Denny’s Corp. reported Monday a domestic systemwide same-store sales increase of 7.2 percent for the first quarter ended April 1.
Same-store sales rose 7.6 percent at domestic company locations and increased 7.1 percent at domestic franchised units, the company said.
Net income for the quarter increased nearly 33 percent, to $8.5 million, or 10 cents per share, compared with $6.4 million, or 7 cents per share, a year ago.
Adjusting for debt refinancing charges, impairment and other expense and gains on the sale of assets, net income increased 41 percent, to $8.7 million.
Revenue grew 7.4 percent, to $120.2 million, compared with $111.9 million a year ago.
“We are very pleased to start the year with the strongest quarter of same-store sales in more than a decade, including growth in guest traffic,” John Miller, Denny’s president and CEO, said in a statement.
“We are benefiting from solid execution of our brand revitalization strategy focused on elevating food, service and atmosphere, which is resonating with our guests,” he continued. “Although we have made remarkable progress to date, due to our dedicated franchisees, employees and partners, we believe we are still in the early stages of our strategy with key initiatives like our Heritage remodel program penetrating less than 20 percent of our system. Going forward, we remain committed to driving long-term shareholder value by consistently growing the profitability of our highly franchised business primarily through consistent, sustainable same-store sales and traffic growth.”
The chain ended the quarter with 1,694 locations. Another 35 to 45 franchised locations are expected to open in 2015.
The company upgraded its guidance for the year, saying company same-store sales will range between 3.5 percent and 4.5 percent, despite the 52 operating weeks in the year, compared with the 53-week in 2014. Previous guidance was for an increase between 2.5 percent and 4 percent.
For domestic franchise locations, the company said same-store sales will increase between 2.5 percent and 3.5 percent. Earlier projections were for a range of 1.5 percent to 3 percent.
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