Denny’s Corporation Reports Results For Fourth Quarter And Full Year 2015

  • 5.8% Increase in 2015 Full Year Domestic System-Wide Same-Store Sales  
  • 16.4% Growth in 2015 Full Year Adjusted Net Income Per Share*  

SPARTANBURG, S.C. - Feb. 17, 2016 // GLOBE NEWSWIRE // - Denny’s Corporation (NASDAQ:DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its fourth quarter and full year ended December 30, 2015.

John Miller, President and Chief Executive Officer, stated, “Our brand revitalization strategies led to another great year for the Denny’s brand.  We achieved the highest same-store sales and traffic growth in over a decade as we continued to offer craveable products and more consistent service, both delivered in a more inviting environment.  With only 32% of the system reflecting the Heritage image at the end of 2015, we are still in the early stages of our revitalization.  We currently anticipate over 70% of the system will have the Heritage image by the end of 2018.  As we continue to grow and transform the Denny’s brand, we will consistently grow same-store sales and expand our global reach, while returning cash to shareholders through our ongoing share repurchase program.”

Full Year 2015 Highlights

  • Domestic system-wide same-store sales growth of 5.8%, comprised of a 6.5% increase at company restaurants and 5.7% increase at domestic franchised restaurants.
  • Opened 45 system restaurants with net system growth of 8 restaurants.
  • Completed 232 remodels including 51 at company restaurants.
  • Adjusted EBITDA* of $88.7 million increased $6.2 million, or 7.5%.
  • Net Income of $36.0 million, or $0.42 per diluted share, increased 9.9%.
  • Adjusted Net Income per Share* of $0.43 grew 16.4%.
  • Generated $42.3 million of Free Cash Flow*, after cash capital spending of $32.8 million.
  • Allocated $105.8 million towards share repurchases. 

Fourth Quarter Highlights

  • Domestic system-wide same-store sales growth of 2.9%, comprised of a 3.5% increase at company restaurants and 2.8% increase at domestic franchised restaurants.
  • Opened 14 system restaurants including three company restaurants.
  • Adjusted EBITDA* of $21.9 million grew 4.8%, excluding the impact of an additional operating week in 2014 which contributed approximately $3.6 million. 
  • Net Income of $8.8 million, or $0.11 per diluted share, decreased 9.5%.
  • Adjusted Net Income* of $8.9 million, or $0.11 per diluted share, increased 18.9%, excluding the impact of an additional operating week.
  • Generated $7.1 million of Free Cash Flow* and repurchased 5.1 million shares. 

Fourth Quarter Results

Denny’s domestic system-wide same-store sales grew 2.9%, including growth of 3.5% at company restaurants and 2.8% at domestic franchised restaurants. During the quarter, Denny’s opened 14 restaurants, including 11 franchised locations and three company operated restaurants in partnership with Kwik TripTM convenience stores. Franchisees closed four restaurants, bringing the total number of restaurants to 1,710.

Denny’s total operating revenue of $124.0 million decreased by $4.7 million due to an additional operating week in the prior year.  Excluding this impact, total operating revenue would have increased $6.0 million, or 5.1%, primarily from the growth in same-store sales and the opening of new company restaurants, including the full-year impact of the Las Vegas Casino Royale restaurant which reopened in late 2014, and acquisition of three franchised locations.

The additional operating week in 2014 added approximately $8.3 million of company restaurant sales and $2.4 million of franchise and licensing revenue,$3.6 million of additional operating income, and $2.2 million of additional net income.  Company restaurant and franchise operating margins increased approximately $2.0 million and $2.2 million, respectively, with additional general and administrative expenses of approximately $0.6 million.

Franchise operating margin was $24.3 million, or 69.9% of franchise and licensing revenue.  The $0.9 million decrease was primarily due to the additional operating week in the prior year, which was partially offset by an increase in royalties.  Company restaurant operating margin was $13.5 million, or 15.2% of company restaurant sales.  The 0.4 percentage point decrease was primarily due to higher incentive compensation, increased commodity costs, and the additional operating week in the prior year, partially offset by the growth in same-store sales, favorable workers’ compensation costs, and the reopening of the Las Vegas Casino Royale restaurant.

