Denny’s is going to college to hunt for more sales and traffic.
With openings at Kansas State University and the University of Auburn in Alabama during the first quarter, Denny’s now has eight locations on college campuses and is looking for additional sites, the company said Tuesday as it reported first quarter results.
Denny’s college campus units feature an express format with a streamlined menu. All-day breakfast and burgers are popular menu items at the Denny’s unit at Auburn University, which is located in a section of dormitories that house more than 1,000 students, said Gina Groome, marketing director for the Chartwells foodservice provider at the school.
Non-traditional venues have been a source of growth for Denny’s, which also opened five more converted units in Flying J Travel Centers in the first quarter. For the full year, Denny’s said it expects to add a total of 70 to 75 new restaurants, including 25 Flying J units and 10 franchised university locations.
For the March-ended first quarter, Denny’s recorded net income of $4.1 million, or 4 cents per share, which was down from year-ago profit of $4.6 million, or 5 cents per share.
Revenue slipped 1.3 percent to $135.8 million in the first quarter, Denny’s said. Systemwide same-store sales declined 1.7 percent, reflecting a 1.3-percent decrease at company units and 1.7-percent decrease at franchised units.
Denny’s said the absence of a Super Bowl promotion this year and a shift of Easter resulted in a 1.1-percent dip in guest counts.
Denny’s president and chief executive John Miller said the same-store sales results still showed improving trends, however. In last year’s first quarter, same-store sales declined 5.5 percent at corporate stores and 6.3 percent at franchised branches.
“In the first quarter [of 2011], same-store guest trends continued to improve as we executed on our marketing strategies that emphasize everyday affordability combined with attractive limited time offers,” Miller said. “We are pleased that our efforts resulted in continued progress despite inflationary pressures and economic uncertainty impacting our customers.”
Miller said Denny’s added 18 units in the first quarter and closed a total of 11 stores, including two corporate units and nine franchised branches. The Spartanburg, S.C.-based company ended the period with 1,665 restaurants, including 226 company stores and 1,439 franchised units.
CORRECTION: An earlier version of this story incorrectly stated how many units Denny's closed during the first quarter. The chain closed two corporate restaurants and nine franchised restaurants.
Contact Alan Snel at [email protected].
