Dine Brands Rejects Nonbinding $39-a-Share Proposal From Arkhouse, Cobblers Cove

Dine Brands rejected the nonbinding $39-a-share cash proposal by Arkhouse Management Co. LP and Cobblers Cove Capital LP to acquire all its outstanding common shares, saying the board found it inadequate and substantially undervaluing Dine.

The board received the proposal Oct. 26 and rejected it Oct. 29 after reviewing it with outside advisers. Dine adopted a limited-duration stockholder rights agreement on Oct. 28. In its response, the board wrote that the proposed transaction “would not be in the best interests of the Company and its stockholders.”

In a letter dated Nov. 2, Arkhouse and Cobblers Cove expressed disappointment that the board rejected the proposal without engaging with them. They said management access and confirmatory due diligence might reveal additional value that could support a higher price.

The investors described $39 as a 32.8% premium to Dine’s 30-day volume-weighted average price of $29.37 and a 25.4% premium to its Oct. 23 closing price of $31.10.

On Oct. 26, Arkhouse and Cobblers Cove signed a nonbinding term sheet to pursue the acquisition exclusively; any deal would require final terms and definitive agreements.

Dine owns and franchises Applebee’s, IHOP and Fuzzy’s Taco Shop. As of Dec. 28, 2025, it had 3,509 restaurants, the substantial majority owned and operated by independent franchisees.