Recent News
On May 14, 2026 the Board declared a $0.19 quarterly cash dividend and approved a new $100 million share repurchase program. On May 19, 2026 Applebee’s launched a nationwide Wyndham Rewards integration offering free delivery and points for qualifying in-stay orders. On April 8, 2026 the company published its 2025 Business Responsibility Report outlining ESG and community initiatives. Industry coverage in late spring highlighted faster rollouts of dual-branded Applebee’s–IHOP units and a push to accelerate remodels and conversions.
Technical Analysis
Directional indicators show a bullish bias: DI+ reading at 28.5 with an increasing trend indicates directional strength to the upside, while DI- registered a dip-and-reversal at 17.8, which aligns with recent positive directional momentum. ADX at 20.35 signals an emerging trend rather than a well-established one, implying momentum can strengthen or stall quickly.
MACD stands at 0.99 and trends higher with the MACD above its 0.76 signal line; that cross-above represents a bullish momentum signal and supports a near-term upward price bias, particularly versus the moving-average structure.
MRO reads 35.82 and climbs; the positive MRO indicates the price currently sits above the model target and therefore carries a higher probability of mean reversion or a short-term pullback. Combine a positive MRO with the MACD cross and the picture becomes one of bullish momentum tempered by potential short-term profit-taking.
RSI at 56.59 and increasing indicates modest bullish momentum without overbought extremes, allowing room for continuation before momentum exhaustion. Price trades above the 12- and 26-day EMAs and above the 20-, 50- and 200-day averages (priceClose $33.46 vs. 200-day $29.36 and 50-day $29.35), reinforcing the constructive intermediate bias. Ichimoku lines (Tenkan 31.82; Kijun 31.46; SenkouA 28.07; SenkouB 29.40) place price above short-term conversion/base values, consistent with an upward drift.
Price sits near the upper 1x Bollinger band ($33.56) and below the 2x upper band ($35.65), with lower-than-average volume (today’s volume 271,971 vs. 10-day avg 395,745 and 50-day avg 416,563), suggesting rallies may lack conviction until volume expands. Beta remains low (42-day 0.28; 52-week 0.77), implying muted correlation with broader market swings and lower volatility relative to peers.
Fundamental Analysis
Revenue totaled $225.2M for the period ending March 31, 2026, with reported EBIT $31.9M and EBITDA $43.8M; adjusted EPS recorded $1.07 versus an estimate of $1.00, a 7% EPS surprise. The company reiterated full-year consolidated adjusted EBITDA guidance in the release.
Profitability metrics present mixed signals relative to peers: EBIT margin stands at 14.17%, below the industry peer mean of 24.11% and the industry peer median of 22.75%. Operating margin came in at 13.50% while gross margin measured 38.77%; gross margin falls slightly below the industry peer mean of 41.83% but near the industry peer median of 39.04%.
Top-line and cash-flow trends show modest revenue growth of 3.46% year-over-year and 3.97% QoQ, but earnings growth registers negative year-over-year (-26.71%) and QoQ deterioration as company-owned and conversion investments lifted pre-opening and G&A expense. Free cash flow remained negative at -$4.9M with free cash flow yield -1.31% and free cash growth down. Cash stands at $104.2M against net debt of $1,084.6M; net debt materially exceeds market capitalization ($374.1M), while total equity appears negative at -$290.1M, reflecting a leveraged balance sheet and substantial intangible assets ($780.2M).
Leverage metrics exceed typical peer medians: debt-to-assets at 95.75% sits above the industry peer mean of 66.44% and median of 62.48%, and debt-to-EBITDA around 36.9x signals limited near-term coverage headroom. Interest coverage at 1.46 remains thin versus the industry peer mean of 8.79. Capital allocation shows a payout ratio ~33.8% and dividend yield about 0.67%, with the recent $100M repurchase authorization adding flexibility for shareholder returns but increasing short-term cash demands.
