Denny’s Corp. reported net income slipped 9.5 percent in the fourth quarter Dec. 30, impacted by one less operating week in the quarter than in the year before, the company reported Wednesday.
The Spartanburg, S.C.-based family-dining chain reported income of $8.8 million, or 11 cents a share, down from $9.7 million, or 11 cents a share, in the same quarter a year ago. Revenue was down 3.7 percent, to $124 million, from $128.7 million in the same period last year.
Domestic systemwide same-store sales grew 2.9 percent in the quarter, up 3.5 percent at company-owned restaurants and 2.8 percent at domestic franchised units.
“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,” said John Miller, Denny’s president and CEO, in a statement.
Denny’s has been introducing a new “Heritage” design to its 1,710-restaurant system, which Miller said would be improving same-store sales.
“With only 32 percent of the system reflecting the Heritage image at the end of 2015, we are still in the early stages of our revitalization,” Miller said. “We currently anticipate over 70 percent of the system will have the Heritage image by the end of 2018.”
The company updated guidance for the 2016 fiscal year, saying it expected same-store sales growth at company units in the range of 1.5 percent to 2.5 percent and at franchised units between 1 percent and 2 percent.
The company expects to open 44 to 48 new restaurants in 2016, including another company-operated partnership with Kwik Trip convenience stores that is to open this week. Denny’s opened three Kwik Trip-partner units last year, Miller said. Net restaurant growth is expected to be between five and 10 restaurants.
Denny’s has 111 restaurants abroad, including in Canada, Puerto Rico, New Zealand, Mexico, Costa Rica, Dominican Republic, Honduras, Guam, the United Arab Emirates, Chile, Curaçao, and El Salvador. The company’s 164 owned restaurants are in the United States.
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