We recently published a list of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to take a look at where Dine Brands Global, Inc. (NYSE:DIN) stands against other underperforming stocks targeted by short sellers.
Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company’s bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors.
The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company’s downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest.
We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest.
A family enjoying their meal at a restaurant from the company’s franchise operations.
Short interest: 17.68%
6 months’ performance: -34.93%
Dine Brands Global, Inc. (NYSE:DIN) operates as an owner, franchisor, and operator of restaurants. It operates in the company restaurant operations, Rental operations, Franchise operations, and Financing operations segments.
The firm’s Q4 2024 quarterly earnings shattered investor sentiment, something that didn’t significantly improve after yesterday’s Q1 2025 earnings call either. Dine Brands Global (NYSE:DIN) reported a 4.1% revenue growth, which finally broke the 7-quarter falling revenue streak. EOS came in at $1.03, missing estimates by $0.21 while revenue clocked in at $214.8 million, missing estimates by $0.29 million.
As per the guidance, the management expects the Applebee’s same-store sales growth in a range of -2% to 1% year-over-year. IHOP same-store sales are anticipated to be between -1% to 2% year-over-year.
Overall, DIN ranks 6th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of DIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DIN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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