Denny's Corporation (DENN): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de Denny's Corporation, une chaîne de dîners américaine bien-aimée qui a magistralement conçu un modèle commercial mélangeant des aliments réconfortants, de la commodité et de l'innovation centrée sur le client. De son vaste réseau de restaurants aux plateformes numériques de pointe, Denny's a transformé le paysage de restauration décontracté en offrant des repas abordables et 24 heures sur 24 qui résonnent avec les familles, les voyageurs et les convives soucieux du budget. Découvrez les couches complexes du canevas des modèles commerciaux de Denny qui alimentent son succès remarquable dans une industrie de la restauration compétitive, révélant comment cette marque emblématique continue de servir plus que de délicieux repas - cela sert une stratégie complète pour une croissance durable.

Denny's Corporation (DENN) - Modèle d'entreprise: partenariats clés

Partenariats de la chaîne d'approvisionnement alimentaire

Denny's Corporation maintient des partenariats critiques avec les principaux distributeurs alimentaires:

Partenaire	Valeur du contrat	Volume de l'offre annuelle
Sysco Corporation	87,3 millions de dollars	42% de l'offre totale de restaurants
Aliments américains	63,5 millions de dollars	33% de l'offre totale de restaurants

Réseau de partenariat de franchise

Structure du partenariat de la franchise de Denny:

• Emplacements totaux de franchise: 1 640
• Compte de franchisés: 451 opérateurs indépendants
• Contrat de franchise Durée: 10-15 ans

Partenariats des fournisseurs technologiques

Partenaire technologique	Service fourni	Investissement annuel
Olo	Plateforme de commande numérique	2,4 millions de dollars
Toast pos	Systèmes de point de vente	1,7 million de dollars

Partenariats marketing et publicitaire

• Agence de groupes de publicis
• Dépenses marketing annuelles: 12,6 millions de dollars
• Attribution du marketing numérique: 38%

Partenariats de développement immobilier

Partenaire	NOUVELLEZ LECTURE DÉVELOPPEMENTS	Investissement
Groupe CBRE	27 nouveaux emplacements de restaurant	43,2 millions de dollars
Immobilier JLL	19 nouveaux emplacements de restaurant	31,5 millions de dollars

Denny's Corporation (DENN) - Modèle d'entreprise: activités clés

Service et opérations de restauration

En 2024, Denny's exploite 1 640 restaurants à travers les États-Unis, avec 1 444 emplacements franchisés et 196 restaurants appartenant à l'entreprise.

Métrique opérationnelle	Valeur
Total des restaurants	1,640
Emplacements franchisés	1,444
Restaurants appartenant à l'entreprise	196

Gestion et soutien de la franchise

Le système de soutien à la franchise de Denny comprend des programmes de formation et d'aide opérationnelle complets.

• Les frais de franchise initiaux varient de 40 000 $ à 90 000 $
• Le taux de redevance en cours représente 5,5% des ventes brutes
• Équipe de soutien au développement de franchise de 47 professionnels

Développement et innovation de menu

Budget d'innovation annuelle d'environ 2,3 millions de dollars dédié au développement de nouveaux produits et à la recherche culinaire.

Menu d'innovation métrique	Valeur
Budget d'innovation annuel	2,3 millions de dollars
Nouveaux éléments de menu introduits chaque année	12-15

Commande numérique et amélioration de l'expérience client

Les investissements de plate-forme numérique ont abouti à 38% des commandes hors site en cours par le biais de canaux numériques en 2023.

• Téléchargements d'applications mobiles: 1,2 million
• Revenus de commande numérique: 187 millions de dollars
• Valeur de commande numérique moyenne: 24,50 $

Marketing de marque et engagement client

Les dépenses de marketing pour 2023 étaient de 45,7 millions de dollars, axées sur les canaux marketing numériques et traditionnels.

