Denny’s stock plunges on weak Q4 results, cautious outlook

Published 12/02/2025, 16:08
Denny’s stock plunges on weak Q4 results, cautious outlook

SPARTANBURG, S.C. - Denny’s Corporation (NASDAQ:DENN) shares tumbled 19.3% after the restaurant chain reported fourth-quarter earnings and revenue that missed analyst expectations, while also providing a cautious outlook for 2025.

The company posted adjusted earnings per share of $0.14, falling short of the $0.15 consensus estimate. Revenue came in at $114.7 million, below the expected $116.08 million and down slightly from $115.4 million in the same quarter last year.

Denny’s domestic system-wide same-restaurant sales rose 1.1% in Q4, while its Keke’s brand saw a 3% increase. However, for the full year 2024, Denny’s same-restaurant sales dipped 0.2% and Keke’s fell 1.7%.

Looking ahead, the company provided a cautious outlook for 2025, projecting Denny’s domestic system-wide same-restaurant sales between -2.0% and 1.0%. Management cited near-term consumer sentiment affected by macroeconomic factors as a key challenge.

"There is still work to be done within our brands, particularly as we navigate near-term consumer sentiment that has been affected by macroeconomic factors," said CEO Kelli Valade.

The company plans to accelerate closures of lower-volume restaurants while expanding its Keke’s brand. Denny’s closed 88 restaurants in 2024 as part of this strategy, while opening a record 12 new Keke’s locations.

For 2025, Denny’s expects consolidated restaurant openings of 25 to 40 and closures between 70 and 90. The company also anticipates commodity inflation of 2-4% and labor inflation of 2.5-3.5%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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