NASDAQ$DENN

Denny's Corp. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Denny's reported mixed results for Q1 2024, with revenue declining but net income increasing compared to the prior year quarter. The company is focusing on sales-driving initiatives for the remainder of the year.

Denny's Corporation reported a decrease in total operating revenue to $110.0 million compared to $117.5 million in the prior year quarter. However, net income increased to $4.7 million, or $0.09 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the prior year quarter. The company opened eight restaurants, including three international Denny's locations and three Keke's company locations.

  • Total operating revenue decreased to $110.0 million from $117.5 million in the prior year quarter.
  • Denny's domestic system-wide same-restaurant sales decreased by 1.3%.
  • Net income increased to $4.7 million, or $0.09 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the prior year quarter.
  • The company opened eight new restaurants, including three international Denny's and three Keke's locations.

Headline financials

Total Revenue

$110M

Previous: $117M-6.4%
EPS (adj)

$0.11

Previous: $0.13-15.4%
Capital Expenditures

-$4.91M

No prior period
Free Cash Flow

-$4.69M

Previous: $12.6M-137.2%
Net Income

$4.69M

Previous: $600K+681.8%
Operating Income

$10M

Previous: $16.1M-37.9%
Gross Profit

$30.9M

Previous: $38.6M-19.9%
Stock-Based Comp

$2.78M

Previous: $3.09M-10.3%

Revenue & EPS history

Denny's · Revenue · Quarterly

$110M

Q1 2024-6.4%vs Q1 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Denny's · $114M total across 2 segments · Q3 2023

  • Franchise and License Revenue
    $61M-6.5%
  • Company Restaurant Sales
    $53.2M+1.8%

Forward guidance

The following full year 2024 expectations reflect management's expectations that the current consumer and economic environment will not change materially.

Tailwinds

  • Denny's domestic system-wide same-restaurant sales between 0% and 3%.
  • Consolidated restaurant openings of 40 to 50, including 12 to 16 new Keke's restaurants.
  • Commodity inflation between 0% and 2%.
  • Labor inflation between 4% and 5%.

Headwinds

  • Consolidated net decline of 10 to 20 restaurants.
  • Total general and administrative expenses between $83 million and $86 million, including approximately $12 million related to share-based compensation expense which does not impact Adjusted EBITDA*.
  • Adjusted EBITDA between $87 million and $91 million (vs. between $85 million and $89 million) primarily due to changes in the non-GAAP definition.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-2.4%

Avg return

30 days after

41%

26 / 64 earnings

Positive

+50.1%

Q3 2025

Best reaction

-23.8%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025
Q3 2025+50.1%+48.7%+50.1%
Q2 2025-3.3%-0.5%+31.8%
Q1 2025+3.2%+17.9%+2.6%
Q4 2024-23.8%-27.5%-41.5%
Q3 2024-17.2%-5.9%-3.8%
Q2 2024-1.6%-12.2%-11.9%
Q1 2024-2.1%-1.3%-15.2%
Q4 2023-10.1%-9.9%-13.7%
Q3 2023+1.2%+7.5%+11.7%
Q2 2023-11.2%-12.9%-19.1%
Q1 2023-5.4%-4.1%+1.6%
Q4 2022+1.3%+3.6%-11.0%
Q3 2022+2.6%+4.1%+10.6%
Q2 2022+8.1%+0.4%+2.1%
Q1 2022-14.8%-18.9%-20.4%
Q4 2021-2.6%-3.4%-11.9%
Q3 2021-2.2%
Q2 2021+5.8%
Q1 2021-4.3%
Q4 2020-0.9%
Q3 2020-13.6%
Q2 2020+4.9%
Q1 2020+4.6%
Q4 2019-3.4%
Q3 2019-3.2%
Q2 2019+3.8%
Q1 2019+1.5%
Q4 2018-3.6%
Q3 2018+20.6%
Q2 2018-7.1%
Q1 2018-14.4%
Q4 2017+3.7%
Q3 2017+1.8%
Q2 2017+8.4%
Q1 2017-6.5%
Q4 2016+12.0%
Q3 2016+6.1%
Q2 2016-2.0%
Q1 2016+6.1%
Q4 2015+5.1%
Q3 2015-6.3%
Q2 2015+8.0%
Q1 2015-0.3%
Q4 2014+5.6%
Q3 2014+10.8%
Q2 2014+9.9%
Q1 2014+5.4%
Q4 2013+0.0%
Q3 2013-1.9%
Q2 2013-3.6%
Q1 2013+0.0%
Q4 2012-1.8%
Q3 2012-1.5%
Q2 2012-4.2%
Q1 2011-4.1%
Q1 2012+3.4%
Q4 2009-1.4%
Q4 2011-1.4%
Q3 2010-3.8%
Q3 2011-3.8%
Q4 2010-7.8%
Q2 2011-7.8%
Q2 2010-3.0%
Q1 2010+11.1%

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