Denny’s(US:DENN) Globenewswire·2025-08-04 20:05Core Insights - Denny's Corporation reported a total operating revenue of $117.7 million for Q2 2025, an increase from $115.9 million in the same quarter last year, primarily driven by additional Keke's company equivalent units [4][9] - The company experienced a decline in franchise and license revenue to $59.3 million from $61.6 million, attributed to fewer Denny's franchise equivalent units and softer same-restaurant sales [5][9] - Adjusted net income for the quarter was $4.8 million, or $0.09 per diluted share, compared to $6.99 million, or $0.13 per diluted share, in the prior year quarter [10][35] Financial Performance - Company restaurant sales increased to $58.4 million from $54.3 million year-over-year, mainly due to additional Keke's equivalent units [5][9] - Adjusted franchise operating margin was $30.0 million, representing 50.7% of franchise and license revenue, slightly down from 50.0% in the prior year [6][9] - Adjusted company restaurant operating margin was $6.7 million, or 11.5% of company restaurant sales, down from 12.7% in the prior year, impacted by increased product costs and marketing investments [7][9] Operational Highlights - Denny's opened three franchised restaurants and completed 14 remodels, while Keke's opened eight new cafes and refranchised three company cafes [9][19] - The company ended the quarter with total debt outstanding of $278.6 million, including $268.6 million under its credit facility [11][28] - Capital expenditures for the quarter amounted to $7.3 million, focusing on new cafe development and restaurant remodels [12][28] Business Outlook - The company anticipates domestic system-wide same-restaurant sales to range between (2.0%) and 1.0% for the full year 2025 [16] - Expected consolidated restaurant openings are between 25 to 40, with closures projected between 70 and 90 [16] - Total general and administrative expenses are forecasted to be between $80 million and $85 million for the year [16]