Total general and administrative expenses of $16.8 million improved $0.5 million compared to the prior year quarter primarily due to a reduction in share-based compensation, partially offset by additional incentive and deferred compensation and payroll and benefits expenses.  Depreciation and amortization expense of $5.7 million was up by $0.2 million.  Interest expense of $2.6 million was up by $0.3 million due to additional outstanding debt.  Denny’s ended the fourth quarter with $215.7 million of total debt outstanding, including $195.0 million of borrowings under its revolving credit facility. The provision for income taxes was $3.7 million, reflecting an effective tax rate of 29.9%.  Due to the use of net operating loss and tax credit carryforwards, the Company paid $0.4 million in cash taxes during the quarter.

Denny's net income of $8.8 million, or $0.11 per diluted share, decreased compared to prior year quarter net income of $9.7 million, or $0.11 per diluted share, primarily due to the additional operating week in the prior year.  Adjusted Net Income per Share* of $0.11 increased 28.2% compared to the prior year quarter when excluding the additional operating week in the prior year.

Free Cash Flow* and Capital Allocation

Denny’s generated $7.1 million of Free Cash Flow* in the quarter after investing $12.0 million to remodel 14 company restaurants, acquire a franchised restaurant, and purchase a parcel of real estate.  During the year, the Company allocated $105.8 million towards share repurchases including the $50 million accelerated share repurchase agreement announced in November 2015.  A total of 8.5 million shares were acquired during the year with 5.1 million shares acquired during the fourth quarter.  As of December 30, 2015, the Company had approximately $38 million remaining under a $100 millionauthorized share repurchase program.

Pension Plan Liquidation

The Company anticipates that its Advantica Pension Plan will be liquidated by the end of the second quarter of 2016.  The Advantica Pension Plan was closed to new participants at the end of 1999.  The Company expects to record an operating loss of approximately $24.0 million and make a required contribution of approximately $9.4 million as a result of the liquidation during the second quarter.

Business Outlook

Mark Wolfinger, Denny's Executive Vice President, Chief Administrative Officer, and Chief Financial Officer, commented, “Our continued strong performance driven by our same-store sales growth enabled us to grow our revenue, margins, and profitability, while making investments in our support systems and company restaurants.  Our highly franchised business generated $42.3 million of Free Cash Flow* after accelerating remodels at company restaurants and acquiring franchised restaurants and real estate. Our annual guidance for 2016 anticipates continued same-store sales growth and ongoing investments in company restaurant remodels. As a result, we are expecting to grow our Adjusted EBITDA* 4% to 7% and generate between $59 and $62 million of Free Cash Flow*."

The following full year 2016 estimates are based on management’s expectations at this time and exclude any impact from the liquidation of the Advantica Pension Plan.

Same-store sales growth at company restaurants between 1.5% and 2.5% with same-store sales growth at domestic franchised restaurants between 1% and 2%.

44 to 48 new restaurant openings, including one company operated opening in partnership with Kwik TripTM convenience stores, with net restaurant growth of 5 to 10 restaurants.

Total operating revenue between $501 and $506 million with franchise and licensing revenue between $140 and $141 million.

Company margin between 16% and 17% with franchise margin between 68.5% and 69%.

Total general and administrative expenses between $64 and $67 million.

Adjusted EBITDA* between $92 and $95 million.

Depreciation and amortization expense between $21.5 and $22 million.

Net interest expense between $11 and $11.5 million.

Effective income tax rate between 33% and 37% with $3 to $5 million of cash taxes.

Cash capital expenditures between $18 and $20 million including completion of approximately 25 remodels at company restaurants, opening of one new company restaurant, and scrape and rebuild of a company restaurant.

Free Cash Flow* between $59 and $62 million. 

*  Adjusted Net Income excludes debt refinancing charges, impairment charges, and gains on sales of assets and other.  Please refer to the historical reconciliation of Net Income to Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA, and Free Cash Flow included in the following tables.

Conference Call and Webcast Information

Denny’s will provide further commentary on the results for the fourth quarter and full year ended December 30, 2015 on its quarterly investor conference call today, Wednesday, February 17, 2016 at 4:30 p.m. Eastern Time.  Interested parties are invited to listen to a live broadcast of the conference call accessible through the investor relations section of Denny’s website at investor.dennys.com.  A replay of the call may be accessed at the same location later in the day and will remain available for 30 days.