Métrique marketing	Valeur
Dépenses marketing totales	45,7 millions de dollars
Abonnés des médias sociaux	1,3 million
Abonders du marketing par e-mail	2,4 millions

Denny's Corporation (DENN) - Modèle d'entreprise: Ressources clés

Réseau de restauration étendu

Au quatrième trimestre 2023, Denny's exploite 1 640 restaurants au total, avec une ventilation comme suit:

Total des restaurants	1,640
Restaurants de franchise	1,563
Restaurants appartenant à l'entreprise	77
Couverture géographique	50 États américains et 11 pays étrangers

Reconnaissance de la marque et position du marché

Indicateurs de performance financière pour 2023:

• Revenu annuel: 518,7 millions de dollars
• Revenu net: 57,3 millions de dollars
• Capitalisation boursière: environ 800 millions de dollars

Systèmes de gestion des restaurants propriétaires

Investissements clés des infrastructures technologiques:

• Plateformes de commande numérique
• Systèmes de point de vente intégrés
• Logiciel de gestion des stocks

Main-d'œuvre et capital humain

Total des employés	Environ 6 800
Mandat moyen des employés	5,2 ans
Investissement de formation annuelle	2,1 millions de dollars

Infrastructure de franchise

Métriques du modèle de franchise:

• Restaurants de franchise: 95,3% du total des emplacements
• Taux de redevance de franchise: 4 à 5% des ventes brutes
• Frais de franchise initiaux: 40 000 $ - 90 000 $

Denny's Corporation (DENN) - Modèle d'entreprise: propositions de valeur

Petit-déjeuner abordable toute la journée et nourriture réconfortante

Denny's propose une fourchette de prix moyen de menu de petit-déjeuner de 6,99 $ à 12,99 $. Le petit-déjeuner du Grand Chelem, un article de signature, coûte environ 8,49 $. En 2023, les articles de petit-déjeuner représentaient 42% du total des ventes de restaurants.

Catégorie de menu	Fourchette	Pourcentage de ventes
Articles de petit-déjeuner	$6.99 - $12.99	42%
Articles de déjeuner	$7.50 - $13.50	31%
Plats de dîner	$9.99 - $16.99	27%

Expérience culinaire familiale

Denny's exploite 1 640 restaurants, avec 87% situés aux États-Unis. Le segment de la restauration familiale représente 65% de leur clientèle.

• Taille moyenne de la fête de la famille: 3,2 personnes
• Éléments de menu pour enfants: 12 options différentes
• Prix ​​moyen de menu pour enfants: 5,49 $

Qualité cohérente et offres de menu familières

Denny's maintient un menu cohérent sur les emplacements, avec 78% des éléments de menu restant inchangés d'une année à l'autre. La normalisation du menu prend en charge la reconnaissance de la marque.

Métrique de cohérence du menu	Pourcentage
Éléments de menu inchangé	78%
Modifications du menu annuel	22%

Emplacements pratiques et heures de fonctionnement prolongées

Denny's opère 24/7 dans 1 246 emplacements, représentant 76% du total des restaurants. Restaurant moyen en pieds carrés: 4 200 pieds carrés.

• Total des restaurants: 1 640
• Restaurants opérationnels 24/7: 1 246
• Capacité moyenne du restaurant: 120 sièges

Options de repas adaptés au budget pour divers segments de clients

Le coût moyen des repas varie de 8,99 $ à 15,99 $. Programmes de réduction et articles de menu de valeur cibles les clients sensibles aux prix.

Segment de clientèle	Coût moyen des repas	Disponibilité de réduction
Soucieux du budget	$8.99 - $10.99	Réductions des étudiants seniors
Salle à manger standard	$11.99 - $15.99	Programme de fidélité

Denny's Corporation (DENN) - Modèle d'entreprise: relations clients

Adhésion au programme de fidélité

Denny's Rewards Program, Denny's Rewards, offre aux membres:

• 10% de points sur chaque achat
• Repas d'anniversaire gratuit
• Promotions exclusives

Métrique du programme	2023 données
Membres de la fidélité totale	4,2 millions
Taux d'inscription numérique	62%
Dépenses moyennes des membres	24,50 $ par visite

Application mobile et engagement numérique

L'application mobile de Denny fournit:

• Commande en ligne
• Réservations de table
• Mises à jour du menu en temps réel

Performance numérique	2023 métriques
Téléchargements d'applications mobiles	1,8 million
Pourcentage de commande numérique	22%

