Denny’s Corporation Earnings: Inflation Eating Into Results

Denny’s Corporation (NASDAQ:DENN) reported its results for the first quarter. Denny's Corporation operates a family-style restaurant chains in America. It through its wholly owned subsidiaries, Denny's Holdings, Inc. and Denny's, Inc., owns and operates the Denny's restaurant brand.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

Denny’s Earnings Cheat Sheet for the First Quarter

Results: Net income for the restaurant fell to $4.1 million (4 cents/share) vs. $4.6 million (5 cents/share) a year earlier. A decline of 10.1% from the year earlier quarter.

Revenue: Fell 1.3% to $135.8 million YoY.

Actual vs. Wall St. Expectations: DENN fell short of the mean analyst estimate of 7 cents/share. Estimates ranged from 5 cents per share to 9 cents per share.

Quoting Management: John Miller, President and Chief Executive Officer, stated, “Denny’s continued to build on the positive achievements realized in the second half of 2010. In the first quarter, same-store guest trends continued to improve as we executed on our marketing strategies that emphasize everyday affordability combined with attractive “Limited Time Offers.” We are pleased that our efforts resulted in continued progress despite inflationary pressures and economic uncertainty impacting our customers. In addition, we opened 18 new units in the quarter after completing a company record opening of 136 new unit openings last year.”

Key Stats:

Net income has dropped 26.2% year over year on average across the last five quarters. Performance was hurt by an 84.7% decline in the fourth quarter of the last fiscal year from the year earlier quarter.

Over the last five quarters, revenue has fallen an average of 7.8% year over year. The biggest drop came in the first quarter of the last fiscal year, when revenue fell 17% from the year earlier quarter.

Competitors to Watch: DineEquity, Inc. (NYSE:DIN), Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), Bob Evans Farms, Inc. (NASDAQ:BOBE), Biglari Holdings Inc (NYSE:BH), Mexican Restaurants, Inc. (CASA), O’Charley’s Inc. (NASDAQ:CHUX), Famous Dave’s of America, Inc. (NASDAQ:DAVE), Landry’s Restaurants, Inc (LNY), Morton’s Restaurant Group, Inc. (NYSE:MRT), and Flanigan’s Enterprises, Inc. (AMEX:BDL)

Stock Performance: Shares of DENN are unchanged at $4.04 at after hours trading.

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!