Preliminary Results
Denny's fourth quarter domestic system-wide same-restaurant sales** grew 2.0% compared to the equivalent fiscal period in 2021, including a 1.7% increase at domestic franchised restaurants and a 6.0% increase at company restaurants.
Denny's fiscal year domestic system-wide same-restaurant sales** grew 6.3% compared to the equivalent fiscal period in 2021, including a 6.0% increase at domestic franchised restaurants and a 10.4% increase at company restaurants.
In 2022, the Company opened 30 restaurants, including 8 international locations, and closed 66 restaurants, bringing the year-end total restaurant count to 1,656. In addition, 49 remodels were completed during the fiscal year, including 11 at company restaurants.
In the fourth quarter, the Company allocated
Business Outlook
Based on preliminary results, the Company is reiterating its fourth quarter 2022 guidance expectations provided with the Company’s third quarter 2022 results, which were announced on
- Denny's domestic system-wide same-restaurant sales** between 1% and 3%.
- Consolidated total general and administrative expenses between
$17 million and$18 million , including approximately$2 million related to share-based compensation expense. - Consolidated Adjusted EBITDA* between
$21 million and$23 million .
The Company expects to release financial and operating results for its fourth quarter and fiscal year ended
DENNY’S CORPORATION | ||||||||||||||||||||||
Preliminary Results | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Denny's | Keke's (2) | |||||||||||||||||||||
Changes in Same-Restaurant Sales (1) vs. Prior Year | Quarter Ended | Fiscal Year Ended | Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
(Increase (decrease)) | ||||||||||||||||||||||
6.0 | % | 58.6 | % | 10.4 | % | 55.3 | % | N/A | N/A | N/A | N/A | |||||||||||
1.7 | % | 48.3 | % | 6.0 | % | 40.1 | % | N/A | N/A | N/A | N/A | |||||||||||
2.0 | % | 49.0 | % | 6.3 | % | 41.1 | % | N/A | N/A | N/A | N/A | |||||||||||
(1) Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP. | ||||||||||||||||||||||
Keke's comparable same-restaurant sales will not be reported for the first year following the acquisition. | ||||||||||||||||||||||
(2) Effective |
Denny's | Keke's | |||||||||||||||
Franchised | Franchised | |||||||||||||||
Restaurant Unit Activity | Company | & Licensed | Total | Company | & Licensed | Total | ||||||||||
Ending Units | 66 | 1,547 | 1,613 | 8 | 45 | 53 | ||||||||||
Units Opened | — | 12 | 12 | — | 1 | 1 | ||||||||||
Units Acquired (3) | — | — | — | — | — | — | ||||||||||
Units Reacquired | — | — | — | — | — | — | ||||||||||
Units Closed | — | (23 | ) | (23 | ) | — | — | — | ||||||||
Net Change | — | (11 | ) | (11 | ) | — | 1 | 1 | ||||||||
Ending Units | 66 | 1,536 | 1,602 | 8 | 46 | 54 | ||||||||||
Denny's | Keke's | |||||||||||||||
Franchised | Franchised | |||||||||||||||
Restaurant Unit Activity | Company | & Licensed | Total | Company | & Licensed | Total | ||||||||||
Ending Units | 65 | 1,575 | 1,640 | — | — | — | ||||||||||
Units Opened | — | 28 | 28 | — | 2 | 2 | ||||||||||
Units Acquired (3) | — | — | — | 8 | 44 | 52 | ||||||||||
Units Reacquired | 1 | (1 | ) | — | — | — | — | |||||||||
Units Closed | — | (66 | ) | (66 | ) | — | — | — | ||||||||
Net Change | 1 | (39 | ) | (38 | ) | 8 | 46 | 54 | ||||||||
Ending Units | 66 | 1,536 | 1,602 | 8 | 46 | 54 | ||||||||||
(3) Effective |
*The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.
**Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open the same period in the prior year. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.
Upcoming Investor Conference Presentation
The Company will be participating in the 2023 Annual
About Denny’s Corporation
Denny’s Corporation is one of America’s largest full-service restaurant chains based on number of restaurants. As of
For further information on
Cautionary Language Regarding Forward-Looking Statements
The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release. In addition, certain matters discussed in this release may constitute forward-looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: the evolving COVID-19 pandemic and related containment measures, including the potential for further operational disruption from government mandates affecting restaurants; economic, public health and political conditions that impact consumer confidence and spending, including COVID-19; commodity and labor inflation; the ability to effectively staff restaurants; the Company's ability to maintain adequate levels of liquidity for its cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of its customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the Company's ability to integrate and derive the expected benefits from our acquisition of
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Investor Contact:Curt Nichols 877-784-7167 Media Contact:Hadas Streit , Allison+Partners 646-428-0629
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