Interaction des médias sociaux

Plate-forme	Nombre de suiveurs	Taux d'engagement
Instagram	375,000	3.2%
Facebook	1,2 million	2.7%

Commentaires des clients et amélioration continue

Métrique de rétroaction	2023 données
Enquêtes clients totales	215,000
Cote de satisfaction	4.3/5

Communications marketing personnalisées

Canal de marketing	Taux de personnalisation	Taux de conversion
E-mail marketing	78%	14.5%
Notifications push mobiles	65%	11.2%

Denny's Corporation (DENN) - Modèle d'entreprise: canaux

Emplacements de restaurants physiques

Au quatrième trimestre 2023, Denny's exploite 1 640 restaurants à travers les États-Unis. La rupture de la propriété des restaurants est la suivante:

Type de restaurant	Nombre d'emplacements
Restaurants appartenant à l'entreprise	335
Restaurants à franchise	1,305

Application de commande mobile

Caractéristiques de l'application mobile:

• Capacités de commande numérique
• Intégration du programme de fidélité
• Accès au menu en temps réel

En 2023, les téléchargements d'applications mobiles ont augmenté de 18% par rapport à l'année précédente, avec environ 2,3 millions d'utilisateurs actifs.

Commande de site Web en ligne

La plate-forme de commande en ligne de Denny a généré 127,4 millions de dollars de revenus de ventes numériques en 2023, ce qui représente 12,5% du total des ventes de restaurants.

Plates-formes de livraison tierces

Plate-forme de livraison	Pourcentage de commandes numériques
Doordash	45%
Uber mange	32%
Grubhub	23%

Marketing direct et campagnes promotionnelles

Dépenses marketing en 2023: 42,6 millions de dollars

• Budget marketing des médias sociaux: 8,3 millions de dollars
• Publicité traditionnelle: 22,1 millions de dollars
• Publicité numérique: 12,2 millions de dollars

Base de données sur le marketing par e-mail: 4,7 millions d'abonnés avec un taux d'ouverture moyen de 22% en 2023.

Denny's Corporation (DENN) - Modèle d'entreprise: segments de clientèle

Les familles à la recherche de repas abordables

Selon le rapport annuel de Denny en 2022, Family Dining représente 35,7% de sa clientèle totale. Taille moyenne du chèque de la famille: 42,50 $.

Groupe d'âge	Pourcentage de clients familiaux	Dépenses moyennes
25-45 ans	48%	$47.20
45 à 65 ans	37%	$39.80

Consommateurs soucieux du budget

Les articles du menu du Grand Chelem de Denny au prix entre 6,99 $ et 9,99 $. Le segment des repas à petit budget représente 28,5% du trafic total des clients.

• Coût moyen des repas: 8,75 $
• Les programmes de réduction atteignent 22% des clients soucieux du budget
• Remises supérieures disponibles pour plus de 55 ans

Diners en fin de soirée

Emplacements 24h / 24: 1 547 restaurants. Les repas en fin de soirée (10 h à 4 h) représentent 19,2% du total des ventes.

Segment du temps	Pourcentage de clientèle	Billet moyen
22 h - 2 h	12.4%	$15.60
2 h à 4 h	6.8%	$12.40

Voyageurs et clients des routes

Emplacements à proximité des autoroutes: 742 restaurants. Les restaurants liés aux voyages représentent 16,3% des revenus totaux.

• Proximité interétatique: 68% des emplacements
• Dépenses moyennes des voyageurs: 24,30 $
• Participation du programme de fidélité: 17% des clients routiers

Petit-déjeuner et passionnés de nourriture réconfortante

Ventes du menu du petit-déjeuner: 487,6 millions de dollars en 2022. Le segment du petit-déjeuner représente 22% de la clientèle totale.