About Denny’s

Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants.  As of December 30, 2015, Denny’s had 1,710 franchised, licensed, and company restaurants around the world with combined sales of $2.7 billion including 111 restaurants in Canada, Puerto Rico, New Zealand, Mexico, Costa Rica, Dominican Republic, Honduras, Guam, the United Arab Emirates, Chile, Curaçao, and El Salvador, and 164 company operated restaurants in the United States.  For further information on Denny's, including news releases, links to SEC filings, and other financial information, please visit the Denny's investor relations website at investor.dennys.com.

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release.  In addition, certain matters discussed in this release may constitute forward-looking statements.  These forward-looking statements, which reflect its best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements.  Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, and variations of such words and similar expressions are intended to identify such forward-looking statements.  Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.  Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others:  competitive pressures from within the restaurant industry; the level of success of our operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses, such as avian flu, or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment (including acts of war and terrorism); and other factors from time to time set forth in the Company’s SEC reports and other filings, including but not limited to the discussion in Management’s Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (and in the Company’s subsequent quarterly reports on Form 10-Q).

DENNY’S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
             
(In thousands) 12/30/15   12/31/14
Assets      
  Current assets      
    Cash and cash equivalents $ 1,671     $ 3,074  
    Receivables 16,552     18,059  
    Assets held for sale 931      
    Current deferred income taxes     24,310  
    Other current assets 17,260     10,628  
      Total current assets 36,414     56,071  
  Property, net 124,816     109,777  
  Goodwill 33,454     31,451  
  Intangible assets, net 46,074     46,278  
  Noncurrent deferred income taxes 29,159     19,252  
  Other noncurrent assets 27,120     27,029  
      Total assets $ 297,037     $ 289,858  
             
Liabilities      
  Current liabilities      
    Current maturities of long-term debt $     $ 4,125  
    Current maturities of capital lease obligations 3,246     3,609  
    Accounts payable 20,759     13,250  
    Other current liabilities 77,548     59,432  
      Total current liabilities 101,553     80,416  
  Long-term liabilities      
    Long-term debt, less current maturities 195,000     135,875  
    Capital lease obligations, less current maturities 17,499     15,204  
    Other 43,580     56,780  
      Total long-term liabilities 256,079     207,859  
      Total liabilities 357,632     288,275  
             
Shareholders' equity      
    Common stock 1,065     1,058  
    Paid-in capital 565,364     571,674  
    Deficit (402,245 )   (438,221 )
    Accumulated other comprehensive loss, net of tax (23,777 )   (24,602 )
    Treasury stock (201,002 )   (108,326 )
      Total shareholders' (deficit) equity (60,595 )   1,583  
      Total liabilities and shareholders' equity $ 297,037     $ 289,858  
             
Debt Balances
(In thousands) 12/30/15   12/31/14
Credit facility revolver due 2020 $ 195,000     $  
Credit facility term loan and revolver due 2018     140,000  
Capital leases 20,745     18,813  
  Total debt $ 215,745     $ 158,813  

 

DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
           
      Quarter Ended
(In thousands, except per share amounts) 12/30/15   12/31/14
Revenue:      
  Company restaurant sales $ 89,183     $ 91,415  
  Franchise and license revenue 34,842     37,314  
    Total operating revenue 124,025     128,729  
Costs of company restaurant sales 75,639     77,183  
Costs of franchise and license revenue 10,502     12,122  
General and administrative expenses 16,831     17,284  
Depreciation and amortization 5,712     5,514  
Operating (gains), losses and other charges, net         644     221  
    Total operating costs and expenses, net 109,328     112,324  
Operating income 14,697     16,405  
Interest expense, net 2,605     2,302  
Other nonoperating income, net (399 )   (147 )
Net income before income taxes 12,491     14,250  
Provision for income taxes 3,732     4,572  
Net income $ 8,759     $ 9,678  
           
           
Basic net income per share $ 0.11     $ 0.11  
Diluted net income per share $ 0.11     $ 0.11  
           
Basic weighted average shares outstanding 78,650     84,765  
Diluted weighted average shares outstanding 80,783     87,136  
           
