What is the revenue and EPS growth rate for Denny'S year over year?

What is Denny'S's gross profit margin?

Did Denny'S beat or miss consensus estimates last quarter?

What guidance did Denny'S's management provide for the next earnings period?

What does Denny'S do and what are its main business segments?

What were the key takeaways from Denny'S's earnings call?

What is the market's earnings forecast for Denny'S next quarter?

What factors drove the changes in Denny'S's revenue and profit?

- **BOGO Success**: Buy One Get One promotion drove 70% of transactions from new/lapsed customers, flattening April sales.
- **Egg Cost Impact**: Q1 margin hit $0.5M from 3-4x egg price surge; surcharges to end by Q2.
- **Keke's Growth**: 3.9% same-restaurant sales growth, 6 new cafes opened YTD, targeting 12-20 openings.
- **Cautious Guidance**: Q1 EBITDA $16.8M; expect lower half of sales guidance (-2% to +1%) and EBITDA in lower $80-85M range.

**【CEO Summary Section】**
- **Challenges and Recovery**: Q1 same-restaurant sales declined 3% due to macroeconomic pressures, but April sales improved to flat year-over-year. The BOGO (Buy One Get One) promotion drove transactions, with 70% of sales coming from lapsed or new customers.
- **Value Strategy**: Launched $2/$4/$6/$8 everyday value menu and Slammin' Sodas, which increased beverage incidents by 100 basis points. Partnered with NVIDIA for a limited-time breakfast promotion, reaching new audiences.
- **Off-Premise Growth**: Off-premise sales contributed 1% to Q1 same-restaurant sales, now 22% of total sales. Virtual brand Banda Burrito and digital enhancements boosted online traffic and conversion rates by 16%.
- **Keke's Momentum**: Keke's same-restaurant sales grew 3.9%, outperforming the BBI index. Opened 6 new cafes in Q1 and Q2, with 7 under construction and 3 in permitting, targeting 12-20 openings for the year.

**【CFO Financial Commentary】**
- **Revenue and Margins**: Total operating revenue was $111.6 million, up 1.5% YoY. Adjusted EBITDA was $16.8 million. Franchise operating margin was 50.9%, while company restaurant margin dropped to 9.1% due to higher product costs and new cafe inefficiencies.
- **Commodity Impact**: Egg costs surged 3-4x, leading to temporary surcharges. Egg-related margin impact was $0.5 million in Q1, with costs expected to moderate by late Q2. Commodity inflation guidance raised to 3-5%.
- **Cost Control**: G&A expenses decreased $1.2 million YoY, offsetting inflationary pressures. Digital investments and remodels are key to back-half growth, including a new loyalty CRM program.
- **Guidance**: Expect lower half of same-restaurant sales guidance (-2% to +1%) and adjusted EBITDA in the lower range of $80-85 million. Share buybacks will prioritize cash flow generation.

**【Q&A Highlights】**
- **BOGO Sustainability**: Franchisees support the promotion, which is margin-neutral. Will continue refining everyday value and monitoring competitor moves.
- **Consumer Sentiment**: April saw rebound across income cohorts, but caution remains due to macro uncertainty. Off-premise sales resilience and remodels are key back-half drivers.
- **Keke's Expansion**: 6 new openings YTD, with 7 under construction. Franchisee interest in Keke's remains strong, despite economic headwinds. Seed-and-feed strategy may take 18-24 months to yield returns.
- **Egg Cost Outlook**: Prices expected to stabilize by Q3, with surcharges removed by end of Q2. Long-term focus on menu simplification and supply chain optimization.

Denny's (DENN)-5 May 25-2025 Q1 Earnings call transcript

- **Q4 Growth Drivers**: Denny's +1.1% system-wide sales, Keke's +3% despite hurricanes. Virtual brands (Banda Burrito) added 70bps to Denny's same-restaurant sales.
- **Value Strategy Impact**: $2/$4/$6/$8 menu drove 19% value incidence, with Everyday Value Slam leading +6.5% check growth.
- **2025 Outlook**: Conservative guidance of -2% to +1% comps, but confident in long-term initiatives like remodels (+6.5% lift) and loyalty program launch.
- **Margin Expansion**: CFO targets mid-teens company margins by 2025, with Keke's mature units already at high-teens profitability.
- **Risk Management**: Accelerated closure of 70-90 low-volume Denny's units to improve franchisee cash flow and reinvest in growth initiatives.


**【CEO Business Update】**
- **Q4 Sales Performance**: Denny's achieved +1.1% system-wide same-restaurant sales, outperforming the BBI Family Dining Index for the 4th consecutive quarter. Keke's delivered +3% system-wide sales, despite hurricane disruptions.
- **Value Strategy Success**: The $2/$4/$6/$8 Value Menu drove incremental sales, with the Everyday Value Slam and Super Slam leading the way. Off-premise sales (including virtual brands The Burger Den, The Meltdown, and Banda Burrito) accounted for 21% of Q4 revenue.
- **Operational Enhancements**: 23 Denny's restaurants underwent Diner 2.0 remodels, delivering a 6.5% sales lift. Keke's introduced a new design prototype with 6-8% sales potential.
- **2025 Outlook**: Guided for domestic same-restaurant sales of -2% to +1% due to macroeconomic uncertainty, but emphasized long-term initiatives like remodels and a new loyalty program.

