Loading...
•
Jun 28, 2023
Denny's Q2 2023 Earnings Report
Reported a 1.7% increase in total operating revenue, driven by Denny's domestic system-wide same-restaurant sales growth and Keke's revenue, with operating income at $14.9 million and adjusted EBITDA at $22.3 million.
Key Takeaways
Denny's Corporation reported a 1.7% increase in total operating revenue to $116.9 million for the second quarter of 2023. Denny's domestic system-wide same-restaurant sales grew by 3.0%. The company opened 10 franchised restaurants and completed four remodels. Operating income reached $14.9 million, and net income was $8.5 million, or $0.15 per diluted share. Adjusted EBITDA was $22.3 million, and adjusted free cash flow was $12.7 million. The company repurchased $10.4 million of common stock.
Total operating revenue grew 1.7% to $116.9 million.
Denny's domestic system-wide same-restaurant sales grew 3.0%.
Operating income was $14.9 million, compared to $13.9 million in the prior year quarter.
Adjusted EBITDA was $22.3 million.
Revenue by Segment
Forward Guidance
The following full year 2023 guidance reflects 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 1% and 3%.
- Labor inflation of approximately 4%.
- Consolidated total general and administrative expenses between $78 million and $80 million.
Challenges Ahead
- Consolidated net decline of 15 to 25.
- Share-based compensation expense approximately $12 million which does not impact Consolidated Adjusted EBITDA*.
- The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable U.S. generally accepted accounting principles (GAAP) estimates without unreasonable efforts because it is 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
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...