Performance of company-owned units boosts Denny’s 3Q results

Performance of company-owned units boosts Denny’s 3Q results

Family-dining chain sees key sales figure rise despite hurricane effects

Denny’s Corp. notched marginal same-store sales growth in the third quarter ended Sept. 27, the company announced late Wednesday.

Same-store sales rose 0.6% even while factoring in the effects of hurricanes Harvey, Irma and Maria, which affected about 220 Denny’s locations throughout four states and Puerto Rico.

All continental U.S. Denny’s locations except one have returned to operation following the hurricanes, but only eight of 13 restaurants in Puerto Rico are currently open; those eight are currently on a limited schedule.

Total operating revenue at the family-dining brand increased 3.1% to $132.4 million in the quarter compared to a year earlier, which Chief Financial Officer Mark Wolfinger attributed to company-owned restaurants.

But net income fell by about 4% to $9.3 million compared to $9.7 million a year earlier. Earnings of $0.13 per diluted share were flat year over year. 

Five months into its 24-hour delivery rollout, the South Carolina-based chain’s chief executive indicated he’s pleased with the initiative’s progress thus far.

“Transactions through our new mobile online ordering platforms, which we built in partnership with dispatched delivery network company, Olo, have contributed approximately $12 million in sales to-date towards the growth in our off-premises business,” said CEO John Miller.

Miller added that the late-night and dinner daypart is seeing traction with the 18- to 34-year-old demographic.

Denny’s ended the third quarter with 1,725 restaurants worldwide, adding nine locations during the period.

Contact Dan Orlando at [email protected]

Follow him on Twitter: @DanAMX

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