Here's the Restaurant That IHOP's Parent Should Acquire

Casual dining restaurants around the world are struggling, and the coronavirus pandemic is to blame. Most publicly traded restaurants, like IHOP and Applebee's parent Dine Brands Global (NYSE: DIN), are surviving. These companies benefit from easy access to liquidity, a luxury many smaller restaurants don't have.

Since the pandemic began, spending at restaurants has fallen more than consumer spending in general, according to data from the Census Bureau. Moreover, spending at casual dining restaurants has been hit harder than spending at fast-food chains. It's a troubling trend. According to the Independent Restaurant Coalition, a whopping 85% of independent restaurants could close permanently in 2020 without further financial assistance.

Dine Brands' CEO Steve Joyce sees this situation as an opportunity. According to Nation's Restaurant News, Joyce has wanted to add a third restaurant brand to the company's portfolio for some time now. And given the current restaurant environment, it's possible the company can finally acquire a new brand at a bargain price. 

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Source Fool.com