Denny’s Corporation Reports First Quarter 2025 Results

Denny’s Inc. ( (DENN) ) has released its Q1 earnings. Here is a breakdown of the information Denny’s Inc. presented to its investors.

Denny’s Corporation is a prominent full-service restaurant chain in the United States, operating under the Denny’s and Keke’s brands, with a significant presence in the franchised restaurant sector. The company recently released its first-quarter 2025 earnings report, highlighting the challenges faced due to macroeconomic conditions impacting consumer behavior.

In the first quarter of 2025, Denny’s Corporation reported a slight increase in total operating revenue to $111.6 million from $110.0 million in the previous year. However, the company faced a decline in operating income, which fell to $5.2 million from $10.0 million year-over-year. Notably, Denny’s domestic system-wide same-restaurant sales decreased by 3.0%, while Keke’s saw an increase of 3.9% in the same metric.

The company opened six new Denny’s franchised restaurants and completed six remodels, while Keke’s expanded into Georgia with three new cafes. Despite these expansions, the adjusted franchise operating margin decreased slightly to 50.9% from 52.5% in the prior year. The net income for the quarter was $0.3 million, translating to $0.01 per diluted share, with adjusted net income at $4.2 million or $0.08 per share.

Looking ahead, Denny’s Corporation remains focused on strategic initiatives to navigate ongoing economic challenges. The management anticipates a moderate shift in consumer sentiment over time and plans to continue expanding its restaurant footprint while managing costs effectively. The company expects to open 25 to 40 new restaurants and close 70 to 90 locations throughout 2025.