Overview

* Denny's Q3 total operating revenue was $113.2 mln, missing analyst expectations

* Denny's domestic same-restaurant sales fell 2.9% YoY, while Keke's rose 1.1%

* Company to be taken private in $620 mln deal; Denny's stock will no longer be listed on Nasdaq after deal closes in Q1 2026

Outlook

* Company did not provide financial guidance for fiscal 2025

Result Drivers

* KEKE'S EXPANSION - Growth driven by new Keke's cafes and remodels, contributing to increased company restaurant sales

* DENNY'S FRANCHISE WEAKNESS - Franchise and license revenue fell to $55.9 mln from $59.1 mln YoY due to same-restaurant sales decline

* DENNY'S CLOSURES - Intentional closure of lower-volume Denny's locations to improve brand health, affecting franchise revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $113.20 $116.90

Revenue mln mln (6

Analysts

)

Q3 Net $632,000

Income

Q3 Miss $19.30 $20.40

Adjusted mln mln (6

EBITDA Analysts

)

Q3 $10.40

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 $6.00, about 34.8% above its October 31 closing price of $3.91

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

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(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.)