Denny’s Corp. upgraded its outlook on Monday after reporting a nearly 18-percent increase in net income for its July 1-ended second quarter.
Net income was $9.7 million, or 11 cents per diluted share, for the quarter, compared with $8.3 million, or 9 cents per diluted share, a year ago.
Domestic systemwide same-store sales were up 7.3 percent, including a 7.9 percent increase at company-owned locations and a 7.2 percent increase at franchised units.
Revenue grew 7.6 percent to $123.3 million, compared with $114.6 million a year ago.
“We generated another quarter of strong same-store sales growth at both franchised and company restaurants, including our third consecutive quarter of growth in systemwide guest traffic,” said John Miller, Denny’s president and CEO.
“We are benefitting from the investments we have made in our brand revitalization strategy to enhance our food, service and atmosphere. Our success in driving profitable guest traffic growth and increasing guest satisfaction scores confirm that the improvements we have made are resonating with our guests, franchisees and employees.”
Going forward, Miller added, “We will remain focused on executing our strategies to elevate the Denny’s experience.”
The company’s remodel program is still in early stages, with only about 25 percent of the system reimaged with the new “heritage” design.
For the year, the company projected domestic same-store sales would increase between 5 percent to 6 percent for franchise units, and between 5.5 percent to 6.5 percent for company locations. Earlier projections included a range of 2.5 percent to 3.5 percent for domestic franchise units, and 3.5 percent to 4.5 percent for company owned restaurants.
During the quarter, 13 franchise restaurants opened, including four international units, and 11 units closed, including one corporate location, bringing the total number to 1,696.
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