NASDAQ$DENN

Denny's Corp. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Denny's Corporation reported results, demonstrating resilience through brand investments and value focus, outperforming the BBI Family Dining index for the third consecutive quarter, driven by the $2-$4-$6-$8 value menu relaunch and off-premises expansion.

Denny's Corporation reported a decrease in total operating revenue to $111.8 million compared to $114.2 million in the prior year quarter. Net income was $6.5 million, or $0.12 per diluted share. Denny's domestic system-wide same-restaurant sales decreased by 0.1%.

  • Total operating revenue was $111.8 million compared to $114.2 million for the prior year quarter.
  • Denny's domestic system-wide same-restaurant sales decreased (0.1%) compared to the equivalent fiscal period in 2023.
  • Operating income was $11.7 million compared to $14.0 million for the prior year quarter.
  • Net income was $6.5 million, or $0.12 per diluted share.

Headline financials

Total Revenue

$112M

Previous: $114M-2.1%
EPS (adj)

$0.14

Previous: $0.17-17.6%
Adjusted EBITDA

$20M

Previous: $22.2M-9.9%
Capital Expenditures

-$7.76M

No prior period
Net Income

$6.5M

Previous: $7.9M-17.7%
Operating Income

$11.7M

Previous: $14M-16.4%
Gross Profit

$35.9M

Previous: $38.5M-6.6%
Stock-Based Comp

$3.01M

Previous: $2.86M+5.0%

Revenue & EPS history

Denny's · Revenue · Quarterly

$112M

Q3 2024-2.1%vs Q3 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, as well as the Company's strategic initiative to accelerate the closure of lower volume Denny's restaurants.

Tailwinds

  • Commodity inflation of approximately 2%.
  • Labor inflation between 3% and 4%.
  • Total general and administrative expenses between $82 million and $85 million, including approximately $11 million related to share-based compensation expense which does not impact Adjusted EBITDA*.
  • Consolidated restaurant openings of 30 to 40, including 12 to 16 new Keke's restaurants
  • Denny's domestic system-wide same-restaurant sales between (1%) and 0% (vs. between (1%) and 1%).

Headwinds

  • Consolidated net decline of 45 to 55 (vs. 20 to 30).
  • Adjusted EBITDA* between $81 million and $84 million (vs. between $83 million and $87 million).
  • Expectations that the current consumer and economic environment will not change materially.
  • Strategic initiative to accelerate the closure of lower volume Denny's restaurants.
  • The Company is not able to reconcile the forward-looking non-GAAP estimate set forth above to its most directly comparable U.S. generally accepted accounting principles (GAAP) estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy.

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 Q3 2024

Historical avgQ3 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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