Comprehensive income $ 10,828     $ 2,214  
           
General and Administrative Expenses Quarter Ended
(In thousands) 12/30/15   12/31/14
Share-based compensation $ 1,130     $ 2,853  
Other general and administrative expenses 15,701     14,431  
  Total general and administrative expenses $ 16,831     $ 17,284  

 

DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
           
      Fiscal Year Ended
(In thousands, except per share amounts) 12/30/15   12/31/14
Revenue:      
  Company restaurant sales $ 353,073     $ 334,684  
  Franchise and license revenue 138,220     137,611  
    Total operating revenue 491,293     472,295  
Costs of company restaurant sales 294,357     288,808  
Costs of franchise and license revenue 43,345     44,761  
General and administrative expenses 66,602     58,907  
Depreciation and amortization 21,472     21,218  
Operating (gains), losses and other charges, net     2,366     1,270  
    Total operating costs and expenses, net 428,142     414,964  
Operating income 63,151     57,331  
Interest expense, net 9,283     9,182  
Other nonoperating expense (income), net 139     (612 )
Net income before income taxes 53,729     48,761  
Provision for income taxes 17,753     16,036  
Net income $ 35,976     $ 32,725  
           
           
Basic net income per share $ 0.44     $ 0.38  
Diluted net income per share $ 0.42     $ 0.37  
           
Basic weighted average shares outstanding 82,627     86,323  
Diluted weighted average shares outstanding 84,729     88,355  
           
Comprehensive income $ 36,801     $ 24,965  
       
General and Administrative Expenses Fiscal Year Ended
(In thousands) 12/30/15   12/31/14
Share-based compensation $ 6,635     $ 5,846  
Other general and administrative expenses 59,967     53,061  
  Total general and administrative expenses $ 66,602     $ 58,907  

 

DENNY’S CORPORATION
Income, EBITDA, Free Cash Flow, and Net Income Reconciliations
(Unaudited)
                   
Income, EBITDA and Free Cash Flow Reconciliation Quarter Ended   Fiscal Year Ended
(In thousands) 12/30/15   12/31/14   12/30/15   12/31/14
Net income $ 8,759     $ 9,678     $ 35,976     $ 32,725  
Provision for income taxes 3,732     4,572     17,753     16,036  
Operating (gains), losses and other charges, net 644     221     2,366     1,270  
Other nonoperating (income) expense, net (399 )   (147 )   139     (612 )
Share-based compensation 1,130     2,853     6,635     5,846  
Adjusted Income Before Taxes (1) $ 13,866     $ 17,177     $ 62,869     $ 55,265  
               
Interest expense, net 2,605     2,302     9,283     9,182  
Depreciation and amortization 5,712     5,514     21,472     21,218  
Cash payments for restructuring charges and exit costs                   (259 )   (479 )   (1,475 )   (2,036 )
Cash payments for share-based compensation         (3,440 )   (1,083 )
Adjusted EBITDA (1) $ 21,924     $ 24,514     $ 88,709     $ 82,546  
               
Cash interest expense, net (2,348 )   (2,049 )   (8,299 )   (8,139 )
Cash paid for income taxes, net (448 )   (732 )   (5,364 )   (3,802 )
Cash paid for capital expenditures (12,018 )   (4,196 )   (32,780 )   (22,076 )
Free Cash Flow (1) $ 7,110     $ 17,537     $ 42,266     $ 48,529  
               
Net Income Reconciliation Quarter Ended   Fiscal Year Ended
(In thousands) 12/30/15   12/31/14   12/30/15   12/31/14
Net income $ 8,759     $ 9,678     $ 35,976     $ 32,725  
Gains on sales of assets and other, net (50 )   (38 )   (93 )   (112 )
Impairment charges 264     53     935     401  
Loss on debt refinancing         293      
Tax effect (2) (71 )   (5 )   (375 )   (95 )
Adjusted Net Income (1) $ 8,902     $ 9,688     $ 36,736     $ 32,919  
               
Diluted weighted-average shares outstanding 80,783     87,136     84,729     88,355  
               
Adjusted Net Income Per Share (1) $ 0.11     $ 0.11     $ 0.43     $ 0.37  
                               
(1) The Company believes that, in addition to other financial measures, Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share are appropriate indicators to assist in the evaluation of its operating performance on a period-to-period basis. The Company also uses Adjusted Income, Adjusted EBITDA and Free Cash Flow internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including bonuses for certain employees. Adjusted EBITDA is also used to evaluate its ability to service debt because the excluded charges do not have an impact on its prospective debt servicing capability and these adjustments are contemplated in its credit facility for the computation of its debt covenant ratios. Free Cash Flow, defined as Adjusted EBITDA less cash portion of interest expense net of interest income, capital expenditures, and cash taxes, is used to evaluate operating effectiveness and decisions regarding the allocation of resources. However, Adjusted Income, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles.
 
