The following is a summary of the Denny's Corporation (DENN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Denny's Q1 domestic system-wide same restaurant sales were down by 1.3%, however, still stood at a positive two-year comp of 7.1%.
Both franchise and licensing revenue and company restaurant sales declined in the current year quarter, amounting to $57.6 million and $52.3 million respectively.
There was a decreased adjusted net income per share at $0.11, a decrease from the prior year's $0.13.
Denny's foresee opening 40-50 new restaurants in 2024 but also a net decline of 10-20 restaurants.
Projected inflation rates for commodity and labor are expected to be between 0-2% and 4-5% respectively for the year 2024. Adjusted EBITDA projection is $87-91 million.
Business Progress:
Denny's has shown progress in dine-in sales and aims to continue building its off-premise sales channels.
An expansion of their third virtual brand concept, Banda Burrito, is planned for over 200 locations.
Through partnerships, Denny's made progress with tech solutions launching a cloud-based POS platform, as part of their CRAVE strategic framework.
The company plans a system-wide alcoholic beverage rollout in Q2 and is looking forward to expansion of Keke's Breakfast Café concept.
Denny's is set to reignite their remodel program matching pre-pandemic levels, with a focus on traffic results.
The company plans to open three more cafes this quarter and forecasts decent sales from them.
With an array of sales driving initiatives and plans for a new, innovative menu, Denny's foresees a domestic system-wide same restaurant sales guidance increase between zero and 3% compared to 2023.
More details: Denny's IR
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