Spartanburg, SC, Oct. 29, 2024 (GLOBE NEWSWIRE) -- As temperatures drop and the leaves fall, Denny's, America's Diner, will unveil new menu items starting tomorrow, October 30. Guests in search of craveable, one-of-a-kind breakfast entrees can enjoy the new Braised Beef Skillet, the new Cali Taco Skillet or a guest favorite, the Santa Fe Skillet – all brought to you tableside on a sizzling cast-iron skillet. Guests can also satisfy their sweet tooth with new Maple Stuffed Donut Holes, made perfect for shari ...

Financial Data and Key Metrics Changes - Total operating revenue for the quarter was $111.8 million, with an adjusted company restaurant operating margin of 11.8% [30] - Adjusted EBITDA was reported at $20 million, with a CapEx of $7.8 million and earnings per share (EPS) of $0.14 [30] - The company tightened its sales guidance range and increased the expected closures from 40-60 to 75-95 locations [31] Business Line Data and Key Metrics Changes - Denny's brand saw sequential sales improvement: flat sales in July, a decline of 1.7% in August due to weather, and a positive 1.1% in September [16][17] - Keke's Breakfast Cafe experienced a decline of 1% but showed sequential improvements despite being impacted by storms [22] - The launch of the $2, $4, $6, $8 value menu contributed to a sales increase of approximately 2% to 2.5% [96] Market Data and Key Metrics Changes - The company reported a sequential improvement of 50 basis points in Denny's brand performance and over 350 basis points for Keke's brand [29] - California markets outperformed system-wide results, indicating strong regional performance [97] Company Strategy and Development Direction - The company aims to reignite value leadership and take back breakfast with a focus on core menu optimization and off-premise growth [50][86] - The acquisition of Keke's Breakfast Cafe is seen as a significant growth opportunity, with over 140 signed agreements for new locations [28][56] - The company is implementing a remodel program called Diner 2.0 to enhance customer experience and drive sales [21] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a volatile economic environment but expressed optimism about the company's initiatives and strategies [8][33] - There is a recognition of the challenges faced by lower-income households, which are more affected by economic conditions [39][40] - The management believes that the Denny's brand remains culturally relevant and is focused on improving guest experiences [42][68] Other Important Information - The company is leveraging its shared services model to optimize operations across both Denny's and Keke's brands [48] - The introduction of virtual brands, such as Banda Burrito, is part of the strategy to capture incremental guests [19][60] Q&A Session Summary Question: What are the expected impacts of the new value menu? - The $2-$4-$6-$8 value menu has already shown a sales lift of approximately 2% to 2.5%, indicating positive reception from customers [96] Question: How is the company addressing the challenges in the current economic environment? - The management is focusing on controlling what they can, implementing strategic closures, and optimizing the guest experience to navigate the tough environment [31][33] Question: What are the growth plans for Keke's Breakfast Cafe? - Keke's has over 140 signed agreements for new locations, with plans to expand beyond Florida, indicating strong growth potential [28][56]

Company Overview - Denny's Corporation held its first Investor Day for 2024 with the theme "Igniting Growth: The Rise of a New Day at Denny's" [2] - The event included presentations from key executives such as Kelli Valade (CEO), Patty Trevino (Chief Brand Officer), and Robert Verostek (CFO) [1] - The company emphasized its long-term growth plans and strategic outlook during the event [2] Industry and Market Context - The event attracted participation from various industry analysts and investors, including representatives from The Benchmark Company, Truist Securities, and KeyBanc Capital Markets [1] - The presence of franchise owners and executives from related companies like WKS Restaurant Group and Captuure, Inc highlights the collaborative nature of the industry [1] Strategic Focus - The theme "Igniting Growth: The Rise of a New Day at Denny's" suggests a focus on revitalizing the brand and driving future growth [2] - The company plans to share detailed stories and plans that align with its long-term outlook during the event [2]

How do you get a family restaurant back on track? That's the billion-dollar question. With cumulative traffic down 20.6% since 2019, the segment is struggling to I'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans mu ...

