Denny's Corporation reported its third-quarter 2024 financial results on October 22, 2024, with total operating revenue reaching $111.8 million, a 2.1% decrease from the prior year's third quarter. The company's adjusted earnings per share (EPS) was $0.14, falling short of the analyst consensus of $0.15. Net income for the quarter was $6.5 million, or $0.12 per diluted share.
Domestic system-wide same-restaurant sales declined by 0.1% in Q3 2024, reflecting a 0.1% decrease at domestic franchised restaurants and a 0.4% decrease at company-operated locations. This performance indicates ongoing challenges in attracting customers and generating sales growth across its core brand. The company opened two new franchised restaurants and completed six remodels during the quarter.
In a significant strategic announcement, Denny's revealed plans to close 150 underperforming restaurants by the end of 2025. These closures target locations in the lower third of the chain's performers, with annual unit volumes ranging from $1.9 million to $2 million. Management expects this portfolio optimization to improve both same-store sales and annual unit volumes for the remaining restaurants, despite issuing weak EBITDA guidance for the full year, which fell below consensus estimates.
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