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Segments | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segments | Segments The chief executive officer is the Company's chief operating decision maker ("CODM"). The CODM uses each segments' revenue and operating profit to assess its performance. The CODM uses revenue and operating profit for each segment primarily in the annual budget and forecasting process, and in the quarterly budget-to-actual analysis when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses operating profit to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. The CODM does not consider asset information when evaluating operating segments, therefore total segment assets are not presented. 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 six operating segments: Applebee's franchise operations, IHOP franchise operations, Fuzzy's franchise operations, rental operations, financing operations, and company- owned restaurant operations. The Company has four reporting segments: franchise operations (an aggregation of each restaurant concept's franchise operations), company-owned restaurant operations, rental operations and financing operations. As of September 30, 2025, the franchise operations segment consisted of 1,512 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 16 countries outside the United States; 1,793 restaurants operated by IHOP franchisees and area licensees in the United States, two U.S. territories and 16 countries outside the United States; and 108 restaurants operated by Fuzzy's franchisees in the United States. Franchise operations revenue consists primarily of franchise royalty revenues, franchise advertising revenue, sales of proprietary products to franchisees, and other franchise fees. Franchise operations expenses include advertising expense, the cost of proprietary products, pre-opening training expenses and other franchise-related costs. Rental operations revenue includes revenue from operating leases and interest income from real estate leases. Rental operations expenses are costs of operating leases and interest expense from finance leases on which the Company is the lessee. Financing operations revenue primarily consists of interest income from the financing of IHOP equipment leases and franchise fees and interest income on notes receivable due from franchisees. Financing operations expenses primarily are the cost of taxes related to IHOP equipment leases. As of September 30, 2025, the company restaurants segment consisted of 59 company-owned Applebee's restaurants, 10 company-owned IHOP restaurants, and one company-owned Fuzzy's restaurant located in the United States. Company-owned restaurant operation revenue consists of retail sales at company-owned restaurants. Company-owned restaurant operation expenses are operating expenses such as food, beverage, labor, benefits, utilities, rent and other operating costs. Information on segments and a reconciliation of operating profit to income before income taxes is as follows:
| Three Months Ended September 30, 2025
| Franchise |  | Company Restaurants |  | Rental |  | Financing |  | Total
| (In millions)
Revenues | $ | 161.3 |  |  | $ | 27.5 |  |  | $ | 27.0 |  |  | $ | 0.3 |  |  | $ | 216.2 |
Less: Advertising revenue | 68.2 |  | — |  | — |  | — |  | 68.2
Revenues excluding advertising revenue | 93.1 |  |  | 27.5 |  |  | 27.0 |  |  | 0.3 |  |  | 147.9 |
