Restaurant chain Denny's Q2 EPS misses estimates

Dennys

04/08/2025 21:23

Overview

Denny's Q2 total operating revenue of $117.7 mln missed analyst expectations, per LSEG data

Adjusted EPS for Q2 was $0.09, missing consensus estimates, per LSEG data

Keke's same-restaurant sales rose 4%, while Denny's sales declined 1.3%

Outlook

Company plans 25 to 40 new restaurant openings in 2025

Denny's expects 70 to 90 restaurant closures in 2025

Company plans share repurchases between $15 mln and $25 mln in 2025

Result Drivers

VALUE PLATFORM - Denny's focused on innovating its value platform to address shifting consumer trends

KEKE'S EXPANSION - Keke's expanded its portfolio by 7% year-to-date and launched its first system-wide promotion

COST INCREASES - Higher egg prices and marketing investments impacted margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$117.70 mln
$118.10 mln (6 Analysts)
Q2 Adjusted EPS
Miss
$0.09
$0.11 (6 Analysts)
Q2 Net Income
$2.50 mln
Q2 Adjusted EBITDA
Miss
$18.80 mln
$19.90 mln (6 Analysts)
Q2 Operating income
$8.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Denny's Corp is $6.50, about 44.6% above its August 1 closing price of $3.60

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNXbPZH6v

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)