Denny's Corporation reported its financial results for the quarter and three quarters ended September 25, 2024, reflecting a decline in both revenue and profitability compared to the previous fiscal period. Total operating revenue for the quarter was $111.8 million, down from $114.2 million in the same quarter of 2023. For the three quarters, total operating revenue decreased to $337.7 million from $348.6 million year-over-year.
Company restaurant sales for the quarter were $52.7 million, a slight decrease of 0.9% from $53.2 million in the prior year. Year-to-date, company restaurant sales fell by 1.3% to $159.4 million. The decline in sales was attributed to a reduction in Denny's equivalent units and a decrease in same-store sales, which fell by 0.4% for the quarter and 2.0% year-to-date. However, this was partially offset by the addition of Keke's Breakfast Café locations.
Franchise and license revenue also saw a decline, totaling $59.1 million for the quarter, down from $61.0 million, and $178.3 million year-to-date, compared to $187.1 million in the previous year. The decrease in franchise revenue was linked to fewer franchise equivalent units and a significant drop in revenue from equipment sales to franchisees, which fell sharply due to the completion of a kitchen modernization program.
Operating income for the quarter was $11.7 million, down from $14.0 million, while year-to-date operating income decreased to $30.9 million from $45.1 million. Net income for the quarter was $6.5 million, compared to $7.9 million in the prior year, and year-to-date net income fell to $14.8 million from $17.0 million.
Denny's reported a total shareholders' deficit of $54.5 million as of September 25, 2024, an improvement from $62.7 million at the end of the previous fiscal year. The company’s cash and cash equivalents decreased to $1.5 million from $4.9 million, while long-term debt increased to $261.0 million from $255.5 million.
In terms of strategic developments, Denny's has continued to invest in technology, committing approximately $4 million to a new cloud-based restaurant technology platform, with implementation expected to extend into 2025 and 2026. The company also repurchased 1.3 million shares for $11.2 million during the year-to-date period, with a remaining authorization of $89.2 million for future repurchases.
About DENNY'S Corp
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