Denny's Corporation reported its fourth-quarter and full-year results for 2024 on February 12, 2025. Total operating revenue for Q4 2024 was $114.7 million, a slight decrease from $115.4 million in the prior year quarter. Net income for the quarter was $6.8 million, or $0.13 per diluted share, with adjusted net income per share at $0.14.
For the full year 2024, domestic system-wide same-restaurant sales declined by 0.2%. However, Keke's Breakfast Cafe demonstrated strong growth, opening 12 new cafes and expanding into five new states. The company also completed 23 remodels in 2024, which showed positive sales and traffic lifts in test restaurants.
Looking ahead to 2025, Denny's provided an 'intentionally conservative' outlook, reiterating guidance for domestic system-wide same-restaurant sales in the lower half of negative 2% to positive 1%. Adjusted EBITDA is projected at the low end of $80 million to $85 million. The company plans 25-40 consolidated restaurant openings, with Keke's accounting for approximately half, and anticipates closing 70-90 underperforming Denny's restaurants.
Commodity inflation for 2025 is projected at 3% to 5%, an increase from earlier guidance, while labor inflation is expected to be 2.5% to 3.5%. To mitigate these costs, Denny's is targeting up to 200 basis points of savings through margin improvement efforts and a 3.5% to 4.5% reduction in general and administrative expenses. The company ended the quarter with $271.9 million of total debt outstanding, including $261.3 million under its credit facility, and allocated $11.2 million to share repurchases for the full year.
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