Core Insights - Denny's reported revenue of $111.64 million for the quarter ended March 2025, reflecting a 1.5% increase year-over-year and a surprise of +1.56% over the Zacks Consensus Estimate of $109.92 million [1] - The company's EPS was $0.08, down from $0.11 in the same quarter last year, aligning with the consensus EPS estimate [1] Financial Performance Metrics - Same-Restaurant Sales for Domestic Franchise Restaurants decreased by -3.2%, worse than the average estimate of -2.6% [4] - Total number of restaurants at the end of the period was 1,557, exceeding the average estimate of 1,551 [4] - Franchised and licensed restaurants at the end of the period totaled 1,475, slightly above the average estimate of 1,472 [4] - Same-Restaurant Sales for Company Restaurants fell by -0.9%, compared to the average estimate of -0.2% [4] - Company-operated restaurants at the end of the period numbered 82, surpassing the average estimate of 79 [4] - System-wide Same-Restaurant Sales decreased by -3%, compared to the average estimate of -2.2% [4] Revenue Breakdown - Franchise and license revenue was reported at $57.74 million, exceeding the average estimate of $56.99 million, with a year-over-year change of +0.2% [4] - Company restaurant sales revenue reached $53.90 million, higher than the average estimate of $52.92 million, representing a +3% change year-over-year [4] - Advertising revenue from franchise and license revenue was $19.07 million, above the average estimate of $18.78 million, with a +5.2% year-over-year change [4] - Initial and other fees from franchise and license revenue were $2.87 million, significantly higher than the average estimate of $2.40 million, reflecting a +58.3% year-over-year increase [4] - Occupancy revenue from franchise and license revenue was $7.95 million, slightly above the average estimate of $7.81 million, but down -5% year-over-year [4] - Royalties from franchise and license revenue were $27.84 million, below the average estimate of $28.44 million, with a year-over-year change of -5% [4] Stock Performance - Denny's shares have returned +10.5% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Denny's (DENN) came out with quarterly earnings of $0.08 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this restaurant operator would post earnings of $0.15 per share when it actually produced earnings of $0.14, delivering a surprise of -6.67%.Over the last four quarters, the company has not been able to surpass consensus EPS estimates.Denny's, which belongs ...

Financial Data and Key Metrics Changes - Denny's reported Q1 domestic system-wide same restaurant sales decreased by 3% [18] - Domestic franchise restaurants had same restaurant sales of negative 3.2%, while company same restaurant sales were negative 0.9% [19] - Total operating revenue was $111.6 million compared to $110 million for the prior year quarter [25] - Adjusted net income per share was $0.08 in the current year quarter [31] Business Line Data and Key Metrics Changes - Kiki's Breakfast Cafe achieved same restaurant sales growth of 3.9% for the quarter, outperforming the BBI Family Dining Index in Florida by nearly 400 basis points [13][22] - Denny's off-premise sales contributed a 1% improvement in same restaurant sales during Q1, representing approximately 22% of total sales [20] - Kiki's average check increased by approximately 6.5% during the first quarter, driven by pricing and off-premise growth [23] Market Data and Key Metrics Changes - California and Florida were the strongest markets for Denny's, with California outperforming BBI family dining sales for the fifth consecutive quarter [18] - Consumer sentiment remains negative, impacting spending, particularly among households earning less than $50,000 [19][7] Company Strategy and Development Direction - Denny's is focusing on value-driven initiatives and promotional offers to attract customers, such as the "Buy One Slam, Get One for $1" deal [9][21] - The company is also investing in digital enhancements and remodel programs to improve guest experience and drive sales [17][35] - Kiki's is expanding beyond Florida, with plans for 12 to 20 new openings this year [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second quarter, noting improvements in sales trends and consumer sentiment [32][54] - The company anticipates being in the lower half of its same restaurant sales guidance range for the year of negative 2% to positive 1% [33] - Management highlighted the importance of monitoring consumer behavior and adjusting strategies accordingly [40][56] Other Important Information - Denny's completed six remodels during the quarter, with over 50% of the company fleet remodeled under the new image [21] - The company is facing commodity inflation, particularly in egg prices, which significantly impacted margins [27][28] Q&A Session Summary Question: How is the new promotional strategy shaping the outlook for the rest of the year? - Management is pleased with the results of the promotional strategy and will continue to refine their everyday value offerings while monitoring consumer needs [39][40] Question: Are there signs of improvement in consumer sentiment across different cohorts? - Management noted that all income cohorts improved in April, particularly those earning above $60,000 [55] Question: What is the franchisee appetite for promotions like the BOGO offer? - Franchisees are pleased with the traffic driven by the BOGO offer, and management is monitoring its impact on margins [61][58] Question: What is the forward outlook for menu pricing? - The company expects approximately 4% to 4.5% of pricing to be implemented in 2025, with a cautious approach to future pricing adjustments [67] Question: How is the company managing inefficiencies from new cafe openings? - Management indicated that inefficiencies are expected in the first six months of new cafe openings, but they aim to improve operational efficiency over time [101] Question: What is the impact of egg prices on margins? - Egg prices have significantly impacted margins, but management expects the situation to improve as prices stabilize [104]

