UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging growth company
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| Item 8.01. | Other Events. |
COVID-19 Update
Dine Brands Global, Inc. (the “Corporation”), the parent company of Applebee’s Neighborhood Grill & Bar® and IHOP® restaurants, began to experience significant impacts from COVID-19 in March 2020, as federal, state and local governments began to react to the public health crisis by requiring, in varying degrees, mandatory restaurant dine-in restrictions, capacity limitations or other restrictions that mostly limited business to off-premise (take-out and delivery). While this off-premise business has experienced growth, the Corporation has taken the precautionary actions described below in response to the COVID-19 crisis.
In order to maintain its financial flexibility, the Corporation has reduced discretionary costs, eliminated travel, frozen new hiring and suspended contractors. In addition, the Corporation determined it would implement a temporary furlough of certain team members across various functional groups in its restaurant support centers and company-operated restaurants. The Corporation will continue to provide medical, dental and vision benefits for furloughed team members and is temporarily waiving the obligation of such team members to pay a portion of the premium for such benefits. The Corporation also terminated all outstanding orders for repurchases of its common stock in the open market, and the Board of Directors is evaluating its dividend policy.
Domestically, approximately 62 company-operated Applebee’s restaurants, 1,339 franchisee-operated Applebee’s restaurants and 1,372 franchisee-operated IHOP restaurants remain open for off-premise business as of April 13, 2020. To assist its franchisees impacted by COVID-19, the Corporation has offered financial support by deferring royalty, advertising and other fees, lease payments and remodel obligations on a case-by-case basis. In addition, the Corporation is offering sick pay for hourly employees in its company-operated restaurants who are impacted by COVID-19.
Forward-Looking Statements
Statements contained in this Form 8-K may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “goal” and other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those expressed or implied in such statements. These factors include, but are not limited to: uncertainty regarding the duration and severity of the ongoing COVID-19 pandemic and its ultimate impact on the Corporation; the effectiveness of related containment measures; general economic conditions; our level of indebtedness; compliance with the terms of our securitized debt; our ability to refinance our current indebtedness or obtain additional financing; our dependence on information technology; potential cyber incidents; the implementation of restaurant development plans; our dependence on our franchisees; the concentration of our Applebee’s franchised restaurants in a limited number of franchisees; the financial health of our franchisees; our franchisees’ and other licensees’ compliance with our quality standards and trademark usage; general risks associated with the restaurant industry; potential harm to our brands’ reputation; possible future impairment charges; the effects of tax reform; trading volatility and fluctuations in the price of our stock; our ability to achieve the financial guidance we provide to investors; successful implementation of our business strategy; the availability of suitable locations for new restaurants; shortages or interruptions in the supply or delivery of products from third parties or availability of utilities; the management and forecasting of appropriate inventory levels; development and implementation of innovative marketing and use of social media; changing health or dietary preference of consumers; risks associated with doing business in international markets; the results of litigation and other legal proceedings; third-party claims with respect to intellectual property assets; our ability to attract and retain management and other key employees; compliance with federal, state and local governmental regulations; risks associated with our self-insurance; natural disasters, pandemics, epidemics, or other serious incidents; our success with development initiatives outside of our core business; the adequacy of our internal controls over financial reporting and future changes in accounting standards; and other factors discussed from time to time in the Corporation’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Corporation’s other filings with the Securities and Exchange Commission. The forward-looking statements contained in this Form 8-K are made as of the date hereof and the Corporation does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: April 16, 2020 |
DINE BRANDS GLOBAL, INC. | |||||
| By: |
/s/ Thomas H. Song | |||||
| Thomas H. Song Chief Financial Officer | ||||||