DineEquity, Inc. (NYSE:DIN) Q3 2017 Earnings Conference Call Transcript

Nov 09, 2017 • 11:00 am ET

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DineEquity, Inc. (NYSE:DIN) Q3 2017 Earnings Conference Call Transcript

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Operator
Operator

Welcome to the Third Quarter 2017 DineEquity Inc. Earnings Conference Call. My name is Sylvia, and I will be your operator for today's call.

(Operator Instructions) Please note that this conference is being recorded.

I will now turn the call over to Ken Diptee. Ken, you may begin.

Executive
Ken Diptee

Good morning, and welcome of DineEquity's Third Quarter 2017 Conference Call. I'm joined by Steve Joyce, CEO; Gregg Kalvin, Interim CFO and Corporate Controller; Darren Rebelez, President of IHOP; and John Cywinski, President of Applebee's.

(Forward-Looking Cautionary Statements)

With that, I'll turn the call over to Steve.

Executive
Stephen P. Joyce

Thanks, Ken. Good morning, everyone. I appreciate your interest and participation in today's call.

So first, I'd like to say that I'm truly honored and very excited about the opportunity to lead this tremendous company, which has such great potential. I assumed the role of CEO two months ago, but I've also been a member of DineEquity's Board of Directors for the past five years.

During this time, I had developed a deep understanding of the company, the business and, most importantly, our two incredibly strong brands. I've come to realize many of the strengths, weaknesses and opportunities before us. And as a board member, I also have insight into what has worked and what has not. And with almost 40 years of experience in the hospitality and food and beverage industries, combined as well with international development, with over 30 years of working with franchisees, I've developed a deep understanding of what makes a successful franchisor/franchisee relationship. I'm looking forward to working further with my talented senior management team to strengthen the efforts already underway to build on the partnership with our franchisees.

When I became CEO, I knew that positioning Applebee's and IHOP for long-term growth would require some heavy lifting. I also know that we have dedicated franchisees and committed team members that are up to that challenge. I am extremely optimistic about our future and realizing this company's full potential and long-term success. I will judge this success by one measure, and that is total shareholder return generated over the next several years. Our first priority will always be the most efficient return of capital to shareholders.

Now realizing our full potential will not happen overnight, it is certainly achievable with a change in our philosophy of what DineEquity is. We are no longer a brand company that oversees two great brands, but a holding company whose attention and committed team members will be focused on supporting the success of the brands as well, and in particular, our franchisees.

From my experience, you need a strong culture to succeed. And with that, I want to talk a little bit about our strategic priorities to achieve our goal and evolve our future. One, we will establish a performance-driven culture here at Dine. Two, we will drive sustainable, positive sales at Applebee's and IHOP. And three, we will return Dine to a growth company.

Regarding developing a robust performance-based culture, we'll place an emphasis