NASDAQ$DENN

Denny's Corp. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Denny's Q3 2020 earnings were reported, revealing a decrease in total operating revenue to $71.6 million due to the COVID-19 pandemic and the company's refranchising strategy, but showing sequential sales improvements throughout the quarter.

Denny's Corporation reported a decrease in total operating revenue to $71.6 million for Q3 2020, impacted by the COVID-19 pandemic and refranchising efforts. Despite these challenges, the company saw sequential sales improvements throughout the quarter, driven by innovations like enhanced Denny's on Demand and a streamlined menu.

  • Total operating revenue was $71.6 million.
  • Domestic system-wide same-store sales decreased 33.6%.
  • Operating Income was $3.2 million.
  • Net Income was $6.5 million, or $0.10 per diluted share.

Headline financials

Total Revenue

$71.6M

Previous: $124M-42.3%
EPS (adj)

$0.01

Previous: $0.18-94.4%
Franchise Operating Margin

45.0%

No prior period
Company Restaurant Operating Margin

1.7%

No prior period
Adjusted EBITDA

$8M

No prior period
Net Income

$6.5M

Previous: $49.1M-86.8%
Operating Income

$3.2M

Previous: $68.2M-95.3%
Gross Profit

$20.2M

Previous: $38.8M-48.0%
Cash & Equivalents

$11.2M

Previous: $2.02M+455.3%
Total Assets

$451M

Previous: $441M+2.1%
Stock-Based Comp

$2M

Previous: $2.18M-8.2%

Revenue & EPS history

Denny's · Revenue · Quarterly

$71.6M

Q3 2020-42.3%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Denny's · $71.6M total across 2 segments · Q3 2020

  • Franchise and License Revenue
    $43.8M
  • Company Restaurant Sales
    $27.8M

Forward guidance

Based on third quarter results and management's expectation that the current business conditions will not materially decline, the Company is providing full year 2020 (53 operating weeks) guidance for the fiscal year ending December 30, 2020.

Tailwinds

  • Domestic system-wide same-store sales** between 70% and 75% of prior year.
  • Total general and administrative expenses between $51 and $54 million, including approximately $7 million related to share-based compensation expense.
  • Adjusted EBITDA* of at least $28 million.
  • Cash tax refunds between $5 and $7 million.
  • Adjusted Free Cash Flow* of at least $10 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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