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Highlights
- Q3 2025 operating revenue reached USD 113.2 million, up from USD 111.8 million year-over-year.
- Net income stood at USD 0.6 million, or USD 0.01 per diluted share.
- The company entered into a definitive agreement to be acquired by a group led by TriArtisan Capital Advisors.
Denny’s Corporation (NASDAQ:DENN), owner and operator of Denny’s Inc. and Keke’s Inc., announced financial results for its third quarter ended September 24, 2025.
Chief Executive Officer Kelli Valade stated, “Our third quarter progress on strategic initiatives demonstrates our ability to remain agile and focused on what is within our control amid a choppy industry backdrop. These achievements are the direct result of our incredible teams and franchisees maintaining their unwavering commitment to our brands and our guests.”
Total operating revenue for the quarter was USD 113.2 million compared to USD 111.8 million in the prior-year period, primarily driven by additional Keke’s company-operated units. Franchise and license revenue stood at USD 55.9 million, down from USD 59.1 million, due to fewer Denny’s franchise units and softer same-restaurant sales.
Company restaurant sales were USD 57.4 million compared to USD 52.7 million a year earlier, reflecting growth from additional Keke’s equivalent units. Adjusted franchise operating margin was USD 29.1 million, or 52.0% of franchise and license revenue, while adjusted company restaurant operating margin reached USD 7.8 million, or 13.5% of company restaurant sales.
Net income was USD 0.6 million, or USD 0.01 per diluted share, while adjusted net income was USD 4.2 million, or USD 0.08 per diluted share. Adjusted EBITDA for the quarter was USD 19.3 million.
Total general and administrative expenses increased to USD 22.6 million from USD 19.8 million, mainly due to higher incentive compensation and transaction costs. The company ended the quarter with a total debt of USD 269.2 million, including USD 259.5 million under its credit facility.
Capital Allocation and Development
Denny’s invested USD 9.3 million in capital expenditures during the quarter, including new cafe developments and remodels at both Denny’s and Keke’s locations. The company opened one new Denny’s franchised restaurant, completed 10 remodels, and added four new Keke’s cafes, including three franchised locations.
Acquisition Agreement
Denny’s announced that it had entered into a definitive agreement to be acquired by a consortium including TriArtisan Capital Advisors LLC, Treville Capital Group, and Yadav Enterprises, Inc. The merger is expected to close in the first quarter of 2026. Following completion, Denny’s common stock will be delisted from Nasdaq.
About Denny’s Corporation
As of September 24, 2025, Denny’s Corporation operated 1,537 restaurants, comprising 1,452 franchised and licensed locations and 85 company-operated restaurants. The portfolio includes 1,459 Denny’s brand restaurants and 78 Keke’s cafes across the United States.
