Denny’s Corp. Earnings: Misses Estimates
Denny’s Corporation (NASDAQ:DENN) reported its results for the third 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 Corporation Earnings Cheat Sheet
Results: Net income for Denny’s Corporation fell to $5.4 million (6 cents per share) vs. $8 million (8 cents per share) a year earlier. This is a decline of 32.8% from the year-earlier quarter.
Revenue: Fell 11.5% to $120.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Denny’s Corporation fell short of the mean analyst estimate of 9 cents per share. It fell short of the average revenue estimate of $127.9 million.
Quoting Management: John Miller, President and Chief Executive Officer, stated, “We are pleased that we achieved our sixth consecutive quarter of positive system-wide same-store sales despite the ongoing challenging consumer economic environment. We continue to grow and revitalize the brand and are making progress in our efforts to differentiate Denny’s in the market place. As Denny’s approaches its 60th anniversary and 1,700th location, we believe that Denny’s will grow its position as one of the largest American full-service brands in the world. Our recent partnership to open units in South America is another step toward that goal. By executing on our strategies to further reinforce our position as America’s Diner, we will build on our efforts to grow the brand and increase shareholder value.”
Revenue has fallen for the last four quarters. Revenue declined 8.2% to $124.7 million in the second quarter. The figure fell 6.7% in the first quarter from the year earlier and dropped 4.2% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 43.4% from the year-earlier quarter.
The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 4 cents, and in the first quarter, it was ahead by one cent.
Looking Forward: Expectations for the fourth quarter have not changed from 8 cents. For the fiscal year, the average estimate has moved up from 28 cents a share to 30 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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