Denny’s Corporation will close 150 of its Denny's restaurants. The company, which owns the Denny’s and Keke’s Breakfast Cafe chains, said those Denny’s locations will close by the end of 2025.Dozens of those 150 restaurants will close this year, according to an investor day presentation published Tuesday by the company. Other domestic Denny’s locations will undergo "rehabilitation" through various strategies, including their potential acquisition by "stronger operators," according to the investor day presen ...

Denny’s is slimming down.The budget-friendly, and belly-busting chain, will close 150 underperforming locations over the next year, cut hours of operation and slash its vast menu as financially-pressed diners cut back on spending, the company said Tuesday.Denny’s, which has about 1,500 locations around the country, will shutter 50 outposts by the end of the year and the remaining 100 in 2025, according to top brass.The stores that are closing are all “underperforming restaurants” that are either too old to ...

Core Insights - Denny's reported a revenue of $111.76 million for Q3 2024, reflecting a year-over-year decline of 2.1% and an EPS of $0.14, down from $0.17 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $115.88 million by 3.56%, and the EPS was 12.50% below the consensus estimate of $0.16 [1] Financial Performance Metrics - Same-Restaurant Sales - Domestic Franchise Restaurants decreased by 0.1%, compared to an estimated increase of 0.5% [1] - Total restaurants at the end of the period were 1,586, below the estimated 1,601 [1] - Franchised and licensed restaurants at the end of the period were 1,514, compared to the estimated 1,524 [1] - Same-Restaurant Sales - Company Restaurants fell by 0.4%, against an estimated increase of 0.1% [1] - Company operated restaurants at the end of the period totaled 72, below the estimated 77 [1] - Same-Restaurant Sales - Domestic System-wide Restaurants decreased by 0.1%, compared to an estimated increase of 0.5% [1] Revenue Breakdown - Franchise and license revenue was $59.06 million, below the estimated $61.97 million, representing a year-over-year decline of 3.2% [1] - Company restaurant sales revenue was $52.70 million, compared to the estimated $53.92 million, reflecting a year-over-year decline of 0.9% [1] - Advertising revenue within franchise and license revenue was $20.17 million, slightly below the estimated $20.37 million, with a year-over-year increase of 4.5% [1] - Initial and other fees in franchise and license revenue were $1.64 million, significantly below the estimated $3 million, marking a year-over-year decline of 51.6% [1] - Occupancy revenue was $8.15 million, compared to the estimated $8.35 million, representing a year-over-year decline of 5.7% [1] - Royalties in franchise and license revenue were $29.10 million, below the estimated $29.86 million, reflecting a year-over-year decline of 2% [1] Stock Performance - Denny's shares have returned +1.8% over the past month, while the Zacks S&P 500 composite has increased by +2.8% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Denny's (DENN) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.50%. A quarter ago, it was expected that this restaurant operator would post earnings of $0.17 per share when it actually produced earnings of $0.13, delivering a surprise of -23.53%.Over the last four quarters, the co ...

