By Roshan Fernandez

Denny's reported a decline in first-quarter profit and a fall in U.S. same-restaurant sales, results that it attributed to macroeconomic challenges facing consumers.

The Spartanburg, S.C.-based restaurant chain reported a of $326,000, or 1 cent a share, compared with $4.69 million, or 9 cents a share, a year earlier.

Excluding one-time items, per-share earnings were 8 cents, below the 9 cents per share that analysts were expecting, according to a survey by FactSet.

Revenue rose to $111.6 million from $110 million a year earlier. Analysts surveyed by FactSet had forecast sales of $110 million.

"The beginning of the year has presented significant challenges for consumers, which is evident in our results," Chief Executive Officer Kelli Valade said. "Our teams have remained focused on executing against our strategic initiatives and winning with our guests, despite these macro headwinds."

The restaurant operator said it expects recent shifts in consumer sentiment, due to macroeconomic events, to moderate over time.

Domestic system-wide same-restaurant sales were down 3% at Denny's compared to the year-ago quarter. The company is focused on attracting younger customers with menu offerings and partnerships.

The company now expects commodity inflation this year of 3% to 5%, compared to 2% to 4% previously.

Write to Roshan Fernandez at roshan.fernandez@wsj.com

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May 05, 2025 16:46 ET (20:46 GMT)

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