DennyS 2025 Q3 Earnings Revenue Grows 1.3% but Net Income Dips 90.3%

Denny's (DENN) reported mixed results for Q3 2025, with total revenue rising 1.3% year-over-year to $113.24 million. However, the company missed both revenue and earnings estimates, leading to a 90.3% decline in net income. The pending $620 million private equity acquisition has overshadowed operational performance, with shares surging over 50% post-announcement.

Revenue

Company restaurant sales generated $57.38 million, while franchise and license revenue totaled $55.87 million. The company also earned $27.75 million in royalties, $18.60 million in advertising revenue, and $1.77 million in initial and other fees. Total operating revenue came to $113.24 million.

Earnings/Net Income

Denny’s net income plummeted to $632,000 in Q3 2025, a 90.3% decline from $6.52 million in the prior year. Earnings per share (EPS) fell to $0.01, down 91.7% from $0.12. The sharp decline in EPS and net income highlights the company’s current financial challenges.

Post-Earnings Price Action Review

The stock surged 50.4% on November 4, 2025, its largest daily gain in decades, following the acquisition announcement. While the strategy of buying DENN after revenue beats estimates is theoretically sound, historical revenue beat/miss data is unavailable, making backtesting infeasible. Available EPS data (e.g., 0.07 surprise in 2021) does not align with the revenue-based approach. The pending acquisition, offering $6.25 per share (a 52.1% premium), has dominated price movements, overshadowing quarterly results. <visualization dataurl="https://cdn.ainvest.com/news/visual/visual_components/viz_ub9galqg.json"></visualization>

CEO Commentary

Kelli Valade emphasized the acquisition’s value for shareholders, citing rigorous evaluation of strategic alternatives. She praised franchisees and teams for navigating a dynamic consumer environment and expressed optimism about partnering with TriArtisan and Yadav Enterprises.

Guidance

No standalone financial guidance was provided, as the company will delist post-acquisition. The transaction is expected to close in Q1 2026, pending shareholder and regulatory approvals.

Additional News

Denny’s agreed to a $620 million all-cash acquisition by TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises, valued at $6.25 per share. The deal, approved by the board after reviewing over 40 bids, represents a 52.1% premium to the pre-announcement price. CEO Kelli Valade highlighted the transaction’s fairness and alignment with long-term interests. The acquisition aims to refresh the brand under new ownership, with closure expected in early 2026.

Revenue Breakdown

| Segment | Q3 2025 Revenue |

|------------------------|-----------------|

| Company Restaurant | $57.38M |

| Franchise & License | $55.87M |

| Royalties | $27.75M |

| Advertising | $18.60M |

| Initial & Other Fees | $1.77M |

| Total Operating Revenue| $113.24M |

Earnings Performance

| Metric | Q3 2025 | Q3 2024 | Change vs. Prior Year |

|----------------|---------|---------|------------------------|

| Net Income | $632K | $6.52M | -90.3% |

| EPS (GAAP) | $0.01 | $0.12 | -91.7% |

Post-Earnings Stock Movement

| Timeframe | Price Change |

|----------------|--------------|

| Latest Trading Day | +0.24% |

| 1-Week | +37.03% |

| Month-to-Date | +17.27% |

Acquisition Details

| Term | Value |

|---------------------|-----------------|

| Enterprise Value | $620M (incl. debt)|

| Share Price | $6.25 |

| Premium to Pre-Deal Price | 52.1% |

| Expected Closing | Q1 2026 |