Compared to Estimates, Denny's (DENN) Q3 Earnings: A Look at Key Metrics

By Zacks Equity Research | November 03, 2025, 8:30 PM

Denny's (DENN) reported $113.24 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 1.3%. EPS of $0.08 for the same period compares to $0.14 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $116.75 million, representing a surprise of -3%. The company delivered an EPS surprise of -27.27%, with the consensus EPS estimate being $0.11.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Company operated restaurants at end of period: 85 versus the two-analyst average estimate of 85.
  • Changes in Same-Restaurant Sales - Company Restaurants: -1.4% versus the two-analyst average estimate of -0.3%.
  • Changes in Same-Restaurant Sales - Domestic System-wide Restaurants: -2.9% versus 0.2% estimated by two analysts on average.
  • Total restaurants end of period: 1,537 compared to the 1,545 average estimate based on two analysts.
  • Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: -3% versus the two-analyst average estimate of -1.5%.
  • Franchised and licensed restaurants at end of period: 1,452 compared to the 1,460 average estimate based on two analysts.
  • Revenue- Company restaurant sales: $57.38 million compared to the $58.53 million average estimate based on two analysts. The reported number represents a change of +8.9% year over year.
  • Revenue- Franchise and license revenue: $55.87 million versus $57.38 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -5.4% change.
  • Restaurant-level Operating Margin- Franchise Operating Margin: $29.06 million compared to the $29.61 million average estimate based on two analysts.
  • Restaurant-level Operating Margin- Company Restaurant Operating Margin: $7.21 million compared to the $6.36 million average estimate based on two analysts.

View all Key Company Metrics for Denny's here>>>

Shares of Denny's have returned -25.8% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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