Latest news with #KelliValade
Daily Mail
08-05-2025
- Business
- Daily Mail
Iconic diner chain launches new deal in effort to boost slumping sales
Denny's has slowly bounced back from a rocky quarter thanks to a fan-favorite BOGO deal. The struggling restaurant chain is offering a buy one, get one for $1 deal on its Grand Slam or All-American Slam breakfasts. The special is available for all customers who dine-in at a participating location. The deal, which began on March 24, will be available until May 9. The deal was introduced after the restaurant chain's same-store sales fell 3 percent in the first quarter of the year. The same-store sales were the Denny's worst performance in four years, which executives claimed was because of customers cutting back on spending. The chain has been struggling in recent years, and is in the process of closing 180 underperforming locations. Despite high inflation and tariffs that have left customers 'shaken,' the chain said the BOGO deal has helped to partially make up for its lackluster financial performance. Denny's saw a significant sales boost in April after nearly 70 percent of its customers took advantage of the BOGO deal. Around 4 to 5 percent of its customers are still ordering it, which executives confirmed resulted in increased traffic at restaurants. The amount of traffic the deal racked in has helped the chain offset the discount. 'We've been very pleased with this promotion and know that it's critical to our guests that really need compelling value offers during this time of uncertainty,' said CEO Kelli Valade. 'We pulled it through because we could see that given the choppy environment and the competitor activity around value, we needed to come in with something a bit stronger.' Denny's other popular offerings are foods from its $2 $4 $6 $8 value meal, which was resurrected last summer after a four-year hiatus. While the deals have put smiles on some customers' faces, others have been frustrated by the chain's decision to add surcharges for egg-based dishes. Denny's confirmed the drastic change weeks after Waffle House also added an egg surcharge. Both restaurants added the surcharge in response to rising egg prices due to a deadly strain of bird flu . However the first quarter of 2025 was not a total bust for the struggling diner chain. It managed to hit a home run with its $111.6 million operating revenue, a slight increase compared to last year's fourth quarter. It also completed 6 location remodels, 5 of them being at company-owned restaurants. Besides the BOGO deal, the chain noted a sales boost at its growth brand Keke's Breakfast Café, and earnings from takeout and delivery orders helped with profits. Denny's currently has an outstanding debt of $276 million and hopes the closures will 'improve franchisee cash flow' while allowing them to 'reinvest into traffic-driving initiatives.' The restaurant chain currently expects this year's same-store sales to be a negative 2 percent to positive 1 percent despite its recent extra earnings.
Daily Mail
08-05-2025
- Business
- Daily Mail
Iconic diner chain announces buy one, get one deal in an effort to boost slumping sales
Denny's has slowly bounced back from a rocky quarter thanks to a fan-favorite BOGO deal. The struggling restaurant chain is offering a buy one, get one for $1 deal on its Grand Slam or All-American Slam breakfasts. The special is available for all customers who dine-in at a participating location. The deal, which began on March 24, will be available until May 9. The deal was introduced after the restaurant chain's same-store sales fell 3 percent in the first quarter of the year. The same-store sales were the Denny's worst performance in four years, which executives claimed was because of customers cutting back on spending. The chain has been struggling in recent years, and is in the process of closing 180 underperforming locations. Despite high inflation and tariffs that have left customers 'shaken,' the chain said the BOGO deal has helped to partially make up for its lackluster financial performance. Denny's saw a significant sales boost in April after nearly 70 percent of its customers took advantage of the BOGO deal. Around 4 to 5 percent of its customers are still ordering it, which executives confirmed resulted in increased traffic at restaurants. The amount of traffic the deal racked in has helped the chain offset the discount. 'We've been very pleased with this promotion and know that it's critical to our guests that really need compelling value offers during this time of uncertainty,' said CEO Kelli Valade. 'We pulled it through because we could see that given the choppy environment and the competitor activity around value, we needed to come in with something a bit stronger.' Denny's other popular offerings are foods from its $2 $4 $6 $8 value meal, which was resurrected last summer after a four-year hiatus. While the deals have put smiles on some customers' faces, others have been frustrated by the chain's decision to add surcharges for egg-based dishes. Denny's confirmed the drastic change weeks after Waffle House also added an egg surcharge. Both restaurants added the surcharge in response to rising egg prices due to a deadly strain of bird flu. However the first quarter of 2025 was not a total bust for the struggling diner chain. It managed to hit a home run with its $111.6 million operating revenue, a slight increase compared to last year's fourth quarter. It also completed 6 location remodels, 5 of them being at company-owned restaurants. Besides the BOGO deal, the chain noted a sales boost at its growth brand Keke's Breakfast Café, and earnings from takeout and delivery orders helped with profits. Denny's currently has an outstanding debt of $276 million and hopes the closures will 'improve franchisee cash flow' while allowing them to 'reinvest into traffic-driving initiatives.' The restaurant chain currently expects this year's same-store sales to be a negative 2 percent to positive 1 percent despite its recent extra earnings.
