Ban Ray

DineEquity's Capitalization Meltdown: What Took So Long?

WSWWW:

Your own "tiny analysis" is very naive and equally shortsighted:
So you believe higher rents and low margin promotions won't effect DIN? If the franchises are struggling (and they are) how long do you think they'll pay their bills (especially to DIN?) Higher rent will hurt DIN too not the day it's raised but in the ensuing years.

BTW DIN owns restaurants...lots of them. They financed their deal with Wall Street based on theory that they would unload all those corporate stores and retire their MASSIVE debt. But the restaurant(s) that they could have sold a year ago at 1$ Million is now down to 700-800K... if they can find a buyer, if the buyer has financing and is willing to pay for a concept that may be hopelessly outdated

Ihop is Americana, their margins are based on pancakes and coffee (very good margin makers) Applebee's is not anyones destination, hasn't been for , well forever.

If I owned an Applebee's I'd use the lettering and an anagram program to change the sign to read...Pepe's or something else and stop paying DIN a dime.
3. $700-800K too low? based on what?