Less: |  |  |  |  |  |  |  |  |
Interest expense from finance leases | — |  | — |  | 0.7 |  | — |  | 0.7
Depreciation and amortization | 0.1 |  | 0.9 |  | 2.4 |  | — |  | 3.4
Other segment items(a) | 10.1 |  | 31.2 |  | 18.0 |  | 0.1 |  | 59.3
Segment profit (loss) | 82.9 |  | (4.5) |  | 5.9 |  | 0.2 |  | 84.6
Stock based compensation (direct) | 0.8 |  | — |  | — |  | — |  | 0.8
Gain on disposition of assets | 0.0 |  | — |  | — |  | — |  | 0.0
Other G&A expenses (direct and allocated) | 31.3 |  | 1.9 |  | — |  | — |  | 33.1
Segment operating profit (loss) | $ | 50.9 |  |  | $ | (6.4) |  |  | $ | 5.9 |  |  | $ | 0.2 |  |  | $ | 50.6 |
Reconciliation of segment operating profit |  |  |  |  |  |  |  |  |
Segment operating profit |  |  |  |  |  |  |  |  | $ | 50.6 |
Depreciation and amortization (unallocated) |  |  |  |  |  |  |  |  | 4.2
Stock based compensation (unallocated) |  |  |  |  |  |  |  |  | 2.3
Other G&A expenses (unallocated) |  |  |  |  |  |  |  |  | 9.7
Interest expense, net |  |  |  |  |  |  |  |  | 20.8
Closure and impairment charges |  |  |  |  |  |  |  |  | 0.6
Amortization of intangible assets |  |  |  |  |  |  |  |  | 2.9
Loss on extinguishment of debt |  |  |  |  |  |  |  |  | —
Income before income taxes |  |  |  |  |  |  |  |  | $ | 10.1 |
| Nine Months Ended September 30, 2025
| Franchise |  | Company Restaurants |  | Rental |  | Financing |  | Total
| (In millions)
Revenues | $ | 502.3 |  |  | $ | 77.3 |  |  | $ | 81.2 |  |  | $ | 0.9 |  |  | $ | 661.7 |
Less: Advertising revenue | 212.2 |  | — |  | — |  | — |  | 212.2
Revenues excluding advertising revenue | 290.0 |  |  | 77.3 |  |  | 81.2 |  |  | 0.9 |  |  | 449.5 |
Less: |  |  |  |  |  |  |  |  |
Interest expense from finance leases | — |  | — |  | 2.1 |  | — |  | 2.1
Depreciation and amortization | 0.4 |  | 2.2 |  | 7.3 |  | — |  | 9.9
Other segment items(a) | 33.4 |  | 82.8 |  | 54.1 |  | 0.2 |  | 170.4
Segment profit | 256.2 |  | (7.6) |  | 17.8 |  | 0.8 |  | 267.1
Stock based compensation (direct) | 2.8 |  | — |  | — |  | — |  | 2.8
Gain on disposition of assets | (0.1) |  | — |  | — |  | — |  | (0.1)
Other G&A expenses (direct and allocated) | 94.5 |  | 5.2 |  | — |  | — |  | 99.6
Segment operating profit (loss) | $ | 159.0 |  |  | $ | (12.8) |  |  | $ | 17.8 |  |  | $ | 0.8 |  |  | $ | 164.7 |
Reconciliation of segment operating profit |  |  |  |  |  |  |  |  |
Segment operating profit |  |  |  |  |  |  |  |  | $ | 164.7 |
Depreciation and amortization (unallocated) |  |  |  |  |  |  |  |  | 13.1
Stock based compensation (unallocated) |  |  |  |  |  |  |  |  | 6.9
Other G&A expenses (unallocated) |  |  |  |  |  |  |  |  | 29.8
Interest expense, net |  |  |  |  |  |  |  |  | 56.3
Closure and impairment charges |  |  |  |  |  |  |  |  | 7.6
Amortization of intangible assets |  |  |  |  |  |  |  |  | 8.3
Loss on extinguishment of debt |  |  |  |  |  |  |  |  | 0.9
Income before income taxes |  |  |  |  |  |  |  |  | $ | 41.8 |
| Three Months Ended September 30, 2024
| Franchise |  | Company Restaurants |  | Rental |  | Financing |  | Total
| (In millions)
Revenues | $ | 166.4 |  |  | $ | 0.3 |  |  | $ | 28.0 |  |  | $ | 0.4 |  |  | $ | 195.0 |
Less: Advertising revenue | 69.8 |  | — |  | — |  | — |  | 69.8
Revenues excluding advertising revenue | 96.6 |  | 0.3 |  | 28.0 |  | 0.4 |  | 125.2
Less: |  |  |  |  |  |  |  |  |