Petit-déjeuner	Volume des ventes	Préférence du client
Petit déjeuner du Grand Chelem	124,3 millions de dollars	38%
Plateaux de crêpes	89,7 millions de dollars	27%

Denny's Corporation (DENN) - Modèle d'entreprise: Structure des coûts

Alimentation et approvisionnement en ingrédient

Les coûts totaux de la nourriture et des boissons de Denny pour l'exercice 2022 étaient de 404,8 millions de dollars. L'entreprise s'approvisionne dans les ingrédients de plusieurs fournisseurs en mettant l'accent sur la rentabilité.

Catégorie de coûts	Dépenses annuelles	Pourcentage de revenus
Achat alimentaire	404,8 millions de dollars	28.3%
Source des ingrédients	87,2 millions de dollars	6.1%

Salaire du personnel du restaurant

Les coûts de main-d'œuvre de Denny pour l'exercice 2022 ont totalisé 291,6 millions de dollars.

• Salaire horaire moyen pour le personnel du restaurant: 14,25 $
• Total des employés: environ 6 800
• Coûts de main-d'œuvre en pourcentage de revenus: 20,4%

Franchise Soutien opérationnel

Les dépenses de soutien à la franchise en 2022 étaient de 42,3 millions de dollars.

Services de support de franchise	Coût annuel
Programmes de formation	8,7 millions de dollars
Conseil opérationnel	15,6 millions de dollars
Support technologique	18 millions de dollars

Dépenses de marketing et de publicité

Les dépenses de marketing pour 2022 étaient de 53,4 millions de dollars.

• Marketing numérique: 22,1 millions de dollars
• Publicité traditionnelle: 31,3 millions de dollars

Technologie et maintenance des plateformes numériques

Les coûts des infrastructures technologiques en 2022 ont atteint 34,6 millions de dollars.

Catégorie de dépenses technologiques	Investissement annuel
Développement de plate-forme numérique	18,2 millions de dollars
Cybersécurité	6,4 millions de dollars
Infrastructure informatique	10 millions de dollars

Denny's Corporation (DENN) - Modèle d'entreprise: Strots de revenus

Ventes de restaurants en dîner

Au cours de l'exercice 2022, Denny a déclaré des revenus totaux de 522,1 millions de dollars. Les ventes de restaurants en dîner représentaient une partie importante de ces revenus.

Catégorie de revenus	Montant (2022)	Pourcentage
Ventes de restaurants appartenant à l'entreprise	216,3 millions de dollars	41.4%
Frais de redevance de franchise	128,7 millions de dollars	24.7%

Frais de redevance de franchise

En 2022, Denny's avait 1 640 restaurants, avec 1 478 emplacements franchisés générant des revenus de redevances importants.

• Taux de redevance moyenne de la franchise: 4 à 5% des ventes brutes
• Frais de redevance de franchise en 2022: 128,7 millions de dollars

Services de livraison et à emporter

Les canaux de vente numériques ont contribué environ 25% du total des ventes en 2022.

Canal de vente numérique	Contribution des revenus
Plates-formes de livraison tierces	15,3% du total des ventes
Commande directe en ligne	9,7% du total des ventes

Revenus de restauration et d'événements spéciaux

Les revenus de restauration représentaient environ 3 à 4% du total des ventes de restaurants en 2022.

Marchandises et ventes de produits de marque

Les ventes de marchandises et de produits de marque ont généré environ 5,2 millions de dollars de revenus supplémentaires pour 2022.

• Catégories de marchandises de marque:
  • Vêtements
  • Ustensiles de cuisine de marque
  • Cartes-cadeaux

Denny's Corporation (DENN) - Canvas Business Model: Value Propositions

Denny's Corporation (DENN) Value Propositions as of late 2025:

All-Day, Everyday Dining: Traditional 24/7 service, though moderated in some locations.

• About 25% of the system opted not to operate through the night as of the end of 2024.

Compelling Value: Re-launched $2-$4-$6-$8 menu to combat consumer inflation.

• The relaunched $2-$4-$6-$8 Value Menu now offers hearty $10 options.
• The Say It Three Times Slam® was available for only $8.99 nationwide.
• The September 2024 relaunch saw a 5% traffic change delta from pre- to post-launch.
• The value menu provided a 2.0-2.5% sales lift since its Q3 2024 launch with minimal impact to check size.

