v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which 494 IHOP franchisee-operated restaurants are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate 51 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which 47 Applebee's company-operated restaurants, 10 IHOP company-operated restaurants and one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 282 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the three months ended March 31, 2025. Restaurants associated with 35 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the three months ended March 31, 2025.
The Company's lease (income) cost for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.7 
Interest on lease liabilities
0.7 0.7 
Operating lease cost
19.9 18.2 
Variable lease cost2.1 2.0 
Short-term lease cost0.0 0.0 
Sublease income(24.5)(27.2)
Lease income$(1.1)$(5.5)
Future minimum lease payments under noncancellable leases as lessee as of March 31, 2025 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2025 (remaining nine months)
$5.9 $66.6 
20267.9 86.9 
20276.9 67.1 
20285.2 51.2 
20295.3 48.3 
Thereafter23.8 170.1 
Total minimum lease payments55.0 490.3 
Less: interest/imputed interest(13.8)(104.9)
Total obligations41.2 385.4 
Less: current portion(5.1)(64.9)
Long-term lease obligations$36.2 $320.5 
Other lease information is as follows:
Three Months Ended March 31,
20252024
(In millions)
Assets obtained in exchange for operating lease obligations$32.3 $16.7 
Assets obtained in exchange for finance lease obligations$3.4 $3.6 
The weighted average remaining lease term as of March 31, 2025 was 5.7 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of March 31, 2025 was 9.1% for finance leases and 6.1% for operating leases.
During the three months ended March 31, 2025 and 2024, the Company made the following cash payments for leases:
Three Months Ended March 31,
20252024
(In millions)
Principal payments on finance lease obligations$1.2 $1.6 
Interest payments on finance lease obligations0.7 0.7 
Payments on operating leases21.2 19.7 
Variable lease payments2.2 2.0 
The Company's income from operating leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Minimum lease payments$22.2 $24.5 
Variable lease income4.1 4.5 
Total operating lease income$26.3 $29.0 
Future minimum payments to be received as lessor under noncancellable operating leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$70.6 
202682.7 
202765.9 
202849.7 
202942.0 
Thereafter146.8 
Total minimum rents receivable$457.7 
The Company's income from real estate leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
 (In millions)
Interest income$0.3 $0.3 
Variable lease income0.1 0.1 
Selling profit
— 0.2 
Total real estate lease income$0.4 $0.6 
Future minimum payments to be received as lessor under noncancellable real estate leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$1.9 
20262.5 
20272.5 
20282.5 
20292.5 
Thereafter12.9 
Total minimum rents receivable24.8 
Less: unearned income(6.9)
Total real estate leases receivable
17.9 
Less: current portion(1.4)
Long-term real estate leases receivable
$16.5 
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which 494 IHOP franchisee-operated restaurants are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate 51 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which 47 Applebee's company-operated restaurants, 10 IHOP company-operated restaurants and one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 282 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the three months ended March 31, 2025. Restaurants associated with 35 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the three months ended March 31, 2025.
The Company's lease (income) cost for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.7 
Interest on lease liabilities
0.7 0.7 
Operating lease cost
19.9 18.2 
Variable lease cost2.1 2.0 
Short-term lease cost0.0 0.0 
Sublease income(24.5)(27.2)
Lease income$(1.1)$(5.5)
Future minimum lease payments under noncancellable leases as lessee as of March 31, 2025 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2025 (remaining nine months)
$5.9 $66.6 
20267.9 86.9 
20276.9 67.1 
20285.2 51.2 
20295.3 48.3 
Thereafter23.8 170.1 
Total minimum lease payments55.0 490.3 
Less: interest/imputed interest(13.8)(104.9)
Total obligations41.2 385.4 
Less: current portion(5.1)(64.9)
Long-term lease obligations$36.2 $320.5 
Other lease information is as follows:
Three Months Ended March 31,
20252024
(In millions)
Assets obtained in exchange for operating lease obligations$32.3 $16.7 
Assets obtained in exchange for finance lease obligations$3.4 $3.6 
The weighted average remaining lease term as of March 31, 2025 was 5.7 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of March 31, 2025 was 9.1% for finance leases and 6.1% for operating leases.
During the three months ended March 31, 2025 and 2024, the Company made the following cash payments for leases:
Three Months Ended March 31,
20252024
(In millions)
Principal payments on finance lease obligations$1.2 $1.6 
Interest payments on finance lease obligations0.7 0.7 
Payments on operating leases21.2 19.7 
Variable lease payments2.2 2.0 
The Company's income from operating leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Minimum lease payments$22.2 $24.5 
Variable lease income4.1 4.5 
Total operating lease income$26.3 $29.0 
Future minimum payments to be received as lessor under noncancellable operating leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$70.6 
202682.7 
202765.9 
202849.7 
202942.0 
Thereafter146.8 
Total minimum rents receivable$457.7 
The Company's income from real estate leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
 (In millions)
Interest income$0.3 $0.3 
Variable lease income0.1 0.1 
Selling profit
— 0.2 
Total real estate lease income$0.4 $0.6 
Future minimum payments to be received as lessor under noncancellable real estate leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$1.9 
20262.5 
20272.5 
20282.5 
20292.5 
Thereafter12.9 
Total minimum rents receivable24.8 
Less: unearned income(6.9)
Total real estate leases receivable
17.9 
Less: current portion(1.4)
Long-term real estate leases receivable
$16.5 
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which 494 IHOP franchisee-operated restaurants are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate 51 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which 47 Applebee's company-operated restaurants, 10 IHOP company-operated restaurants and one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 282 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the three months ended March 31, 2025. Restaurants associated with 35 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the three months ended March 31, 2025.