WMDST valuation assigns a fair-valued rating. Valuation multiples include trailing P/E ~26.95 and forward P/E ~23.79, with a price target mean among analysts near $37.05; the enterprise multiple reads ~43.08 and EVR around 8.38. Given elevated leverage, negative free cash flow, and active expansion spending, the fair-valued designation reflects balance between franchise-driven revenue resilience and capital structure risk.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-06 |
| NEXT REPORT DATE: | 2026-08-05 |
| CASH FLOW | Begin Period Cash Flow | $ 201.7 M |
| Operating Cash Flow | $ 7.5 M | |
| Capital Expenditures | $ -12.40 M | |
| Change In Working Capital | $ -15.60 M | |
| Dividends Paid | $ -2.50 M | |
| Cash Flow Delta | $ -28.80 M | |
| End Period Cash Flow | $ 172.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 225.2 M | |
| Forward Revenue | $ 127.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 137.8 M | |
| Depreciation | $ 8.1 M | |
| Depreciation and Amortization | $ 11.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 194.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 87.3 M | |
| EBITDA | $ 43.8 M | |
| EBIT | $ 31.9 M | |
| Operating Income | $ 30.4 M | |
| Interest Income | — | |
| Interest Expense | $ 21.8 M | |
| Net Interest Income | $ -21.80 M | |
| Income Before Tax | $ 10.1 M | |
| Tax Provision | $ 2.8 M | |
| Tax Rate | 27.723 % | |
| Net Income | $ 7.4 M | |
| Net Income From Continuing Operations | $ 7.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.00 | |
| EPS Actual | $ 1.07 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 7.0 % | |
| Forward EPS | $ 1.29 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.7 B | |
| Intangible Assets | $ 780.2 M | |
| Net Tangible Assets | $ -1.07 B | |
| Total Current Assets | $ 283.7 M | |
| Cash and Short-Term Investments | $ 104.2 M | |
| Cash | $ 104.2 M | |
| Net Receivables | $ 89.5 M | |
| Inventory | — | |
| Long-Term Investments | $ 79.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 74.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 320.3 M | |
| Net Debt | $ 1.1 B | |
| Total Debt | $ 1.6 B | |
| Total Liabilities | $ 2.0 B | |
| EQUITY | ||
| Total Equity | $ -290.10 M | |
| Retained Earnings | $ 180.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -22.36 | |
| Shares Outstanding | 12.973 M | |
| Revenue Per-Share | $ 17.36 | |
| VALUATION | Market Capitalization | $ 374.1 M |
| Enterprise Value | $ 1.9 B | |
| Enterprise Multiple | 43.08 | |
| Enterprise Multiple QoQ | -62.532 % | |
| Enterprise Multiple YoY | -2.815 % | |
| Enterprise Multiple IPRWA | high: 205.993 mean: 83.621 median: 78.132 DIN: 43.08 low: -109.403 |
|
| EV/R | 8.379 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -5.821 | |
| Asset To Liability | 0.853 | |
| Debt To Capital | 1.219 | |
| Debt To Assets | 0.958 | |
| Debt To Assets QoQ | 4.001 % | |
| Debt To Assets YoY | 3.329 % | |
| Debt To Assets IPRWA | high: 1.622 DIN: 0.958 mean: 0.664 median: 0.625 low: 0.003 |
|
| Debt To Equity | -5.574 | |
| Debt To Equity QoQ | -4.471 % | |
| Debt To Equity YoY | -26.532 % | |
| Debt To Equity IPRWA | high: 12.878 mean: 0.383 median: 0.371 DIN: -5.574 low: -7.932 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -1.29 | |
| Price To Book QoQ | -19.395 % | |
| Price To Book YoY | -23.136 % | |
| Price To Book IPRWA | high: 18.76 median: 7.253 mean: 2.227 DIN: -1.29 low: -22.122 |
|
| Price To Earnings (P/E) | 26.951 | |
| Price To Earnings QoQ | 19.536 % | |
| Price To Earnings YoY | 19.91 % | |
| Price To Earnings IPRWA | high: 285.278 median: 108.358 mean: 94.497 DIN: 26.951 low: -170.635 |
|
| PE/G Ratio | -1.009 | |
| Price To Sales (P/S) | 1.661 | |
| Price To Sales QoQ | -17.572 % | |
| Price To Sales YoY | -1.428 % | |
| Price To Sales IPRWA | high: 33.432 median: 25.858 mean: 22.38 DIN: 1.661 low: 0.178 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 23.788 | |
| Forward PE/G | -0.891 | |
| Forward P/S | 2.962 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 152.152 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.131 | |
| Asset Turnover Ratio QoQ | 6.034 % | |
| Asset Turnover Ratio YoY | 8.843 % | |
| Asset Turnover Ratio IPRWA | high: 0.683 mean: 0.178 DIN: 0.131 median: 0.109 low: 0.078 |
