DineEquity (NYSE:DIN): While DineEquity has quite a bit of debt to deal with, investors shouldn't underestimate the power of its Applebee's and IHOP brands. With the largest casual dining and breakfast chains under its belt and generating substantial cash flows, the company should be able to slowly chip away at its financial obligations. That said, I wouldn't recommend getting into shares until DineEquity's fundamentals improve...
Brinker International (NYSE:EAT): On the other end of the spectrum is Brinker International, home to the Chili's, On the Border, and Maggiano's chains of restaurant brands, which trail only Applebee's in unit size. Unlike DineEquity, Brinker benefits from decent margins and relatively moderate debt. A switch over to more franchises in its restaurant base should help the company grow its income in the coming quarters...
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