Q2 2024 Denny's Corp Earnings Call Transcript
Key Points
- Denny's Corp (DENN) outperformed the BBI Family Dining Sales Index for the second consecutive quarter, indicating strong competitive positioning.
- The company successfully expanded its third virtual brand, Banda Burrito, to over 300 restaurants, with plans for a nationwide rollout by fall.
- Denny's Corp (DENN) relaunched its 2468 menu with an added $10 category, which has shown promising test results in driving incremental traffic and protecting profitability.
- The company completed the rollout of a new cloud-based POS system in all company restaurants, which is expected to provide future labor savings and operational efficiencies.
- Keke's Breakfast Cafe, a growth brand for Denny's Corp (DENN), showed progress by narrowing the sales gap to the Florida index and opening new locations with strong performance.
- Denny's Corp (DENN) reported a 0.6% decline in domestic system-wide same-restaurant sales for Q2 2024.
- Keke's system-wide same cafe sales declined by 4.6% for the quarter, reflecting challenges in the Florida market.
- Total operating revenue decreased to $115.9 million from $116.9 million in the prior year quarter.
- Adjusted company restaurant operating margin dropped to 13.2% from 15.4% in the prior year quarter, impacted by lower sales and increased costs.
- The company adjusted its 2024 domestic system-wide same-restaurant sales guidance to between negative 1% and positive 1%, reflecting uncertainties in the macroeconomic environment.
Greetings, and welcome to Denny's Corporation second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Kayla Money. Thank you. You may begin.
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Thank you. You may begin. Good afternoon. Thank you for joining us for Denny's second-quarter 2024 earnings conference call. With me today from management are Kelli Valade, Denny's President and Chief Executive Officer; and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer.
Please refer to our website at investor.dennys.com to find our second quarter earnings press release along with the reconciliation of any non-GAAP financial measures mentioned on today's call. This call will be webcast and an archive of the webcast will be available on our website later today.
Kelly will begin today's call with a business
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