Denny's Corporation Reports Results for Second Quarter 2018
SPARTANBURG, S.C., July 30, 2018 (GLOBE NEWSWIRE) -- Denny’s Corporation (DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its second quarter ended June 27, 2018.
Second Quarter 2018 Highlights
- Total Operating Revenue grew 18.0% to $157.3 million, primarily due to the benefit of revenue recognition changes.
- Domestic system-wide same-store sales** decreased 0.7%, including decreases of 0.1% at company restaurants and 0.8% at domestic franchised restaurants. Excluding the negative holiday shift, domestic system-wide same-store sales** would have been nearly flat.
- Completed 51 remodels, including 48 at franchised restaurants.
- Operating Income grew 11.5% to $19.0 million.
- Company Restaurant Operating Margin* was $16.2 million and Franchise Operating Margin* was $25.5 million.
- Net Income was $11.6 million, or $0.18 per diluted share.
- Adjusted Net Income* was $11.7 million, or $0.18 per diluted share.
- Adjusted EBITDA* increased 0.2% to $27.2 million.
- Adjusted Free Cash Flow* increased 4.0% to $13.7 million.
- Reiterated prior annual guidance for company and domestic franchised restaurant same-store sales** growth, Adjusted EBITDA* and Adjusted Free Cash Flow* while revising certain other guidance.
- Repurchased $12.7 million of common stock.
John Miller, President and Chief Executive Officer, stated, “Denny's generated strong cash flows during the second quarter, and we are pleased to be reiterating our annual guidance for same-store sales** growth, Adjusted EBITDA* and Adjusted Free Cash Flow*. Although sales were challenged by a formidable year-ago comparison, a negative holiday shift, and a highly competitive value environment, we generated strong total operating margins through effective cost management and grew Adjusted Net Income Per Share* by 28.2%. Going forward, we remain committed to delivering positive and profitable system sales growth by executing our on-going brand revitalization strategy, enhancing the overall guest experience, and expanding our global reach.”