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Greenville Business Magazine

Denny’s Sees Sales Increase and Growth for Fourth Quarter and Fiscal Year 2018

Jan 14, 2019 03:47PM
Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported preliminary results for domestic same-store sales** and restaurant openings and closings for its fourth quarter and fiscal year ended December 26, 2018.

Denny’s fourth quarter domestic system-wide same-store sales** increased 1.4%, including a 2.1% increase at company restaurants and a 1.2% increase at domestic franchised restaurants.  Fiscal year domestic system-wide same-store sales** grew 0.8%, including 1.8% growth at company restaurants and 0.6% growth at domestic franchised restaurants.  On a two-year basis, this represents domestic system-wide same-store sales** growth of 1.9%, comprised of 2.8% growth at company restaurants and 1.7% growth at domestic franchised restaurants.

In 2018, Denny’s opened 30 restaurants, including nine international locations, and closed 56 restaurants, bringing the total restaurant count to 1,709.  Denny's also completed 203 remodels during fiscal year 2018, including 10 at company restaurants.  During the fourth quarter, Denny's sold eight company restaurants in the first transaction since announcing the new refranchising strategy.
 
Based on preliminary results, Denny’s is reiterating its full year 2018 guidance expectations for Adjusted EBITDA* of between $105 and $107 million provided with the Company’s third quarter 2018 results announced on October 30, 2018.  Denny’s expects to release financial and operating results for its fourth quarter and fiscal year ended December 26, 2018 along with annual guidance for 2019 after the market closes on Tuesday, February 12, 2019.

*The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy.  Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.
**Same-store sales includes sales at company restaurants and non-consolidated franchised and licensed restaurants that were open the same period in the prior year.  Total operating revenue is limited to company restaurant sales and royalties, fees and occupancy revenue from franchised and licensed restaurants.  Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, our results as reported under GAAP.