SPARTANBURG, S.C., Jan 15, 2009 (BUSINESS WIRE) -- Denny's Corporation (NASDAQ: DENN) today reported same-store sales for
its company-owned and franchised restaurants during the quarter and year
ended December 31, 2008 compared with the related periods in fiscal year
2007.
Nelson Marchioli, President and Chief Executive Officer, stated, "We
expect to report continued income growth in the fourth quarter despite
the ongoing macroeconomic decline. While driving customer traffic
remained difficult, we executed on our strategic initiatives and
cost-saving actions in order to protect our operating margins and cash
flow. In the fourth quarter, we sold 17 additional restaurants to
franchisees under our Franchise Growth Initiative (FGI), for a total of
79 restaurants sold in 2008. The FGI program enabled Denny's to open 34
new restaurants in 2008, its most successful development year since
2002."
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4th Quarter
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Full Year
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2008
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2007
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2008
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2007
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Same-Store Sales
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Company Restaurants
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(3.2
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%)
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(1.2
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%)
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(1.4
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%)
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0.3
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%
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Franchised Restaurants
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(7.2
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%)
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0.3
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%
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(4.6
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%)
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1.7
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%
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System-wide Restaurants
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(6.1
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%)
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(0.2
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%)
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(3.7
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%)
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1.2
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%
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Company Restaurant Sales Detail
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Guest Check Average
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4.6
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%
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6.3
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%
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5.9
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%
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4.6
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%
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Guest Counts
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(7.5
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%)
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(7.1
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%)
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(6.9
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%)
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(4.1
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%)
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The Denny's system is now comprised of 80% franchised and licensed
restaurants and 20% company restaurants compared with 66% franchised and
licensed restaurants and 34% company restaurants prior to the launch of
FGI in 2007. In addition to the FGI transactions completed in the fourth
quarter, Denny's franchisees opened 12 new restaurants bringing the
total number of new Denny's opened across the system in 2008 to 34,
which represents a 48% increase in new restaurant development over the
prior year.
Based on preliminary, unaudited results for the fourth quarter of 2008,
Denny's expects to meet or exceed its previous guidance for full-year
adjusted income before taxes of $20 million, which represents an
increase of more than 90% over the prior year. The improvement in
Denny's 2008 earnings is attributable to growth in its higher-margin
franchise business and proactive food cost management, as well as lower
depreciation expense from asset sales and lower interest expense from
debt reduction. In addition, Denny's expects to report total operating
revenue of approximately $184 million compared with $220 million in the
prior year period due primarily to the sale of 79 company restaurants
over the last four quarters.
Further Information
Denny's expects to release financial and operating results for its
fourth quarter and year ended December 31, 2008 after the markets close
on Wednesday, February 18, 2009.
Denny's is one of America's largest full-service family restaurant
chains, consisting of 315 company-owned units and 1,226 franchised and
licensed units, with operations in the United States, Canada, Costa
Rica, Guam, Mexico, New Zealand and Puerto Rico. 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 ir.dennys.com.
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 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 "expects", "anticipates",
"believes", "intends", "plans", "hopes", 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: the competitive pressures from within the restaurant
industry; the level of success of the Company's operating initiatives,
advertising and promotional efforts; adverse publicity; changes in
business strategy or development plans; terms and availability of
capital; regional weather conditions; overall changes in the general
economy, 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, 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 26, 2007 (and in the
Company's subsequent quarterly reports on Form 10-Q).
SOURCE: Denny's Corporation
Denny's Corporation
Investor Contact: Alex Lewis
877-784-7167
or
Media Contact: Hill & Knowlton
786-553-1542