Denny's (DENN) Reports Q1 Earnings: What Key Metrics Have to Say

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]