(2) Tax adjustments for the three months and year ended December 30, 2015 are calculated using the Company's year-to-date effective tax rate of 33.0%. Tax adjustments for the three months and year ended December 31, 2014 are calculated using the Company's 2014 year-to-date effective tax rate of 32.9%.
 

 

DENNY’S CORPORATION
Operating Margins
(Unaudited)
             
        Quarter Ended
(In thousands) 12/30/15   12/31/14
Company restaurant operations: (1)          
  Company restaurant sales $ 89,183   100.0 %   $ 91,415   100.0 %
  Costs of company restaurant sales:          
    Product costs 23,051   25.8 %   23,551   25.8 %
    Payroll and benefits 35,508   39.8 %   35,696   39.0 %
    Occupancy 5,471   6.1 %   5,400   5.9 %
    Other operating costs:          
      Utilities 3,041   3.4 %   3,529   3.9 %
      Repairs and maintenance 1,521   1.7 %   1,543   1.7 %
      Marketing 2,679   3.0 %   3,326   3.6 %
      Other 4,368   4.9 %   4,138   4.5 %
  Total costs of company restaurant sales $ 75,639   84.8 %   $ 77,183   84.4 %
  Company restaurant operating margin (2) $ 13,544   15.2 %   $ 14,232   15.6 %
                 
Franchise operations: (3)          
  Franchise and license revenue:          
    Royalties $ 23,896   68.6 %   $ 24,524   65.7 %
    Initial fees 819   2.3 %   1,053   2.8 %
    Occupancy revenue 10,127   29.1 %   11,737   31.5 %
  Total franchise and license revenue $ 34,842   100.0 %   $ 37,314   100.0 %
                 
  Costs of franchise and license revenue:          
    Occupancy costs $ 7,172   20.6 %   $ 8,361   22.4 %
    Other direct costs 3,330   9.5 %   3,761   10.1 %
  Total costs of franchise and license revenue $ 10,502   30.1 %   $ 12,122   32.5 %
  Franchise operating margin (2) $ 24,340   69.9 %   $ 25,192   67.5 %
                 
Total operating revenue (4) $ 124,025   100.0 %   $ 128,729   100.0 %
Total costs of operating revenue (4) 86,141   69.5 %   89,305   69.4 %
Total operating margin (4)(2) $ 37,884   30.5 %   $ 39,424   30.6 %
                 
Other operating expenses: (4)(2)          
  General and administrative expenses $ 16,831   13.6 %   $ 17,284   13.4 %
  Depreciation and amortization 5,712   4.6 %   5,514   4.3 %
  Operating gains, losses and other charges, net 644   0.5 %   221   0.2 %
  Total other operating expenses $ 23,187   18.7 %   $ 23,019   17.9 %
                 
Operating income (4) $ 14,697   11.9 %   $ 16,405   12.7 %
                 
(1)  As a percentage of company restaurant sales.
(2)  Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
(3)  As a percentage of franchise and license revenue.
(4)  As a percentage of total operating revenue.

 

DENNY’S CORPORATION
Operating Margins
(Unaudited)
             
        Fiscal Year Ended
(In thousands) 12/30/15   12/31/14
Company restaurant operations: (1)          
  Company restaurant sales $ 353,073   100.0 %   $ 334,684   100.0 %
  Costs of company restaurant sales:          
    Product costs 89,660   25.4 %   86,825   25.9 %
    Payroll and benefits 136,626   38.7 %   133,280   39.8 %
    Occupancy 20,443   5.8 %   20,845   6.2 %
    Other operating costs:          
      Utilities 12,866   3.6 %   13,915   4.2 %
      Repairs and maintenance 6,017   1.7 %   5,971   1.8 %
      Marketing 12,527   3.5 %   12,329   3.7 %
      Other 16,218   4.6 %   15,643   4.7 %
  Total costs of company restaurant sales $ 294,357   83.4 %   $ 288,808   86.3 %
  Company restaurant operating margin (2) $ 58,716   16.6 %   $ 45,876   13.7 %
                 
