Denny’s Corp Earnings: Beats Forecasts

Denny’s Corporation (NASDAQ:DENN) reported net income above Wall Street’s expectations for the fourth quarter. Denny’s operates a family-style restaurant chains in America. The company, through its wholly-owned subsidiaries, Denny’s Holdings and Denny’s, owns and operates the Denny’s restaurant brand.

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Denny’s Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Denny’s Corporation rose to $92 million (94 cents per share) vs. $2.7 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Fell 4.2% to $130.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Denny’s Corporation beat the mean analyst estimate of 8 cents per share. Analysts were expecting revenue of $131.4 million.

Quoting Management: John Miller, President and Chief Executive Officer, stated, “In 2011 Denny’s made great progress as we generated positive same-store sales and guest counts overcoming the ongoing challenging consumer economic environment. This is a testament to the success of our positioning as America’s favorite diner, emphasizing everyday affordability with attractive Limited Time Only products. We are encouraged about the progress we have made thus far. We will continue to work closely with our franchisees to maintain the growth in new units, sales and profitability, while generating additional free cash flow to further strengthen our balance sheet and repurchase shares in our efforts to increase long-term shareholder value.”

Key Stats:

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 10 cents per share.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 2.3% to $136.7 million from the year earlier quarter.

From the third quarter, the company’s current liabilities rose to $360.2 million from $84.5 million.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 8 cents a share to 7 cents over the last sixty days. For the fiscal year, the average estimate has been unchanged at 32 cents a share.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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