Denny's (DENN) Reaches Test Agreement With Franklin Junction
Denny's Corporation DENN has recently inked a significant deal with Franklin Junction, a global leader in branded virtual restaurants. Under this expansive agreement, Franklin Junction will collaborate with a minimum of 250 domestic Denny’s restaurants, securing exclusive geographic rights. This strategic move aims to accelerate Denny’s market presence through Franklin Junction's innovative Host Kitchen platform.
Kelli Valade, president and CEO of Denny’s, emphasized the unique strength of their off-premises sales channels and expressed enthusiasm about leveraging this partnership to enhance their leadership position in the market. The collaboration will enable Denny’s to provide exceptional guest experiences, capitalizing on the growing trend of virtual restaurants.
The Host Kitchen platform, pioneered by Franklin Junction, allows restaurant brands to expand into new markets without the need for significant capital investment. By operating as virtual restaurants, these establishments utilize Franklin Junction’s Host Kitchen fulfillment partners for local order production.
Rishi Nigam, CEO and Co-Founder of Franklin Junction, highlighted the groundbreaking nature of their platform and its potential to revolutionize restaurant expansion. This collaboration denotes a significant milestone in Franklin Junction's mission to reshape restaurant economics and the future of dining.
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Stock Performance
In the past three months, shares of the company have gained 27.7% compared with the industry’s growth of 12.2%.
Denny’s is consistently focusing on increasing its growth prospects through improving its guest experiences, footprint expansion, technological advancements and diversified product offerings. To ensure the efficient mix of all these factors, the company came up with the CRAVE framework in August 2023.
The Zacks Rank #2 (Buy) company intends to focus on continuing to strengthen and revitalize the brand through new and relevant strategies under the CRAVE umbrella for increasing growth prospects and competitive edge.
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The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests 16% and 18.5% growth, respectively, from the prior-year actuals.
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