Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and
operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's")
today reported selected preliminary and unaudited results for its
fourth quarter and fiscal year ended December 27, 2023.
Kelli Valade, Chief Executive Officer, stated, "We were pleased
to deliver solid Denny’s domestic system-wide same-restaurant
sales* in the fourth quarter, reflecting sequential improvement
throughout the quarter, while also achieving results at the
high-end of our previously guided range for the full year. Despite
a persistently challenging operating environment, we enter 2024
with growing momentum towards our key strategies and the
accelerated development of the Keke’s brand.”
Preliminary Results
Denny's fourth quarter domestic system-wide same-restaurant
sales* were 1.3% compared to the equivalent fiscal period in 2022,
including 1.5% at domestic franchised restaurants and (1.2)% at
company restaurants.
Denny's fiscal year domestic system-wide same-restaurant sales*
were 3.5% compared to the equivalent fiscal period in 2022,
including 3.6% at domestic franchised restaurants and 2.7% at
company restaurants.
In 2023, the Company opened 32 restaurants, including 11
international locations, and closed 57 restaurants, bringing the
year-end total restaurant count to 1,631.
In the fourth quarter, the Company allocated
$16.2 million to share repurchases, resulting in $52.1 million
allocated to share repurchases for the full year. As of December
27, 2023, the Company had approximately $100 million remaining
under its existing repurchase authorization.
The Company expects to release financial and
operating results for its fourth quarter and fiscal year ended
December 27, 2023, along with financial guidance for 2024, after
the market closes on Tuesday, February 13, 2024.
DENNY’S CORPORATION |
Preliminary Results |
(Unaudited) |
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Denny's |
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Keke's (2) |
Changes in
Same-Restaurant Sales (1) vs.
Prior Year |
Quarter Ended |
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Fiscal Year Ended |
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Quarter Ended |
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Fiscal Year Ended |
(Increase
(decrease)) |
12/27/23 |
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12/28/22 |
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12/27/23 |
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12/28/22 |
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12/27/23 |
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12/28/22 |
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12/27/23 |
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12/28/22 |
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Company
Restaurants |
(1.2)% |
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6.0% |
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2.7% |
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10.4% |
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0.7% |
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N/A |
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(1.1)% |
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N/A |
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Domestic Franchise
Restaurants |
1.5% |
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1.7% |
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3.6% |
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6.0% |
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(3.8)% |
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N/A |
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(4.4)% |
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N/A |
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Domestic
System-wide Restaurants |
1.3% |
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2.0% |
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3.5% |
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6.3% |
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(3.1)% |
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N/A |
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(3.9)% |
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N/A |
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(1 |
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Same-restaurant
sales include sales at company restaurants and non-consolidated
franchised and licensed restaurants that were open during the
comparable periods noted. Total operating revenue is limited to
company restaurant sales and royalties, advertising revenue, fees
and occupancy revenue from non-consolidated franchised and licensed
restaurants. Accordingly, domestic franchise same-restaurant sales
and domestic system-wide same-restaurant sales should be considered
as a supplement to, not a substitute for, the Company's results as
reported under GAAP. |
(2 |
) |
Effective July 20,
2022, the Company acquired Keke's; as such the data represents
post-acquisition results. |
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Denny's |
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Keke's |
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Franchised |
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Franchised |
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Restaurant
Unit Activity |
Company |
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& Licensed |
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Total |
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Company |
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& Licensed |
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Total |
Ending Units
September 27, 2023 |
66 |
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1,522 |
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1,588 |
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8 |
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48 |
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56 |
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Units Opened |
— |
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7 |
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7 |
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— |
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2 |
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2 |
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Units Closed |
(1 |
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(21 |
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(22 |
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— |
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— |
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— |
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Net Change |
(1 |
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(14 |
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(15 |
) |
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— |
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2 |
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2 |
Ending Units
December 27, 2023 |
65 |
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1,508 |
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1,573 |
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8 |
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50 |
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58 |
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Denny's |
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Keke's |
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Franchised |
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Franchised |
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Restaurant
Unit Activity |
Company |
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& Licensed |
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Total |
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Company |
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& Licensed |
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Total |
Ending Units
December 28, 2022 |
66 |
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1,536 |
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1,602 |
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8 |
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46 |
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54 |
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Units Opened |
— |
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28 |
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28 |
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— |
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4 |
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4 |
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Units Closed |
(1 |
) |
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(56 |
) |
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(57 |
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— |
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— |
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— |
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Net Change |
(1 |
) |
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(28 |
) |
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(29 |
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— |
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4 |
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4 |
Ending Units
December 27, 2023 |
65 |
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1,508 |
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1,573 |
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8 |
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50 |
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58 |
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*Same-restaurant sales include sales at company
restaurants and non-consolidated franchised and licensed
restaurants that were open during the comparable periods noted.
