Denny's Reports Q1 Earnings Match, Revenue Tops Estimates

Denny's reported first-quarter 2025 earnings per share of $0.08, matching analyst expectations but down from $0.11 a year ago, with revenues rising slightly to $111.6 million, surpassing consensus estimates. Despite the revenue growth, operating income and net income both declined significantly year-over-year, impacted by higher operating costs and impairment charges. The company’s company-operated same-restaurant sales decreased by 0.9%, and domestic franchise same-restaurant sales fell by 3.2%, while its Keke's brand showed modest sales growth. Denny's has opened new franchised units but closed more than it opened, and its stock has sharply underperformed the broader market, dropping over 40% in recent months. Looking ahead, the company plans continued investment in technology to enhance the guest experience, though recent trends in earnings estimate revisions have been mostly negative. The sustainability of the stock’s movement will depend on management’s outlook and execution of its strategic initiatives.