By Landon Pertuset
Denny’s Corp. said systemwide same-restaurant sales declined 1.3% in the second quarter as inflation and shifting consumer spending weakened demand in several major U.S. markets.
The company reported in an earnings call that quarterly revenue rose to $117.7 million, up from $115.9 million a year earlier, supported in part by growth in company-owned Kiki’s Breakfast Cafe locations. Despite softer sales, executives pointed to steady off-premise performance and gains from recent digital investments.
“We continue to remain laser focused on driving profitable traffic,” CEO Kelly Valade said during the company’s earnings call.
Denny’s cited strong response to promotions such as the Buy One Get One Slam and its “four slams under $10” lineup, which helped draw new and returning customers. Off-premise orders lifted same-restaurant sales by 1.5%. The company also said it plans to roll out a points-based loyalty program later this year.
Same-restaurant sales at Kiki’s, the company’s growing daytime dining brand, increased 4% from the prior year. The chain expanded into markets including Nashville and Dallas and opened eight new cafes during the quarter. Executives said Kiki’s continues to outperform industry benchmarks and earns high guest satisfaction scores.
Denny’s also continued closing underperforming locations and accelerating remodels, steps the company said are improving average unit volumes for franchisees.
The company reaffirmed its full-year sales and margin guidance and said consumer trends appear to be stabilizing. Denny’s expects to resume share repurchases later this year following completion of a refinancing process.
About the Author
Landon Pertuset is a senior sports media major at the University of South Carolina School of Journalism and Mass Communications. He is a 2026 recipient of the David J. Morrow Scholarship for Business Journalism.