NASDAQ$DENN

Denny's Corp. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Denny's reported an increase in total operating revenue and progress in recovery from the COVID-19 pandemic.

Denny's Corporation reported a significant increase in total operating revenue for Q2 2021, driven by the easing of COVID-19 restrictions and the rollout of new virtual brands. Domestic system-wide same-store sales are trending towards pre-pandemic levels, with June and July surpassing 2019 sales levels. The company is focused on overcoming staffing challenges and returning to 24/7 operations.

  • Total operating revenue increased by 164.3% to $106.2 million due to COVID-19 recovery.
  • Domestic system-wide same-store sales decreased 1.2% compared to 2019, but increased 117.0% compared to 2020.
  • Operating income was $18.3 million, a significant improvement compared to a loss of $13.5 million in the prior year quarter.
  • Net loss was $0.8 million, or $0.01 per diluted share, compared to a net loss of $23.0 million, or $0.41 per diluted share, in the prior year quarter.

Headline financials

Total Revenue

$106M

Previous: $40.2M+164.3%
EPS (adj)

$0.18

Previous: -$0.25+172.0%
Franchise Operating Margin

51.0%

Previous: 39.1%+30.4%
Company Restaurant Operating Margin

20.5%

Previous: -29.6%+169.3%
Net Income

-$828K

Previous: -$23M+96.4%
Operating Income

$18.3M

Previous: -$13.5M+235.4%
Gross Profit

$39.6M

Previous: $5.31M+645.9%
Cash & Equivalents

$10.9M

Previous: $21.1M-48.4%
Total Assets

$418M

Previous: $469M-10.7%
Stock-Based Comp

$3.39M

Previous: $1.51M+124.2%

Revenue & EPS history

Denny's · Revenue · Quarterly

$106M

Q2 2021+164.3%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Denny's · $106M total across 2 segments · Q2 2021

  • Franchise and License Revenue
    $58.6M+134.1%
  • Company Restaurant Sales
    $47.6M+214.5%

Forward guidance

The following expectations for the fiscal third quarter ending September 29, 2021 reflect management's expectations that the current economic environment will not change materially.

Tailwinds

  • Domestic system-wide same-store sales growth between 2% and 4% compared to the equivalent fiscal period in 2019.

Headwinds

  • Total general and administrative expenses between $17 million and $18 million, including approximately $3.5 million related to share-based compensation.
  • Adjusted EBITDA between $22 million and $24 million.

Historical earnings impact

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

Avg. return before/after earnings

Based on 16 quarterly earnings reports

Historical avg

-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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