Dine Brands Global (DIN) risk factors, FY2024 10-K

Risks Relating to Our Business and Financial Condition

1. 01Our business is affected by general economic conditions that are largely out of our control
2. 02Our franchisees' failure to address cost pressures, including rising costs for commodities, labor, health care and utilities could adversely affect our franchisees and our revenues and results of operations
3. 03Our level of indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our debt
4. 04The terms of the securitized debt issued by certain of our indirect, wholly-owned subsidiaries have restrictive terms and the failure to comply with such restrictive terms could put us in default, which would have an adverse effect on our business and prospects
5. 05Our ability to refinance all or a portion of our indebtedness or obtain additional financing depends on many factors beyond our control
6. 06We are heavily dependent on information technology and any material failure of that technology could impair our ability to effectively and efficiently operate our business
7. 07The occurrence of cyber incidents, or a deficiency in our cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our employee and business relationships, all of which could subject us to loss and harm our brands
8. 08In connection with the implementation of our corporate strategies, we may face risks associated with the acquisition of businesses, the integration of acquired businesses, and the growth and development of these businesses
9. 09We face a variety of risks associated with doing business in international markets
10. 10We may be subject to litigation and other legal proceedings that could be time consuming, require significant amounts of management time and result in the diversion of significant operational resources
11. 11Third-party claims with respect to intellectual property assets, if decided against us, may result in competing uses or require adoption of new, non-infringing intellectual property, which may in turn adversely affect sales and revenues
12. 12We cannot predict the risks associated with the implementation and use of artificial intelligence and related technologies
13. 13Our delivery initiatives and use of third-party delivery vendors subjects us and our franchisees to a variety of risks related to the delivery of our products by third parties and may not generate expected returns
14. 14Our business depends on the proper allocation of our human capital and our ability to attract and retain talented management and other key employees
15. 15Our failure or the failure of our franchisees to comply with federal, state and local governmental regulations may subject us to losses and harm our brands
16. 16Changes in U.S. government regulations and trade policies, including the imposition of tariffs and other trade barriers, could materially impact our business
17. 17We are subject to risks associated with self-insurance for medical, dental and vision benefits
18. 18Any inability or failure to execute on a comprehensive business continuity plan following a major natural disaster such as an earthquake, wildfire, tornado, flood or a man-made disaster, including terrorism, civil unrest or a cyber incident, at or affecting our corporate facilities could materially adversely impact our business
19. 19The increase in volatile and adverse weather conditions as a result of climate change could adversely affect our restaurant sales or results of operations
20. 20Development initiatives outside our core business could negatively impact our brands
21. 21Failure of our internal controls over financial reporting and future changes in accounting standards may cause adverse unexpected operating results, affect our reported results of operations or otherwise harm our business and financial results
22. 22Changes in tax laws and unanticipated tax liabilities could adversely affect our financial results
23. 23Declines in our financial performance have resulted in and could result in future impairment charges
24. 24Failure to meet investor and stakeholder expectations regarding certain business responsibility matters may damage our reputation
25. 25Many factors, including those over which we have no control, affect the trading volatility and price of our stock
26. 26Epidemics, disease outbreaks or public health emergencies may disrupt our business, which could materially affect our operations, and business and financial results

Risks Related to Our Franchised Business Model

1. 27Restaurant development plans under development agreements may not be implemented effectively and developed restaurants may not achieve desired results
2. 28We are significantly franchised; as a result, we are highly dependent upon our franchisees
3. 29Concentration of Applebee's franchised restaurants in a limited number of franchisees subjects us to greater risk
4. 30An insolvency or bankruptcy proceeding involving a franchisee could prevent or delay the collection of payments or the exercise of rights under the related franchise agreement
5. 31We are subject to credit risk from our IHOP franchisees operating under our Previous IHOP Business Model, and a default by these franchisees may negatively affect our cash flows
6. 32We and our franchisees are subject to potential losses that may not be covered by insurance
7. 33If franchisees and other licensees do not observe the required quality and trademark usage standards, our brands may suffer reputational damage, which could in turn adversely affect our business
8. 34Our business strategy may not achieve anticipated results

Risks Related to Operating in the Restaurant Industry

1. 35Our performance is subject to risks associated with the restaurant industry, including the highly competitive nature of the industry
2. 36Factors outside our control may harm our brands' reputations
3. 37The risk of food-borne illness or food tampering cannot be completely eliminated
4. 38A lack of availability of suitable locations for new restaurants or a decline in the quality of the locations of our current restaurants may adversely affect our sales and results of operations
5. 39We may experience shortages or interruptions in the supply or delivery of food and other products from third parties or in the availability of utilities
6. 40Any inability to effectively manage or forecast appropriate inventory levels may adversely affect our business
7. 41A failure to develop and implement innovative marketing and guest relationship initiatives, ineffective or improper use of social media or other marketing initiatives and increased advertising and marketing costs could adversely affect our business results
8. 42Changing health or dietary preferences may cause consumers to avoid Applebee's, IHOP and Fuzzy's restaurants in favor of alternative options