Denny’s (NASDAQ:DENN) reported its latest quarterly earnings results, which sent shares on the decline despite a revenue increase compared to the year-ago quarter.
The restaurant chain said that for its second quarter of fiscal 2018 it amassed net income of $11.6 million, or 18 cents per diluted share. On an adjusted basis, the company’s net income was $11.7 million, or 18 cents per diluted share.
Denny’s added that its total operating revenue was 18% higher than it was during the year-ago quarter, arriving at $157.3 million. This increase was due in large part to the benefit of revenue recognition changes.
The chain’s domestic system-wide same-store sales were down by about 0.7% compared to the year-ago quarter. This figure included a 0.1% dip at company restaurants and a 0.8% slide at domestic franchised restaurants, due in large part to a negative holiday season.
“Although sales were challenged by a formidable year-ago comparison, a negative holiday shift, and a highly competitive value environment, we generated strong total operating margins through effective cost management and grew Adjusted Net Income Per Share* by 28.2%,” said Denny’s CEO and President John Miller.
“Going forward, we remain committed to delivering positive and profitable system sales growth by executing our on-going brand revitalization strategy, enhancing the overall guest experience, and expanding our global reach.”
DENN stock was down about 0.9% during regular trading hours in anticipation of the company’s quarterly earnings results, which sent shares down about 3.4% after the bell Monday.