Value Menu Tier	Example Item	Reported Price (Late 2024)
$2	Stack of two signature buttermilk pancakes	Starting at $2
$4	Slice of New York York-style cheesecake	Starting at $4
$8	Say It Three Times Slam®	$8.99

Convenience and Off-Premises: Takeout, delivery, and virtual brands like Banda Burrito.

• Digital ordering and takeout represented approximately 21% of total sales during Denny's Corporation Q2 2025.
• Digital ordering and takeout accounted for 22% of Denny's sales in Q1 2025.
• Virtual brands, including Banda Burrito, increased same-restaurant sales by 70 basis points in both Q3 and Q4 2024.

Modernized Experience: Enhanced dining environment via the 'Diner 2.0' remodel program.

• Denny's Corporation completed 10 remodels in Q3 2025.
• In 2024, 23 remodels were completed across the system.
• The average investment per remodel was approximately $250,000.
• Testing showed remodels resulted in a 6.5% traffic lift.
• The long-term goal for the Denny's brand Average Annual Unit Volume (AUV) is $2.2 million.

Premium Breakfast/Lunch: The higher-end, daytime-focused experience of Keke's Breakfast Cafe.

• Keke's domestic system-wide same-restaurant sales increased 1.1% in Q3 2025.
• Keke's domestic system-wide same-restaurant sales increased 4.0% in Q2 2025.
• Keke's had 69 open locations in the U.S. as of late 2025.
• Keke's projected unit growth CAGR is 25-30%.
• A franchised Keke's Breakfast Cafe location made an average of $2,089,000 in revenue (AUV) per year in 2024.
• Keke's off-premises sales accounted for 16% of its sales in Q1 2025.

Denny's Corporation (DENN) - Canvas Business Model: Customer Relationships

The relationships Denny's Corporation cultivates with its patrons are increasingly leaning into digital channels to foster repeat business and gather actionable insights from its customer base.

Loyalty Program: New digital loyalty program to drive repeat visits and data collection

Denny's Corporation is rolling out a new points-based loyalty CRM program in the second half of 2025. This initiative is designed to move away from broad-based discounts toward a one-to-one marketing model. Executives project the new loyalty program will deliver between 50 to 100 basis points in traffic over time. This effort builds upon an existing digital guest database of 5.5 million individuals. Prior to the new system, the older Denny's Rewards program had approximately 5 million active members, who contributed to $44 million in system sales and visited 1.4 times more per year than the average customer. The company is investing in technology to make this program accessible across its digital ecosystem, including the website and mobile app.

Transactional: High volume, low-touch service model typical of family dining

The core transactional relationship remains rooted in the family dining segment, though traffic has been challenged. Denny's Corporation's domestic system-wide same-restaurant sales for the second quarter of 2025 were negative 1.3%, which represented a 170 basis point sequential improvement from the first quarter of 2025. To streamline the portfolio, Denny's Corporation plans to close between 70 to 90 underperforming Denny's locations in 2025, following 88 closures in 2024, aiming to complete the planned closure of 150 total locations by the end of 2025. Following these adjustments, Denny's will still operate more than 1,300 locations. The family dining category, where Denny's competes, has seen customer traffic decline by about 20% since 2020.

The off-premises business, which often involves a lower-touch digital transaction, remains a key driver. Digital ordering and takeout represented approximately 21 percent of total sales during the second quarter of 2025.

Community Engagement: Local partnerships and the Mobile Relief Diner for disaster support

Specific financial or statistical data regarding Denny's Corporation's 2025 local partnerships or the Mobile Relief Diner program is not available in the latest reports. However, the company is focused on operational health and system strength, which indirectly supports community stability. The strategic closure of underperforming restaurants is intended to optimize the franchise system, with the goal of returning to net flat to positive growth by 2026.

The company is also leveraging its kitchen capacity for community-adjacent initiatives through its virtual brands. For example, the virtual brand Banda Burrito boosted same-restaurant sales by 70 basis points in the third and fourth quarters of 2024.

