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Leases | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Leases | Leases 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 477 IHOP franchisee-operated restaurants 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 applicable franchisees that operate the 48 IHOP restaurants and one Applebee's restaurant located on such company-owned property. The Company leases from third parties the real property on which 59 Applebee's company-owned restaurants, 10 IHOP company-owned restaurants and one Fuzzy's company-owned restaurant are located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. 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 to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 296 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2025. Restaurants associated with 34 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2025. The Company's lease (income) cost for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 0.7 |  |  | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | 2.0 |
Interest on lease liabilities |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Operating lease cost |  | 20.7 |  |  | 18.3 |  |  | 61.2 |  |  | 54.8 |
Variable lease cost |  | 1.9 |  |  | 1.9 |  |  | 6.0 |  |  | 5.9 |
Short-term lease cost |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Sublease income |  | (24.9) |  |  | (25.8) |  |  | (74.8) |  |  | (79.7) |
Lease income |  | $ | (0.9) |  |  | $ | (4.2) |  |  | $ | (3.5) |  |  | $ | (14.8) |
Other lease information is as follows:
|  |  | Nine Months Ended September 30,
|  |  | 2025 |  | 2024
Assets obtained in exchange for operating lease obligations |  |  | $ | 59.6 |  |  | $ | 49.8 |
Assets obtained in exchange for finance lease obligations |  |  | $ | 3.8 |  |  | $ | 6.8 |
The weighted average remaining lease term as of September 30, 2025 was 5.5 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of September 30, 2025 was 9.1% for finance leases and 6.2% for operating leases. During the three and nine months ended September 30, 2025 and 2024, the Company made the following cash payments for leases:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Principal payments on finance lease obligations |  | $ | 1.3 |  |  | $ | 1.3 |  |  | $ | 3.8 |  |  | $ | 4.4 |
Interest payments on finance lease obligations |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Payments on operating leases |  | 23.6 |  |  | 20.8 |  |  | 67.6 |  |  | 62.6 |
Variable lease payments |  | 2.0 |  |  | 1.9 |  |  | 6.3 |  |  | 6.0 |
The Company's income from operating leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Minimum lease payments |  | $ | 22.4 |  |  | $ | 23.7 |  |  | $ | 67.2 |  |  | $ | 72.3 |
Variable lease income |  | 3.9 |  |  | 3.9 |  |  | 12.5 |  |  | 12.9 |
Total operating lease income |  | $ | 26.3 |  |  | $ | 27.6 |  |  | $ | 79.7 |  |  | $ | 85.2 |
The Company's income from real estate leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Interest income |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.9 |  |  | $ | 0.9 |
Variable lease income |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Selling profit |  | 0.4 |  |  | — |  |  | 0.4 |  |  | 0.2 |
Total real estate lease income |  | $ | 0.8 |  |  | $ | 0.4 |  |  | $ | 1.5 |  |  | $ | 1.3 |
Leases | Leases 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 477 IHOP franchisee-operated restaurants 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 applicable franchisees that operate the 48 IHOP restaurants and one Applebee's restaurant located on such company-owned property. The Company leases from third parties the real property on which 59 Applebee's company-owned restaurants, 10 IHOP company-owned restaurants and one Fuzzy's company-owned restaurant are located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. 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 to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 296 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2025. Restaurants associated with 34 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2025. The Company's lease (income) cost for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 0.7 |  |  | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | 2.0 |
Interest on lease liabilities |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Operating lease cost |  | 20.7 |  |  | 18.3 |  |  | 61.2 |  |  | 54.8 |
