UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 25, 2009

DineEquity, Inc.

(Exact Name of Registrant as Specified in Charter)

(818) 240-6055

(Registrant’s telephone number, including area code)

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.                                    RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 25, 2009, Registrant issued a press release announcing its fourth quarter and fiscal 2008 financial results.  A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

ITEM 7.01.                                    REGULATION FD DISCLOSURE.

On February 25, 2009, Registrant issued a press release entitled, “DineEquity, Inc. Provides Financial Performance Guidance for Fiscal 2009.”  A copy of the press release is filed as Exhibit 99.2 to this report and incorporated herein by reference. In addition to the information in the press release,  in response to an investor question posed on DineEquity’s investor conference call on Wednesday, February 25, 2009, the Company is providing the following information with regards to the financial impact of a 53rd operating week in fiscal 2009.  The Company expects the inclusion of the 53rd week will result in the recognition of approximately $7 million of additional pre-tax profit across the reporting segments of its Applebee’s and IHOP business units.

The preceding sentence constitutes a forward-looking statement provided by Registrant pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. This statement involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed. These factors include, but are not limited to the factors identified in the press release under “Forward-Looking Statements,” and other factors discussed from time to time in the Company’s news releases, public statements and/or filings with the Securities and Exchange Commission, especially the “Risk Factors” sections of Annual and Quarterly Reports on Forms 10-K and 10-Q. Registrant disclaims any intent or obligation to update this forward-looking information.

The information set forth in response to this item shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

ITEM 9.01.                                    FINANCIAL STATEMENTS AND EXHIBITS.

(d)                                                                                 Exhibits.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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EXHIBIT INDEX

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Exhibit 99.1

Stacy Roughan

Director, Investor Relations

DineEquity, Inc.

818-637-3632

Media Contact

Lucy Neugart

Sard Verbinnen

415-618-8750

DineEquity, Inc. Announces Fourth Quarter 2008 Financial Results

Improved Expense Control Enhances Financial Flexibility

GLENDALE, Calif., February 25, 2009 —  DineEquity, Inc. (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill & Bar and IHOP Restaurants, today announced financial results for the fourth quarter ended December 31, 2008.

The Company generated $110.8 million of cash flows from operating activities for fiscal 2008, a 4.2% increase compared to fiscal 2007.  The Company’s cash flows from operating activities for fiscal 2008 was further augmented by $15.8 million from the run-off of the IHOP business’ long-term notes receivable, offset by consolidated capital expenditures of $31.8 million for fiscal 2008.  Free cash flow for fiscal 2008 was $94.8 million (see “References to Non-GAAP Financial Measures” below).

For the fourth quarter 2008, the Company reported a net loss available to common stockholders of $136.9 million, or a net loss per diluted share available to common stockholders of $8.15.  The loss was primarily due to non-cash, after tax impairment charges of $148.3 million related to write downs of Applebee’s goodwill and intangible assets.  Excluding impairment charges for the fourth quarter 2008, the Company reported net income available to common stockholders of $5.7 million, or net income per diluted share available to common stockholders of $0.34.

Julia A. Stewart, DineEquity’s chairman and chief executive officer, said, “Our results for the quarter and full year 2008 reflect the significant contraction of consumer spending in the second half of the year.  We continue to believe that IHOP is well positioned to extend its lead in family dining even in this challenging economy, and we are taking significant steps to reposition the Applebee’s brand in order to drive future growth.  Additionally, we have taken proactive steps to maximize our financial flexibility and tighten expenses as we continue to manage our business for the long-term.”

IHOP Performance Highlights

The following is a summary of key performance drivers of DineEquity’s IHOP business unit for the fourth quarter and fiscal 2008:

·                  IHOP’s system-wide same-store sales decreased 1.0% for the fourth quarter 2008 compared to the same quarter last year and increased 1.5% for fiscal 2008, reflecting higher average guest check and a reduction in guest traffic for both periods.  IHOP’s marketing efforts during the quarter included unique limited-time offers such as Fruit Crepe Fever and Coffee Cake Pancakes supported by national advertising, holiday gift card and IHOP ‘n Go carry out program advertising, along with restaurant level programs aimed at driving the dinner day part.

·                  During the quarter, franchisees and its Florida area licensee opened 26 new IHOP restaurants, bringing total fiscal 2008 new franchise openings to 71 restaurants in the U.S., Mexico and Canada.

·                  IHOP’s franchising business generated revenue growth of 5.6% to $51.6 million for the fourth quarter 2008 compared to the same quarter last year primarily due to a 3.5% increase in effective units during the quarter.  IHOP’s franchise operations segment profitability increased 7.0% to $27.8 million for the fourth quarter 2008 compared to the same quarter last year.

Stewart commented, “Despite a difficult consumer environment, IHOP delivered a solid performance in 2008 due to the successful brand revitalization and operational improvement strategies employed over the past several years.  These strategies of energizing the brand, improving operations and maximizing development remain as relevant today as they were when initiated in 2003, and will provide the framework for the IHOP team and our franchisees to sustain system momentum.”

