Restaurant Chain Owner Denny's Q4 Earnings: Miss Expectations, Soft Sales And Consumer Headwinds Loom Large
Shares of restaurant chain Denny’s Corp (NASDAQ:DENN) are trading lower on Wednesday.
The company reported fourth-quarter sales decline of 0.6% year-on-year to $114.7 million, missing the analyst consensus estimate of $115.663 million.
Denny’s domestic system-wide same-restaurant sales grew 1.1% and Keke’s climbed 3%.
The operating income for the quarter surged 88% to $14.5 million, with an operating margin of 12.6%.
Total general and administrative expenses decreased 3.1% to $18.65 million. Adjusted EBITDA increased 11.1% Y/Y to $22.2 million.
Adjusted EPS of $0.14 missed the analyst consensus estimate of $0.15.
Denny’s has approximately $89.2 million remaining under its existing repurchase authorization.
“Looking ahead to 2025, there is still work to be done within our brands, particularly as we navigate near-term consumer sentiment that has been affected by macroeconomic factors. With the actions we are taking to maintain our position as a value leader, invest in our brands, reduce costs, and drive traffic, we are well positioned to deliver shareholder value,” said CEO Kelli Valade.
The company held $1.7 million in and equivalents as of December 25, 2024.
Outlook: Denny’s sees FY25 domestic system-wide same-restaurant sales of (2.0%) – 1.0%.
The company sees consolidated restaurant openings of 25 – 40 and commodity inflation between 2.0% – 4.0%.
Denny’s expects to repurchase $15 million – $25 million worth of shares in FY25.
Price Action: DENN shares are trading lower by 21.7% at $5.26 at the last check Wednesday.
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This article Restaurant Chain Owner Denny's Q4 Earnings: Miss Expectations, Soft Sales And Consumer Headwinds Loom Large originally appeared on Benzinga.com
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