The Company's lease (income) cost for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.7 
Interest on lease liabilities
0.7 0.7 
Operating lease cost
19.9 18.2 
Variable lease cost2.1 2.0 
Short-term lease cost0.0 0.0 
Sublease income(24.5)(27.2)
Lease income$(1.1)$(5.5)
Future minimum lease payments under noncancellable leases as lessee as of March 31, 2025 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2025 (remaining nine months)
$5.9 $66.6 
20267.9 86.9 
20276.9 67.1 
20285.2 51.2 
20295.3 48.3 
Thereafter23.8 170.1 
Total minimum lease payments55.0 490.3 
Less: interest/imputed interest(13.8)(104.9)
Total obligations41.2 385.4 
Less: current portion(5.1)(64.9)
Long-term lease obligations$36.2 $320.5 
Other lease information is as follows:
Three Months Ended March 31,
20252024
(In millions)
Assets obtained in exchange for operating lease obligations$32.3 $16.7 
Assets obtained in exchange for finance lease obligations$3.4 $3.6 
The weighted average remaining lease term as of March 31, 2025 was 5.7 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of March 31, 2025 was 9.1% for finance leases and 6.1% for operating leases.
During the three months ended March 31, 2025 and 2024, the Company made the following cash payments for leases:
Three Months Ended March 31,
20252024
(In millions)
Principal payments on finance lease obligations$1.2 $1.6 
Interest payments on finance lease obligations0.7 0.7 
Payments on operating leases21.2 19.7 
Variable lease payments2.2 2.0 
The Company's income from operating leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Minimum lease payments$22.2 $24.5 
Variable lease income4.1 4.5 
Total operating lease income$26.3 $29.0 
Future minimum payments to be received as lessor under noncancellable operating leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$70.6 
202682.7 
202765.9 
202849.7 
202942.0 
Thereafter146.8 
Total minimum rents receivable$457.7 
The Company's income from real estate leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
 (In millions)
Interest income$0.3 $0.3 
Variable lease income0.1 0.1 
Selling profit
— 0.2 
Total real estate lease income$0.4 $0.6 
Future minimum payments to be received as lessor under noncancellable real estate leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$1.9 
20262.5 
20272.5 
20282.5 
20292.5 
Thereafter12.9 
Total minimum rents receivable24.8 
Less: unearned income(6.9)
Total real estate leases receivable
17.9 
Less: current portion(1.4)
Long-term real estate leases receivable
$16.5 
Leases Leases
The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which 494 IHOP franchisee-operated restaurants are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate 51 IHOP restaurants and one Applebee's restaurant. The Company leases from a third party the real property on which 47 Applebee's company-operated restaurants, 10 IHOP company-operated restaurants and one Fuzzy's company-operated restaurant is located. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.
The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Restaurants associated with 282 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the three months ended March 31, 2025. Restaurants associated with 35 of the Company's leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the three months ended March 31, 2025.
The Company's lease (income) cost for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Finance lease cost:
Amortization of right-of-use assets
$0.7 $0.7 
Interest on lease liabilities
0.7 0.7 
Operating lease cost
19.9 18.2 
Variable lease cost2.1 2.0 
Short-term lease cost0.0 0.0 
Sublease income(24.5)(27.2)
Lease income$(1.1)$(5.5)
Future minimum lease payments under noncancellable leases as lessee as of March 31, 2025 were as follows:
Finance
Leases		Operating
Leases
 (In millions)
2025 (remaining nine months)
$5.9 $66.6 
20267.9 86.9 
20276.9 67.1 
20285.2 51.2 
20295.3 48.3 
Thereafter23.8 170.1 
Total minimum lease payments55.0 490.3 
Less: interest/imputed interest(13.8)(104.9)
Total obligations41.2 385.4 
Less: current portion(5.1)(64.9)
Long-term lease obligations$36.2 $320.5 
Other lease information is as follows:
Three Months Ended March 31,
20252024
(In millions)
Assets obtained in exchange for operating lease obligations$32.3 $16.7 
Assets obtained in exchange for finance lease obligations$3.4 $3.6 
The weighted average remaining lease term as of March 31, 2025 was 5.7 years for finance leases and 6.3 years for operating leases. The weighted average discount rate as of March 31, 2025 was 9.1% for finance leases and 6.1% for operating leases.
During the three months ended March 31, 2025 and 2024, the Company made the following cash payments for leases:
Three Months Ended March 31,
20252024
(In millions)
Principal payments on finance lease obligations$1.2 $1.6 
Interest payments on finance lease obligations0.7 0.7 
Payments on operating leases21.2 19.7 
Variable lease payments2.2 2.0 
The Company's income from operating leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
(In millions)
Minimum lease payments$22.2 $24.5 
Variable lease income4.1 4.5 
Total operating lease income$26.3 $29.0 
Future minimum payments to be received as lessor under noncancellable operating leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$70.6 
202682.7 
202765.9 
202849.7 
202942.0 
Thereafter146.8 
Total minimum rents receivable$457.7 
The Company's income from real estate leases for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
20252024
 (In millions)
Interest income$0.3 $0.3 
Variable lease income0.1 0.1 
Selling profit
— 0.2 
Total real estate lease income$0.4 $0.6 
Future minimum payments to be received as lessor under noncancellable real estate leases as of March 31, 2025 were as follows:
 (In millions)
2025 (remaining nine months)
$1.9 
20262.5 
20272.5 
20282.5 
20292.5 
Thereafter12.9 
Total minimum rents receivable24.8 
Less: unearned income(6.9)
Total real estate leases receivable
17.9 
Less: current portion(1.4)
Long-term real estate leases receivable
$16.5