Adjusted diluted EPS declined to $1.17 from $1.71 in the prior year quarter.
Adjusted EBITDA decreased to $56.2 million from $67 million year-over-year.
Adjusted free cash flow for the first six months of 2025 was $48.7 million, down from $52.9 million in the same period last year.
Applebee's reported a 4.9% increase in comp sales with positive traffic growth, the first positive traffic since Q1 2023.
Company-owned portfolio showed solid progress with comp sales improving over Q1 and performing near system average.
Consolidated total revenues increased 11.9% to $230.8 million in Q2 2025 compared to $206.3 million in Q2 2024, driven primarily by increased company restaurant sales.
IHOP posted a negative 2.3% comp sales but showed sequential improvement from Q1 and achieved second consecutive quarter of traffic outperformance relative to Black Box.
Cash from operations was slightly negative due to timing of vendor payments; capital expenditures were $7 million; $10 million spent on principal payments for financing leases; dividends distributed were $9 million.
Gross margin decreased 170 basis points year-over-year due to higher technician labor costs from wage inflation and higher material costs driven by trade down to Tier 3 tires and increased self-funded promotions.
Net bank debt was $64 million with $398 million available under credit facility and $8 million in cash; inventory levels reduced by approximately $10 million due to store closures.
Net loss was $8.1 million compared to net income of $5.9 million last year; diluted loss per share was $0.28 versus diluted earnings per share of $0.19 last year; adjusted diluted EPS remained flat at $0.22.
Operating loss was $6.1 million or negative 2% of sales, compared to operating income of $13.2 million or 4.5% last year; adjusted operating income was $14 million or 4.7% of sales, slightly down from $14.7 million or 5%.
Sales increased 2.7% to $301 million in the first quarter, driven by a 5.7% increase in comparable store sales, partially offset by sales reduction from closed stores.
Total operating expenses were $113 million or 37.5% of sales, up from $95.9 million or 32.7% last year, mainly due to $14.8 million in store closing costs and $4.7 million consulting costs.
For Q3, the company expects 4-6% revenue growth and 19-21% adjusted EBITDA margin, with specific growth expectations for Viator, Tripadvisor, and TheFork.
Viator anticipates high single-digit revenue growth and a 16-18% EBITDA margin, with bookings improving sequentially in July.
The company remains confident about revenue reacceleration in Q4 despite tough comps, driven by healthy booking trends and ongoing product enhancements.
Dafinchi