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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2024
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, |  |
|  | 2024 |  | 2023 |  |  |  |
|  | (In millions)
Equity classified awards expense |  | $ | 5.0 |  |  | $ | 1.8 |  |  |  |  |
Liability classified awards expense |  | 0.6 |  |  | 0.7 |  |  |  |  |
Total stock-based compensation expense |  | $ | 5.6 |  |  | $ | 2.5 |  |  |  |  |
As of March 31, 2024, total unrecognized compensation expense of $27.6 million related to restricted stock and restricted stock units and $4.7 million related to stock options is 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 following table summarizes the assumptions used in the Black-Scholes model for stock options granted during the three months ended March 31, 2024:
Risk-free interest rate |  | 4.3 | %
Historical volatility |  | 70.2 | %
Dividend yield |  | 4.2 | %
Expected years until exercise |  | 4.5
Fair value of options granted |  | $22.26
Equity Classified Awards - Stock Options Stock option balances at March 31, 2024, and activity for the three months ended March 31, 2024 were as follows:
|  | Number of Shares Under Option |  | Weighted Average Exercise Price Per Share |  | Weighted Average Remaining Contractual Term (in Years) |  | Aggregate Intrinsic Value (in Millions)
Outstanding at December 31, 2023 |  | 462,506 |  |  | $ | 77.59 |  |  |  |  |
Granted |  | 133,729 |  |  | 49.06 |  |  |  |  |
Exercised |  | — |  |  | — |  |  |  |  |
Expired |  | (13,366) |  |  | 92.47 |  |  |  |  |
Forfeited |  | — |  |  | — |  |  |  |  |
Outstanding at March 31, 2024 |  | 582,869 |  |  | 70.70 |  |  | 6.7 |  | $ | — |
Vested and Expected to Vest at March 31, 2024 |  | 552,055 |  |  | 71.54 |  |  | 6.5 |  | $ | — |
Exercisable at March 31, 2024 |  | 377,446 |  |  | $ | 77.78 |  |  | 5.2 |  | $ | — |
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 2024 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, 2024. 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, 2024, and activity related to restricted stock and restricted stock units for the three months ended March 31, 2024 were as follows:
|  | Shares of Restricted Stock |  | Weighted Average Grant Date Fair Value |  | Stock-Settled Restricted Stock Units |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023 |  | 338,622 |  |  | $ | 73.33 |  |  | 58,475 |  |  | $ | 54.07 |
Granted |  | 277,117 |  |  | 49.05 |  |  | 29,473 |  |  | 49.06 |
Released |  | (130,347) |  |  | 74.85 |  |  | (16,789) |  |  | 75.01 |
Forfeited |  | (7,917) |  |  | 70.09 |  |  | — |  |  | — |
Outstanding at March 31, 2024 |  | 477,475 |  |  | $ | 58.88 |  |  | 71,159 |  |  | $ | 47.10 |
Liability Classified Awards - Long-Term Incentive Awards The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three-year period and are determined using multipliers from 0% to 200% of the target award based on the total stockholder return of Dine Brands Global common stock compared to the total stockholder returns of a peer group of companies. The awards are considered stock-based compensation and are classified as liabilities measured at fair value as of the respective period end. For the three months ended March 31, 2024 and 2023, an expense of $0.6 million and $0.7 million, respectively, was included in total stock-based compensation expense related to LTIP awards. At March 31, 2024 and December 31, 2023, liabilities of $1.4 million and $0.7 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets.

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