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Dine Brands (DIN) Inks Deal to Open IHOP Restaurant in Caribbean

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Dine Brands Global, Inc. (DIN - Free Report) recently reached an agreement with Bahamas Limited for the first IHOP location in Nassau, the Bahamas.

The IHOP location in Nassau is expected to open in late 2022. Over the next few years, the company plans to open 16 IHOP restaurants in the Caribbean.

William Urrego, regional VP of franchise operations, Dine Brands said “The Caribbean is an important growth market for Dine Brands, and The Providence’s well-developed tourism infrastructure and recent large-scale hotel and resort investments, as well as shopping center developments, help position it as the perfect location for IHOP’s first restaurant in the Island.”

In an effort to drive growth, the company continues to focus on expanding its presence in markets like North America, the Middle East, Asia, and Latin America. In August 2021, the company announced a collaboration with a Toronto-based investment company — K2 Group — for the development of IHOP non-traditional restaurants in Ontario, Canada.

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Stock Performance

In the past year, the company’s shares have gained 3%, compared with the industry’s rally of 8.3%. Although the company’s shares have underperformed the industry in the past year, it is likely to benefit from expansion efforts in the days ahead. The company is optimistic on the back of its new approach to marketing, the launch of a loyalty program, technological developments and virtual brands.

Currently, Dine Brands carries a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the same space include Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and First Watch Restaurant Group, Inc. (FWRG - Free Report) .

Chuy's Holdings currently carries a Zacks Rank #2 (Buy). CHUY reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 52.7%. Shares of CHUY have gained 4.9% in the past month.

The Zacks Consensus Estimate for Chuy's Holdings current financial-year sales and EPS suggests growth of 23.8% and 115.5%, respectively, from the year-ago period’s levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arcos Dorados carries a Zacks Rank #1. ARCO has long-term earnings growth of 42.9%. Shares of the company have increased 13.2% in the past three months.

The Zacks Consensus Estimate for Arcos Dorados’ current financial-year sales and EPS suggests growth of 31% and 112.5%, respectively, from the year-ago period’s levels.

First Watch Restaurant Group carries a Zacks Rank #2. FWRG has long-term earnings growth of 15%. Shares of the company have decreased15.3% in the past month.

The Zacks Consensus Estimate for First Watch Restaurant Group next financial-year sales and EPS suggests growth of 13.5% and 336.7%, respectively, from the year-ago period’s levels.