Financial Performance - Total operating revenue for the quarter ended March 26, 2025, was $111.637 million, a 1.5% increase from $109.974 million in the prior year period[79] - Net income for the quarter ended March 26, 2025, was $326,000, a significant decrease from $4.691 million in the prior year period[79] - Company same-restaurant sales decreased by 0.9% compared to the prior year, while domestic franchise same-restaurant sales decreased by 3.2%[81] - Operating income was $5.2 million for the current quarter, down from $10.0 million in the prior year period[99] Revenue Breakdown - Company restaurant sales increased by $1.6 million, or 3.0%, for the quarter ended March 26, 2025, primarily due to an increase of 11 Keke's equivalent units[85] - Franchise and license revenue for the quarter ended March 26, 2025, was $57.737 million, a slight increase of 0.2% from $57.632 million in the prior year[89] - Royalties decreased by $1.5 million, or 5.0%, primarily due to a 3.2% decrease in Denny's domestic franchise same-restaurant sales[89] - Initial and other fees increased by $1.1 million, or 58.3%, primarily due to the collection of a $0.6 million early franchise termination fee[91] Cost Analysis - Total costs of company restaurant sales as a percentage of company restaurant sales were 92.8% for the quarter ended March 26, 2025, compared to 91.9% for the prior year[85] - Occupancy costs as a percentage of company restaurant sales increased to 9.4% for the quarter ended March 26, 2025, from 8.7% in the prior year[87] - Franchise and license revenue costs increased by $1.0 million, or 3.6%, resulting in costs representing 49.1% of franchise and license revenue for the quarter ended March 26, 2025, up from 47.5% in the prior year[92] - General and administrative expenses decreased by $1.2 million to $20.0 million for the quarter ended March 26, 2025, primarily due to a $1.0 million decrease in deferred compensation valuation adjustments[94] - Total depreciation and amortization expense increased to $4.1 million for the quarter ended March 26, 2025, primarily due to new Keke's units[95] Cash Flow and Investments - Net cash provided by operating activities was $5.0 million for the quarter ended March 26, 2025, compared to $0.2 million for the same period last year[105] - Net cash flows used in investing activities were $7.2 million for the quarter ended March 26, 2025, including capital expenditures of $9.1 million[106] - The company recorded impairment charges of $3.2 million during the quarter, primarily related to closed franchise restaurants[97] - The company is investing approximately $4 million in a new cloud-based restaurant technology platform, with rollout expected to continue through 2026[114] Debt and Taxation - As of March 26, 2025, the company had outstanding revolver loans of $266.0 million and outstanding letters of credit of $16.1 million under its credit facility[111] - The effective tax rate for the quarter was 47.4%, compared to 24.6% for the prior year period, with an expected fiscal year effective tax rate between 22% and 26%[101] - As of March 26, 2025, the company's ratio of fixed rate debt increased from 4% to 89% of total debt due to swaps[119] - A hypothetical change of 100 basis points in interest rates would result in a $0.2 million change in annual cash flow and income before taxes[119] Market Risks - There have been no material changes in quantitative and qualitative market risks since the prior reporting period, except for fluctuations in the fair values of interest rate swaps[120] Company Overview - The Denny's brand consisted of 1,491 restaurants as of March 26, 2025, with 1,430 being franchised/licensed and 61 company-operated[76]

DENNY'S CORPORATION INVESTOR PRESENTATION MAY THROUGH JULY 2025 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, certain matters discussed in either this presentation or related press releases may constitute forward- looking statements. These forward-looking statements, which reflect management's best judgment based on factors currentl ...

