US-based full service restaurant chain Denny’s Corporation has reported a net income of $7.9m in the third quarter of 2023.
This is a decrease of almost 54% compared to $17.1m a year ago.
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In the same quarter a year ago, the company made a gain of $10.8m related to de-designated interest rate swap valuation adjustments.
Denny’s operating income for the third quarter of 2023 was $14, compared to $15.8m a year earlier.
For the quarter which ended on 27 September 2023, Denny’s total operating revenue was $114.2m compared to $117.5m in the same period a year ago.
Its franchise and license revenue were $61m compared to $65.2m a year earlier.
The company noted that the change was mainly due to a $4.4m decline in initial and other fees associated with the sale of kitchen equipment in the prior year quarter.
The company’s restaurant sales were $53.2m, an increase of 1.91% compared to $52.2m in the prior year’s quarter.
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter were $22.2m compared to $19.1m a year ago.
Denny’s Corporation CEO Kelli Valade said: “We were pleased to have generated a 1.8% increase in Denny’s domestic system-wide same-restaurant sales and 15.5% growth in adjusted EBITDA during the third quarter.
“Despite a persistently challenging operating environment, we remain laser-focused on providing best-in-class breakfast, an unbeatable value proposition and convenience through off-premises options.”
