SPARTANBURG s.c. Denny’s Corp. reported on Monday a 2.8-percent drop in its systemwide same-store sales for the second quarter ended June 25.
The 2.8-percent decrease reflected drops of 0.7 percent in same-store sales at company units and 3.7 percent at franchised units, Denny's said. At company stores, a 6.7-percent drop in customer traffic offset a 6.4-percent hike in check averages, Denny's reported.
The family-dining company also reported that it expected adjusted income before taxes for the second quarter to total $5 million to $5.5 million, compared with $1.5 million in the year-ago quarter. The improved figure is a result of higher-margin franchise business, improved menu management and decreased interest and depreciation expenses, Denny's said.
Revenue for the second quarter is expected to total $190.0 million, compared with $240.9 million a year ago. Denny's said the drop is due mainly to the sale of 137 company restaurants to franchisees over the past year.
Denny's, which operates or franchises more than 1,500 units, said it expects to report full second-quarter results on July 29.