Total operating revenue is limited to company restaurant sales and
royalties, advertising revenue, initial and other fees and
occupancy revenue from non-consolidated franchised and licensed
restaurants. Accordingly, domestic franchise same-restaurant sales
and domestic system-wide same-restaurant sales should be considered
as a supplement to, not a substitute for, the Company's results as
reported under GAAP.
Upcoming Investor Conference
Presentation
The Company will be participating in the 2024 Annual ICR
Conference taking place at the JW Marriott Orlando Grande Lakes in
Orlando, Florida. The Company’s presentation will take place on
Tuesday, January 9, 2024, at 8:30 a.m. Eastern Time. Investors and
interested parties may listen to a live audio webcast of the event
which will be available online in the Investor Relations section of
the Company’s website at investor.dennys.com with a replay of the
webcast available following the live event. Investors and
interested parties may access a copy of the presentation in the
Events and Presentations section of the Company’s website at
investor.dennys.com.
About Denny’s Corporation
Denny’s Corporation is one of America’s largest
full-service restaurant chains based on number of restaurants. As
of December 27, 2023, the Company consisted of 1,631 restaurants,
1,558 of which were franchised and licensed restaurants and 73 of
which were company operated.
Denny's Corporation consists of the Denny’s brand and the Keke’s
brand. As of December 27, 2023, the Denny's brand consisted of
1,573 global restaurants, 1,508 of which were franchised and
licensed restaurants and 65 of which were company operated. As of
December 27, 2023, the Keke's brandconsisted of 58 restaurants, 50
of which were franchised restaurants and 8 of which were company
operated.
For further information on Denny's Corporation, including news
releases, links to SEC filings, and other financial information,
please visit investor.dennys.com.
Cautionary Language Regarding Forward-Looking
Statements
The Company urges caution in considering its current trends and
any outlook on earnings disclosed in this press release. In
addition, certain matters discussed in this release may constitute
forward-looking statements. These forward-looking statements, which
reflect management's best judgment based on factors currently
known, are intended to speak only as of the date such statements
are made and involve risks, uncertainties, and other factors that
may cause the actual performance of Denny’s Corporation, its
subsidiaries, and underlying restaurants to be materially different
from the performance indicated or implied by such statements. Words
such as “expect”, “anticipate”, “believe”, “intend”, “plan”,
“hope”, "will", and variations of such words and similar
expressions are intended to identify such forward-looking
statements. Except as may be required by law, the Company expressly
disclaims any obligation to update these forward-looking statements
to reflect events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events. Factors that
could cause actual performance to differ materially from the
performance indicated by these forward-looking statements include,
among others: economic, public health and political conditions that
impact consumer confidence and spending, commodity and labor
inflation; the ability to effectively staff restaurants and support
personnel; the Company's ability to maintain adequate levels of
liquidity for its cash needs, including debt obligations, payment
of dividends, planned share repurchases and capital expenditures as
well as the ability of its customers, suppliers, franchisees and
lenders to access sources of liquidity to provide for their own
cash needs; competitive pressures from within the restaurant
industry; the Company's ability to integrate and derive the
expected benefits from its acquisition of Keke's Breakfast Cafe;
the level of success of the Company’s operating initiatives and
advertising and promotional efforts; adverse publicity; health
concerns arising from food-related pandemics, outbreaks of flu
viruses or other diseases; changes in business strategy or
development plans; terms and availability of capital; regional
weather conditions; overall changes in the general economy
(including with regard to energy costs), particularly at the retail
level; political environment and geopolitical events (including
acts of war and terrorism); and other factors from time to time set
forth in the Company’s SEC reports and other filings, including but
not limited to the discussion in Management’s Discussion and
Analysis and the risks identified in Item 1A. Risk Factors
contained in the Company’s Annual Report on Form 10-K for the year
ended December 28, 2022 (and in the Company’s subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K).
Investor Contact: 877-784-7167
Media Contact: 864-597-8005
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