Denny's (DENN) Q4 Financial Performance

Key Metrics:

* Revenue: $114.7 million (flat YoY, missed analyst estimates by 1.2%)
* Non-GAAP EPS: $0.14 (8.6% below consensus)
* Adjusted EBITDA: $22.15 million (1% below estimates)
* Same-store sales: 1.1% growth YoY

Operational Highlights:

* Locations: 1,499 (down from 1,631 in Q4 CY2023)
* Restaurants closed: 23
* Keke's cafes opened: Record number
* Keke's expansion: Six new states

Financial Outlook:

* EBITDA guidance for FY2025: $82.5 million (below analyst estimates of $87 million)

Company Overview:

Denny's (DENN) is a 24/7 diner restaurant chain serving breakfast and American fare. Its sit-down dining model offers table service and a warm and inviting ambiance.

Industry Dynamics:

The sit-down restaurant industry is highly fragmented, with competition ranging from publicly-traded chains to local, family-owned establishments.

Sales Growth:

* Revenue over the past 12 months: $452.3 million
* Annual revenue growth over the last five years: -3.5%

Q4 Sales Performance:

* Missed Wall Street's estimates by 0.6% YoY
* Projected revenue growth over the next 12 months: 4.6%

Restaurant Performance:

* Number of restaurants: Down 2.2% annually over the last two years
* Same-store sales growth: 2.2% annually over the last two years

Conclusion:

Denny's Q4 results missed analyst expectations in several key metrics. EBITDA guidance for FY2025 also fell short of estimates. Despite the mixed results, the stock saw a temporary uptick following the release. Investors considering Denny's should consider the company's overall valuation, business qualities, and latest earnings before making a decision.