Gemstone Equity Research
Growth, long/short equity, research analyst, tech

Dine Equity: A Bubble Ready To Burst In The Near Future

With the overall restaurant industry achieving a revenue growth of 9.6% at a 3-year CAGR, Dine Equity Inc. (NYSE:DIN) recorded a negative 15.6% growth. This has created some curiosity about the company's future prospects with a hurt top line. Despite its weakening top line, the company recorded a 35.07% increase in its share price since the beginning of the current year. This is shown in the chart below with the arrow showing when the company's share price increased during the current year upon release of its Q3 2013 financial results. It is no surprise that improvement in the bottom line was the chief supporter of this increase especially since the company recorded a 3-year CAGR of 59.6% in...

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