Denny's (DENN) Oppenheimer's 24th Annual Virtual Consumer Growth and E-Commerce Conference summary

Financial performance and business highlights

• Q1 operating revenue reached $110 million, with system-wide same restaurant sales up 7.1% on a two-year basis, despite a 1.3% year-over-year decline.

• Adjusted net income per share was $0.11, and adjusted EBITDA was $18.4 million, supporting investments and share repurchases.

• Off-premise sales remain strong at 21% of total sales, with virtual brands like Burger Den and Meltdown performing well.

• Value offerings, such as the $5.99 Grand Slam and All-Day Diner Deals, increased value mix to 19% in Q1.

• New restaurant openings and a robust development pipeline are driving long-term growth, with 200 future locations planned.

Strategic initiatives and innovation

• Menu innovation includes the launch of a spring core menu and new products like the Liège waffle, improving margins and guest satisfaction.

• The barbell strategy balances value and premium offerings, maintaining check averages and attracting younger off-premise guests.

• Expansion of Banda Burrito, a virtual brand, is underway in California, with plans for national rollout in early Q4.

• Technology upgrades, including a new cloud-based POS system, are enhancing operational efficiency and guest experience.

• Remodel program (Diner 2.0) is delivering mid-single-digit traffic lifts and is supported by franchisee financing.

Keke's Breakfast Cafe growth

• Keke's operates 61 restaurants, with a strong management team and updated brand positioning.

• New locations outside Florida, such as Nashville, are exceeding sales expectations, validating expansion strategy.

• Growth is expected to accelerate, with 12-16 openings guided for this year and further expansion planned.

• Keke's delivers high guest satisfaction, with a Google rating of 4.7 and strong intent to return.

• Expansion leverages existing franchisees and Denny's development-oriented partners.