NASDAQ$DENN

Denny's Corp. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported results for the fourth quarter and full year ended December 28, 2022, with a business update.

Denny's Corporation reported a 12.3% increase in total operating revenue to $120.8 million for Q4 2022. Denny's domestic system-wide same-restaurant sales grew by 2.0%. Net income was $12.8 million, or $0.22 per diluted share, while Adjusted EBITDA was $23.4 million.

  • Total operating revenue grew 12.3% to $120.8 million compared to the prior year quarter.
  • Denny's domestic system-wide same-restaurant sales grew 2.0% compared to the equivalent fiscal period in 2021, including a 1.7% increase at domestic franchised restaurants and a 6.0% increase at company restaurants.
  • Operating income was $17.6 million compared to $62.6 million in the prior year quarter.
  • Net income was $12.8 million, or $0.22 per diluted share.

Headline financials

Total Revenue

$121M

Previous: $108M+12.3%
EPS (adj)

$0.18

Previous: $0.16+12.5%
Franchise Operating Margin

47.6%

Previous: 51.6%-7.8%
Company Restaurant Operating Margin

12.6%

Previous: 14.8%-14.9%
Net Income

$12.8M

Previous: $43.5M-70.6%
Operating Income

$17.6M

Previous: $62.6M-71.9%
Gross Profit

$38.5M

Previous: $38.1M+1.1%
Cash & Equivalents

$3.52M

Previous: $30.6M-88.5%
Total Assets

$498M

Previous: $436M+14.4%
Stock-Based Comp

$1.93M

Previous: $3.39M-43.0%

Revenue & EPS history

Denny's · Revenue · Quarterly

$121M

Q4 2022+12.3%vs Q4 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Denny's · $121M total across 2 segments · Q4 2022

  • Franchise and License Revenue
    $66.5M
  • Company Restaurant Sales
    $54.4M

Forward guidance

The following full year 2023 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 3% and 6%.
  • Consolidated restaurant openings of 35 to 45, including 8 to 12 new Keke's restaurants, with a consolidated net decline of 15 to 25.
  • Commodity inflation between 4% and 6%.
  • Labor inflation of approximately 5%.
  • Consolidated total general and administrative expenses between $79 million and $82 million, including approximately $14 million related to share-based compensation expense which does not impact Consolidated Adjusted EBITDA*.

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 Q4 2022

Historical avgQ4 2022

-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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