Yahoo
05-05-2025
- Business
- Yahoo
Denny's (NASDAQ:DENN) Surprises With Q1 Sales
Diner restaurant chain Denny's (NASDAQ:DENN) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 1.5% year on year to $111.6 million. Its non-GAAP profit of $0.08 per share was in line with analysts' consensus estimates. Is now the time to buy Denny's? Find out in our full research report. Revenue: $111.6 million vs analyst estimates of $110.1 million (1.5% year-on-year growth, 1.4% beat) Adjusted EPS: $0.08 vs analyst estimates of $0.08 (in line) Adjusted EBITDA: $16.82 million vs analyst estimates of $17.82 million (15.1% margin, 5.7% miss) EBITDA guidance for the full year is $82.5 million at the midpoint, in line with analyst expectations Operating Margin: 4.7%, down from 9.1% in the same quarter last year Locations: 1,491 at quarter end, down from 1,614 in the same quarter last year Same-Store Sales fell 3% year on year (1.3% in the same quarter last year) Market Capitalization: $195.1 million Kelli Valade, Chief Executive Officer, stated, "The beginning of the year has presented significant challenges for consumers, which is evident in our results. Our teams have remained focused on executing against our strategic initiatives and winning with our guests, despite these macro headwinds. This included staying true to our Denny's flagship, by focusing on compelling value, being strategic in reaching new younger demographics through innovative partnerships and new menu offerings. Keke's continued to steal share in its home state of Florida while also growing to its seventh state, Georgia. The dedication of our teams and franchisees continue to push our brands forward and we remain committed to navigating these headwinds together." Open around the clock, Denny's (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $454 million in revenue over the past 12 months, Denny's is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. As you can see below, Denny's revenue declined by 5.2% per year over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it closed restaurants. This quarter, Denny's reported modest year-on-year revenue growth of 1.5% but beat Wall Street's estimates by 1.4%. Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months. Although this projection indicates its newer menu offerings will fuel better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. A restaurant chain's total number of dining locations often determines how much revenue it can generate. Denny's operated 1,491 locations in the latest quarter. Over the last two years, the company has generally closed its restaurants, averaging 2.7% annual declines. When a chain shutters restaurants, it usually means demand for its meals is waning, and it is responding by closing underperforming locations to improve profitability. The change in a company's restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales provides a deeper understanding of this issue because it measures organic growth at restaurants open for at least a year. Denny's demand within its existing dining locations has barely increased over the last two years as its same-store sales were flat. This performance isn't ideal, and Denny's is attempting to boost same-store sales by closing restaurants (fewer locations sometimes lead to higher same-store sales). In the latest quarter, Denny's same-store sales fell by 3% year on year. This decline was a reversal from its historical levels. It was good to see Denny's narrowly top analysts' revenue expectations this quarter. On the other hand, its EBITDA missed significantly and its EPS fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 2.2% to $3.70 immediately after reporting. Denny's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Bloomberg
07-03-2025
- Business
- Bloomberg
Denny's Valade on Value, Keke's Strong Growth: Choppin' It Up
Consumers need to be able to count on restaurant brands for a great value proposition, Denny's CEO Kelli Valade tells Bloomberg Intelligence. In this episode of the Choppin' It Up podcast, Valade sits down with BI's senior restaurant and foodservice analyst Michael Halen to discuss the importance of everyday value amid some US consumer weakness to start the year. She also comments on Denny's remodels and loyalty program changes as well as strong growth plans for Keke's Breakfast Café.
