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/Mis Actual Consensu

s s

Estimate

Q2 Miss $117.70 $118.10

Revenue mln mln (6

Analysts

)

Q2 Miss $0.09 $0.11 (6

Adjusted Analysts

EPS )

Q2 Net $2.50

Income mln

Q2 Miss $18.80 $19.90

Adjusted mln mln (6

EBITDA Analysts

)

Q2 $8.60

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", 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:

(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.)