Denny's (DENN) 27th Annual ICR Conference 2025 summary

Key business and financial highlights

• Denny's Q4 2024 domestic system-wide same-restaurant sales grew 1.1%, with a full-year result of -0.2%, outperforming the BBI Family Dining benchmark for four consecutive quarters.

• Keke's Q4 2024 same-restaurant sales rose 3.0%, with sequential improvement and positive impact from new alcohol and digital initiatives.

• Denny's relaunched its $2 $4 $6 $8 value menu, driving a 2.0-2.5% sales lift and increased guest engagement.

• Both brands reported strong off-premises sales, with Denny's at 21% and Keke's at 16% of Q4 sales, and virtual brands contributing incremental late-night revenue.

• Denny's opened 14 new franchised restaurants and closed 88 underperforming units in 2024; Keke's opened 12 new cafes, expanding to six states.

Strategic initiatives and growth plans

• Five-year plan focuses on stabilizing Denny's and accelerating Keke's growth, with aggressive closure of underperforming units and a net growth target for Denny's by 2026.

• Denny's completed 23 remodels in FY 2024, achieving a 6.4% sales lift and 6.5% traffic lift post-remodel; Keke's remodels in Florida target 6-8% sales lifts.

• Keke's leverages Denny's franchisees for rapid expansion, with a seed and feed strategy and a pipeline of over 140 development commitments.

• Denny's long-range outlook targets 0-1% unit growth CAGR, $2.2M AUV, and mid-teens company margin; Keke's targets 25-30% unit growth CAGR and upper-teens margin.

• Both brands are focused on technology, guest experience, and optimizing business models for margin improvement.

Competitive positioning and operational focus

• Value-driven strategy with $2 $4 $6 $8 menu and new $10 category strengthens competitive edge, especially in challenging markets.

• Enhanced marketing, increased media spend, and local co-op advertising support brand visibility and guest engagement.

• Franchisee engagement is high, with Denny's having 203 franchisees and Keke's 18, focusing on multi-unit operators and leveraging Denny's franchisee expertise for Keke's growth.

• Community support initiatives, such as the Mobile Relief Diner, reinforce brand values and local engagement.

• Both brands emphasize value, innovation, and community engagement as part of their strategic framework.