Variable lease cost |  | 1.9 |  |  | 1.9 |  |  | 6.0 |  |  | 5.9 |
Short-term lease cost |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Sublease income |  | (24.9) |  |  | (25.8) |  |  | (74.8) |  |  | (79.7) |
Lease income |  | $ | (0.9) |  |  | $ | (4.2) |  |  | $ | (3.5) |  |  | $ | (14.8) |
Other lease information is as follows:
|  |  | Nine Months Ended September 30,
|  |  | 2025 |  | 2024
Assets obtained in exchange for operating lease obligations |  |  | $ | 59.6 |  |  | $ | 49.8 |
Assets obtained in exchange for finance lease obligations |  |  | $ | 3.8 |  |  | $ | 6.8 |
The weighted average remaining lease term as of September 30, 2025 was 5.5 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of September 30, 2025 was 9.1% for finance leases and 6.2% for operating leases. During the three and nine months ended September 30, 2025 and 2024, the Company made the following cash payments for leases:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Principal payments on finance lease obligations |  | $ | 1.3 |  |  | $ | 1.3 |  |  | $ | 3.8 |  |  | $ | 4.4 |
Interest payments on finance lease obligations |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Payments on operating leases |  | 23.6 |  |  | 20.8 |  |  | 67.6 |  |  | 62.6 |
Variable lease payments |  | 2.0 |  |  | 1.9 |  |  | 6.3 |  |  | 6.0 |
The Company's income from operating leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Minimum lease payments |  | $ | 22.4 |  |  | $ | 23.7 |  |  | $ | 67.2 |  |  | $ | 72.3 |
Variable lease income |  | 3.9 |  |  | 3.9 |  |  | 12.5 |  |  | 12.9 |
Total operating lease income |  | $ | 26.3 |  |  | $ | 27.6 |  |  | $ | 79.7 |  |  | $ | 85.2 |
The Company's income from real estate leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Interest income |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.9 |  |  | $ | 0.9 |
Variable lease income |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Selling profit |  | 0.4 |  |  | — |  |  | 0.4 |  |  | 0.2 |
Total real estate lease income |  | $ | 0.8 |  |  | $ | 0.4 |  |  | $ | 1.5 |  |  | $ | 1.3 |
Leases | Leases 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 477 IHOP franchisee-operated restaurants 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 applicable franchisees that operate the 48 IHOP restaurants and one Applebee's restaurant located on such company-owned property. The Company leases from third parties the real property on which 59 Applebee's company-owned restaurants, 10 IHOP company-owned restaurants and one Fuzzy's company-owned restaurant are located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. 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 to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 296 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2025. Restaurants associated with 34 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2025. The Company's lease (income) cost for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 0.7 |  |  | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | 2.0 |
Interest on lease liabilities |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Operating lease cost |  | 20.7 |  |  | 18.3 |  |  | 61.2 |  |  | 54.8 |
Variable lease cost |  | 1.9 |  |  | 1.9 |  |  | 6.0 |  |  | 5.9 |
Short-term lease cost |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Sublease income |  | (24.9) |  |  | (25.8) |  |  | (74.8) |  |  | (79.7) |
Lease income |  | $ | (0.9) |  |  | $ | (4.2) |  |  | $ | (3.5) |  |  | $ | (14.8) |
Other lease information is as follows:
|  |  | Nine Months Ended September 30,
|  |  | 2025 |  | 2024
Assets obtained in exchange for operating lease obligations |  |  | $ | 59.6 |  |  | $ | 49.8 |
Assets obtained in exchange for finance lease obligations |  |  | $ | 3.8 |  |  | $ | 6.8 |
The weighted average remaining lease term as of September 30, 2025 was 5.5 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of September 30, 2025 was 9.1% for finance leases and 6.2% for operating leases. During the three and nine months ended September 30, 2025 and 2024, the Company made the following cash payments for leases:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Principal payments on finance lease obligations |  | $ | 1.3 |  |  | $ | 1.3 |  |  | $ | 3.8 |  |  | $ | 4.4 |