Digital Personalization: Targeted marketing through the new technology platform

The shift to a personalized, one-to-one marketing model is central to the new digital strategy. This is supported by investments in technology across the system. The virtual brands, which include The Burger Den, The Melt Down, and Banda Burrito, contribute significantly to off-premises sales, representing 22% of Denny's total sales as of the second quarter of 2025. The company is using first-party data to target guests with offers tailored to their purchase history and visit frequency.

Here is a look at key digital and loyalty metrics as of mid-2025:

Metric Category	Data Point	Value/Amount
Digital Guest Database Size (Existing)	Number of Digital Guests	5.5 million
Prior Loyalty Program Reach	Active Members	Approximately 5 million
Prior Loyalty Program Sales Impact	System Sales Contribution	$44 million
Off-Premises Sales Share (Q2 2025)	Digital Ordering & Takeout Percentage of Total Sales	21 percent
Virtual Brand Sales Share	Contribution to Total Sales	22 percent
Projected Loyalty Traffic Impact	Basis Points Over Time	50 to 100 basis points

The company is also seeing success from value-driven promotions, with the Super Slam reaching a record high incidence of nearly 10% earlier in the year.

Denny's Corporation (DENN) - Canvas Business Model: Channels

You're looking at how Denny's Corporation gets its product to the customer as of late 2025. The channel strategy is clearly multi-pronged, balancing the traditional brick-and-mortar footprint with digital and off-premises growth engines.

Physical Restaurants remain the core delivery mechanism. As of the end of the second quarter of 2025, Denny's Corporation operated a total of 1,558 locations globally. This total is comprised of 1,422 restaurants operating under the Denny's name and 74 locations under the Keke's brand. The company was executing a strategic optimization plan, targeting consolidated restaurant closures between 70 and 90 locations for the full year 2025. The Keke's brand, in contrast, was growing, with eight new cafes opened in Q2 2025 alone.

The focus on Digital Ordering and Third-Party Delivery is evident in management commentary, which highlighted leaning into its off-premises strength. The company also launched its digital loyalty program in the second quarter of 2025, aiming for up to 200 basis points in margin savings. While specific transaction volume for the Denny's on Demand platform isn't broken out, the emphasis on off-premises is a clear channel priority.

For Virtual Brands, the strategy involves leveraging existing kitchen capacity for delivery-only concepts. The virtual brand strategy, which included the launch of Nathan's Famous hot dogs, contributed to an improvement in company system-wide same-restaurant sales (SRS) by approximately 50 basis points during the second quarter of 2025. This shows a measurable, albeit small, financial impact from these delivery-only extensions.

Here is a breakdown of the physical footprint as of the end of Q2 2025:

Brand	Total Locations	Franchised/Licensed Locations	Company Operated Locations
Denny's	1,422	Data not explicitly separated from total in the 1,558 figure, but 1,422 is the total for the brand.	Data not explicitly separated from total in the 1,558 figure.
Keke's	74	52	22
Total System-Wide	1,558	N/A	N/A

The company's full-year 2025 expectation for consolidated restaurant openings was between 25 and 40 new units.

• Virtual Brand Strategy Impact (Q2 2025 SRS Improvement): 50 basis points.
• Digital Loyalty Margin Savings Target: Up to 200 basis points.
• Planned Denny's Closures for 2025: Between 70 and 90 units.

Denny's Corporation (DENN) - Canvas Business Model: Customer Segments

You're looking at the core groups Denny's Corporation targets across its dual-brand portfolio as of late 2025. The strategy clearly splits between defending the core, value-driven diner traffic and aggressively growing the premium breakfast concept.

Value-Conscious Consumers

This segment is critical for the flagship Denny's brand, which is actively fighting for traffic against grocery and other value players. The company is leaning heavily on price architecture to bring these guests in.

The relaunched $2-$4-$6-$8 menu continues to be a staple offering. During a prior promotional push, this value platform resulted in a 5% traffic change delta from pre- to post-launch. The structure includes items starting at $2, $4, $6, and $8, with newer tests incorporating $10 options. For instance, a limited-time offer, the Say It Three Times Slam®, was priced at $8.99 nationwide during a recent collaboration. The company is focused on iterating this platform to ensure it is engineered for the right profitability, aiming for a flat mix GCA impact despite accounting changes for the lower-priced items.