Interest expense from finance leases | — |  | — |  | 0.7 |  | — |  | 0.7
Depreciation and amortization | 0.1 |  | 0.0 |  | 2.5 |  | — |  | 2.6
Other segment items(a) | 9.8 |  | 0.3 |  | 18.4 |  | 0.1 |  | 28.6
Segment profit | 86.6 |  | 0.0 |  | 6.4 |  | 0.3 |  | 93.3
Stock based compensation (direct) | 1.6 |  | — |  | — |  | — |  | 1.6
Loss on disposition of assets | 0.0 |  | — |  | — |  | — |  | 0.0
Other G&A expenses (direct and allocated) | 28.3 |  | 0.0 |  | — |  | — |  | 28.3
Segment operating profit | $ | 56.8 |  |  | $ | 0.0 |  |  | $ | 6.4 |  |  | $ | 0.3 |  |  | $ | 63.5 |
Reconciliation of segment operating profit |  |  |  |  |  |  |  |  |
Segment operating profit |  |  |  |  |  |  |  |  | $ | 63.5 |
Depreciation and amortization (unallocated) |  |  |  |  |  |  |  |  | 4.3
Stock based compensation (unallocated) |  |  |  |  |  |  |  |  | 2.3
Other G&A expenses (unallocated) |  |  |  |  |  |  |  |  | 9.0
Interest expense, net |  |  |  |  |  |  |  |  | 18.4
Closure and impairment charges |  |  |  |  |  |  |  |  | 0.4
Amortization of intangible assets |  |  |  |  |  |  |  |  | 2.7
Loss on extinguishment of debt |  |  |  |  |  |  |  |  | —
Income before income taxes |  |  |  |  |  |  |  |  | $ | 26.5 |
| Nine Months Ended September 30, 2024
| Franchise |  | Company Restaurants |  | Rental |  | Financing |  | Total
| (In millions)
Revenues | $ | 518.7 |  |  | $ | 0.8 |  |  | $ | 86.5 |  |  | $ | 1.4 |  |  | $ | 607.5 |
Less: Advertising revenue | 219.6 |  | — |  | — |  | — |  | 219.6
Revenues excluding advertising revenue | 299.2 |  | 0.8 |  | 86.5 |  | 1.4 |  | 388.0
Less: |  |  |  |  |  |  |  |  |
Interest expense from finance leases | — |  | — |  | 2.2 |  | — |  | 2.2
Depreciation and amortization | 0.3 |  | 0.1 |  | 7.7 |  | — |  | 8.1
Other segment items(a) | 31.3 |  | 0.8 |  | 55.3 |  | 0.2 |  | 87.6
Segment profit | 267.6 |  | (0.1) |  | 21.3 |  | 1.2 |  | 290.0
Stock based compensation (direct) | 4.8 |  | — |  | — |  | — |  | 4.8
Gain on disposition of assets | (0.1) |  | — |  | — |  | — |  | (0.1)
Other G&A expenses (direct and allocated) | 88.3 |  | 0.0 |  | — |  | — |  | 88.3
Segment operating profit | $ | 174.5 |  |  | $ | (0.1) |  |  | $ | 21.3 |  |  | $ | 1.2 |  |  | $ | 196.9 |
Reconciliation of segment operating profit |  |  |  |  |  |  |  |  |
Segment operating profit |  |  |  |  |  |  |  |  | $ | 196.9 |
Depreciation and amortization (unallocated) |  |  |  |  |  |  |  |  | 12.8
Stock based compensation (unallocated) |  |  |  |  |  |  |  |  | 7.8
Other G&A expenses (unallocated) |  |  |  |  |  |  |  |  | 30.7
Interest expense, net |  |  |  |  |  |  |  |  | 54.3
Closure and impairment charges |  |  |  |  |  |  |  |  | 1.4
Amortization of intangible assets |  |  |  |  |  |  |  |  | 8.2
Loss on extinguishment of debt |  |  |  |  |  |  |  |  | —
Income before income taxes |  |  |  |  |  |  |  |  | $ | 81.7 |
(a) For each reportable segment, the other segment item category includes: Franchise: Costs of proprietary products, bad debt expense, pre-opening training expenses and other franchise-related costs. Company Restaurants: Operating expenses at company-owned restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. Rental: Costs of operating leases and interest expense of finance leases on franchisee-operated restaurants. Financing: Costs of restaurant equipment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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