Applebee’s Performance Highlights

The following is a summary of key performance drivers of DineEquity’s Applebee’s business unit for the fourth quarter and fiscal 2008:

·                  Applebee’s system-wide domestic same-store sales decreased 4.6% for the fourth quarter 2008 compared to the same quarter last year and decreased 2.2% for fiscal 2008.  Same-store sales for Applebee’s domestic franchise restaurants decreased 4.7% for the fourth quarter 2008 compared to the same quarter last year and decreased 2.4% for fiscal 2008. Same-store sales for Applebee’s company-operated restaurants decreased 4.2% for the fourth quarter 2008 compared to the same quarter last year and decreased 1.3% for fiscal 2008.  Applebee’s company-operated restaurant same-store sales results for the fourth quarter 2008 reflected traffic declines, which offset an increased average guest check that was primarily driven by an effective pricing increase of nearly 4.0%.  Applebee’s marketing efforts during the quarter included an enhanced value offering, Two for $20, supported by national advertising, a holiday gift card promotion and the continuation of Applebee’s “It’s a Whole New Neighborhood” campaign.

·                  During the quarter, franchisees opened 14 new Applebee’s restaurants, bringing the total number of new franchise openings to 48 restaurants for fiscal 2008 throughout the U.S. and in several international locations.

·                  On a pro forma basis, which compares fourth quarter 2008 results for Applebee’s franchise operations segment to the same period last year, Applebee’s franchise operations segment

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profitability grew 0.3% to $34.5 million due to a 7.3% increase in effective units, which offset a 4.7% decrease in domestic franchise same-store sales for the fourth quarter 2008.

·                  On a pro forma basis, which compares fourth quarter 2008 results for Applebee’s company operations segment to the same period last year, sales at Applebee’s company-operated restaurants decreased 18.3% to $225.0 million primarily due to a 13.2% decrease in the number of effective units as a result of the Company’s refranchising efforts.  Operating margin, which is defined as total sales less expenses, improved 280 basis points to 10.7% compared to a 7.9% operating margin, excluding pre-opening expense of 10 basis points, for the fourth quarter 2007.  Applebee’s operating margin performance for the quarter was primarily driven by improvement in the management of labor expense and food and beverage costs, which more than offset higher commodity and utility costs.  These factors resulted in an 11.5% increase in segment profitability to $24.0 million for the fourth quarter 2008.

·                  In line with its strategy to franchise the majority of Applebee’s company-operated restaurants, Applebee’s completed the sale of 103 restaurants in Southern California, Delaware, Nevada and Texas during fiscal 2008.

Stewart commented, “We have strong interest from prospective buyers in all of Applebee’s company-operated restaurants available for sale, but recognize that closing deals is very difficult in the current environment.  We continue to believe we will meet our 2009 refranchising goal of selling approximately 200 restaurants as we are working with several interested parties to overcome obstacles posed by the credit markets and weakness in the broader economy.  In the meantime, we remain focused on margin improvement and profitability enhancement at Applebee’s company-operated restaurants.  Additionally, we are moving into the next stage of Applebee’s brand revitalization process with strategic menu updates and expanded marketing efforts planned throughout the year.”

Maximizing Financial Flexibility

Through a combination of refranchising and sale-leaseback proceeds, rental obligation assignments, and the use of free cash flow to retire debt, DineEquity reduced its leverage levels by approximately $500 million in fiscal 2008.  Additionally, the Company has taken proactive steps to further maximize its financial flexibility, including cost reduction actions that have already resulted in approximately $20 million worth of profit enhancements over and above the approximate $35 million worth of cost savings to date made possible by the Applebee’s acquisition and the sale of company-operated restaurants.

As a result, DineEquity complied with its debt covenants throughout fiscal 2008 and believes it will continue to do so in fiscal 2009.  The Company’s consolidated leverage ratio as of the end of the fourth quarter 2008 was 6.77x.  As of the end of the fourth quarter 2008, debt service coverage ratios were 3.0x for IHOP’s securitization on a three-month unadjusted basis and 2.0x for the Applebee’s securitization on three-month adjusted basis.

DineEquity has provided supplemental information to this news release regarding its compliance with its debt covenants, which may be accessed by visiting the Calls & Presentations section of DineEquity’s Investor Relations website at http://investors.dineequity.com and referring to supporting materials for the Company’s fourth quarter 2008 webcast.

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Investor Conference Call Today

The Company will host an investor conference call to discuss its fourth quarter and fiscal 2008 financial results and 2009 performance guidance today at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time).  To participate on the call, please dial (888) 679-8037 and reference pass code 81027656.  A live webcast of the call will be available on DineEquity’s Web site at www.dineequity.com, and may be accessed by visiting Calls & Presentations under the site’s Investor Information section.  A telephonic replay of the call may be accessed through March 4, 2009 by dialing 888-286-8010 and referencing pass code 85912763.  An online archive of the webcast also will be available on the Investor Information section of DineEquity’s Web site.

