Denny's Corporation reported its financial results for the quarter ended June 25, 2025, revealing total operating revenue of $117.7 million, a slight increase from $115.9 million in the same quarter of the previous year. Company restaurant sales rose to $58.4 million, up 7.4% from $54.3 million, while franchise and license revenue decreased to $59.3 million from $61.6 million. The company's net income for the quarter was $2.5 million, down from $3.6 million a year earlier, resulting in a diluted earnings per share of $0.05 compared to $0.07 in the prior year.
In terms of operational performance, Denny's experienced a decline in franchise and license revenue, attributed to a decrease in franchise equivalent units and a drop in same-store sales for Denny's restaurants. The company reported a decrease of 1.4% in domestic franchise same-store sales for the quarter. Conversely, Keke's Breakfast Cafe, which is part of Denny's portfolio, saw a same-store sales increase of 3.4% during the same period, contributing to the overall growth in company restaurant sales.
Denny's continued its strategic expansion, operating a total of 1,558 restaurants as of June 25, 2025, with 1,474 franchised and licensed locations and 84 company-operated units. The company has also been investing in technology, committing approximately $4 million to a new cloud-based restaurant technology platform aimed at enhancing customer experience. This initiative is part of a broader strategy to modernize operations and improve efficiency across its restaurant network.
Financially, Denny's reported total liabilities of $525.7 million, a slight decrease from $530.3 million at the end of the previous fiscal year. The company’s long-term debt increased to $268.6 million from $261.3 million, reflecting ongoing investments in growth and operational improvements. The company maintained compliance with its financial covenants, with a consolidated leverage ratio of 3.98 times and a fixed charge coverage ratio of 2.05 times as of June 25, 2025.
Looking ahead, Denny's management expressed cautious optimism, anticipating continued challenges in the restaurant industry, including inflationary pressures and labor shortages. The company expects to leverage its strategic initiatives and operational efficiencies to navigate these challenges while focusing on enhancing customer engagement and expanding its market presence.
About DENNY'S Corp
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