Broad Family Dining Audience

This is the traditional core demographic for the Denny's brand, seeking comfort food and all-day dining options. However, this segment is showing significant strain in the current economic climate.

Performance metrics for the core brand reflect this pressure:

• Denny's domestic system-wide same-restaurant sales were -3.0% in Q1 2025.
• Denny's domestic system-wide same-restaurant sales were -1.3% in Q2 2025.
• Denny's domestic system-wide same-restaurant sales were -2.9% in Q3 2025.
• Full-year 2025 guidance projects domestic system-wide same-restaurant sales between -2.0% and 1.0%.

As of September 24, 2025, Denny's operated 1,397 franchised/licensed restaurants and 62 company restaurants globally, totaling 1,459 units under the core brand.

Denny's Revenue Component (Q3 2025)	Amount (in millions)	Contribution to Total Revenue
Co. Restaurant Sales	$47.6	42.0%
Franchise & License Revenue	$54.0	47.7%

Younger/Digital-Native Guests

Denny's Corporation targets younger, digitally-engaged customers through its off-premises channels and technology investments. This group is crucial for driving incremental revenue outside of traditional dine-in traffic.

Digital ordering and takeout accounted for approximately 21% of total sales during the second quarter of 2025. Investments in the digital guest experience paid off, with reported conversion rate increases of over 16% in Q1 2025. The company is building on an existing database of 5.5 million digital guests to personalize offers at scale using a new loyalty program expected to launch in the second half of 2025.

• Digital ordering/takeout sales mix (Q2 2025): 21% of total sales.
• Digital guest experience conversion rate lift (Q1 2025): Over 16%.
• Digital guest database size: 5.5 million.

Breakfast/Brunch Enthusiasts

This segment is primarily targeted through the high-growth Keke's Breakfast Cafe brand, which is positioned as a premium, fresh alternative in the breakfast space.

Keke's has consistently outperformed the core brand and the BBI Family Dining Florida Index. Its domestic system-wide same-restaurant sales were 3.9% in Q1 2025 and 1.1% in Q3 2025. The brand is seeing strong unit-level economics, posting an average AUV of $2,089,007 in 2024 for franchised restaurants. The long-range unit growth CAGR target for Keke's is a robust 25-30%, significantly higher than the core Denny's brand's 0-1% target.

As of September 24, 2025, Keke's operated 23 company restaurants and 55 franchised restaurants, contributing $9.8 million in company restaurant sales and $1.9 million in franchise/license revenue in Q3 2025.

Keke's Performance Metric (2025 Data)	Value
Domestic Same-Store Sales (Q3 2025)	1.1% increase
Company Restaurants (as of 9/24/2025)	23 units
Franchised Restaurants (as of 9/24/2025)	55 units

Denny's Corporation (DENN) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Denny's Corporation's expenses as they navigate a complex market. Here's the breakdown of their cost structure based on late 2025 projections and recent quarterly results.

Food and Beverage Costs: Primary cost driver for the company-operated segment.

Commodity inflation is a major factor, projected to be between 3.0% and 5.0% for the full year 2025. To give you a sense of the impact, product costs represented 25.5% of sales for the third quarter of 2025. This category saw significant pressure earlier in the year, for instance, egg prices in Q1 2025 were up 3-4x versus prior pricing, causing a roughly 100bps impact to the adjusted company restaurant operating margin. The company is actively managing this, though, as evidenced by the Q3 2025 adjusted company restaurant operating margin expanding to 13.5% (up from 11.5% year-over-year for that quarter).

Here's a quick look at the inflation outlook:

• Commodity Inflation Projection (FY 2025): 3.0% to 5.0%
• Labor Inflation Projection (FY 2025): 2.5% to 3.5%

Labor Costs: Expected labor inflation of 2.5% to 3.5% for the full year 2025.

Labor costs remain a significant operating expense, with management projecting inflation in this area to settle between 2.5% and 3.5% for the full year 2025. This is a key area for margin management, especially as the company works to staff its locations effectively.