Franchise operations: (3)          
  Franchise and license revenue:          
    Royalties $ 94,755   68.6 %   $ 90,835   66.0 %
    Initial fees 2,478   1.8 %   1,893   1.4 %
    Occupancy revenue 40,987   29.6 %   44,883   32.6 %
  Total franchise and license revenue $ 138,220   100.0 %   $ 137,611   100.0 %
                 
  Costs of franchise and license revenue:          
    Occupancy costs $ 30,416   22.0 %   $ 33,134   24.1 %
    Other direct costs 12,929   9.4 %   11,627   8.4 %
  Total costs of franchise and license revenue $ 43,345   31.4 %   $ 44,761   32.5 %
  Franchise operating margin (2) $ 94,875   68.6 %   $ 92,850   67.5 %
                 
Total operating revenue (4) $ 491,293   100.0 %   $ 472,295   100.0 %
Total costs of operating revenue (4) 337,702   68.7 %   333,569   70.6 %
Total operating margin (4)(2) $ 153,591   31.3 %   $ 138,726   29.4 %
                 
Other operating expenses: (4)(2)          
  General and administrative expenses $ 66,602   13.6 %   $ 58,907   12.5 %
  Depreciation and amortization 21,472   4.4 %   21,218   4.5 %
  Operating gains, losses and other charges, net 2,366   0.5 %   1,270   0.3 %
  Total other operating expenses $ 90,440   18.4 %   $ 81,395   17.2 %
                 
Operating income (4) $ 63,151   12.9 %   $ 57,331   12.1 %
                 
(1)  As a percentage of company restaurant sales.
(2)  Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
(3)  As a percentage of franchise and license revenue.
(4)  As a percentage of total operating revenue.
 

 

DENNY’S CORPORATION
Statistical Data
(Unaudited)
                   
Same-Store Sales Quarter Ended   Fiscal Year Ended
(increase vs. prior year) 12/30/15   12/31/14   12/30/15   12/31/14
  Company Restaurants 3.5 %   5.8 %   6.5 %   4.2 %
  Domestic Franchised Restaurants 2.8 %   4.6 %   5.7 %   2.5 %
  Domestic System-wide Restaurants       2.9 %   4.7 %   5.8 %   2.8 %
  System-wide Restaurants 2.0 %   4.4 %   4.9 %   2.5 %
                   
Average Unit Sales Quarter Ended   Fiscal Year Ended
(In thousands) 12/30/15   12/31/14   12/30/15   12/31/14
  Company Restaurants $ 557     $ 572     $ 2,217     $ 2,100  
  Franchised Restaurants $ 394     $ 409     $ 1,579     $ 1,506  
                   
          Franchised        
Restaurant Unit Activity Company    & Licensed   Total    
Ending Units September 30, 2015 161     1,539     1,700      
  Units Opened 3     11     14      
  Units Reacquired 1     (1 )        
  Units Refranchised (1 )   1          
  Units Closed     (4 )   (4 )    
    Net Change 3     7     10      
Ending Units December 30, 2015 164     1,546     1,710      
                   
Equivalent Units              
  Fourth Quarter 2015 160     1,543     1,703      
  Fourth Quarter 2014 160     1,533     1,693      
    Net Change     10     10      
                   
          Franchised        
Restaurant Unit Activity Company    & Licensed   Total    
Ending Units December 31, 2014 161     1,541     1,702      
  Units Opened 3     42     45      
  Units Reacquired 3     (3 )        
  Units Refranchised (1 )   1          
  Units Closed (2 )   (35 )   (37 )    
    Net Change 3     5     8      
Ending Units December 30, 2015 164     1,546     1,710      
                   
Equivalent Units              
  Year-to-Date 2015 159     1,538     1,697      
  Year-to-Date 2014 159     1,534     1,693      
    Net Change     4     4      

SOURCE Denny's Corporation

Contacts:

Whit Kincaid
Investor Relations
877-784-7167

Kristina Jorge
ICR, Media Relations
646-277-1226

 

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