Denny's Q2 Earnings Miss, Guidance Remains Upbeat

Denny's reported Q2 2025 adjusted earnings per share of $0.09, down from $0.13 a year ago and below analyst consensus, while total operating revenue increased 1.5% year-over-year to $117.7 million, falling short of some market expectations. Net income decreased to $2.5 million from $3.6 million the previous year, mainly due to higher operating and interest expenses, as well as restructuring charges. The company continued closing lower-volume Denny's franchises and expanding Keke's, which grew company units by 7%, resulting in a net decrease in Denny's units. Same-store sales declined by 1.3% year-over-year. Denny's stock has fallen over 40% year-to-date, but management remains confident in their strategic initiatives and plans to resume share repurchases. EBITDA guidance for the year was set above analyst forecasts, indicating cautious optimism.