Denny’s Tenant Overview


  • NNN leases
  • Rental increases throughtout primary term of lease
  • Ease of releasing building


  • Not Rated by Moody’s or S&P
  • Franchisee operators

Earnings Highlights

Earnings Summary
  • Total operating revenue grew 13.2% to $117.5 million compared to the prior year quarter.
  • Operating income was $15.8 million compared to $17.7 million in the prior year quarter.
  • Net income was $17.1 million, or $0.29 per diluted share.

Tenant Description

Denny’s is a restaurant chain best known for their breakfast around the clock.

Denny’s is a great net lease investment because of the triple net structured leases they tend to sign. They require no landlord responsibilities from an investor. While nearly all the locations are operated by franchisees, Denny’s Corporation (NYSE: DENN) will work with the franchisees on site selection. Potential sites are evaluated by Denny's development team to ensure they have strong real estate fundamentals - good demographics, visibility, and proximity to high-traffic consumer activities. All of which are attractive aspects for any net lease property. Denny’s typically operates in free-standing buildings between 3,800 – 5,000 square feet in a common restaurant floor plan on 1 acre of land. This type of floor plan is very easy to adjust should Denny’s vacate and the owner needs to retenant the property.

Denny’s was founded in 1953 as Danny’s Donuts by Harold Butler and Richard Jezak in Lakewood, CA. The name and concept has evolved into a full-service restaurant chain named Denny’s. Today they are headquartered in Spartanburg, SC and have over 1,600 locations worldwide, most of which operate 24 hours a day, 7 days a week.

Denny's Corporation is broadening its restaurant portfolio through the expansion of Keke's Cafe operations, a chain known for its dedication to serving high-quality, made-to-order breakfast and lunch in a cozy, inviting atmosphere. Keke's Cafe prides itself on creating a warm dining experience with a focus on fresh ingredients, distinguishing itself in the breakfast and brunch segment. This move by Denny's signifies a strategic effort to diversify its offerings and tap into the growing demand for specialized breakfast and brunch options.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $2,205,843
NOI $140,051
$/Square Foot $441 - $580
Building SF 3,800 - 5,000
Lot Size 1.00 acre
Lease Term 15 - 20 years
Escalations 5 - 10% every 5 years
Stock Symbol DENN
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Mechanicsburg, PA 5.62%
Tyler, TX 6.46%
Fountain Hills, AZ 6.75%
Cambridge, MD 7.48%