Denny's Corp (NASDAQ:DENN) Reports Mixed Q2 2025 Results, Misses Revenue and EPS Estimates

Denny's Corp (NASDAQ:DENN) reported mixed second-quarter results for 2025, missing analyst expectations on both revenue and earnings per share (EPS). The company's performance has drawn a muted but negative reaction in after-hours trading, reflecting investor disappointment with the quarterly figures.

Key Financial Results vs. Estimates

• Revenue: Reported at $117.66 million, falling short of the consensus estimate of $120.50 million.
• Earnings Per Share (EPS): Came in at $0.09, below the projected $0.11.
• Stock Reaction: Shares dipped approximately 0.38% in after-hours trading, extending a broader downtrend with the stock down 14.08% over the past week and 20.35% over the last month.

The revenue miss suggests softer-than-expected sales performance across Denny’s and Keke’s locations, while the lower EPS indicates either higher costs or weaker operational efficiency. The market’s reaction, though not drastic, aligns with the broader underperformance of the stock in recent weeks.

Business Update Highlights

The press release emphasized operational updates but did not provide a forward-looking outlook. Key takeaways include:

• Continued expansion of the Keke’s Breakfast Cafe brand, which now operates 69 locations.
• Maintenance of Denny’s global footprint, with 1,499 restaurants (1,334 domestic, 165 international).
• No major strategic shifts announced, suggesting a focus on steady execution rather than aggressive growth initiatives.

Analyst Expectations for Future Quarters

Looking ahead, analysts project:

• Q3 2025 Revenue: $118.95 million, with EPS of $0.11.
• Full-Year 2025 Revenue: $486.11 million, with EPS of $0.47.

The absence of company-provided guidance leaves investors reliant on these estimates, which may see downward revisions following the Q2 miss.

Market Sentiment and Next Steps

The stock’s recent decline indicates eroding confidence, likely due to consecutive quarters of underperformance relative to expectations. Investors will be watching for:

• Cost management improvements to bolster margins.
• Same-store sales trends in upcoming filings to gauge demand recovery.
• Franchise growth metrics, particularly for Keke’s, as a sign of brand strength.

For a deeper dive into Denny’s earnings history and future estimates, review the full earnings and estimates breakdown.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.