Family-dining chain’s profit increased 16.6 percent in first quarter
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Denny’s Corp. expects its brand revitalization program to benefit income for the rest of the year after reporting increased profit in the first quarter ended March 30, the company said Monday.
The Spartanburg, S.C.-based family-dining chain said first-quarter net income rose 16.6 percent, to $10 million, or 13 cents a share, from $8.5 million, or 10 cents a share, in the same quarter last year. Revenue rose 3.7 percent, to $124.6 million from $120.2 million in the prior-year period.
Domestic same-store sales grew 2.5 percent in the quarter, including a 3.5 percent increase at company-owned restaurants and a 2.3 percent rise at franchised units.
“Our start to the year was quite positive as we grew same-store sales on top of one of our strongest quarters of growth in the prior year,” said John Miller, Denny’s president and CEO, said in a statement.
“Given we are still in the early stages of our successful store revitalization effort, with only 36 percent of the system reflecting the new Heritage image, we have an opportunity to further enhance our performance for the balance of 2016 and beyond,” Miller said.
During the first quarter, the Denny’s system completed 57 remodels, including five at company restaurants. The chain opened 12 new restaurants, including one company restaurant and six international locations.
As of March 30, Denny's had 1,713 franchised, licensed and company restaurants around the world.
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