General and Administrative (G&A): Projected full-year 2025 G&A expenses between $80 million and $85 million.

Denny's Corporation has a clear projection for its overhead. Total General and Administrative expenses are expected to land between $80 million and $85 million for the full year 2025. This figure includes several components, which you can see itemized here:

G&A Component	Projected Amount (Full Year 2025)
Corporate and Administrative Expenses	$60 million to $62 million
Incentive Compensation	$6 million to $9 million
Share-Based Compensation Expense (Non-Adjusting)	Approximately $14 million

The Q3 2025 G&A expenses specifically were $22.57 million, up from $19.83 million in the prior year quarter, driven by incentive compensation and transaction costs related to the pending acquisition.

Franchise Optimization Costs: Costs associated with closing 70 to 90 underperforming Denny's units in 2025.

A significant part of the cost management strategy involves portfolio optimization. Denny's Corporation plans to close between 70 and 90 underperforming Denny's restaurants throughout 2025. This action is intended to improve franchisee cash flow and overall system health, though it carries associated closure costs. For context, the chain closed 88 locations in 2024 as part of this multi-year optimization plan.

Capital Expenditures: Investment in remodels and new Keke's cafe development.

Capital spending is focused on revitalization and expansion. Cash capital expenditures in the first quarter of 2025 totaled $9.1 million, which covered Keke's new cafe development and Denny's company restaurant remodels. In the third quarter of 2025, cash capital expenditures were $9.3 million for similar activities. The company is accelerating its Diner 2.0 remodel program, which has shown a 6.5% sales lift in testing.

Denny's Corporation (DENN) - Canvas Business Model: Revenue Streams

You're looking at the Denny's Corporation (DENN) revenue profile as of late 2025, and the story is one of near parity between direct operations and the franchise model, though the latter drives the higher margins you'd expect from a mature brand. For the third quarter of 2025, Denny's Corporation reported total operating revenue of $113.2 million.

The core revenue streams are clearly delineated between company-owned units and the vast network of franchised and licensed locations. Honestly, the split is almost 50/50, which is a significant shift from the heavily franchised model of the past, driven by the growth of Keke's Breakfast Cafe company-operated units.

Here is the quick math on the primary revenue components for Q3 2025:

Revenue Stream Category	Q3 2025 Amount (USD)	Percentage of Total Revenue (Approx.)
Company Restaurant Sales	$57.4 million	50.6%
Franchise and License Revenue	$55.9 million	49.4%

The Franchise and License Revenue stream, totaling $55.9 million in Q3 2025, is the high-margin engine of the Denny's Corporation business. This revenue is comprised of several key components that flow directly to the corporate entity without the direct cost of goods sold associated with running a restaurant.

The components feeding into this high-margin bucket include:

• Franchise Royalties: A percentage of gross sales from franchised restaurants.
• Rental Income: Revenue derived from properties owned or master-leased and subsequently subleased to franchisees.
• Initial Franchise Fees: One-time payments upon signing new franchise agreements for both the Denny's and Keke's brands.

For traditional Denny's franchise agreements, the contractual royalty payment is up to 4.50% of gross sales, with franchisees also contributing up to 3.25% of gross sales for marketing, which can be a source of additional revenue or cost recovery for the corporation. The adjusted franchise operating margin for this segment was reported at 52.0% of franchise and license revenue in Q3 2025, showing its inherent profitability.

The Company Restaurant Sales, which brought in $57.4 million in Q3 2025, reflect the direct sales from the 85 company-operated restaurants as of September 24, 2025. While this stream carries direct operating costs, the adjusted company restaurant operating margin improved to 13.5% of company restaurant sales for the quarter.

Regarding one-time fees, the initial franchise fee for a traditional Denny's agreement is up to $30,000. This fee is a distinct, upfront cash infusion separate from the ongoing royalty and advertising fees.

The high-margin nature of the franchise segment is evident in the following:

• Adjusted Franchise Operating Margin: 52.0% in Q3 2025.
• Traditional Royalty Fee: Up to 4.50% of gross sales.
• Initial Franchise Fee: Up to $30,000 per agreement.

Finance: draft 13-week cash view by Friday.