While on the Fast Money Halftime Report, CEO Julia A. Stewart says a catalyst for the stock is paying down the $1.6 billion in debt incurred, at least in part, while acquiring Applebee's. But for the past several quarters, Stewart says DineEquity has been putting $30 to $40 million toward that debt. She sees an opportunity to pay it down over the "next couple years," but would not provide a timetable.
As the company strives to become debt-free, Stewart points out that it's also increasing free cash flow. Year to date, she says it now exceeds $41 million or $2.34 cash per share.
Shifting gears, Guy Adami of Drakon Capital asked Stewart what she attributes the stock's volatility to. She wouldn't comment on what prompts the movement on any given day, but says the company does communicate effectively to shareholders. By staying with their strategy, she thinks things will eventually play out.
Watch the video to see the full interview with Stewart.
What's the Trade?
"Cheap stock, good pancakes. I think it's interesting here," says Patty Edwards of Storehouse Partners.
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POLL OF THE DAY
Investors are eagerly awaiting second quarter gross domestic product data, which is set to be released Friday. In Thursday's Fast Money Poll of the Day, we want to know what you're expecting of the data? Cast your vote and we'll share the final results on Fast Money, seen at 5PM Eastern on CNBC.
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CALL THE CLOSE
Both Brian Kelly of Kanundrum Capital and Patty Edwards of Storehouse Partners are sellers of the market.
"I wouldn't be buying the market until we recapture the 1113 level," says Steve Grasso of Stuart Frankel.
"I've been burned so many times," says Guy Adami of Drakon Capital. "But it just feels like it's finally turned. It looks like it wants to go lower to me."
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Trader disclosure: On July 29, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Grasso owns (ASTM), (ABK), (BAC), (BA), (BGP), (C), (CSCO), (DYN), (JPM), (LPX), (MO), (NDAQ), (PFE), (PRST); Kelly owns (BP) puts
For Patty Edwards
Edwards owns (AMZN) for clients
Edwards owns (COP) for clients
Edwards owns (FCX) for clients
Edwards owns (HES) for clients
Edwards owns (NVDA) for clients
Edwards owns (XOM) for clients
For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (ESV)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (LEN)
Stuart Frankel & Co and it’s partners own (IP)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (SYMC)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (KEG)
For Brian Kelly
Accounts managed by Kanundrum Capital own (BAK)
Accounts managed by Kanundrum Capital own (VIV)
Accounts managed by Kanundrum Capital own (ORI)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own Swiss Francs
Accounts managed by Kanundrum Capital are short (GLD)
Accounts managed by Kanundrum Capital are short (XME)
Accounts managed by Kanundrum Capital are short (SLX)
Accounts managed by Kanundrum Capital are short (RKH)
Accounts managed by Kanundrum Capital are short (XLK)
Jim Friedland
***No Disclosures***
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