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Sep 25, 2024
Denny's Q3 2024 Earnings Report
Denny's Corporation reported results, demonstrating resilience through brand investments and value focus, outperforming the BBI Family Dining index for the third consecutive quarter, driven by the $2-$4-$6-$8 value menu relaunch and off-premises expansion.
Key Takeaways
Denny's Corporation reported a decrease in total operating revenue to $111.8 million compared to $114.2 million in the prior year quarter. Net income was $6.5 million, or $0.12 per diluted share. Denny's domestic system-wide same-restaurant sales decreased by 0.1%.
Total operating revenue was $111.8 million compared to $114.2 million for the prior year quarter.
Denny's domestic system-wide same-restaurant sales decreased (0.1%) compared to the equivalent fiscal period in 2023.
Operating income was $11.7 million compared to $14.0 million for the prior year quarter.
Net income was $6.5 million, or $0.12 per diluted share.
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, as well as the Company's strategic initiative to accelerate the closure of lower volume Denny's restaurants.
Positive Outlook
- Commodity inflation of approximately 2%.
- Labor inflation between 3% and 4%.
- Total general and administrative expenses between $82 million and $85 million, including approximately $11 million related to share-based compensation expense which does not impact Adjusted EBITDA*.
- Consolidated restaurant openings of 30 to 40, including 12 to 16 new Keke's restaurants
- Denny's domestic system-wide same-restaurant sales between (1%) and 0% (vs. between (1%) and 1%).
Challenges Ahead
- Consolidated net decline of 45 to 55 (vs. 20 to 30).
- Adjusted EBITDA* between $81 million and $84 million (vs. between $83 million and $87 million).
- Expectations that the current consumer and economic environment will not change materially.
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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