Q4 2024 Denny's Corp Earnings Call Transcript
Key Points
- Denny's Corp (DENN) reported positive same restaurant sales growth of 1.1% for Denny's and 3% for Keke's Breakfast Cafe in the fourth quarter of 2024.
- The $2, $4, $6, $8 value menu was a successful initiative, driving traffic and profitability for franchisees.
- Denny's Corp (DENN) outperformed the BBI Family dining sales index for the fourth consecutive quarter.
- The Diner 2.0 remodel program showed a 6.5% lift in traffic at remodeled restaurants, contributing to increased sales and profitability.
- Keke's expanded its footprint from Florida to six different states by the end of 2024, with a record-breaking year for growth.
- Denny's Corp (DENN) experienced a decline in system-wide same restaurant sales at the start of 2025, with a 0.7% decrease in January and a 5% decrease in early February.
- The company anticipates closing between 70 and 90 lower volume Denny's restaurants in 2025 to improve franchisee cash flow.
- Keke's same restaurant sales were impacted by hurricanes in Florida, reducing potential growth.
- Consumer sentiment has shifted due to macroeconomic factors, leading to conservative guidance for 2025.
- New Keke's cafe openings faced operational inefficiencies, impacting overall adjusted company margins by approximately 70 basis points.
Greetings and welcome to the Denny's Corporation fourth quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Kayla Money, Senior Director of Investor Relations. Thank you. You may begin.
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Good morning. Thank you for joining us for Denny's fourth quarter 2024 earnings conference call. With me today from management are Kelli Valade, Denny's Chief Executive Officer; and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer.
Please refer to our website at investor.dennys.com., to find our fourth quarter earnings press release, along with the reconciliation of any non-GAAP financial measures mentioned on the call today. This call is being webcast, and an archive of the webcast will be available on our website later today.
Kelli will begin today's call with a business update. Then Robert will provide a recap of our fourth quarter
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