Denny’s Corp 2024年度报告
AI智能总结
CEO LETTER To Our Shareholders As we reflect on the past year, we are pleased to share our progress on key initiatives and milestoneswith you. Our teams did an amazing job executing against ourCRAVEstrategic framework that wereintroduced in 2023 and the momentum we gained throughout 2024 was remarkable. Notableachievements included: Keke’s Denny’s • Opened a record12 new cafes,including 7company and 5 franchise locations. • Domestic system-wide same-restaurant sales*improved sequentially throughout 2024 withDenny’soutperforming industry benchmarksinall four quarters. • Took our first steps outside of Florida andexpanded to five additional statesincludingCalifornia, Colorado, Nevada, Tennessee andTexas. • Successfully navigated AB1228 in our largeststate of California and took the opportunity tobe diligent with pricing andsteal share fromQSR competitors. • Secured additional development commitmentsfor a total of approximately140 franchise cafesin the current pipeline. • Launched our third virtual brand, Banda Burritoto nearly 1,000 restaurantsdriving incrementalsalesand increased productivity. • Rolled out a new beverage program includingmimosas, bellinis and sangriasdrivingincremental check growth. • Our creative marketing team entered apartnership with the new Beetlejuice moviewhich resulted in theTriple Juicy Burgerearninga permanent spot on our core menu. • Increased marketing investments across thesystem which resulted in our first ever paid mediacampaign which droveincremental traffictoour cafes. • We entered the value war with determination,bringing back the $2 $4 $6 $8 menu to reinforceDenny’s position as aleader in value. • Began testing the first ever remodel programfor Keke’s which is expected to deliver a6%-8%sales lift. • Mademeaningful investmentsin our digitalinfrastructure resulting in organic digital salesgrowth and laying the foundation for futureenhancements as well. • The culmination of these initiatives resulted in astrong finish to the year byoutperformingindustry benchmarksin the final two quarters. • Reignited our Diner 2.0 remodel program inwhich test restaurants delivered a6.5% trafficlift,demonstrating its ability to modernize thebrand and elevate guest satisfaction. These combined achievements resulted inAdjusted EBITDA** of $81.4M, capital investmentsof $28.6M into our company restaurants andcafes and returning $11.2M directly toshareholders through our share repurchaseprogram. • New restaurant openings achieved averageunit volumes of$2.3 millioncompared to $1.9million for existing locations. CRAVE Strategic Framework ROBUST CREATE VALIDATE ASSEMBLE ELEVATE New RestaurantGrowth as theFranchisor of Choice Leading EdgeSolutions withTechnology andInnovation Best-In-Class Peopleand Teams ThroughCulture, Tools, &Systems & Optimize theBusiness Model toMaxinmizeRestaurant Margins Profitable TrafficThrough the GuestExperience & UniquelyCraveable Foods Additionally, we held an investor day where we detailed our Rise of a New Day strategies and long-range outlook for Denny’s Corporation. This pivotal moment allowed us to unveil our roadmap toincreasing average unit volumes at both brands, strategically closing lower-volume restaurants atDenny’s to enhance the health of the remaining portfolio, aggressively grow the Keke’s brand,appropriately align and optimize G&A expenses, balance investing capital with a seed and feedstrategy for the Keke’s brand while remaining committed to our share repurchase program, maintain alower leverage profile compared to other highly franchised brands, and ultimately delivering AdjustedEBITDA** between 5%-7%. Looking ahead to fiscal 2025, we are excited to build on our momentum. We have an extremelytalented and committed group of team members and franchisees aligned with our vision and executingdaily to help us achieve our long-range outlook. We are confident that the work we are doing today willbenefit us for years to come and further strengthen our position as one of the largest full-servicerestaurant chains with Denny’s as a stable flagship brand and Keke’s as a high-growthconcept in a fast-growing segment. On behalf of myself, our Board of Directors, andmanagement, I want to thank you for the continued support. We value your trust inour brands and will continue to work diligently to create value for shareholders.oneof the largest full servicee’s as a high-growthof Directors, andalue your trust inhareholders. Kelli F. ValadeChief Executive OfficerMarch 2025 Please refer to the Reconciliation of Net Income to Non-GAAP Financial Measures, as well as theReconciliation of Operating Income to Non-GAAP Financial Measures set forth on the last page of this report.** ' &%&&%%'$ & %*! %% !)->4593?:9 !$ ' $"!$&"'$%'&&!%& !!$ 0!&%'$ & %*&! :=?4125>/-7D1-=190101/18.1= &$% & !$"!$&"'$%'&&!%& !!$ 0!&%'$ & %*&
