Denny’s Corporation (DENN) Q4 Domestic Same-Store Sales Up 2.2%

The company completed 69 remodels, including at 67 franchise restaurants

Denny’s Corporation (NASDAQ:DENN) posted above-average quarterly earnings results after hours Tuesday.

Denny's Corporation (DENN)For its fourth quarter, the restaurant chain reported a 2.2% growth in its domestic system-wide same-store sales, which included a 2.1% increase at company restaurants, as well as a 2.2% gain at domestic franchised restaurants.

The company completed 69 remodels, including 67 at franchised restaurants, and opened 14 system restaurants, including three international franchised locations. Denny’s operating income popped 17.7% to $18.9 million.

Its net income was $13.1 million, or 19 cents per diluted share, while its adjusted net income was $12.2 million, or 18 cents per share. Adjusted earnings rose 7.6% to 27.8 million and the company generated $15.3 million of adjusted free cash flow after capital expenditures.

For the full year, Denny’s saw its domestic system-wide same-store sales rise 1.1%, including a 1% gain at company restaurants and a 1.1% increase at domestic franchised restaurants.

The chain completed 250 remodels, including 247 at franchised restaurants, and opened 39 system restaurants, including seven international franchised locations. Its operating income surged 50.4% to $70.7 million.

Denny’s posted a net income of $39.6 million for the full year, or 56 cents per share, while its adjusted net income was $40.7 million. Its adjusted net income per share was 58 cents per share and its adjusted earnings per share gained 2.3% to $101.7 million.

The restaurant operation raked in $50.1 million of adjusted free cash flow after cash capital expenditures and allocated $82.9 million towards share repurchases.

DENN stock was trading flat after the bell Tuesday.


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