Denny’s Corporation Releases Preliminary Financial Results for Fourth Quarter and Fiscal Year 2017

Jan 8, 2018

- Company Reiterates 2017 Guidance Expectations for Adjusted EBITDA* and Adjusted Free Cash Flow* -

SPARTANBURG, S.C., Jan. 08, 2018 (GLOBE NEWSWIRE) -- Denny’s Corporation (NASDAQ:DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported preliminary results for domestic same-store sales and restaurant openings and closings for its fourth quarter and fiscal year ended December 27, 2017.

Denny’s fourth quarter domestic system-wide same-store sales increased 2.2%, including a 2.2% increase at domestic franchised restaurants and a 2.1% increase at company restaurants.  Fiscal year domestic system-wide same-store sales grew 1.1%, including 1.1% growth at domestic franchised restaurants and 1.0% growth at company restaurants.  On a two-year basis, this represents 1.9% domestic system growth, comprised of 1.9% growth at domestic franchised restaurants and 2.1% growth at company restaurants.

In 2017, Denny’s opened 39 restaurants, including 7 international locations, bringing the total restaurant count to 1,735.  This is the ninth consecutive year of positive net system growth for the brand.  In addition, 250 remodels were completed during fiscal year 2017, including 3 at company restaurants.

Based on preliminary results, Denny’s is reiterating its full year 2017 guidance expectations for Adjusted EBITDA* of between $101 and $103 million and Adjusted Free Cash Flow* of between $48 and $50 million provided with the Company’s third quarter 2017 results announced on November 1, 2017.  Denny’s expects to release financial and operating results for its fourth quarter and fiscal year ended December 27, 2017 along with annual guidance for 2018 after the market closes on Tuesday, February 13, 2018.

Preliminary ResultsQuarter Ended 12/27/17Year Ended 12/27/17
   
Domestic Same-Store Sales  
System-Wide2.2%1.1%
Franchised2.2%1.1%
Company2.1%1.0%
   
Restaurants Opened**  
Franchised & Licensed13 36 
Company1 3 
   
Restaurants Closed**  
Franchised & Licensed4 37 
Company0 0 

*The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy.  Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.
**Excludes 10 franchised restaurants acquired by the Company and 4 company restaurants acquired by franchisees.

Upcoming Investor Conference Presentation

Denny’s will be participating in the 20th Annual ICR Conference taking place at the JW Marriott Orlando Grande Lakes in Orlando, Florida.  Denny’s presentation will take place on Tuesday, January 9, 2018, at 10:00 a.m. Eastern Time.  Investors and interested parties may listen to a live audio webcast of the presentation which will be available online in the Investor Relations section of Denny's website at investor.dennys.com with a replay of the event webcast available following the live event.  Investors and interested parties may access a copy of the presentation in the Events and Presentations section of Denny's website at investor.dennys.com.

About Denny’s

Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants.  As of December 27, 2017, Denny’s had 1,735 franchised, licensed, and company restaurants around the world including 128 restaurants in Canada, Puerto Rico, Mexico, New Zealand, Honduras, the Philippines, Costa Rica, Dominican Republic, the United Arab Emirates, Guam, Curaçao, El Salvador, Guatemala, and the United Kingdom.  For further information on Denny's, including news releases, links to SEC filings, and other financial information, please visit the Denny's investor relations website at investor.dennys.com.

Forward Looking Statements

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release.  In addition, certain matters discussed in this release may constitute forward-looking statements.  These forward-looking statements, which reflect its best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements.  Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, and variations of such words and similar expressions are intended to identify such forward-looking statements.  Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.  Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others:  competitive pressures from within the restaurant industry; the level of success of our operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses, such as avian flu, or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment (including acts of war and terrorism); and other factors from time to time set forth in the Company’s SEC reports and other filings, including but not limited to the discussion in Management’s Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company’s Annual Report on Form 10-K for the year ended December 28, 2016 (and in the Company’s subsequent quarterly reports on Form 10-Q).

Investor Contact:
Curt Nichols
877-784-7167

Media Contact:
Jessica Liddell, ICR
203-682-8208

Primary Logo

 

Source: Denny's Corporation
DISCLAIMER

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk. Denny’s Corporation ("DENN") has no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that neither DENN nor third party provider Virtua Research, Inc. ("Virtua") is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the Linked Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against DENN and Virtua and further acknowledge and agree that in no event shall DENN or Virtua, its officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to this disclaimer or the External Site By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if DENN and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s). If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect. Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

NON-GAAP INFORMATION

In addition to disclosing results determined in accordance with GAAP, DENN may also disclose certain non-GAAP and pro forma non-GAAP results of operations, including certain ratios, operational and miscellaneous data, as well as net income, diluted earnings per share, operating expenses, and operating income that make certain adjustments or exclude certain charges and gains that are outlined in the schedules included in this website. Management believes that this non-GAAP and pro forma non-GAAP information provides investors with additional information to assess DENN operating performance by making certain adjustments or excluding costs or gains and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP and pro forma non-GAAP information, along with GAAP information, in evaluating its historical operating performance. DENN and Virtua also take no responsibility for third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data. The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Accept Decline