Interest payments on finance lease obligations |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Payments on operating leases |  | 23.6 |  |  | 20.8 |  |  | 67.6 |  |  | 62.6 |
Variable lease payments |  | 2.0 |  |  | 1.9 |  |  | 6.3 |  |  | 6.0 |
The Company's income from operating leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Minimum lease payments |  | $ | 22.4 |  |  | $ | 23.7 |  |  | $ | 67.2 |  |  | $ | 72.3 |
Variable lease income |  | 3.9 |  |  | 3.9 |  |  | 12.5 |  |  | 12.9 |
Total operating lease income |  | $ | 26.3 |  |  | $ | 27.6 |  |  | $ | 79.7 |  |  | $ | 85.2 |
The Company's income from real estate leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Interest income |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.9 |  |  | $ | 0.9 |
Variable lease income |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Selling profit |  | 0.4 |  |  | — |  |  | 0.4 |  |  | 0.2 |
Total real estate lease income |  | $ | 0.8 |  |  | $ | 0.4 |  |  | $ | 1.5 |  |  | $ | 1.3 |
Leases | Leases 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 477 IHOP franchisee-operated restaurants 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 applicable franchisees that operate the 48 IHOP restaurants and one Applebee's restaurant located on such company-owned property. The Company leases from third parties the real property on which 59 Applebee's company-owned restaurants, 10 IHOP company-owned restaurants and one Fuzzy's company-owned restaurant are located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. 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 to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 296 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the nine months ended September 30, 2025. Restaurants associated with 34 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the nine months ended September 30, 2025. The Company's lease (income) cost for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 0.7 |  |  | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | 2.0 |
Interest on lease liabilities |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Operating lease cost |  | 20.7 |  |  | 18.3 |  |  | 61.2 |  |  | 54.8 |
Variable lease cost |  | 1.9 |  |  | 1.9 |  |  | 6.0 |  |  | 5.9 |
Short-term lease cost |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Sublease income |  | (24.9) |  |  | (25.8) |  |  | (74.8) |  |  | (79.7) |
Lease income |  | $ | (0.9) |  |  | $ | (4.2) |  |  | $ | (3.5) |  |  | $ | (14.8) |
Other lease information is as follows:
|  |  | Nine Months Ended September 30,
|  |  | 2025 |  | 2024
Assets obtained in exchange for operating lease obligations |  |  | $ | 59.6 |  |  | $ | 49.8 |
Assets obtained in exchange for finance lease obligations |  |  | $ | 3.8 |  |  | $ | 6.8 |
The weighted average remaining lease term as of September 30, 2025 was 5.5 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of September 30, 2025 was 9.1% for finance leases and 6.2% for operating leases. During the three and nine months ended September 30, 2025 and 2024, the Company made the following cash payments for leases:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Principal payments on finance lease obligations |  | $ | 1.3 |  |  | $ | 1.3 |  |  | $ | 3.8 |  |  | $ | 4.4 |
Interest payments on finance lease obligations |  | 0.7 |  |  | 0.7 |  |  | 2.1 |  |  | 2.2 |
Payments on operating leases |  | 23.6 |  |  | 20.8 |  |  | 67.6 |  |  | 62.6 |
Variable lease payments |  | 2.0 |  |  | 1.9 |  |  | 6.3 |  |  | 6.0 |
The Company's income from operating leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Minimum lease payments |  | $ | 22.4 |  |  | $ | 23.7 |  |  | $ | 67.2 |  |  | $ | 72.3 |
Variable lease income |  | 3.9 |  |  | 3.9 |  |  | 12.5 |  |  | 12.9 |
Total operating lease income |  | $ | 26.3 |  |  | $ | 27.6 |  |  | $ | 79.7 |  |  | $ | 85.2 |
The Company's income from real estate leases for the three and nine months ended September 30, 2025 and 2024 was as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
|  | (In millions)
Interest income |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.9 |  |  | $ | 0.9 |
Variable lease income |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Selling profit |  | 0.4 |  |  | — |  |  | 0.4 |  |  | 0.2 |
Total real estate lease income |  | $ | 0.8 |  |  | $ | 0.4 |  |  | $ | 1.5 |  |  | $ | 1.3 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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