Yahoo Finance Dine Brands (DIN) to Expand in Ontario With K2 Group Tie-Up
Dine Brands Global, Inc. DIN recently announced collaboration with a Toronto-based investment company — K2 Group — for the development of IHOP non-traditional restaurants in Ontario, Canada.
The company plans to open a minimum of five IHOP restaurants over the next five years. It has scheduled the opening of a restaurant in a truck stop location (in Belleville) at the beginning of 2022. This will mark the first IHOP location to open in Ontario outside Niagara Falls.
With reference to the collaboration, Tony Moralejo, president, International, Dine Brands, stated, “We are pleased to push forward with our international expansion plans and believe working with the K2 Group team, along with our existing franchisee team in the market; will create the perfect opportunity to successfully build and grow our portfolio across Ontario.”
Meanwhile, Dine Brands continues to focus on the global expansion of IHOP. Other locations in the pipeline include Hamilton, Waterloo and London. Also, the company is emphasizing on growth in markets like North America, The Middle East, Asia and Latin America.
Going forward, the company is optimistic on the back of its new approach to marketing, launch of loyalty program, technological developments and virtual brands. Furthermore, emphasis on development strategy is likely to add to the positives. This includes a blend of four development platforms — traditional platforms, non-traditional, a new small prototype (scheduled to test this year) as well as Flip'd (by IHOP locations) additions. With respect to Flip'd, the company plans to open locations in Lawrence, Kansas and New York City during third-quarter 2021. For 2021, the company expects the IHOP brand to develop 40-50 new restaurants.
So far this year, shares of Dine Brands have gained 31.3% compared with the industry’s 14.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Dine Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other better-ranked stocks in the same space include Papa John's International, Inc. PZZA, Brinker International, Inc. EAT and Jack in the Box Inc. JACK, each carrying a Zacks Rank #2 (Buy).
Papa John's 2021 earnings are expected to increase 122.9%.
Brinker has a three-five year earnings per share growth rate of 10%.
Jack in the Box has a trailing four-quarter earnings surprise of 26.4%, on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report
Jack In The Box Inc. (JACK) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Papa Johns International, Inc. (PZZA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
