---
title: "Dine Brands Global swallows a poison pill"
url: https://burnaze.com/article/091493b8-6201-4f7e-833b-e5059ca44a96
source: "Nation's Restaurant News"
original_url: https://www.nrn.com/mergers-acquisitions/dine-brands-global-swallows-a-poison-pill
author: "Jonathan Maze"
category: "Casual dining"
industry: "Restaurants"
segment: "Casual dining"
topics: ["Finance & M&A"]
published: 2026-10-29T12:46:27.000Z
modified: 2026-10-31T13:16:57.509Z
image: https://eu-images.contentstack.com/v3/assets/bltea7aee2fca050a19/blt6f878b65fc94ff8d/6ae3408da9a7ef0c77d9246e/Applebees_Shutterstock.jpg?width=720&quality=80&disable=upscale
---

# Dine Brands Global swallows a poison pill

**TL;DR:** Dine Brands Global, the parent company of Applebee's and IHOP, has adopted a shareholder rights plan after reports that investment firms Arkhouse Management and Cobblers Cove are seeking an acquisition. The potential offer is for $39 per share and could increase after due diligence.

*By Jonathan Maze, originally published in Nation's Restaurant News on 2026-10-29. [Read the original](https://www.nrn.com/mergers-acquisitions/dine-brands-global-swallows-a-poison-pill).*

## Story

Dine Brands Global, the owner of Applebee’s, IHOP, and Fuzzy’s Taco Shop, has swallowed a poison pill amid public reports that a pair of investment firms are eyeing a deal for the California-based company.

The casual-dining chain operator’s board approved a stockholder rights plan designed to keep potential buyers from accumulating too many shares without otherwise paying a premium.

Bloomberg this week reported that Cobblers Cove, a newly-established investment firm based in Charleston, South Carolina, and Arkhouse Management, a firm with experience in take-private deals, are looking to buy Dine Brands. The two firms worked with other investment firms last year on a $1 billion deal for the retailer Family Dollar.

The report said that they made an offer to buy the company at $39 per share and could increase their offer after due diligence. The two investment firms have exposure to nearly 20% of the company’s shares through various financial instruments, according to Bloomberg.

News of the report sent Dine Brands’ shares soaring more than 8% on Wednesday.

The stockholder rights agreement gives Dine Brands some leverage in negotiations. If a passive investor acquires more than 20% of the company’s shares, or an activist acquires 10%, existing shareholders will be able to buy additional shares at a 50% discount. If the company is later acquired in an unsolicited takeover, they’ll get the right to buy additional stock at a 50% discount.

The potential offer comes as Dine Brands’ results have been mixed. Same-store sales at its two largest brands, Applebee’s and IHOP, have been shaky in recent quarters. Fuzzy’s Taco Shop same-store sales have been up in each of the first two periods of the year, including 4.6% in the second quarter.

But system sales declined 5.3% in the second period because the chain has been closing locations. The brand finished the first half with 97 shops, down from 113 last year.

The company’s stock is up nearly 8% this year and more than 35% over the past 12 months.

## Entities

- Nation's Restaurant News (publication)
- Finance (sector)
- California (location)
- acquisition (topic)
- Applebee's (company)
- IHOP (company)
- Fuzzy's Taco Shop (company)
- Bloomberg (company)
- Jonathan Maze (person)
- Dine Brands Global (company)
- Charleston, South Carolina (location)
- Family Dollar (company)

---
Originally reported by Jonathan Maze, Nation's Restaurant News (https://www.nrn.com/mergers-acquisitions/dine-brands-global-swallows-a-poison-pill). Summarized by Burnaze (https://burnaze.com/article/091493b8-6201-4f7e-833b-e5059ca44a96).