Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, full-service restaurant operator DineEquity (NYSE:DIN) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at DineEquity's business, and see what CAPS investors are saying about the stock right now.

DineEquity facts

Headquarters (founded)

Glendale, Calif. (1976)

Market Cap

$599 million



Trailing-12-Month Revenue

$1.61 billion


CEO Julia Stewart (since May 2002)

CFO John Tierney (since February 2009)


Applebee's, IHOP

TTM Return on Equity


2-Month Return



Brinker International (NYSE:EAT)

Darden Restaurants (NYSE:DRI)

CAPS members bearish on DIN also bearish on

General Motors (NYSE:GM)

CAPS members bullish on DIN also bullish on

General Electric (NYSE:GE)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, some 62.5% of the 243 members who have rated DineEquity believe the stock will underperform the S&P 500 going forward. These bears include smartdanny and All-Star JakilaTheHun, who is ranked in the top 0.1% of our community.

Last week, smartdanny couldn't seem to stomach DineEquity's recent price run:

The only thing that could have possibly sent this stock climbing like it has is a combination of a short squeeze (which with a float of less than 18 million shares isn't that difficult), people buying beaten down stocks for a trade, and then momentum investors getting involved once they saw the price exploding. There is no fundamental reason for the price rise and it's not like casual dining has a tailwind in its favor right now.

In a pitch from the same day, JakilaTheHun explains why the bill just doesn't add up:

[DineEquity] is looking overpriced at $30. … Even in the good years of '06 and '05, they only earned about $2.50 per share. Even assuming they could improve on that performance and earn roughly $3 per share on average (with a 3% growth rate), I still only come up with a DCF valuation of $26 per share --- and that's a big *if* right there.

Personally, I like the food at IHOP and Applebee's, but I notice a lot of friends who are negative on Applebee's lately --- food is too generic and that sorta stuff. Not sure if that means anything or not, but it does suggest that it's nothing special.

What do you think about DineEquity, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.