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Dec 29, 2021
Denny's Q4 2021 Earnings Report
Denny's reported an increase in total operating revenue and domestic system-wide same-store sales, driven by the COVID-19 recovery.
Key Takeaways
Denny's Corporation reported a strong fourth quarter in 2021, with a significant increase in total operating revenue and net income compared to the prior year. The company's domestic system-wide same-store sales also showed positive growth, reflecting a recovery from the impact of the COVID-19 pandemic. Strategic brand initiatives are underway, despite near-term volatility caused by the Omicron variant.
Total operating revenue increased by 34.4% to $107.6 million due to COVID-19 recovery.
Domestic system-wide same-store sales increased 0.7% compared to 2019 and 49.0% compared to 2020.
Net income was $43.5 million, or $0.67 per diluted share, primarily related to the sale of real estate.
Adjusted EBITDA was $24.1 million compared to $8.0 million in the prior year quarter.
Forward Guidance
The following expectations for the fiscal first quarter of 2022 ending March 30, 2022 reflect management's expectations that the current economic environment will not change materially.
Positive Outlook
- Domestic system-wide same-store sales increasing between 26% and 28% compared to 2021.
Challenges Ahead
- Total general and administrative expenses between $17 million and $18 million, including approximately $4.0 million related to share-based compensation expense.
- Adjusted EBITDA between $17 million and $19 million, including approximately $2.5 million related to cash payments for share-based compensation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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