**【CFO Financial Recap】**
- **Q4 Financials**: Total operating revenue of $114.7M, adjusted EBITDA of $22.2M (+11.1% YoY). Franchise operating margin improved to 51.2%, driven by same-restaurant sales growth.
- **Cost Management**: G&A expenses reduced by 3.5-4% YoY through headcount reductions and support center consolidation. Commodity inflation of 3% and labor inflation of 3% were partially offset by menu price adjustments.
- **2025 Guidance**: Projected adjusted EBITDA of $80-85M, with 25-40 new unit openings (half Denny's, half Keke's). Share buybacks of $15-25M planned.

**【Q&A Highlights】**
- **Profit Margin Confidence**: CFO stated company restaurant margins will expand to mid-teens by 2025, citing operational efficiency gains. Keke's mature units already achieving high-teens margins.
- **Sales Trend Analysis**: January 2025 saw -0.7% Denny's comps due to weather and macro uncertainty, but February showed early signs of stabilization. Keke's maintained +6.2% January comps despite broader market softness.
- **Marketing Strategy**: Shifting focus to $6.99 Everyday Value Slam to meet consumer value needs while maintaining premium menu items. CRM loyalty program launch in H2 2025 expected to drive incremental sales.
- **Keke's Expansion**: 12 new units opened in 2024, expanding into 6 states. 2025 target of 25-40 openings, with 60% company-owned to accelerate market penetration.


Denny's (DENN)-12 Feb 25-2024 Q4 Earnings call transcript

Denny`s (DENN)-30 Jul 24-2024 Q2 Earnings call transcript

Denny`s (DENN)-30 Apr 24-2024 Q1 Earnings call transcript

Denny`s (DENN)-13 Feb 24-2023 Q4 Earnings call transcript

- **Q3 Sales Growth**: 1.8% system-wide growth, 8.4% pricing offset traffic decline.\n- **Value Strategy Success**: 17% value mix, $5.99 Grand Slam test drives traffic.\n- **Keke's Expansion**: 14 franchise agreements for 100 units, 3 new locations.\n- **Off-Premise Growth**: 19% off-premise sales, Banda Burrito expansion to 80 locations.\n- **Financial Strength**: $22.2M EBITDA, 54% free cash flow conversion.\n- **Guidance**: 2023 EBITDA $85-87M, openings 35-45 restaurants.\n- **FAST Act Mitigation**: 3% pricing offset via off-premise, automation.\n

**【CEO Summary Section】**
- Denny's reported system-wide same-restaurant sales growth of 1.8% for Q3 2023, driven by pricing (8.4%) despite traffic softening due to macroeconomic uncertainty.\n- Launched a new fall menu emphasizing breakfast and value, including a $5.99 Grand Slam test in Orlando, which drove traffic without check decline.\n- Off-premise sales remained stable at 19% of total, with Banda Burrito virtual concept expanding to 80 locations.\n- Keke's Breakfast Cafe opened 3 new locations and secured 14 franchise agreements for 100 units, targeting California and Texas.\n- Total value mix increased to 17%, up from 15% in Q1, with Signature Super Slam and $5.99 Grand Slam driving traffic.\n- Modern American Diner prototype unveiled, featuring dedicated pickup areas for off-premise orders.\n- GAIN Program for team development enrolled 172 members, with 70 earning GEDs.\n- Commodity deflation of 1% and labor cost moderation (3% YoY) supported margin improvement.\n- Guidance: Full-year same-store sales growth 2.75-3.5%, openings 35-45 restaurants, adjusted EBITDA $85-87M.\n\n**【CFO Financial Commentary】\n- Franchise and license revenue $61.0M (+6.6% YoY), driven by 51.2% operating margin (vs. 47.0% prior year).\n- Company restaurant sales $53.2M (+1.8%), with Keke's contributing $0.8M.\n- Adjusted EBITDA $22.2M, free cash flow $12.0M (54% of EBITDA).\n- Share repurchases $16.5M, total debt $259M (2.99x leverage).\n- Commodity deflation 1%, labor inflation 3% (moderating from 4% Q2).\n- Guidance: 2023 EBITDA $85-87M, capex $75-77M.\n\n**【Q&A Highlights】\n- Q4 same-store sales expected -1% to +2%, with menu launch and value initiatives driving recovery.\n- 14 franchisees signed 100 Keke's units, with $100M loan pool for development.\n- FAST Act in California may require 3% pricing offset, but off-premise and automation to mitigate.\n- New menu simplifies customization, highlights breakfast, with pricing clusters for regional alignment.\n- Banda Burrito and Franklin Junction virtual brands expand off-premise opportunities.\n- October sales declined sequentially, but menu launch and $5.99 Grand Slam test provide upside.\n

Denny`s (DENN)-30 Oct 23-2023 Q3 Earnings call transcript

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Denny`s (DENN)-2 May 23-2023 Q1 Earnings call transcript

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Denny`s (DENN)-3 Aug 22-2022 Q2 Earnings call transcript

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