Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Despite opening during a snowstorm, sales were strong for the first week and continue to be impressive |
| We're incredibly pleased with the progress President Dave Schmidt has made as he has built a strong team cemented a unique position in the A.M |
| This foundation will enable improved kitchen visual systems or KVS, server handheld and QR pay resulting in more consistent operation execution, labor efficiencies and enhanced guest experiences |
| And because of that improvement and momentum, we deliver system-wide same restaurant sales growth a positive 3.6% for the full year, which was above the high end of our previously guided range, a satisfying achievement given the operational challenges the industry observed again in 2023 |
| Sales and traffic results are also promising, while full results from this test to share soon and we'll begin incorporating the modern diner remodel program into the mix in the back of the year |
| These are a best-in-class breakfast with craveable items, an unbeatable value proposition and convenience in the form of unique off-premise options |
| Our GCA is still up and we continue to just be really excited about and encouraged by our barbell strategy in that those that Robert called out less than 50,000 maybe the ones definitely coming in sensing that we do have great value at this unbeatable price and great food are also though - there are also people coming in and then upgrading to our amazing new products like the strawberry French toast, stuffed French toast just continues to just sell incredibly well |
| We're extremely proud of the progress we have made with our people programs including the launch of our game program this last year |
| Early results for the modern diner tests are strong with positive marks for unique, brighter yet warm approach to a modern diner |
| We did the ceremony and grand opening, ribbon cutting with everyone in the community that we could get, so that we could get this name out there and it's been really successful |
| Importantly, we've also seen improvement in our food quality scores year-over-year and a high percentage of this improvement can be attributed to our new kitchen equipment |
| This new menu also led to margin improvements, given our strategic approach to highlighting our most profitable items and ones we know to be guest favorites |
| We were pleased to closeout 2023 with solid domestic system-wide same restaurant sales of 1.3% in the fourth quarter reflecting sequential improvement throughout the quarter |
| But I liked your more bullish claim that we're going to hit all of our guidance and actually pay out that level and everybody will be excited to do that |
| Finally, we have laser-like in our focused approach to understanding what the guest love about KeKe's and the results here are also phenomenal |
| It's clear we have the right approach to win in today's environment with committed leaders and partners and a game plan for our two unique incredible brands prime for growth and continued momentum for 2024 and beyond |
| This quarter's results were also aided by our approach to leading with value and leveraging our increasingly successful barbell strategy |
| Our original grand slam starting at the unbeatable price of $5.99 was feature nationwide starting in late November with positive results |
| This past year, we honored our past celebrating our 70 years in the business at Denny's and we chartered a clear path to winning for the next 70 years |
| The guest responded well and quickly as we saw traffic in sales trends increased and we immediately noticed share gains against both family dining and casual dining |
| The KeKe's brand 2023 overall net sentiment of 54% significantly outperformed the family dining index 31% in addition to significantly outperforming the the segment or service in scores per service on beyond an attempt to return |
| Denny’s domestic system-wide same restaurant sales were 3.6% for the full year 2023 exceeding the performance for eight of the nine years prior to the pandemic |
| So, again, we were with regard to that we were pretty pleased on the way we finished out the year |
| We have the unique opportunity to leverage our model franchisor approach and our strong network of franchisees in both brands to grow exponentially and capture market share |
| For us, this has been a critical year building a strong foundation for the brand and integrating the KeKe's brand into the portfolio at Denny’s |
| Breakfast segment and a competitive differentiated path that will allow us to win in new markets this year and beyond |
| It's one of those things where we're excited about the potential this has |
| We are really bullish about everything that we have into the hopper |
| For us these channels provide a unique opportunity to leverage operating capacity at dinner and late-night to a distinctly new consumer |
| I mean, hopefully it is and everything, across the top-line and margins are great |
| Statement |
|---|
| Your expectations in ‘24 given that - given the guidance for same-store sales and the pricing that you talked about, you set pretty negative traffic |
| First, I just want to dig into kind of what drove the miss on EBITDA versus your expectations? It looks like, sales was a little bit above |
| So what was the surprise that drove that miss? I think versus the midpoint of guidance of 5% lower |
| The $1.8 million in legal cost had an unfavorable 340 basis impact on the company restaurant operating margin rate for the current quarter |
| So approximately 51% and the changes as you know in the remarks as we have this odd revenue recognition standard that impacted the prior year where we’re having to recognize the kitchen equipment that we were installing for franchisees as revenue with a complete contra offset into the extent which depressed margins by 4 to 5 - franchise margins by four to five percentage points |
| Florida is by far the weakest state that we’ve had |
| Lastly, I would tell you in both in the fourth quarter of last year and in January, we can tell that we are stealing share both on sales and traffic against our competitive benchmarks, which are both benchmark for family dining and casual dining |
| And so the 1.3 would suggest about a six-point traffic decline |
| We're seeing as somebody there's not a lot of confidence into what we're doing into 2024 |
| That 50 to 70 range that you described, the reality of that situation is having come through the inflation environment that we had although it did temper quite a bit in 2023, the profitability of restaurants that where it kind of a breakeven for a unit at Denny's restaurant to remain open has really kind of elevated from about $1 million to about $1.2 million |
| We anticipate opening 40 to 50 restaurants and cafes on a consolidated basis inclusive of 12 to 16 Keke’s openings and a consolidated net decline of 10 to 20 restaurants |
| So, we're just always mindful you know of the profitability of our franchisees, the health of those franchisees that we talked about |
| I apologize if I misled with my remarks |
| Nick Setyan About a six point three traffic decline? Robert Verostek Yeah, but about that again, it's not perfectly - perfect math in that when you're dealing with same-store sales |
| Management urges caution in considering its current trends and any outlook on earnings provided during this call |
| This change was primarily driven by a $5.3 million decrease in initial and other fees associated with the sale of kitchen equipment in the prior year quarter |
| We also had some claims development into workers comp and GL, general liability and some minor medical that impacted that |
| The last thing I'll say relative to this Jake, is that our value makes while picking up and an indicator perhaps of indeed where people are being cautious |
| And just that lot went into thinking about it and being optimistic yet just realistic |
| So you shouldn't see - you shouldn't expect or anticipate another four to five percentage point growth |
Please consider a small donation if you think this website provides you with relevant information