Financial Performance - Total operating revenue for Q3 2024 was $111.8 million, a decrease from $114.2 million in the prior year quarter[3] - Operating income for Q3 2024 was $11.7 million, down from $14.0 million in the prior year quarter[3] - Net income was reported at $6.5 million, or $0.12 per diluted share, with adjusted net income at $7.2 million, or $0.14 per share[3] - Total operating revenue for the quarter ended 9/25/24 was $111,759,000, a decrease of 2.3% from $114,183,000 for the quarter ended 9/27/23[18] - Net income for the quarter ended 9/25/24 was $6,516,000, a decrease of 17.6% compared to $7,908,000 for the quarter ended 9/27/23[18] - Comprehensive income for the three quarters ended 9/25/24 was $12,989,000, a decrease of 59.5% compared to $31,980,000 for the same period last year[20] - Adjusted EBITDA for the three quarters ended September 25, 2024, was $58,739,000, down 13.5% from $68,235,000 for the same period in 2023[23] Sales and Revenue Trends - Denny's domestic system-wide same-restaurant sales decreased by 0.1% compared to the same period in 2023, with a decline of 0.4% at company restaurants[3] - Company restaurant sales decreased to $52,701,000 for the quarter ended 9/25/24, down from $53,153,000 for the same quarter last year, representing a decline of 0.8%[18] - Franchise and license revenue for the quarter ended 9/25/24 was $59,058,000, a decrease of 3.2% from $61,030,000 for the quarter ended 9/27/23[18] - Franchise and license revenue totaled $178,269 million, a decrease from $187,083 million year-over-year, with royalties contributing $88,421 million (49.6%) and advertising revenue $59,098 million (33.2%)[31] - Company restaurant sales were $159,391 million, down from $161,486 million, with product costs at $40,554 million (25.4%) and payroll and benefits at $60,805 million (38.1%)[32] Expenses and Costs - Adjusted EBITDA is expected to be between $81 million and $84 million for the full year 2024[8] - General and administrative expenses are projected to be between $82 million and $85 million for the full year 2024[8] - General and administrative expenses for the quarter ended September 25, 2024, increased to $19,831,000 from $18,237,000 for the quarter ended September 27, 2023[28] - Interest expense for the quarter ended September 25, 2024, was $4,381,000, compared to $13,288,000 for the quarter ended September 27, 2023[23] - Total costs of operating revenue were $232,317 million (68.8%)[33] Debt and Liabilities - The company ended the quarter with total debt outstanding of $272.0 million, including $261.0 million in borrowings under its credit facility[6] - Total current assets decreased to $33,851,000 as of 9/25/24, down from $44,050,000 as of 12/27/23, reflecting a decline of 23.1%[17] - Total liabilities decreased to $516,106,000 as of 9/25/24, down from $527,504,000 as of 12/27/23, a reduction of 2.6%[17] - Total debt increased to $271,997,000 as of 9/25/24, up from $266,033,000 as of 12/27/23, an increase of 2.3%[17] Restaurant Operations and Development - The company plans to open 30 to 40 new restaurants in 2024, including 12 to 16 new Keke's restaurants, with a projected net decline of 45 to 55 restaurants[8] - Denny's ended the quarter with 1,541 total units, a net decrease of 16 units compared to the previous quarter[35] - Keke's opened 4 new units year-to-date, resulting in a total of 62 units[35] - Year-to-date 2024, Denny's had 1,548 equivalent units, down 42 units from 2023[35] - Denny's closed 58 units year-to-date, with a net change of (48) units[35] - Denny's refranchised 3 units in the quarter, while Keke's refranchised 1 unit[35] Margins and Profitability - Adjusted franchise operating margin was $30.1 million, or 51.0% of franchise and license revenue, consistent with the prior year quarter[5] - Restaurant-level operating margin for the quarter ended September 25, 2024, was $35,940,000, a decrease of 6.4% from $38,480,000 for the quarter ended September 27, 2023[28] - Company restaurant operating margin for the quarter ended September 25, 2024, was 11.2%, down from 13.7% for the quarter ended September 27, 2023[29] - Franchise operating margin for the quarter ended September 25, 2024, was $30,059,000, a decrease from $31,220,000 for the quarter ended September 27, 2023[28] - The adjusted company restaurant operating margin (non-GAAP) was $19,450 million (12.2%), compared to $23,138 million (14.3%) in the previous year[32] Shareholder Information - Basic weighted average shares outstanding decreased to 52,148,000 for the quarter ended 9/25/24, down from 55,869,000 for the quarter ended 9/27/23[18] - The effective tax rate for the quarter ended September 25, 2024, was 0.6%, significantly lower than the 11.9% for the quarter ended September 27, 2023[23]

Core Viewpoint - Denny's Corporation will announce its financial and operating results for the third quarter ended September 25, 2024, on October 22, 2024, before market opening [1]. Company Overview - Denny's Corporation is one of America's largest full-service restaurant chains, operating a total of 1,603 restaurants as of June 26, 2024, with 1,528 being franchised and licensed, and 75 being company-operated [3]. - The Denny's brand includes 1,541 global restaurants, with 1,477 franchised and licensed and 64 company-operated, while the Keke's brand consists of 62 restaurants, with 51 franchised and 11 company-operated as of June 26, 2024 [4].