About DineEquity, Inc.

Based in Glendale, California, DineEquity, Inc., through its subsidiaries, franchises and operates restaurants under the Applebee’s Neighborhood Grill & Bar and IHOP brands.  With approximately 3,400 restaurants combined, DineEquity is the largest full-service restaurant company in the world.  For more information on DineEquity, visit the Company’s Web site located at www.dineequity.com.

Forward-Looking Statements

There are forward-looking statements contained in this news release. They use such words as “may,” “will,” “expect,” “believe,” “plan,” or other similar terminology, and include statements regarding the strategic and financial benefits of the acquisition of Applebee’s International, Inc., expectations regarding integration and cost savings, and other financial guidance. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: the implementation of the Company’s strategic growth plan; the availability of suitable locations and terms for the sites designated for development; the ability of franchise developers to fulfill their commitments to build new restaurants in the numbers and time frames covered by their development agreements; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; risks associated with executing the Company’s strategic plan for Applebee’s; risks associated with the Company’s incurrence of significant indebtedness to finance the acquisition of Applebee’s; the failure to realize the synergies and other perceived advantages resulting from the acquisition; costs and potential litigation associated with the acquisition; the ability to retain key personnel after the acquisition; conditions beyond the Company’s control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company’s customers or food supplies; acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the IHOP and Applebee’s brands and concepts by guests and franchisees; the Company’s overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in the Company’s news releases, public statements and/or filings with the Securities and Exchange Commission, especially the “Risk Factors” sections of Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be

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evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

Non-GAAP Financial Measures

This news release includes references to the Company’s “net loss available to common stockholders, excluding impairment charges” and the non-GAAP financial measure “free cash flow.”  The former is computed for a given period by deducting from net (loss) income available to common stockholders for such period the effect of any loss related to impairment and closure charges incurred in such period.  This is presented on an aggregate basis and a per share (diluted) basis.  For the latter, the Company defines “free cash flow” for a given period as cash provided by operating activities, plus receipts from notes and equipment contracts receivable (“long-term notes receivable”), less capital expenditures.  Management utilizes free cash flow to determine the amount of cash remaining for general corporate and strategic purposes after the receipts from long-term notes receivable, and the funding of operating activities and capital expenditures.  Management believes this information is helpful to investors to determine the Company’s cash available for these purposes. Free cash flow is a supplemental non-GAAP financial measure and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with generally accepted accounting principles.  The following table reconciles the Company’s cash provided by operating activities to free cash flow for fiscal 2008:

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DINEEQUITY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

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DineEquity, Inc.

IHOP BUSINESS UNIT

The following table sets forth, for the three-month and twelve-month periods ended December 31 of the current year and prior year, the number of effective restaurants in the IHOP system and information regarding the percentage change in sales at those restaurants compared to the same periods in the prior year. “Effective restaurants” are the number of restaurants in a given period, adjusted to account for restaurants open for only a portion of the period. Information is presented for all effective restaurants in the IHOP system, which includes IHOP restaurants owned by the Company, as well as those owned by franchisees and area licensees. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. However, we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales, as well as rental payments under leases that are usually based on a percentage of their sales. Management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations. Pro forma information on Applebee’s restaurant data and restaurant development and franchising activity is presented in the section entitled “Pro Forma Comparison of Three Months and Year ended December 31, 2008 with Three Months and Year ended December 31, 2007 —Applebee’s” herein.

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DineEquity, Inc.

IHOP BUSINESS UNIT

The following table summarizes our restaurant development and franchising activity:

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DineEquity, Inc.

APPLEBEE’S BUSINESS UNIT

Pro Forma Comparison of Three Months and Year ended December 31, 2008 with Three Months and Year ended December 31, 2007 —Applebee’s

The following section illustrates certain financial results of Applebee’s on a stand-alone basis comparing 2008 as consolidated into DineEquity with 2007 information comprised of the 11-month data from Applebee’s prior to the acquisition date of November 29, 2007 and the one-month data of Applebee’s subsequent to the acquisition date (“Pro Forma 2007”).

Restaurant Data

The following table sets forth, for the three months and years ended December 31, 2008 and 2007, the number of effective restaurants in the Applebee’s system and information regarding the percentage change in sales at those restaurants compared to the same period in the prior year.

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DineEquity, Inc.

APPLEBEE’S BUSINESS UNIT

The following table summarizes Applebee’s restaurant development and franchising activity:

(a)     Pro Forma

The following table summarizes Applebee’s segment profit:

(a)     Pro Forma

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DINEEQUITY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

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DINEEQUITY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

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DINEEQUITY, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

(Unaudited)

Reconciliation of (i) net loss available to common stockholders to (ii) net loss available to common stockholders excluding impairment and closure charges and loss on derivative financial instrument, and related per share data: