Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and
operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's")
today reported results for its fourth quarter and full year ended
December 27, 2023 and provided a business update on the
Company’s operations.
Kelli Valade, Chief Executive Officer, stated, "We were pleased
to close out 2023 with solid Denny’s domestic system-wide
same-restaurant sales** of 1.3% in the fourth quarter, reflecting
sequential improvement throughout the quarter, while also achieving
results above the high-end of our previously guided range for the
full year. We enter 2024 with growing momentum by focusing on our
key strategic levers: a best-in-class breakfast with craveable
items, an unbeatable value proposition, and convenience in the form
of off-premises options.”
Fourth Quarter
2023 Highlights
- Total operating
revenue was $115.4 million compared to $120.8 million in the prior
year quarter.
- Denny's domestic
system-wide same-restaurant sales** were 1.3% compared to the
equivalent fiscal period in 2022, including 1.5% at domestic
franchised restaurants and (1.2)% at company restaurants.
- Opened nine
franchised restaurants, including one international Denny's
location and two Keke's locations.
- Completed five
Denny's franchised restaurant remodels.
- Operating income was
$7.7 million compared to $17.6 million in the prior year
quarter.
- Franchise Operating
Margin* was $31.5 million, or 51.4% of franchise and license
revenue, and Company Restaurant Operating Margin* was $5.4 million,
or 10.0% of company restaurant sales.
- Net income was $2.9
million, or $0.05 per diluted share.
- Adjusted Net Income*
and Adjusted Net Income Per Share* were $7.8 million and $0.14,
respectively.
- Adjusted EBITDA* was
$18.6 million.
- Cash provided by
(used in) operating, investing, and financing activities was $21.4
million, ($4.5) million, and ($12.9) million, respectively.
- Adjusted Free Cash
Flow* was $7.4 million.
- Repurchased $16.2
million of common stock.
Full Year 2023 Highlights
- Total operating
revenue was $463.9 million compared to $456.4 million in the prior
year.
- Denny's domestic
system-wide same-restaurant sales** were 3.6% compared to the
equivalent fiscal period in 2022, including 3.6% at domestic
franchised restaurants and 2.7% at company restaurants.
- Opened 32 franchised
restaurants, including 11 international Denny's locations and 4
Keke's locations.
- Completed 22 Denny's
remodels including 21 franchised restaurants.
- Operating income was
$52.8 million compared to $60.6 million in the prior year.
- Franchise Operating
Margin* was $125.9 million, or 50.7% of franchise and license
revenue, and Company Restaurant Operating Margin* was $27.9
million, or 13.0% of company restaurant sales.
- Net income was $19.9
million, or $0.35 per diluted share.
- Adjusted Net Income*
and Adjusted Net Income Per Share* were $32.9 million and $0.59,
respectively.
- Adjusted EBITDA* was
$81.5 million.
- Cash provided by
(used in) operating, investing, and financing activities was $72.1
million, ($7.6) million, and ($63.2) million, respectively.
- Adjusted Free Cash
Flow* was $44.7 million.
- Repurchased
$52.1 million of common stock.
Fourth Quarter 2023 Results
Total operating revenue was $115.4 million compared to $120.8
million in the prior year quarter.
Franchise and license revenue was $61.3 million compared to
$66.5 million in the prior year quarter. This change was primarily
driven by a $5.3 million decrease in initial and other fees
associated with the sale of kitchen equipment in the prior year
quarter.
Company restaurant sales were $54.0 million compared to $54.4
million in the prior year quarter.
Franchise Operating Margin* was $31.5 million, or 51.4% of
franchise and license revenue, compared to $31.6 million, or 47.6%,
in the prior year quarter. The favorable change in margin rate
resulted from the completion of our kitchen modernization rollout
during 2023.
Company Restaurant Operating Margin* was $5.4 million, or 10.0%
of company restaurant sales, compared to $6.8 million, or 12.6%, in
the prior year quarter. This margin change was primarily due to
$1.8 million in legal costs in the current quarter partially
offset by improvements in product costs compared to the prior year
quarter.
Total general and administrative expenses were $19.3 million,
compared to $17.0 million in the prior year quarter. This change
was primarily due to increases in corporate administration expense,
deferred compensation valuation adjustments and performance-based
incentive compensation, partially offset by a reduction in
stock-based compensation.
The provision for income taxes was $1.7 million, reflecting an
effective tax rate of 36.9% for the quarter. Approximately $2.7
million in cash taxes were paid during the quarter.
Net income was $2.9 million, or $0.05 per diluted share,
compared to $12.8 million, or $0.22 per diluted share, in the prior
year quarter. This change in net income was primarily due to a
$6.7 million impairment loss in the current quarter and
$2.3 million of gains related to dedesignated interest rate
swap valuation adjustments in the prior year quarter. Adjusted Net
Income* per share was $0.14 compared to $0.18 in the prior year
quarter.
The Company ended the quarter with $266.0 million of total debt
outstanding, including $255.5 million of borrowings under its
credit facility.
Adjusted Free Cash Flow* and Capital
Allocation
Adjusted Free Cash Flow* in the quarter was $7.4 million after
investing $4.5 million in cash capital expenditures, including
facilities maintenance.
During the quarter, the Company allocated $16.2 million to share
repurchases resulting in approximately $100.4 million remaining
under its existing repurchase authorization.
Business Outlook
The following full year 2024 expectations reflect management's
expectations that the current consumer and economic environment
will not change materially.
- Denny's domestic
system-wide same-restaurant sales** between 0% and 3%
- Consolidated
restaurant openings of 40 to 50, including 12 to 16 new Keke's
restaurants , with a consolidated net decline of 10 to 20.
- Commodity inflation
between 0% and 2%.
- Labor inflation
between 4% and 5%.
- Total general and
administrative expenses between $83 million and $86 million ,
including approximately $12 million related to share-based
compensation expense which does not impact Adjusted EBITDA*.
- Adjusted EBITDA*
between $85 million and $89 million.
* Please refer to the Reconciliation of Net
Income and Net Cash Provided by Operating Activities to Non-GAAP
Financial Measures, as well as the Reconciliation of Operating
Income to Non-GAAP Financial Measures included in the tables below.
The Company is not able to reconcile the forward-looking non-GAAP
estimate set forth above to its most directly comparable U.S.
generally accepted accounting principles (GAAP) estimates without
unreasonable efforts because it is unable to predict, forecast or
determine the probable significance of the items impacting these
estimates, including gains, losses and other charges, with a
reasonable degree of accuracy. Accordingly, the most directly
comparable forward-looking GAAP estimate is not provided.
** Same-restaurant sales include sales at company restaurants
and non-consolidated franchised and licensed restaurants that were
open during the comparable periods noted. Total operating revenue
is limited to company restaurant sales and royalties, advertising
revenue, initial and other fees and occupancy revenue from
non-consolidated franchised and licensed restaurants. Accordingly,
domestic franchise same-restaurant sales and domestic system-wide
same-restaurant sales should be considered as a supplement to, not
a substitute for, the Company's results as reported under GAAP.
Conference Call and Webcast Information
The Company will provide further commentary on the results for
the fourth quarter ended December 27, 2023 on its quarterly
investor conference call today, Tuesday, February 13, 2024 at
4:30 p.m. Eastern Time. Interested parties are invited to listen to
a live broadcast of the conference call accessible through the
Company's investor relations website at investor.dennys.com.
About Denny's Corporation
Denny’s Corporation is one of America’s largest full-service
restaurant chains based on number of restaurants. As of
December 27, 2023, the Company consisted of 1,631 restaurants,
1,558 of which were franchised and licensed restaurants and 73 of
which were company operated. Denny's Corporation consists of the
Denny’s brand and the Keke’s brand. As of December 27, 2023,
the Denny's brand consisted of 1,573 global restaurants, 1,508 of
which were franchised and licensed restaurants and 65 of which were
company operated. As of December 27, 2023, the Keke's brand
consisted of 58 restaurants, 50 of which were franchised
restaurants and 8 of which were company operated.
For further information on Denny's Corporation, including news
releases, links to SEC filings, and other financial information,
please visit investor.dennys.com.
Cautionary Language Regarding Forward-Looking
Statements
The Company urges caution in considering its current trends and
any outlook on earnings disclosed in this press release. In
addition, certain matters discussed in this release may constitute
forward-looking statements. These forward-looking statements, which
reflect management's best judgment based on factors currently
known, are intended to speak only as of the date such statements
are made and involve risks, uncertainties, and other factors that
may cause the actual performance of Denny’s Corporation, its
subsidiaries, and underlying restaurants to be materially different
from the performance indicated or implied by such statements. Words
such as “expect”, “anticipate”, “believe”, “intend”, “plan”,
“hope”, "will", and variations of such words and similar
expressions are intended to identify such forward-looking
statements. Except as may be required by law, the Company expressly
disclaims any obligation to update these forward-looking statements
to reflect events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events. Factors that
could cause actual performance to differ materially from the
performance indicated by these forward-looking statements include,
among others: economic, public health and political conditions that
impact consumer confidence and spending, commodity and labor
inflation; the ability to effectively staff restaurants and support
personnel; the Company's ability to maintain adequate levels of
liquidity for its cash needs, including debt obligations, payment
of dividends, planned share repurchases and capital expenditures as
well as the ability of its customers, suppliers, franchisees and
lenders to access sources of liquidity to provide for their own
cash needs; competitive pressures from within the restaurant
industry; the Company's ability to integrate and derive the
expected benefits from its acquisition of Keke's Breakfast Cafe;
the level of success of the Company’s operating initiatives and
advertising and promotional efforts; adverse publicity; health
concerns arising from food-related pandemics, outbreaks of flu
viruses or other diseases; changes in business strategy or
development plans; terms and availability of capital; regional
weather conditions; overall changes in the general economy
(including with regard to energy costs), particularly at the retail
level; political environment and geopolitical events (including
acts of war and terrorism); and other factors from time to time set
forth in the Company’s SEC reports and other filings, including but
not limited to the discussion in Management’s Discussion and
Analysis and the risks identified in Item 1A. Risk Factors
contained in the Company’s Annual Report on Form 10-K for the year
ended December 28, 2022 (and in the Company’s subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K).
DENNY’S CORPORATION |
Consolidated Balance Sheets |
(Unaudited) |
($ in
thousands) |
12/27/23 |
|
12/28/22 |
Assets |
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash
equivalents |
$ |
4,893 |
|
|
$ |
3,523 |
|
|
|
Investments |
|
1,281 |
|
|
|
1,746 |
|
|
|
Receivables,
net |
|
21,391 |
|
|
|
25,576 |
|
|
|
Inventories |
|
2,175 |
|
|
|
5,538 |
|
|
|
Assets held for
sale |
|
1,455 |
|
|
|
1,403 |
|
|
|
Prepaid and other
current assets |
|
12,855 |
|
|
|
12,529 |
|
|
|
|
Total current assets |
|
44,050 |
|
|
|
50,315 |
|
|
Property, net |
|
93,494 |
|
|
|
94,469 |
|
|
Finance lease
right-of-use assets, net |
|
6,098 |
|
|
|
6,499 |
|
|
Operating lease
right-of-use assets, net |
|
116,795 |
|
|
|
126,065 |
|
|
Goodwill |
|
65,908 |
|
|
|
72,740 |
|
|
Intangible assets,
net |
|
93,428 |
|
|
|
95,034 |
|
|
Deferred financing
costs, net |
|
1,702 |
|
|
|
2,337 |
|
|
Other noncurrent
assets |
|
43,343 |
|
|
|
50,876 |
|
|
|
|
Total assets |
$ |
464,818 |
|
|
$ |
498,335 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current
liabilities |
|
|
|
|
|
Current finance
lease liabilities |
$ |
1,383 |
|
|
$ |
1,683 |
|
|
|
Current operating
lease liabilities |
|
14,779 |
|
|
|
15,310 |
|
|
|
Accounts
payable |
|
24,070 |
|
|
|
19,896 |
|
|
|
Other current
liabilities |
|
63,068 |
|
|
|
56,762 |
|
|
|
|
Total current liabilities |
|
103,300 |
|
|
|
93,651 |
|
|
Long-term
liabilities |
|
|
|
|
|
Long-term
debt |
|
255,500 |
|
|
|
261,500 |
|
|
|
Noncurrent finance
lease liabilities |
|
9,150 |
|
|
|
9,555 |
|
|
|
Noncurrent
operating lease liabilities |
|
114,451 |
|
|
|
123,404 |
|
|
|
Liability for
insurance claims, less current portion |
|
6,929 |
|
|
|
7,324 |
|
|
|
Deferred income
taxes, net |
|
6,582 |
|
|
|
7,419 |
|
|
|
Other noncurrent
liabilities |
|
31,592 |
|
|
|
32,598 |
|
|
|
|
Total long-term
liabilities |
|
424,204 |
|
|
|
441,800 |
|
|
|
|
Total liabilities |
|
527,504 |
|
|
|
535,451 |
|
|
|
|
|
|
|
|
Shareholders' deficit |
|
|
|
|
|
Common stock |
|
529 |
|
|
|
650 |
|
|
|
Paid-in
capital |
|
6,688 |
|
|
|
142,136 |
|
|
|
Deficit |
|
(21,784 |
) |
|
|
(41,729 |
) |
|
|
Accumulated other
comprehensive loss, net |
|
(41,659 |
) |
|
|
(42,697 |
) |
|
|
Treasury
stock |
|
(6,460 |
) |
|
|
(95,476 |
) |
|
|
|
Total shareholders'
deficit |
|
(62,686 |
) |
|
|
(37,116 |
) |
|
|
|
Total liabilities and
shareholders' deficit |
$ |
464,818 |
|
|
$ |
498,335 |
|
|
|
|
|
|
|
|
Debt
Balances |
|
Credit facility
revolver due 2026 |
$ |
255,500 |
|
|
$ |
261,500 |
|
|
Finance lease
liabilities |
|
10,533 |
|
|
|
11,238 |
|
|
|
Total debt |
$ |
266,033 |
|
|
$ |
272,738 |
|
DENNY’S CORPORATION |
Condensed Consolidated Statements of Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Quarter Ended |
($ in thousands,
except per share amounts) |
12/27/23 |
|
12/28/22 |
Revenue: |
|
|
|
|
Company restaurant
sales |
$ |
54,046 |
|
|
$ |
54,399 |
|
|
Franchise and
license revenue |
|
61,307 |
|
|
|
66,450 |
|
|
|
Total operating revenue |
|
115,353 |
|
|
|
120,849 |
|
Costs of company
restaurant sales, excluding depreciation and amortization |
|
48,646 |
|
|
|
47,554 |
|
Costs of franchise
and license revenue, excluding depreciation and amortization |
|
29,795 |
|
|
|
34,814 |
|
General and
administrative expenses |
|
19,255 |
|
|
|
16,985 |
|
Depreciation and
amortization |
|
3,507 |
|
|
|
3,810 |
|
Goodwill
impairment charges |
|
6,363 |
|
|
|
— |
|
Operating (gains),
losses and other charges, net |
|
63 |
|
|
|
46 |
|
|
|
Total operating costs and
expenses, net |
|
107,629 |
|
|
|
103,209 |
|
Operating
income |
|
7,724 |
|
|
|
17,640 |
|
Interest expense,
net |
|
4,309 |
|
|
|
4,240 |
|
Other nonoperating
income, net |
|
(1,182 |
) |
|
|
(2,714 |
) |
Income before
income taxes |
|
4,597 |
|
|
|
16,114 |
|
Provision for
income taxes |
|
1,695 |
|
|
|
3,343 |
|
Net income |
$ |
2,902 |
|
|
$ |
12,771 |
|
|
|
|
|
|
|
Net income per
share - basic |
$ |
0.05 |
|
|
$ |
0.22 |
|
Net income per
share - diluted |
$ |
0.05 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
Basic weighted
average shares outstanding |
|
53,648 |
|
|
|
58,406 |
|
Diluted weighted
average shares outstanding |
|
53,893 |
|
|
|
58,480 |
|
|
|
|
|
|
|
Comprehensive
income (loss) |
$ |
(10,997 |
) |
|
$ |
13,377 |
|
|
|
|
|
General
and Administrative Expenses |
|
|
Corporate
administrative expenses |
$ |
16,420 |
|
|
$ |
13,812 |
|
|
Share-based
compensation |
|
403 |
|
|
|
1,933 |
|
|
Incentive
compensation |
|
1,305 |
|
|
|
866 |
|
|
Deferred
compensation valuation adjustments |
|
1,127 |
|
|
|
374 |
|
|
|
Total general and
administrative expenses |
$ |
19,255 |
|
|
$ |
16,985 |
|
DENNY’S CORPORATION |
Condensed Consolidated Statements of Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
($ in thousands,
except per share amounts) |
12/27/23 |
|
12/28/22 |
Revenue: |
|
|
|
|
Company restaurant
sales |
$ |
215,532 |
|
$ |
199,753 |
|
|
Franchise and
license revenue |
|
248,390 |
|
|
256,676 |
|
|
|
Total operating revenue |
|
463,922 |
|
|
456,429 |
|
Costs of company
restaurant sales, excluding depreciation and amortization |
|
187,599 |
|
|
179,458 |
|
Costs of franchise
and license revenue, excluding depreciation and amortization |
|
122,452 |
|
|
135,327 |
|
General and
administrative expenses |
|
77,770 |
|
|
67,173 |
|
Depreciation and
amortization |
|
14,385 |
|
|
14,862 |
|
Goodwill
impairment charges |
|
6,363 |
|
|
— |
|
Operating (gains),
losses and other charges, net |
|
2,530 |
|
|
(1,005 |
) |
|
|
Total operating costs and
expenses, net |
|
411,099 |
|
|
395,815 |
|
Operating
income |
|
52,823 |
|
|
60,614 |
|
Interest expense,
net |
|
17,597 |
|
|
13,769 |
|
Other nonoperating
expense (income), net |
|
8,288 |
|
|
(52,585 |
) |
Income before
income taxes |
|
26,938 |
|
|
99,430 |
|
Provision for
income taxes |
|
6,993 |
|
|
24,718 |
|
Net income |
$ |
19,945 |
|
$ |
74,712 |
|
|
|
|
|
|
|
Net income per
share - basic |
$ |
0.36 |
|
$ |
1.23 |
|
Net income per
share - diluted |
$ |
0.35 |
|
$ |
1.23 |
|
|
|
|
|
|
|
Basic weighted
average shares outstanding |
|
55,984 |
|
|
60,771 |
|
Diluted weighted
average shares outstanding |
|
56,196 |
|
|
60,879 |
|
|
|
|
|
|
|
Comprehensive
income |
$ |
20,983 |
|
$ |
86,485 |
|
|
|
|
|
General
and Administrative Expenses |
|
|
Corporate
administrative expenses |
$ |
60,339 |
|
$ |
52,115 |
|
|
Share-based
compensation |
|
8,880 |
|
|
11,400 |
|
|
Incentive
compensation |
|
6,640 |
|
|
5,811 |
|
|
Deferred
compensation valuation adjustments |
|
1,911 |
|
|
(2,153 |
) |
|
|
Total general and
administrative expenses |
$ |
77,770 |
|
$ |
67,173 |
|
DENNY’S CORPORATION |
Reconciliation of Net Income and Net Cash Provided by
Operating Activities to Non-GAAP Financial Measures |
(Unaudited) |
The Company believes that, in addition to GAAP measures, certain
non-GAAP financial measures are appropriate indicators to assist in
the evaluation of operating performance and liquidity on a
period-to-period basis. The Company uses Adjusted EBITDA, Adjusted
Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per
Share internally as performance measures for planning purposes,
including the preparation of annual operating budgets, and for
compensation purposes, including incentive compensation for certain
employees. Adjusted EBITDA is also used in the calculation of
financial covenant ratios in accordance with the Company’s credit
facility. Adjusted Free Cash Flow is also used as a non-GAAP
liquidity measure by Management to assess the Company’s ability to
generate cash and plan for future operating and capital actions.
Management believes that the presentation of Adjusted EBITDA,
Adjusted Net Income, Adjusted Net Income Per Share and Adjusted
Free Cash Flow provide useful information to investors and analysts
about the Company’s operating results, financial condition or cash
flows. However, each of these non-GAAP financial measures should be
considered as a supplement to, not a substitute for, operating
income, net income, net income per share, net cash provided by
operating activities, or other financial performance and liquidity
measures prepared in accordance with GAAP.
|
Quarter Ended |
|
Fiscal Year Ended |
($ in thousands) |
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
Net income |
$ |
2,902 |
|
|
$ |
12,771 |
|
|
$ |
19,945 |
|
|
$ |
74,712 |
|
Provision for income
taxes |
|
1,695 |
|
|
|
3,343 |
|
|
|
6,993 |
|
|
|
24,718 |
|
Goodwill impairment
charges |
|
6,363 |
|
|
|
— |
|
|
|
6,363 |
|
|
|
— |
|
Operating (gains), losses and other charges, net |
|
63 |
|
|
|
46 |
|
|
|
2,530 |
|
|
|
(1,005 |
) |
Other nonoperating (income)
expense, net |
|
(1,182 |
) |
|
|
(2,714 |
) |
|
|
8,288 |
|
|
|
(52,585 |
) |
Share-based compensation
expense |
|
403 |
|
|
|
1,933 |
|
|
|
8,880 |
|
|
|
11,400 |
|
Deferred compensation plan
valuation adjustments |
|
1,127 |
|
|
|
374 |
|
|
|
1,911 |
|
|
|
(2,153 |
) |
Interest expense, net |
|
4,309 |
|
|
|
4,240 |
|
|
|
17,597 |
|
|
|
13,769 |
|
Depreciation and
amortization |
|
3,507 |
|
|
|
3,810 |
|
|
|
14,385 |
|
|
|
14,862 |
|
Cash payments for restructuring charges and exit costs |
|
(626 |
) |
|
|
(402 |
) |
|
|
(2,291 |
) |
|
|
(1,067 |
) |
Cash payments for share-based compensation |
|
— |
|
|
|
— |
|
|
|
(3,131 |
) |
|
|
(5,147 |
) |
Adjusted EBITDA |
$ |
18,561 |
|
|
$ |
23,401 |
|
|
$ |
81,470 |
|
|
$ |
77,504 |
|
|
|
|
|
|
|
|
|
DENNY’S CORPORATION |
Reconciliation of Net Income and Net Cash Provided by
Operating Activities to Non-GAAP Financial
Measures (Continued) |
(Unaudited) |
|
Quarter Ended |
|
Fiscal Year Ended |
($ in thousands) |
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
Net cash provided by operating activities |
$ |
21,357 |
|
|
$ |
14,502 |
|
|
$ |
72,125 |
|
|
$ |
39,452 |
|
Capital expenditures |
|
(4,479 |
) |
|
|
(1,698 |
) |
|
|
(9,978 |
) |
|
|
(11,844 |
) |
Acquisition of real estate and
restaurant(1) |
|
— |
|
|
|
— |
|
|
|
(1,227 |
) |
|
|
(750 |
) |
Cash payments for
restructuring charges and exit costs |
|
(626 |
) |
|
|
(402 |
) |
|
|
(2,291 |
) |
|
|
(1,067 |
) |
Cash payments for share-based
compensation |
|
— |
|
|
|
— |
|
|
|
(3,131 |
) |
|
|
(5,147 |
) |
Deferred compensation plan
valuation adjustments |
|
1,127 |
|
|
|
374 |
|
|
|
1,911 |
|
|
|
(2,153 |
) |
Other nonoperating expense
(income), net |
|
(1,182 |
) |
|
|
(2,714 |
) |
|
|
8,288 |
|
|
|
(52,585 |
) |
Gains (losses) on
investments |
|
26 |
|
|
|
(16 |
) |
|
|
85 |
|
|
|
(305 |
) |
Gains (losses) on early
termination of debt and leases |
|
(17 |
) |
|
|
8 |
|
|
|
(17 |
) |
|
|
37 |
|
Amortization of deferred
financing costs |
|
(159 |
) |
|
|
(159 |
) |
|
|
(635 |
) |
|
|
(634 |
) |
Gains (losses) and
amortization on interest rate swap derivatives, net |
|
(121 |
) |
|
|
2,311 |
|
|
|
(10,959 |
) |
|
|
54,989 |
|
Interest expense, net |
|
4,309 |
|
|
|
4,240 |
|
|
|
17,597 |
|
|
|
13,769 |
|
Cash interest expense, net
(2) |
|
(4,028 |
) |
|
|
(3,925 |
) |
|
|
(16,420 |
) |
|
|
(14,923 |
) |
Deferred income tax benefit
(expense) |
|
2,072 |
|
|
|
937 |
|
|
|
1,703 |
|
|
|
(14,732 |
) |
Increase in tax valuation
allowance |
|
(205 |
) |
|
|
(546 |
) |
|
|
(205 |
) |
|
|
(546 |
) |
Provision for income
taxes |
|
1,695 |
|
|
|
3,343 |
|
|
|
6,993 |
|
|
|
24,718 |
|
Income taxes paid, net |
|
(2,664 |
) |
|
|
(3,135 |
) |
|
|
(9,195 |
) |
|
|
(9,296 |
) |
Changes in operating assets and liabilities, excluding acquisitions
and dispositions |
|
|
|
|
|
|
|
Receivables |
|
4,331 |
|
|
|
1,104 |
|
|
|
(3,904 |
) |
|
|
5,892 |
|
Inventories |
|
(178 |
) |
|
|
(3,406 |
) |
|
|
(3,362 |
) |
|
|
460 |
|
Other current assets |
|
1,037 |
|
|
|
2,821 |
|
|
|
325 |
|
|
|
1,138 |
|
Other noncurrent assets |
|
1,607 |
|
|
|
5,318 |
|
|
|
2,509 |
|
|
|
2,129 |
|
Operating lease assets and liabilities |
|
149 |
|
|
|
136 |
|
|
|
628 |
|
|
|
696 |
|
Accounts payable |
|
(11,111 |
) |
|
|
(7,033 |
) |
|
|
(4,032 |
) |
|
|
(3,918 |
) |
Other accrued liabilities |
|
(4,675 |
) |
|
|
5,315 |
|
|
|
(3,356 |
) |
|
|
8,798 |
|
Other noncurrent liabilities |
|
(875 |
) |
|
|
(2,732 |
) |
|
|
1,198 |
|
|
|
6,513 |
|
Adjusted Free Cash Flow |
$ |
7,390 |
|
|
$ |
14,643 |
|
|
$ |
44,650 |
|
|
$ |
40,691 |
|
(1 |
) |
For the year-to-date period ended
December 27, 2023, amount includes cash paid for the acquisition of
a piece of real estate. For the year-to-date period ended December
28, 2022, amount includes cash paid for the acquisition of a
Denny's franchise restaurant and excludes cash paid for the
acquisition of Keke's. |
(2 |
) |
Includes cash interest income,
net for the quarter and year-to-date period ended December 27,
2023, and cash receipts of $0.2 million for dedesignated interest
rate swap derivatives for the year-to-date period ended December
27, 2023. Includes cash interest expense (income), net and cash
(receipts) payments of $(0.1) million and $1.8 million for
dedesignated interest rate swap derivatives for the quarter and
year-to-date period ended December 28, 2022, respectively. |
DENNY’S CORPORATION |
Reconciliation of Net Income and Net Cash Provided by
Operating Activities to Non-GAAP Financial
Measures (Continued) |
(Unaudited) |
|
Quarter Ended |
|
Fiscal Year Ended |
($ in thousands, except per
share amounts) |
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
Adjusted EBITDA |
$ |
18,561 |
|
|
$ |
23,401 |
|
|
$ |
81,470 |
|
|
$ |
77,504 |
|
Cash interest expense, net
(1) |
|
(4,028 |
) |
|
|
(3,925 |
) |
|
|
(16,420 |
) |
|
|
(14,923 |
) |
Cash paid for income taxes,
net |
|
(2,664 |
) |
|
|
(3,135 |
) |
|
|
(9,195 |
) |
|
|
(9,296 |
) |
Cash paid for capital
expenditures (2) |
|
(4,479 |
) |
|
|
(1,698 |
) |
|
|
(11,205 |
) |
|
|
(12,594 |
) |
Adjusted Free Cash Flow |
$ |
7,390 |
|
|
$ |
14,643 |
|
|
$ |
44,650 |
|
|
$ |
40,691 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
2,902 |
|
|
$ |
12,771 |
|
|
$ |
19,945 |
|
|
$ |
74,712 |
|
(Gains) losses and
amortization on interest rate swap derivatives, net |
|
121 |
|
|
|
(2,311 |
) |
|
|
10,959 |
|
|
|
(54,989 |
) |
Gains on sales of assets and
other charges, net |
|
(88 |
) |
|
|
(67 |
) |
|
|
(2,220 |
) |
|
|
(3,378 |
) |
Impairment charges (3) |
|
6,737 |
|
|
|
— |
|
|
|
8,577 |
|
|
|
963 |
|
Tax effect (4) |
|
(1,872 |
) |
|
|
152 |
|
|
|
(4,329 |
) |
|
|
14,294 |
|
Adjusted Net Income |
$ |
7,800 |
|
|
$ |
10,545 |
|
|
$ |
32,932 |
|
|
$ |
31,602 |
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
53,893 |
|
|
|
58,480 |
|
|
|
56,196 |
|
|
|
60,879 |
|
|
|
|
|
|
|
|
|
Net Income Per Share -
Diluted |
$ |
0.05 |
|
|
$ |
0.22 |
|
|
$ |
0.35 |
|
|
$ |
1.23 |
|
Adjustments Per Share |
|
0.09 |
|
|
|
(0.04 |
) |
|
|
0.24 |
|
|
|
(0.71 |
) |
Adjusted Net Income Per
Share |
$ |
0.14 |
|
|
$ |
0.18 |
|
|
$ |
0.59 |
|
|
$ |
0.52 |
|
(1 |
) |
Includes cash interest income,
net for the quarter and year-to-date period ended December 27,
2023, and cash receipts of $0.2 million for dedesignated interest
rate swap derivatives for the year-to-date period ended December
27, 2023. Includes cash interest expense (income), net and cash
(receipts) payments of $(0.1) million and $1.8 million for
dedesignated interest rate swap derivatives for the quarter and
year-to-date period ended December 28, 2022, respectively. |
(2 |
) |
For the year-to-date period ended
December 27, 2023, amount includes cash paid for capital
expenditures and the acquisition of a piece of real estate. For the
year-to-date period ended December 28, 2022, amount includes cash
paid for capital expenditures and the acquisition of a Denny's
franchise restaurant, and excludes cash paid for the acquisition of
Keke's. |
(3 |
) |
Impairment charges include
goodwill impairment charges of $6.4 million for the quarter and
year-to-date period ended December 27, 2023. |
(4 |
) |
Tax adjustments for the quarter
and year-to-date period ended December 27, 2023 reflect effective
tax rates of 27.7% and 25.0%, respectively. Tax adjustments for the
quarter and year-to-date period ended December 28, 2022 reflect
effective tax rates of 6.4% and 24.9%, respectively. |
DENNY’S CORPORATION |
Reconciliation of Operating Income to Non-GAAP Financial
Measures |
(Unaudited) |
The Company believes that, in addition to GAAP measures, certain
other non-GAAP financial measures are appropriate indicators to
assist in the evaluation of restaurant-level operating efficiency
and performance of ongoing restaurant-level operations. The Company
uses Restaurant-level Operating Margin, Company Restaurant
Operating Margin and Franchise Operating Margin internally as
performance measures for planning purposes, including the
preparation of annual operating budgets, and these three non-GAAP
measures are used to evaluate operating effectiveness.
The Company defines Restaurant-level Operating Margin as
operating income excluding the following three items: general and
administrative expenses, depreciation and amortization, and
operating (gains), losses and other charges, net. Restaurant-level
Operating Margin is presented as a percent of total operating
revenue. The Company excludes general and administrative expenses,
which include primarily non-restaurant-level costs associated with
support of company and franchised restaurants and other activities
at their corporate office. The Company excludes depreciation and
amortization expense, substantially all of which is related to
company restaurant-level assets, because such expenses represent
historical sunk costs which do not reflect current cash outlays for
the restaurants. The Company excludes special items, included
within operating (gains), losses and other charges, net, to provide
investors with a clearer perspective of its ongoing operating
performance and a more relevant comparison to prior period
results.
Restaurant-level Operating Margin is the total of Company
Restaurant Operating Margin and Franchise Operating Margin. The
Company defines Company Restaurant Operating Margin as company
restaurant sales less costs of company restaurant sales (which
include product costs, company restaurant level payroll and
benefits, occupancy costs, and other operating costs including
utilities, repairs and maintenance, marketing and other expenses)
and presents it as a percent of company restaurant sales. The
Company defines Franchise Operating Margin as franchise and license
revenue (which includes franchise royalties and other non-food and
beverage revenue streams such as initial franchise and other fees,
advertising revenue and occupancy revenue) less costs of franchise
and license revenue and presents it as a percent of franchise and
license revenue.
These non-GAAP financial measures provide a meaningful
comparison between periods and enable investors to focus on the
performance of restaurant-level operations by excluding revenues
and costs unrelated to food and beverage sales in addition to
corporate general and administrative expense, depreciation and
amortization, and operating (gains), losses and other charges, net.
However, each of these non-GAAP financial measures should be
considered as a supplement to, not a substitute for, operating
income, net income or other financial performance measures prepared
in accordance with GAAP. Restaurant-level Operating Margin, Company
Restaurant Operating Margin and Franchise Operating Margin do not
accrue directly to the benefit of shareholders because of the
aforementioned excluded items and are not indicative of the overall
results for the Company.
|
Quarter Ended |
|
Fiscal Year Ended |
($ in thousands) |
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
Operating income |
$ |
7,724 |
|
$ |
17,640 |
|
$ |
52,823 |
|
$ |
60,614 |
|
General and administrative
expenses |
|
19,255 |
|
|
16,985 |
|
|
77,770 |
|
|
67,173 |
|
Depreciation and
amortization |
|
3,507 |
|
|
3,810 |
|
|
14,385 |
|
|
14,862 |
|
Goodwill impairment
charges |
|
6,363 |
|
|
— |
|
|
6,363 |
|
|
— |
|
Operating (gains), losses and
other charges, net |
|
63 |
|
|
46 |
|
|
2,530 |
|
|
(1,005 |
) |
Restaurant-level Operating
Margin |
$ |
36,912 |
|
$ |
38,481 |
|
$ |
153,871 |
|
$ |
141,644 |
|
|
|
|
|
|
|
|
|
Restaurant-level Operating
Margin consists of: |
|
|
|
|
|
|
|
Company Restaurant Operating
Margin (1) |
$ |
5,400 |
|
$ |
6,845 |
|
$ |
27,933 |
|
$ |
20,295 |
|
Franchise Operating Margin
(2) |
|
31,512 |
|
|
31,636 |
|
|
125,938 |
|
|
121,349 |
|
Restaurant-level Operating
Margin |
$ |
36,912 |
|
$ |
38,481 |
|
$ |
153,871 |
|
$ |
141,644 |
|
(1 |
) |
Company Restaurant Operating
Margin is calculated as operating income plus general and
administrative expenses; depreciation and amortization; operating
(gains), losses and other charges, net; and costs of franchise and
license revenue, excluding depreciation and amortization; less
franchise and license revenue. |
(2 |
) |
Franchise Operating Margin is
calculated as operating income plus general and administrative
expenses; depreciation and amortization; operating (gains), losses
and other charges, net; and costs of company restaurant sales,
excluding depreciation and amortization; less company restaurant
sales. |
DENNY’S CORPORATION |
Operating Margins |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
($ in
thousands) |
12/27/23 |
|
12/28/22 |
Company restaurant
operations: (1) |
|
|
|
|
|
|
Company restaurant
sales |
$ |
54,046 |
100.0 |
% |
|
$ |
54,399 |
100.0 |
% |
|
Costs of company
restaurant sales, excluding depreciation and amortization: |
|
|
|
|
|
|
|
Product costs |
|
13,993 |
25.9 |
% |
|
|
14,743 |
27.1 |
% |
|
|
Payroll and
benefits |
|
20,184 |
37.3 |
% |
|
|
20,814 |
38.3 |
% |
|
|
Occupancy |
|
4,699 |
8.7 |
% |
|
|
3,838 |
7.1 |
% |
|
|
Other operating
costs: |
|
|
|
|
|
|
|
|
Utilities |
|
1,811 |
3.4 |
% |
|
|
2,062 |
3.8 |
% |
|
|
|
Repairs and maintenance |
|
994 |
1.8 |
% |
|
|
1,071 |
2.0 |
% |
|
|
|
Marketing |
|
1,396 |
2.6 |
% |
|
|
1,417 |
2.6 |
% |
|
|
|
Legal settlements |
|
1,827 |
3.4 |
% |
|
|
1 |
0.0 |
% |
|
|
|
Other direct costs |
|
3,742 |
6.9 |
% |
|
|
3,608 |
6.6 |
% |
|
Total costs of
company restaurant sales, excluding depreciation and
amortization |
$ |
48,646 |
90.0 |
% |
|
$ |
47,554 |
87.4 |
% |
|
Company restaurant
operating margin (non-GAAP) (2) |
$ |
5,400 |
10.0 |
% |
|
$ |
6,845 |
12.6 |
% |
|
|
|
|
|
|
|
|
|
Franchise
operations: (3) |
|
|
|
|
|
|
Franchise and
license revenue: |
|
|
|
|
|
|
Royalties |
$ |
30,025 |
49.0 |
% |
|
$ |
29,615 |
44.6 |
% |
|
Advertising revenue |
|
19,676 |
32.1 |
% |
|
|
19,284 |
29.0 |
% |
|
Initial and other fees |
|
2,888 |
4.7 |
% |
|
|
8,227 |
12.4 |
% |
|
Occupancy
revenue |
|
8,718 |
14.2 |
% |
|
|
9,324 |
14.0 |
% |
|
Total franchise
and license revenue |
$ |
61,307 |
100.0 |
% |
|
$ |
66,450 |
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Costs of franchise
and license revenue, excluding depreciation and amortization: |
|
|
|
|
|
|
Advertising costs |
$ |
19,676 |
32.1 |
% |
|
$ |
19,284 |
29.0 |
% |
|
Occupancy costs |
|
5,307 |
8.7 |
% |
|
|
5,739 |
8.6 |
% |
|
Other direct costs |
|
4,812 |
7.8 |
% |
|
|
9,791 |
14.7 |
% |
|
Total costs of
franchise and license revenue, excluding depreciation and
amortization |
$ |
29,795 |
48.6 |
% |
|
$ |
34,814 |
52.4 |
% |
|
Franchise
operating margin (non-GAAP) (2) |
$ |
31,512 |
51.4 |
% |
|
$ |
31,636 |
47.6 |
% |
|
|
|
|
|
|
|
|
|
Total operating
revenue (4) |
$ |
115,353 |
100.0 |
% |
|
$ |
120,849 |
100.0 |
% |
Total costs of
operating revenue (4) |
|
78,441 |
68.0 |
% |
|
|
82,368 |
68.2 |
% |
Restaurant-level
operating margin (non-GAAP) (4)(2) |
$ |
36,912 |
32.0 |
% |
|
$ |
38,481 |
31.8 |
% |
|
|
|
|
|
|
|
|
|
Other operating
expenses: (4)(2) |
|
|
|
|
|
|
General and
administrative expenses |
$ |
19,255 |
16.7 |
% |
|
$ |
16,985 |
14.1 |
% |
|
Depreciation and
amortization |
|
3,507 |
3.0 |
% |
|
|
3,810 |
3.2 |
% |
|
Goodwill
impairment charges |
|
6,363 |
5.5 |
% |
|
|
— |
— |
% |
|
Operating losses
and other charges, net |
|
63 |
0.1 |
% |
|
|
46 |
0.0 |
% |
|
Total other
operating expenses |
$ |
29,188 |
25.3 |
% |
|
$ |
20,841 |
17.2 |
% |
|
|
|
|
|
|
|
|
|
Operating income
(4) |
$ |
7,724 |
6.7 |
% |
|
$ |
17,640 |
14.6 |
% |
|
|
|
|
|
|
|
|
|
(1 |
) |
As a percentage of
company restaurant sales. |
(2 |
) |
Other operating
expenses such as general and administrative expenses and
depreciation and amortization relate to both company and franchise
operations and are not allocated to costs of company restaurant
sales and costs of franchise and license revenue. As such,
operating margin is considered a non-GAAP financial measure.
Operating margins should be considered as a supplement to, not as a
substitute for, operating income, net income or other financial
measures prepared in accordance with GAAP. |
(3 |
) |
As a percentage of
franchise and license revenue. |
(4 |
) |
As a percentage of
total operating revenue. |
DENNY’S CORPORATION |
Operating Margins |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
($ in
thousands) |
12/27/23 |
|
12/28/22 |
Company restaurant
operations: (1) |
|
|
|
|
|
|
Company restaurant
sales |
$ |
215,532 |
100.0 |
% |
|
$ |
199,753 |
|
100.0 |
% |
|
Costs of company
restaurant sales, excluding depreciation and amortization: |
|
|
|
|
|
|
|
Product costs |
|
55,789 |
25.9 |
% |
|
|
53,617 |
|
26.8 |
% |
|
|
Payroll and
benefits |
|
80,666 |
37.4 |
% |
|
|
76,412 |
|
38.3 |
% |
|
|
Occupancy |
|
17,080 |
7.9 |
% |
|
|
15,154 |
|
7.6 |
% |
|
|
Other operating
costs: |
|
|
|
|
|
|
|
|
Utilities |
|
7,848 |
3.6 |
% |
|
|
7,273 |
|
3.6 |
% |
|
|
|
Repairs and maintenance |
|
3,661 |
1.7 |
% |
|
|
3,874 |
|
1.9 |
% |
|
|
|
Marketing |
|
5,603 |
2.6 |
% |
|
|
5,294 |
|
2.7 |
% |
|
|
|
Legal settlements |
|
2,302 |
1.1 |
% |
|
|
4,224 |
|
2.1 |
% |
|
|
|
Other direct costs |
|
14,650 |
6.8 |
% |
|
|
13,610 |
|
6.8 |
% |
|
Total costs of
company restaurant sales, excluding depreciation and
amortization |
$ |
187,599 |
87.0 |
% |
|
$ |
179,458 |
|
89.8 |
% |
|
Company restaurant
operating margin (non-GAAP) (2) |
$ |
27,933 |
13.0 |
% |
|
$ |
20,295 |
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
Franchise
operations: (3) |
|
|
|
|
|
|
Franchise and
license revenue: |
|
|
|
|
|
|
Royalties |
$ |
120,131 |
48.4 |
% |
|
$ |
113,891 |
|
44.4 |
% |
|
Advertising revenue |
|
78,494 |
31.6 |
% |
|
|
75,926 |
|
29.6 |
% |
|
Initial and other fees |
|
13,882 |
5.6 |
% |
|
|
28,262 |
|
11.0 |
% |
|
Occupancy revenue |
|
35,883 |
14.4 |
% |
|
|
38,597 |
|
15.0 |
% |
|
Total franchise
and license revenue |
$ |
248,390 |
100.0 |
% |
|
$ |
256,676 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Costs of franchise
and license revenue, excluding depreciation and amortization: |
|
|
|
|
|
|
Advertising costs |
$ |
78,494 |
31.6 |
% |
|
$ |
75,926 |
|
29.6 |
% |
|
Occupancy costs |
|
22,160 |
8.9 |
% |
|
|
24,090 |
|
9.4 |
% |
|
Other direct costs |
|
21,798 |
8.8 |
% |
|
|
35,311 |
|
13.8 |
% |
|
Total costs of
franchise and license revenue, excluding depreciation and
amortization |
$ |
122,452 |
49.3 |
% |
|
$ |
135,327 |
|
52.7 |
% |
|
Franchise
operating margin (non-GAAP) (2) |
$ |
125,938 |
50.7 |
% |
|
$ |
121,349 |
|
47.3 |
% |
|
|
|
|
|
|
|
|
|
Total operating
revenue (4) |
$ |
463,922 |
100.0 |
% |
|
$ |
456,429 |
|
100.0 |
% |
Total costs of
operating revenue (4) |
|
310,051 |
66.8 |
% |
|
|
314,785 |
|
69.0 |
% |
Restaurant-level
operating margin (non-GAAP) (4)(2) |
$ |
153,871 |
33.2 |
% |
|
$ |
141,644 |
|
31.0 |
% |
|
|
|
|
|
|
|
|
|
Other operating
expenses: (4)(2) |
|
|
|
|
|
|
General and
administrative expenses |
$ |
77,770 |
16.8 |
% |
|
$ |
67,173 |
|
14.7 |
% |
|
Depreciation and
amortization |
|
14,385 |
3.1 |
% |
|
|
14,862 |
|
3.3 |
% |
|
Goodwill
impairment charges |
|
6,363 |
1.4 |
% |
|
|
— |
|
— |
% |
|
Operating (gains),
losses and other charges, net |
|
2,530 |
0.5 |
% |
|
|
(1,005 |
) |
(0.2) % |
|
Total other
operating expenses |
$ |
101,048 |
21.8 |
% |
|
$ |
81,030 |
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
Operating income
(4) |
$ |
52,823 |
11.4 |
% |
|
$ |
60,614 |
|
13.3 |
% |
|
|
|
|
|
|
|
|
|
(1 |
) |
As a percentage of
company restaurant sales. |
(2 |
) |
Other operating
expenses such as general and administrative expenses and
depreciation and amortization relate to both company and franchise
operations and are not allocated to costs of company restaurant
sales and costs of franchise and license revenue. As such,
operating margin is considered a non-GAAP financial measure.
Operating margin should be considered as a supplement to, not as a
substitute for, operating income, net income or other financial
measures prepared in accordance with GAAP. |
(3 |
) |
As a percentage of
franchise and license revenue. |
(4 |
) |
As a percentage of
total operating revenue. |
DENNY’S CORPORATION |
Statistical Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denny's |
|
Keke's (2) |
Changes
in Same-Restaurant Sales (1) |
Quarter Ended |
|
Fiscal Year Ended |
|
Quarter Ended |
|
Fiscal Year Ended |
(Increase vs.
prior year) |
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
|
12/27/23 |
|
12/28/22 |
|
|
Company
Restaurants |
|
(1.2 |
)% |
|
|
6.0 |
% |
|
|
2.7 |
% |
|
|
10.4 |
% |
|
|
0.7 |
% |
|
N/A |
|
|
(1.1 |
)% |
|
N/A |
|
|
Domestic Franchise
Restaurants |
|
1.5 |
% |
|
|
1.7 |
% |
|
|
3.6 |
% |
|
|
6.0 |
% |
|
|
(3.8 |
)% |
|
N/A |
|
|
(4.4 |
)% |
|
N/A |
|
|
Domestic
System-wide Restaurants |
|
1.3 |
% |
|
|
2.0 |
% |
|
|
3.6 |
% |
|
|
6.3 |
% |
|
|
(3.1 |
)% |
|
N/A |
|
|
(3.9 |
)% |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Unit Sales |
|
|
|
|
|
|
|
($ in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Restaurants |
$ |
770 |
|
|
$ |
776 |
|
|
$ |
3,073 |
|
|
$ |
2,985 |
|
|
$ |
429 |
|
|
$ |
438 |
|
$ |
1,796 |
|
|
$ |
772 |
|
|
Franchised
Restaurants |
$ |
467 |
|
|
$ |
448 |
|
|
$ |
1,843 |
|
|
$ |
1,729 |
|
|
$ |
432 |
|
|
$ |
453 |
|
$ |
1,828 |
|
|
$ |
802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Same-restaurant sales include sales at company restaurants and
non-consolidated franchised and licensed restaurants that were open
during the comparable periods noted. Total operating revenue is
limited to company restaurant sales and royalties, advertising
revenue, initial and other fees and occupancy revenue from
non-consolidated franchised and licensed restaurants. Accordingly,
domestic franchise same-restaurant sales and domestic system-wide
same-restaurant sales should be considered as a supplement to, not
a substitute for, the Company's results as reported under
GAAP. |
(2 |
) |
Effective July 20, 2022, the Company acquired Keke's, as such data
for the quarter and year-to-date period ended December 28, 2022
only represent post-acquisition results. |
Restaurant
Unit Activity |
Denny's |
|
Keke's |
|
|
|
|
|
Franchised |
|
|
|
|
|
Franchised |
|
|
|
|
|
Company |
|
& Licensed |
|
Total |
|
Company |
|
& Licensed |
|
Total |
Ending Units
September 27, 2023 |
66 |
|
|
1,522 |
|
|
1,588 |
|
|
8 |
|
48 |
|
56 |
|
Units Opened |
— |
|
|
7 |
|
|
7 |
|
|
— |
|
2 |
|
2 |
|
Units Closed |
(1 |
) |
|
(21 |
) |
|
(22 |
) |
|
— |
|
— |
|
— |
|
|
Net Change |
(1 |
) |
|
(14 |
) |
|
(15 |
) |
|
— |
|
2 |
|
2 |
Ending Units
December 27, 2023 |
65 |
|
|
1,508 |
|
|
1,573 |
|
|
8 |
|
50 |
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equivalent
Units |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2023 |
65 |
|
|
1,512 |
|
|
1,577 |
|
|
8 |
|
50 |
|
58 |
|
Fourth Quarter
2022 |
65 |
|
|
1,543 |
|
|
1,608 |
|
|
8 |
|
46 |
|
54 |
|
|
Net Change |
— |
|
|
(31 |
) |
|
(31 |
) |
|
— |
|
4 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Units
December 28, 2022 |
66 |
|
|
1,536 |
|
|
1,602 |
|
|
8 |
|
46 |
|
54 |
|
Units Opened |
— |
|
|
28 |
|
|
28 |
|
|
— |
|
4 |
|
4 |
|
Units Closed |
(1 |
) |
|
(56 |
) |
|
(57 |
) |
|
— |
|
— |
|
— |
|
|
Net Change |
(1 |
) |
|
(28 |
) |
|
(29 |
) |
|
— |
|
4 |
|
4 |
Ending Units
December 27, 2023 |
65 |
|
|
1,508 |
|
|
1,573 |
|
|
8 |
|
50 |
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equivalent
Units |
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date
2023 |
65 |
|
|
1,522 |
|
|
1,587 |
|
|
8 |
|
48 |
|
56 |
|
Year-to-Date
2022 |
65 |
|
|
1,561 |
|
|
1,626 |
|
|
4 |
|
20 |
|
24 |
|
|
Net Change |
— |
|
|
(39 |
) |
|
(39 |
) |
|
4 |
|
28 |
|
32 |
|
|
Investor Contact: 877-784-7167
Media Contact: 864-597-8005
Grafico Azioni Dennys (NASDAQ:DENN)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Dennys (NASDAQ:DENN)
Storico
Da Lug 2023 a Lug 2024