WHEREAS:  The World Health Organization (WHO) considers antibiotic resistance one of the single largest threats to global health. Antibiotic resistance renders life-saving drugs useless and, by 2050, will cause an estimated 300 million premature deaths, and up to $100 trillion in global economic damage.

The use of antibiotics in animal agriculture is a major contributor to antibiotic resistance. Nearly two-thirds of antibiotics sold for use in the U.S. are for use in food animals. When antibiotics are routinely administered to animals, bacteria can adapt and spread, causing drug-resistant infections in humans.

In a 2018 survey, 60 percent of consumers said they would be more likely to eat at a restaurant serving meat raised without antibiotics. Just as many said they are willing to pay more for that product. Consumer advocates are calling for increased regulations to prohibit routine use of medically important antibiotics in animals for the prevention of disease. Many chicken producers have reduced or eliminated this practice, while beef and pork producers lag behind. 

In 2018, Dine Brands asked its chicken and pork suppliers to “begin to prohibit routine use of medically important antibiotics . . . including prohibiting the use of these antibiotics for disease prevention.” Two years later, the company has not yet identified a timeline for change, established targets, or reported progress. The company further does not disclose any plans to reduce antibiotic risk in its beef supply chains. This lack of disclosure leaves shareholders unable to make informed investment decisions about the company’s progress on this important issue.

In a 2019 report comparing restaurant policies on antibiotics, Dine Brands Global’s IHOP and Applebee’s scored an “F”. 

By contrast, Dine Brands’ competitors are providing clear disclosure:

• As of 2019, 14 major fast food and fast casual restaurant chains report that 100% of chicken served in their locations is raised without medically important antibiotics, including Denny’s.

• McDonald’s announced a policy in 2018 disallowing the use of medically important antibiotics for prevention purposes in its top 10 beef markets (approximately 85% of its beef supply.)

• Wendy’s and Taco Bell have both set targets and timelines for antibiotic reduction in beef.

Shareholders urge the company to report on any success in ending the preventive use of antibiotics to keep up with peers and consumer demands across the industry.

BE IT RESOLVED:  Shareholders request that Dine Brands Global issue a report, at reasonable cost and excluding proprietary information, providing quantitative metrics for the use of medically important antibiotics in the company’s meat supply chains

SUPPORTING STATEMENT:  Shareholders recommend that board and management, in their discretion, consider reporting pursuant to Sustainable Accounting Standards Board (“SASB) guidelines:

SASB’s guidelines for disclosure of financially material information by the restaurant sector provides that, to improve transparency, restaurants could report the percentage of animal protein sold, by animal protein type, produced without use of medically important antibiotics at any stage of its life.