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Denny’s Corp. reported mixed results for its two brands in the second quarter ended June 25, the company said Monday.
The Spartanburg, S.C.-based family-dining company said it noted some “near-term choppiness” in consumer spending that yielded a second-quarter same-store sales decline of 1.3% at Denny’s and an increase of 4% at the daytime café Keke’s Inc.
“We have continued to stay nimble, innovate, and meet the guests where they are,” Kelli Valade, Denny’s CEO, said in a statement. “For Denny’s, this meant innovating its value platform, leaning into its off-premises strength, and optimizing the franchise system, while Keke’s expanded its portfolio 7% year-to-date, launched its first-ever systemwide promotion, and continued to steal share from its competitive set.”
Valade said the economy showed some “near-term choppiness,” but Denny’s was able to trim corporate administrative expenses by about of 3.5% compared to the prior-year quarter.
Denny’s also refranchised three Keke’s company cafes with more on the horizon,” she said.
“We will continue to be agile,” Valade said.
For the second quarter ended June 25, Denny’s reported net income of $2.5 million, or five cents a share, compared to $3.6 million, or seven cents a share, in the same period last year. Revenues were $117.7 million, compared to $115.9 million in the same quarter a year ago.
The company said the revenue increase was primarily driven by the development of additional Keke’s company units and partially offset by the previously discussed strategy of closing lower-volume franchised Denny’s stores.
During the quarter, Denny’s completed 14 remodels, including five at company restaurants. Keke’s opened eight new cafes, including four franchised locations.
As of June 25, Denny’s had 1,558 restaurants, including 1,474 franchised and licensed restaurants and 84 company-operated stores. Of those, 74 restaurants were Keke’s.
Contact Ron Ruggless at Ronald.Ruggless@Informa.com
Follow him on X/Twitter: @RonRuggless
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