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Mar 29, 2023
Denny's Q1 2023 Earnings Report
Reported a strong first quarter with revenue growth and solid same-restaurant sales, while reiterating full-year guidance.
Key Takeaways
Denny's Corporation reported a positive start to 2023, with a 13.9% increase in total operating revenue to $117.5 million. Denny's domestic system-wide same-restaurant sales grew by 8.4%. The company reiterated its full-year 2023 guidance, expecting continued performance based on the current economic environment.
Total operating revenue increased by 13.9% to $117.5 million.
Denny's domestic system-wide same-restaurant sales grew by 8.4%.
Operating income was $16.1 million, up from $13.3 million in the prior year quarter.
Adjusted EBITDA was $18.5 million.
Revenue by Segment
Forward Guidance
The Company is reiterating the previously announced full year 2023 guidance, based on management's expectations that the current consumer and economic environment will not change materially.
Positive Outlook
- Denny's domestic system-wide same-restaurant sales between 3% and 6%.
- Consolidated restaurant openings of 35 to 45, including 8 to 12 new Keke's restaurants.
- Commodity inflation between 4% and 6%.
- Labor inflation of approximately 5%.
- Consolidated Adjusted EBITDA between $86 million and $90 million.
Challenges Ahead
- Consolidated net decline of 15 to 25 restaurants.
- Consolidated total general and administrative expenses between $79 million and $82 million.
- Approximately $14 million related to share-based compensation expense which does not impact Consolidated Adjusted EBITDA.
- Unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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