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Mar 27, 2024
Denny's Q1 2024 Earnings Report
Denny's reported mixed results for Q1 2024, with revenue declining but net income increasing compared to the prior year quarter. The company is focusing on sales-driving initiatives for the remainder of the year.
Key Takeaways
Denny's Corporation reported a decrease in total operating revenue to $110.0 million compared to $117.5 million in the prior year quarter. However, net income increased to $4.7 million, or $0.09 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the prior year quarter. The company opened eight restaurants, including three international Denny's locations and three Keke's company locations.
Total operating revenue decreased to $110.0 million from $117.5 million in the prior year quarter.
Denny's domestic system-wide same-restaurant sales decreased by 1.3%.
Net income increased to $4.7 million, or $0.09 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the prior year quarter.
The company opened eight new restaurants, including three international Denny's and three Keke's locations.
Revenue by Segment
Forward Guidance
The following full year 2024 expectations reflect 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 0% and 3%.
- Consolidated restaurant openings of 40 to 50, including 12 to 16 new Keke's restaurants.
- Commodity inflation between 0% and 2%.
- Labor inflation between 4% and 5%.
Challenges Ahead
- Consolidated net decline of 10 to 20 restaurants.
- Total general and administrative expenses between $83 million and $86 million, including approximately $12 million related to share-based compensation expense which does not impact Adjusted EBITDA*.
- Adjusted EBITDA between $87 million and $91 million (vs. between $85 million and $89 million) primarily due to changes in the non-GAAP definition.
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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