Denny’s Corporation (NASDAQ:DENN) reported its results for the second 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.
Denny’s Earnings Cheat Sheet for the Second Quarter
Results: Net income for Denny’s Corporation rose to $8.1 million (8 cents per share) vs. $5.5 million (5 cents per share) in the same quarter a year earlier. This marks a rise of 48.4% from the year earlier quarter.
Revenue: Rose 0.6% to $135.9 million from the year earlier quarter.
Actual vs. Wall St. Expectations: DENN fell in line with the mean analyst estimate of 8 cents per share. Analysts were expecting revenue of $135.1 million.
Quoting Management: John Miller, President and Chief Executive Officer, stated, “Denny’s positive same-store sales and guest counts are a testament to the success of our current market strategies, emphasizing everyday affordability with attractive Limited Time Only products. We are especially pleased that we can achieve an increase in sales and profitability despite significant headwinds coming from inflationary pressures and the challenging consumer economic environment.”
Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the first quarter, net income fell 10.1% from the year earlier, while the figure fell 84.7% in the fourth quarter of the last fiscal year, 1% in the third quarter of the last fiscal year and 41.5% in the second quarter of the last fiscal year.
A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 13.3% decrease.
The company fell in line with estimates last quarter after missing forecasts in the previous quarter with net income of 6 cents versus a mean estimate of net income of 7 cents per share.
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), Chipotle (NYSE:CMG), McDonald’s (NYSE:MCD), O’Charley’s Inc. (NASDAQ:CHUX), Famous Dave’s of America, Inc. (NASDAQ:DAVE), Starbucks (NASDAQ:SBUX), Darden Restaurants (NYSE:DRI), Morton’s Restaurant Group, Inc. (NYSE:MRT), and Flanigan’s Enterprises, Inc. (AMEX:BDL).
(Source: Xignite Financials)