|
| Receivables Turnover | 2.16 | |
| Receivables Turnover Ratio QoQ | 3.871 % | |
| Receivables Turnover Ratio YoY | 3.78 % | |
| Receivables Turnover Ratio IPRWA | high: 51.203 mean: 7.561 median: 2.661 DIN: 2.16 low: 1.107 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 42.242 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -18.756 | |
| Cash Conversion Cycle Days QoQ | 5759.518 % | |
| Cash Conversion Cycle Days YoY | -219.093 % | |
| Cash Conversion Cycle Days IPRWA | high: 38.929 median: -2.211 mean: -5.615 DIN: -18.756 low: -124.383 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -6.153 | |
| CapEx To Revenue | -0.055 | |
| CapEx To Depreciation | -1.531 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 898.7 M | |
| Net Invested Capital | $ 898.7 M | |
| Invested Capital | $ 898.7 M | |
| Net Tangible Assets | $ -1.07 B | |
| Net Working Capital | $ -36.60 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.325 | |
| Current Ratio | 0.886 | |
| Current Ratio QoQ | -7.952 % | |
| Current Ratio YoY | 1.992 % | |
| Current Ratio IPRWA | high: 2.493 mean: 0.966 median: 0.933 DIN: 0.886 low: 0.26 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 36.918 | |
| Cost Of Debt | 0.98 % | |
| Interest Coverage Ratio | 1.463 | |
| Interest Coverage Ratio QoQ | 522.999 % | |
| Interest Coverage Ratio YoY | -15.012 % | |
| Interest Coverage Ratio IPRWA | high: 21.267 mean: 8.787 median: 7.355 DIN: 1.463 low: -13.758 |
|
| Operating Cash Flow Ratio | 0.094 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 60.997 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.96 | |
| Dividend Payout Ratio | 0.338 | |
| Dividend Rate | $ 0.19 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.82 % | |
| Revenue Growth | 3.459 % | |
| Revenue Growth QoQ | 396.983 % | |
| Revenue Growth YoY | -29.235 % | |
| Revenue Growth IPRWA | high: 40.595 % DIN: 3.459 % mean: -4.666 % median: -7.006 % low: -26.819 % |
|
| Earnings Growth | -26.712 % | |
| Earnings Growth QoQ | -126.712 % | |
| Earnings Growth YoY | -245.245 % | |
| Earnings Growth IPRWA | high: 233.333 % median: -9.295 % mean: -10.03 % DIN: -26.712 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 38.766 % | |
| Gross Margin QoQ | -8.487 % | |
| Gross Margin YoY | -7.805 % | |
| Gross Margin IPRWA | high: 78.305 % mean: 41.826 % median: 39.043 % DIN: 38.766 % low: -0.222 % |
|
| EBIT Margin | 14.165 % | |
| EBIT Margin QoQ | 505.342 % | |
| EBIT Margin YoY | -0.324 % | |
| EBIT Margin IPRWA | high: 45.143 % mean: 24.111 % median: 22.748 % DIN: 14.165 % low: -24.703 % |
|
| Return On Sales (ROS) | 13.499 % | |
| Return On Sales QoQ | -20.859 % | |
| Return On Sales YoY | -5.01 % | |
| Return On Sales IPRWA | high: 44.253 % mean: 24.116 % median: 23.583 % DIN: 13.499 % low: -45.058 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -4.90 M | |
| Free Cash Flow Yield | -1.31 % | |
| Free Cash Flow Yield QoQ | -18.936 % | |
| Free Cash Flow Yield YoY | -137.016 % | |
| Free Cash Flow Yield IPRWA | high: 5.154 % mean: 0.964 % median: 0.794 % DIN: -1.31 % low: -4.315 % |
|
| Free Cash Growth | -30.859 % | |
| Free Cash Growth QoQ | -78.356 % | |
| Free Cash Growth YoY | -40.695 % | |
| Free Cash Growth IPRWA | high: 371.18 % mean: 29.163 % median: 5.617 % DIN: -30.859 % low: -450.0 % |
|
| Free Cash To Net Income | -0.662 | |
| Cash Flow Margin | 13.321 % | |
| Cash Flow To Earnings | 4.054 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.01 | |
| Return On Assets (ROA) | 0.432 % | |
| Return On Assets QoQ | -161.98 % | |
| Return On Assets YoY | -6.291 % | |
| Return On Assets IPRWA | high: 7.852 % mean: 2.469 % median: 2.339 % DIN: 0.432 % low: -1.371 % |
|
| Return On Capital Employed (ROCE) | 2.331 % | |
| Return On Equity (ROE) | -0.026 | |
| Return On Equity QoQ | -157.159 % | |
| Return On Equity YoY | -32.851 % | |
| Return On Equity IPRWA | high: 0.315 median: 0.021 mean: 0.012 DIN: -0.026 low: -0.198 |
|
| DuPont ROE | -2.623 % | |
| Return On Invested Capital (ROIC) | 2.566 % | |
| Return On Invested Capital QoQ | 524.331 % | |
| Return On Invested Capital YoY | 27.471 % | |
| Return On Invested Capital IPRWA | high: 18.09 % mean: 6.274 % median: 5.912 % DIN: 2.566 % low: -2.438 % |
|