Denny's Corporation delivered a mixed performance in Q2 2025. While total operating revenue increased slightly, net income and EPS saw a decline compared to the prior year. Keke's demonstrated strong same-restaurant sales growth, partially offsetting a decline in Denny's domestic system-wide same-restaurant sales. The company focused on strategic initiatives including value innovation, off-premises strength, and optimizing its franchise system, alongside corporate administrative expense savings.
Total operating revenue increased to $117.7 million, up from $115.9 million in the prior year quarter, primarily driven by additional Keke's company equivalent units.
Net income was $2.5 million, or $0.05 per diluted share, a decrease from $3.6 million, or $0.07 per diluted share, in the prior year quarter.
Keke's domestic system-wide same-restaurant sales increased by 4.0%, while Denny's domestic system-wide same-restaurant sales decreased by 1.3%.
Adjusted EBITDA was $18.8 million, down from $20.0 million in the prior year quarter, reflecting ongoing investments and market dynamics.
For the full year 2025, Denny's expects Denny's domestic system-wide same-restaurant sales to be between (2.0%) and 1.0%, consolidated restaurant openings of 25 to 40, and consolidated restaurant closures between 70 and 90. Commodity inflation is projected between 3.0% and 5.0%, and labor inflation between 2.5% and 3.5%. Adjusted EBITDA is expected to be between $80 million and $85 million, and share repurchases between $15 million and $25 million.
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