock in two-class calculation | 6 | 4 |
Net income available to common stockholders - diluted | $ 25,061 | $ 21,584 |
Weighted average outstanding shares of common stock - basic (in shares) | 16,460 | 16,263 |
Dilutive effect of stock options (in shares) | 170 | 207 |
Weighted average outstanding shares of common stock - diluted (in shares) | 16,630 | 16,470 |
Net income per common share - basic (USD per share) | $ 1.52 | $ 1.33 |
Net income per common share - diluted (USD per share) | $ 1.51 | $ 1.31 |
Closure and Impairment Charge_2
Closure and Impairment Charges - Long-lived Tangible Asset Impairment and Closure Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Closure charges | $ 1.9 | $ 0 |
Long-lived tangible asset impairment | 0.1 | 0 |
Total closure and long-lived asset impairment charges | $ 2 | $ 0 |
Closure and Impairment Charge_3
Closure and Impairment Charges - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)restaurant | Mar. 31, 2020USD ($) | Sep. 30, 2020restaurant | |
Goodwill [Line Items] | |||
Closure charges | $ 1.9 | $ 0 | |
IHOP | |||
Goodwill [Line Items] | |||
Closure charges | 1.9 | ||
Number Of restaurants impacted by long-lived asset impairment | restaurant | 1 | ||
IHOP | Revision of Prior Period, Accounting Standards Update, Adjustment | |||
Goodwill [Line Items] | |||
Operating lease, impairment loss | $ 0.1 | ||
IHOP | Restaurant Closure | |||
Goodwill [Line Items] | |||
Restaurants | restaurant | 35 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Non-Current Financial Liabilities (Details) - Level 2 - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Face Value of Class A-2 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,293.5 | $ 1,296.8 |
Fair Value of Class A-2 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,338.5 | $ 1,259.5 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Applebee's - Property Lease Guarantee $ in Millions | Mar. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Potential liability for guaranteed leases | $ 235.9 |
Potential liability for guaranteed leases excluding unexercised option periods | $ 34.2 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 179,567 | $ 383,369 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 30,000 | 175,000 |
IHOP advertising funds and gift card programs | IHOP | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 72,000 | 71,600 |
Other depository accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 77,600 | $ 136,800 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Non-current restricted cash | $ 32,800 | $ 32,800 |
Revolving Credit Facility | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Repayments of long-term lines of credit | 220,000 | |
Secured Debt | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Non-current restricted cash | $ 16,000 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash - Schedule of Current Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | $ 60.1 | $ 39.9 |
Securitized debt reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | 33.9 | 27 |
Applebee's advertising funds | Applebee's | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | 26.1 | 12.8 |
Other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | $ 0.1 | $ 0.1 |