Denny's Corp (DENN) Q3 2023 Earnings: Key Highlights
Denny's Corp (NASDAQ:DENN) reported a 1.8% increase in domestic system-wide same-restaurant sales and a 15.5% growth in Adjusted EBITDA for Q3 2023.
The company's total operating revenue was $114.2 million, a slight decrease from $117.5 million in the prior year quarter.
Denny's Corp (NASDAQ:DENN) reported a net income of $7.9 million, or $0.14 per diluted share.
The company repurchased $16.5 million of common stock during the quarter.
On October 30, 2023, Denny's Corp (NASDAQ:DENN) released its earnings report for the third quarter ended September 27, 2023. Despite a challenging operating environment, the company managed to generate a 1.8% increase in domestic system-wide same-restaurant sales and a 15.5% growth in Adjusted EBITDA.
Financial Performance
The total operating revenue for the quarter was $114.2 million, compared to $117.5 million in the prior year quarter. The company's net income was $7.9 million, or $0.14 per diluted share. Adjusted Net Income and Adjusted Net Income Per Share were $9.4 million and $0.17, respectively. The company also reported an Adjusted EBITDA of $22.2 million.
Business Developments
Denny's Corp (NASDAQ:DENN) opened eight franchised restaurants during the quarter, including two international Denny's locations and one Keke's location. The company also completed four Denny's franchised restaurant remodels. The company's CEO, Kelli Valade, expressed excitement about the progress made with their CRAVE strategies and the positive momentum with the Keke's brand.
Capital Allocation
The company allocated $16.5 million to share repurchases during the quarter, leaving approximately $116.6 million remaining under its existing repurchase authorization.
Outlook
For the full year 2023, the company expects Denny's domestic system-wide same-restaurant sales to be between 2.75% and 3.50%. The company also anticipates opening 35 to 45 consolidated restaurants, including 4 to 6 new Keke's restaurants.
Financial Tables
The company's balance sheet shows a total of $258.6 million of total debt outstanding, including $248.1 million of borrowings under its credit facility. The company's total assets were $479.8 million, and total liabilities were $515.6 million. The company's shareholders' deficit was $35.8 million.
Analysis
Despite the challenging operating environment, Denny's Corp (NASDAQ:DENN) managed to generate growth in its domestic system-wide same-restaurant sales and Adjusted EBITDA. The company's focus on providing best-in-class breakfast and convenience through off-premises options has contributed to its performance. The company's progress with its CRAVE strategies and the positive momentum with the Keke's brand also bode well for its future growth.
Explore the complete 8-K earnings release (here) from Denny's Corp for further details.
This article first appeared on GuruFocus.