Financial Data and Key Metrics Changes - Denny's reported Q1 domestic system-wide same restaurant sales decreased by 3% compared to the previous year, with company same restaurant sales down by 0.9% and franchise same restaurant sales down by 3.2% [16][17] - Total operating revenue for the quarter was $111.6 million, up from $110 million in the prior year quarter, driven by additional Kiki's units and higher local advertising contributions [23] - Adjusted net income per share was $0.08, with an adjusted EBITDA of $16.8 million [30] Business Line Data and Key Metrics Changes - Denny's same restaurant sales decreased by 3% in Q1, but April saw same restaurant sales approximately flat due to the successful Buy One Slam, Get One for $1 promotion [6][7] - Kiki's Breakfast Cafe achieved a same restaurant sales increase of 3.9% in Q1, significantly outperforming the BBI Family Dining Index in Florida [12][20] - Off-premise sales contributed positively, improving same restaurant sales by 1% and representing 22% of total sales [18][11] Market Data and Key Metrics Changes - California and Florida were the strongest markets for Denny's, with California outperforming the BBI Family Dining Sales Index for the fifth consecutive quarter [16] - Consumer sentiment remains negative, particularly among lower-income households, impacting overall sales performance [6][17] Company Strategy and Development Direction - The company is focusing on value-driven initiatives and promotional offers to attract customers in a challenging economic environment [5][6] - Denny's is committed to expanding Kiki's Breakfast Cafe, with plans for 12 to 20 new openings this year, and has opened six new cafes year-to-date [22][12] - The company is also enhancing its digital presence and off-premise strategies to capture a broader audience [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second quarter, noting improvements in consumer sentiment and sales trends [31][50] - The company anticipates being in the lower half of its same restaurant sales guidance range for the year, projecting a range of negative 2% to positive 1% [31][32] - Management highlighted the importance of ongoing promotional strategies and value offerings to maintain customer engagement [39][41] Other Important Information - The company completed six remodels during the quarter, with over 50% of its company fleet remodeled under the new image [19] - Commodity costs, particularly for eggs, have significantly impacted margins, with expectations for prices to moderate in the coming months [25][27] Q&A Session Summary Question: How is the strategy of introducing new value offers shaping the outlook for the rest of the year? - Management indicated that the promotional value strategy is essential in the current environment, and they will continue to refine it while monitoring consumer needs [39][40] Question: Are there signs of improvement in consumer sentiment across different cohorts? - Management noted that all income cohorts showed improvement in April, particularly those earning above $60,000 [52] Question: What is the franchisee appetite for promotions like the BOGO offer? - Franchisees have responded positively to the BOGO promotion, which has driven traffic and improved overall sales [56][58] Question: What is the outlook for menu pricing and its impact on same-store sales? - The company expects approximately 4% to 4.5% of pricing to be implemented in 2025, with a cautious approach to future pricing adjustments based on market conditions [63][64] Question: How is the company managing the impact of new cafe openings on margins? - Management acknowledged that new cafes typically experience inefficiencies initially, but they are working to optimize operations over time [96][98] Question: What is the expected impact of egg prices on margins moving forward? - Management indicated that the worst impact from egg prices was seen in Q1, with expectations for moderation in the following quarters [100]

DENNY'S CORPORATION REPORTS RESULTS FOR FIRST QUARTER 2025 SPARTANBURG, S.C., May 5, 2025 - Denny's Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported results for its first quarter ended March 26, 2025 and provided a business update on the Company's operations. Franchise and license revenue was $57.7 million compared to $57.6 million for the prior year quarter. This increase was primarily driven by higher local advertising co- ...

SPARTANBURG, S.C., May 05, 2025 (GLOBE NEWSWIRE) -- Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's"), today reported results for its first quarter ended March 26, 2025 and provided a business update on the Company’s operations. Kelli Valade, Chief Executive Officer, stated, "The beginning of the year has presented significant challenges for consumers, which is evident in our results. Our teams have remained focused on executing aga ...

Core Points - Denny's has awarded $161,000 in scholarships through its Hungry for Education™ Scholarship Program to students making a difference in their communities [1] - The program has been active for over thirteen years, focusing on supporting multicultural communities and addressing social issues like childhood hunger [2] - The national winner for the 2024-25 academic year is Jamya Crawford, who emphasized the importance of mental health and time management education for high school students transitioning to college [4] - Since its inception in 2011, the program has distributed over $2.7 million in scholarships, highlighting Denny's commitment to education and social equity [5] Company Overview - Denny's is a family dining restaurant brand based in Spartanburg, S.C., with over 70 years of history, offering meals across various dining times [5] - As of December 25, 2024, Denny's operates 1,499 restaurants globally, with 1,438 being franchised and licensed [6] - The company also engages in community support initiatives, including a Mobile Relief Diner that provides meals during disasters and partnerships with organizations like No Kid Hungry [5]

Core Viewpoint - Denny's Corporation will announce its financial and operating results for the first quarter ended March 26, 2025, on May 5, 2025, with a conference call scheduled for the same day to discuss these results [1]. Group 1: Financial Results Announcement - The financial results will be released after market close on May 5, 2025 [1]. - A conference call will be held at 4:30 p.m. Eastern Time on the same day to discuss the results and answer questions [1][2]. Group 2: Company Overview - Denny's Corporation is one of America's largest full-service restaurant chains, operating a total of 1,568 restaurants as of December 25, 2024 [3]. - The company operates two brands: Denny's and Keke's, with Denny's having 1,499 global restaurants and Keke's having 69 restaurants as of December 25, 2024 [4]. - Of the total restaurants, 1,493 are franchised and licensed, while 75 are company-operated [3].