Dine Brands - 1792 Exchange

Rating Overview

Dine Brands is Medium Risk.

Dine Brands is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	High Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Dine Brands integrates ESG into its business practices. From its 2023 ESG Report: “Many also prioritize diversity in their restaurant
teams and work to comply with evolving regulations that
seek to combat climate change. Our franchisees integrate
these responsibilities into daily operations, including
menu planning, ordering supplies and investing in energyefficient equipment” (1). However, the company has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Dine Brands does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Dine Brands offers DEI training to its employees (1). The company appears to prioritize diversity over merit in its leadership composition. From its Nominating and Corporate Governance Committee Charter: “Determine the skills and qualifications required for directors and develop criteria to be
considered in identifying and evaluating director candidates. In developing such criteria, the
Committee should consider diversity of experience, skills, background, gender, race and
ethnicity as important factors” (2). Dine Brands does not provide viewpoint protections for its employees (3)(4).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Dine Brand’s CEO John Peyton signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace, strategize on DEI programs/initiatives with other signatories, and engage boards of directors when developing and evaluating DEI strategies (1)(2). The company supports DEI within its business practices. From its 2023 ESG Report: “We are proud to promote diversity, equity, inclusion and
belonging (DEIB)” (3). Applebee’s created a special “Social Justice is Served” menu in support of the Black Lives Matter movement (4).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Dine Brands financially supported The Trevor Project during Pride Month; the Trevor Project affirms LGBTQ youth, including with “gender-affirming” care (1)(2)(3). IHOP, a subsidiary of Dine Brands, partnered with Devries Global to celebrate Pride Month by giving free samples, partnering with a drag artist, and donating $10,000 to LGBTQ organizations (4)(5)(6). Otherwise, there are no publicly known cases of Dine Brands using corporate funds to advance ideological causes, organizations, or policies (7).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

Dine Brands does not operate a PAC at this time and has not used its lobbying for ideological purposes (1)(2)(3).