Denny's Q3 revenue misses expectations; announces take-private deal

Dennys

03/11/2025 23:55

Overview

Denny's Q3 total operating revenue was $113.2 mln, missing analyst expectations

Denny's domestic same-restaurant sales fell 2.9% YoY, while Keke's rose 1.1%

Company to be taken private in $620 mln deal; Denny's stock will no longer be listed on Nasdaq after deal closes in Q1 2026

Outlook

Company did not provide financial guidance for fiscal 2025

Result Drivers

KEKE'S EXPANSION - Growth driven by new Keke's cafes and remodels, contributing to increased company restaurant sales

DENNY'S FRANCHISE WEAKNESS - Franchise and license revenue fell to $55.9 mln from $59.1 mln YoY due to same-restaurant sales decline

DENNY'S CLOSURES - Intentional closure of lower-volume Denny's locations to improve brand health, affecting franchise revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$113.20 mln
$116.90 mln (6 Analysts)
Q3 Net Income
$632,000
Q3 Adjusted EBITDA
Miss
$19.30 mln
$20.40 mln (6 Analysts)
Q3 Operating income
$10.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Denny's Corp is $6.00, about 34.8% above its October 31 closing price of $3.91

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX109MzB

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)