Denny’s Corp. reported a 4.7-percent increase in domestic systemwide same-store sales for the fourth quarter ended Dec. 31, its strongest quarterly increase in eight years, the company said Wednesday.
Net income increased 127 percent in the quarter, to $9.7 million. Adjusting for debt refinance charges, impairment, gains on assets and other charges, adjusted net income of $9.7 million grew 27 percent compared with adjusted net income of $7.6 million a year ago.
“Our strong finish in the fourth quarter of 2014, built upon the consistent results we produced throughout the year, is a testament to the benefits of our brand revitalization strategy launched in 2011,” John Miller, Denny’s president and CEO, said in a statement.
The brand revitalization, which has focused on the family-dining chain’s food, service and atmosphere, has also included a restaurant remodel plan that so far has been implemented across only 20-percent of the system, Miller noted.
“Our brand revitalization is still in the early stages and gaining momentum,” he said.
For the year, domestic systemwide same-store sales growth of 2.8 percent was the chain’s highest since 2004, Miller said.
Spartanburg, S.C.-based Denny’s opened 22 restaurants during the quarter, including three international and two non-traditional locations. It also reopened its restaurant in the Las Vegas Casino Royale. Nine franchised restaurants closed, bringing the total unit count to 1,702, including 1,541 franchised and 161 company-owned units.
For the full year, the company projected same-store sales to grow between 2.5 percent and 4 percent at company locations, while domestic franchised units would grow between 1.5 percent to 3 percent.
Between 35 and 45 new franchised units are expected to open in fiscal 2015.
4Q NET INCOME
Result: $9.7 million, or 11 cents per share% Increase: 127% (from $4.3 million, or 5 cents per share)
4Q REVENUE
Result: $128.7 million% Increase: 13% (from $114.3 million)
4Q SAME-STORE SALES
% Increase domestic systemwide: 4.7%
% Increase domestic corporate: 5.8%
% Increase domestic franchised: 4.6%
Source: Company report
FULL YEAR NET INCOME
Result: $32.7 million, or 37 cents per share% Increase: 33% (from $24.6 million, or 26 cents per share)
FULL YEAR REVENUE
Result: $472.3 million% Increase: 2% (from $462.6 million)
FULL YEAR SAME-STORE SALES
% Increase domestic systemwide: 2.8%
% Increase domestic corporate: 4.2%
% Increase domestic franchised: 2.5%
Source: Company report
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Contact Lisa Jennings at [email protected].
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