Let’s dig into the relative performance of Dine Brands (NYSE:DIN) and its peers as we unravel the now-completed Q3 sit-down dining earnings season.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

While some sit-down dining stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.7% since the latest earnings results.

Dine Brands (NYSE:DIN)

Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Dine Brands reported revenues of $195 million, down 3.7% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ same-store sales estimates.

“During the third quarter, we continued to experience consumer pullback and the pressures of a highly promotional operating environment. We know we need to do more in the near term to drive traffic and get back to better top-line performance. For the fourth quarter, we are enhancing our value proposition for guests and remain focused on executing our plans across our brands,” said John Peyton, chief executive officer, Dine Brands Global, Inc.

Interestingly, the stock is up 5% since reporting and currently trades at $32.73.

Is now the time to buy Dine Brands? Access our full analysis of the earnings results here, it’s free.

Best Q3: Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.14 billion, up 12.5% year on year, outperforming analysts’ expectations by 3.4%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.

Brinker International scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 25.6% since reporting. It currently trades at $122.11.

Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Denny's (NASDAQ:DENN)

Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $111.8 million, down 2.1% year on year, falling short of analysts’ expectations by 3.2%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 8% since the results and currently trades at $6.10.

Read our full analysis of Denny’s results here.

The Cheesecake Factory (NASDAQ:CAKE)

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $865.5 million, up 4.2% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

The stock is up 10.2% since reporting and currently trades at $47.23.

Read our full, actionable report on The Cheesecake Factory here, it’s free.

BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $325.7 million, up 2.2% year on year. This result met analysts’ expectations. Aside from that, it was a softer quarter as it recorded a significant miss of analysts’ EBITDA and EPS estimates.

The stock is down 6.9% since reporting and currently trades at $34.52.

Read our full, actionable report on BJ's here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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